Japan’s Prime Minister Fumio Kishida outlined plans to issue 20 trillion yen ($US 157 billion) in new green transition bonds, as part of a major investment push to achieve the country’s decarbonization and clean energy transition goals.

Japan has committed to reach net zero emissions by 2050, with an interim 2030 goal to reduce greenhouse gas emissions by 46% by 2030. Last year, the government unveiled plans to roughly double the share of renewable energy to 36%-38% of the energy mix by 2030, from less than 20%. 

Recent government estimates indicated that more than 150 trillion yen of public and private investment will be needed over the next decade in order to reach the country’s decarbonization goals.

In a meeting with energy experts discussing the clean energy strategy, Kishida committed to provide an investment roadmap for the coming decade, predicting that 20 trillion yen of government support would be required, and pledging to raise funds in advance in order to demonstrate the government’s commitment in an effort to encourage private investment.

According to the prime minister, the plans come as the Russian invasion of Ukraine have emphasized the need to increase energy security and shift away from reliance on fossil fuel imports.

The prime minister also discussed the consideration of implementing carbon pricing, introducing a cost for carbon emissions, which could also be used as a source of funds for the clean energy transition.

The government aims to set up a panel this summer to further develop the green transition and financing plans.

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