Japanese governmental ministries and agencies submitted their budget requests for the national FY 2023 budget and the total amount of the general account reached about 110 TJPY. The scale of the initial budget for FY2023 is likely to exceed that of the initial budget for FY2022 (approx. 108 TJPY), which was the largest in the past. As the government aims to achieve carbon neutrality by 2050, related ministries and agencies requested budget related to decarbonization and GX (Green Transformation).

The Ministry of Economy, Trade and Industry (METI) will promote acceleration of the introduction of clean energy to realize GX. It requested an increase of budget amount to 3.4 BJPY for technology development of PV, an increase to 16.5 BJPY to support the introduction of PV power generation with the initiative of consumers, and a new request of 10 BJPY for the introduction of grid-scale storage batteries. METI also requested budget without specific amounts for “promotion of GX,” and the final request is expected to increase.

The Ministry of the Environment (MoE) doubled its request amount for the “Grant for transition to local decarbonization and promotion of renewable energy” to 40 BJPY, which will financially support local governments aiming for decarbonization until FY2030. MoE increased its budget request to expand the introduction of renewable energy (RE), including 20 BJPY for “Project to promote making renewable energy a mainstream power source/strengthening of resilience in local communities through utilization of PPA, etc.” and other projects to support the decarbonization of local communities. Joint Crediting Mechanism promotion projects are also expanded. In addition, the fiscal investment and loan to the “Organization for Supporting Decarbonization of Kabushiki Kaisha”, which operates funds to promote GX investment, was doubled to 40 BJPY, and 20 BJPY was newly requested as a government guarantee.

The Ministry of Land, Infrastructure, Transport and Tourism will enhance measures to introduce RE into public infrastructure facilities such as airports and railroads, and energy conservation measures for homes and buildings. The Ministry of Education, Culture, Sports, Science and Technology included ZEB for school facilities, and the Ministry of Agriculture, Forestry and Fisheries included introduction of RE in the promotion of the Green Food System Strategy, thus each ministry allocated budgets for decarbonization.

The list of PV and RE related budget requests by each ministry is available in the September 2022 issue of “Taiyoko Hatsuden Joho” by RTS Corporation (Japanese version is already available, English version will be available by the end of September.)

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