Catharina Klein
Research expert covering Japan
Environmental technology in Japan - statistics & facts
Japan intends to halve its greenhouse gas emissions by 2030 and additionally aims to become carbon-neutral by 2050. To realize these climate goals, the country puts effort into investing in the development of environmental technologies. Key markets of environmental technology (envirotech), or green technology (greentech), are renewable energy, energy efficiency, sustainable mobility, sustainable waste, and water management. Environmental protection and climate change have become the biggest drivers for technological development, and the need for sustainable solutions continues to increase. Consequently, Japan's environmental research expenses continue to rise, as the field is gaining importance.
Furthermore, the market for eco-friendly vehicles continues to grow as environmental regulations on the automobile industry are strengthened. This is also reflected in the rising number of new electric vehicle sales. However, electric cars still comprise a small share of the vehicle market in Japan, as consumers are concerned about high prices, vehicle performance, and the lack of infrastructure.
Due to its growing relevance, the research costs of the Japanese greentech and sustainability market have grown in recent years. The growth of the market is driven by support from the government to improve environmental health as well as the increasing awareness of environmental and social issues. To keep its promise of becoming carbon neutral by 2050, Japan needs to further develop and utilize energy-saving and energy-efficient technologies, renewable energy, and other sustainable solutions.
Renewable energy in Japan
The term greentech is often used to refer to sustainable energy generation technologies. Japan is currently working on replacing fossil fuels with low-carbon energies such as nuclear energy and renewables. The country steadily expanded its electricity production from renewables, increasing the share to over 21 percent. Solar power and hydropower represent the largest renewable energy sources. A further increase in hydropower capacity is hardly possible since the potential is almost fully developed. Therefore, Japan currently focuses its investments in solar and wind power. Since the mountainous island nation has limited land area, these markets will center on floating solar panels as well as offshore wind farms with floating turbines.Other major environmental technologies in Japan
The number of newly built zero-energy houses in Japan continues to increase. Such houses only consume as much energy as can be produced with renewable resources onsite. Advanced insulation helps to reduce the need for heating or cooling and thus lowers the overall energy demand. Smart homes including the segment of energy management were forecast to increase as well. They include systems that monitor and control home attributes such as lighting and temperature, which can be used for energy-saving measures. Both in homes as well as the manufacturing industry, the implementation of Internet of Things (IoT) devices increasingly aid in effective energy management.Furthermore, the market for eco-friendly vehicles continues to grow as environmental regulations on the automobile industry are strengthened. This is also reflected in the rising number of new electric vehicle sales. However, electric cars still comprise a small share of the vehicle market in Japan, as consumers are concerned about high prices, vehicle performance, and the lack of infrastructure.
Due to its growing relevance, the research costs of the Japanese greentech and sustainability market have grown in recent years. The growth of the market is driven by support from the government to improve environmental health as well as the increasing awareness of environmental and social issues. To keep its promise of becoming carbon neutral by 2050, Japan needs to further develop and utilize energy-saving and energy-efficient technologies, renewable energy, and other sustainable solutions.
