MOE Moves to Fund Local Low Carbon Projects

The Ministry of the Environment (MOE) announced on January 11, 2013 that it plans to establish a fund to promote regional low carbon investment and allocate money in the fiscal 2013 budget proposal. After evaluating and assessing the CO2 reduction effects of economically feasible, low-carbon projects, the Japanese government will aim invest in regional citizens' funds or special purpose companies in order to encourage private investments.

The Central Environment Council under the MOE estimates that by 2030, approximately 135 trillion yen (approximately US$ 1.5 trillion) will be required as additional investment for renewable energy sources and energy conservation programs. There have been no sufficient private funds because these programs tend to be high risk with long payout time.

Government-funded programs include low-carbon projects to introduce renewable energies and to encourage energy conservation, and will aim to revitalize local communities and economy and to realize a low-carbon society.

Related JFS article:
Japanese Investment Helps Create Asia's First ESCO/Renewable Energy Fund