Japan plans to offer 210 billion yen, or $1.34 billion, to help companies that are making use of clean power to fund investments, in an effort to boost demand for renewable energy and spur growth in regional areas, said a government official in December 2025. The move underlines how Japan’s plans to aid companies using clean power are shaping policy efforts to meet clean energy targets and reduce dependence on imported fossil fuels following setbacks in wind and solar projects.
The scheme will offer funds for more than five years starting in fiscal 2026, said the director of the Green Transformation–GX policy group at the Ministry of Economy, Trade and Industry, Juntaro Shimizu. Companies that use clean power to fund investments, rely fully on decarbonized electricity, and contribute to regions where power is generated will be eligible for subsidies covering up to 50% of capital expenditure, Shimizu said. Data center operators meeting the same criteria will also qualify. The government plans to begin soliciting applications from eligible businesses in the next fiscal year.
Japan aims for renewables to account for nearly 50% of its electricity mix by fiscal year 2040, with nuclear power supplying another 20%, up from 22.9% renewables and 8.5% nuclear in fiscal year 2023. Progress toward renewable targets has slowed as offshore wind projects face rising costs and large-scale solar developments encounter local opposition. The new support measures form part of Japan’s GX 2040 vision, a national strategy integrating decarbonization and industrial policy approved by the Cabinet earlier in 2025.
As part of this framework, measures supporting Japan’s decision to aid companies using clean power will be reinforced through the creation of the GX Strategy Region system, aimed at developing new industrial clusters in areas with access to decarbonized power sources. Local governments and companies will jointly draw up plans, while the national government will select regions and provide support through subsidies and regulatory reforms. Applications from local governments are expected to open later this fiscal year, Shimizu said.
