Featured in this podcast is Hiroshi Ugai and Ryota Sakagami. With the government’s change in decarbonization policy since last year, private firms have already started taking aggressive measures and we expect massive investment in changing the energy mix, firms’ proactive green capex, and housing investment. This decarbonization investment likely will accelerate until 2030, which could raise Japan’s economic growth rate. This would be a tailwind for construction, housing, and banks, as well as machinery and materials. That said, decarbonization could become a large external diseconomy if the Japanese economy fails to adjust smoothly, and the government should accelerate the working out details of the Green Growth Strategy and expand its financial supports.

This podcast was recorded on Oct 21, 2021.

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