According to three government sources with direct knowledge of the matter at hand, the Japanese government is weighing its options to create a ($9.63 billion to $19.27 billion (1 trillion to 2 trillion yen) fund to promote investment in environment-friendly technological sectors.
The potential fund will be part of the government’s third stimulus package which could be compiled next week, which could also consist of measures to prevent the spread of the novel coronavirus and spending for disaster-proof infrastructure, said sources.
The move is one of several funds the government is considering creating, with targets including technical development in battery storage and carbon emission reduction, said sources.
Prime Minister Yoshihide Suga has pledged to make green investment a pillar of his policy agenda as Japan aims to cut greenhouse gas emissions to net zero by 2050. Japan is also considering banning the sale of new gasoline-powered cars by the mid-2030s and will instead push electric or hybrid vehicles, said national broadcaster NHK in a report.