JETRO Invest Japan Report 2023
Chapter3. Recent Government Measures Section3. Green Innovation Fund Projects

In October 2020, Japan declared that it aims to reduce GHG emissions to zero, to make Japan a carbon-neutral, decarbonized society by 2050. This goal is greatly ahead of the previous government policy and will require to significantly accelerate current efforts such as structural changes in the energy and industrial sectors, and bold investment for innovation. For this, Green Innovation Fund of nearly 3 trillion yen (as of end of July 2023) is created at the New Energy and Industrial Technology Development Organization (NEDO) to provide continuous support for 10 years to companies and other organizations that show their commitment to challenge such ambitious goals as their business issues. The purpose of this fund project is to help Japanese companies secure an advantageous position in the international competition for carbon neutrality-related markets and to strengthen industrial competitiveness.

Chart 3-3: Outline of Green Innovation Fund Projects
Support targets	Projects that have set ambitious 2030 targets (performance, cost, productivity, amount introduced, CO2 (Carbon dioxide) emissions reduction, etc.) in priority fields on which the Green Growth Strategy stipulates action plans, or in key areas where roadmaps have been laid out based on the "Basic Policy for the Realization of GX," and that can elicit commitment from participating companies. Key 22 sectors in 2023: (1) hydrogen and ammonia, (2) storage batteries, (3) iron and steel, (4) chemical, (5) cement, (6) paper and pulp , (7) automobile, (8) resource recycling, (9) housing and buildings, (10) digital investment for decarbonization, (11) aircraft, (12) zero emission ships (maritime industry), (13) bio-manufacturing, (14) renewable energy, (15) next-generation networks (grid/adjustment), (16) next-generation innovative reactors, (17) transportation (excluding ships, cars, and aviation related industries mentioned above), (18) infrastructure, (19) carbon recycled fuel (SAF(sustainable aviation fuel), synthetic fuel, synthetic methane), (20) CCS(carbon dioxide capture and storage), (21) food, agriculture, forestry and fisheries, and (22) community and lifestyle-related
Project scale and period	The main targets are projects with a total project cost (national expenditure only) of about 20 billion yen or more. However, small-scale projects below this level may be accepted if they are recognized as truly necessary, or if venture companies related to digital technology, etc., that play a role in creating new industries are expected to be active in the project. Projects for which government support is sufficient just for a short period of time are not eligible.
Eligible entity	Since eligible projects are those which include not only limited to R&D, but also includes social implementation, the main entity of the project shall be companies or other entities engaged in profit-making businesses. In addition, universities, research institutes, and technology associations engaged in the technological development necessary for social implementation are expected to participate, and the participation of SMEs and venture enterprises that play a role in creating new industries are encouraged.