Japanese corporations that export decarbonization technologies may be eligible to receive an export guarantee of up to a 100%. In order to achieve 1 trillion yen in decarbonization technology exports over the next five years, the Ministry of Economy, Trade and Industry (METI) and Nippon Export and Investment Insurance (NEXI) will establish a new export guarantee system to reduce companies’ risk of business interruption due to COVID-19 and other causes. Economic Minister Hiroshi Kajiyama will announce the new initiative soon.
Until now, exporters were offered a guarantee of up to 90%. However, the export of decarbonization technologies typically involves a large amount of money, especially amid the coronavirus pandemic. The government decided that reducing the risk by offering a full guarantee is necessary for the companies to increase their exports.
The new system will be applied to projects in four areas: exports of and investments in decarbonization technologies, such as offshore wind power and hydrogen power; projects that strengthen ties with resource-rich countries; digitalization-related projects; and community-oriented projects involving the UN’s Sustainable Development Goals.
Prime Minister Yoshihide Suga has pledged Japan will achieve zero greenhouse gas emissions by 2050. METI plans to nurture domestic corporations with highly advanced clean technologies while urging them to also expand their business abroad.