APIC ’24: Japan to invest $1 trillion over next decade to meet climate goals – JPCA chair

SEOUL (ICIS)–Japan’s government aims to marshal $1 trillion in public and private investment over the next decade to fuel economic growth and meet its climate commitments, the chairman of the Japan Petrochemical Industry Association (JPCA) said on Friday.

To catalyze this massive investment, the Japanese government has launched issuance of climate transition bonds totaling more than $100 billion, Keiichi Iwata told delegates at the Asia Petrochemical Industry Conference (APIC) in Seoul, South Korea.

These bonds are designed to finance projects that contribute to reducing carbon emissions and facilitating the transition to a low-carbon economy, he said.

Additionally, a Green Innovation Fund exceeding $10 billion has been established to support the development of groundbreaking green technologies in Japan, according to Iwata.

This initiative is fostering a wave of innovation among companies, particularly those in the JPCA which are accelerating their efforts in sustainable technologies and solutions, like chemical recycling, he noted.

“Similar initiatives are underway in other countries as well. We hope that the APIC will provide a springboard for new multinational, cross-border collaborations,” Iwata said.

“Implementing new solutions will require additional investments and lead to higher costs. But we should view it positively as an opportunity to add new value to our products through reducing emissions and utilizing bioresources and recycled materials,” he noted.

As the petrochemical industry strives to forge a path toward a sustainable future, a two-step approach is crucial, Iwata said.

The initial phase, spanning the years leading up to 2050, focuses on maximizing the deployment of currently available technologies to accelerate emissions reduction, he said.

“At the same time, we must advance the development of innovative new technologies aimed at making more drastic reductions,” Iwata said.

“The second step is a long-term effort to systematically implement these new technologies across society, and ultimately achieve carbon neutrality,” he added.

The two-day APIC event ends Friday.