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Sunday, December 10, 2023

Leveraging Startups for Environmental Innovation. Japan Accelerating Toward Decarbonization

The goal of decarbonization is to achieve zero emissions of greenhouse gases, which are believed to be the cause of global warming. The world is undergoing a major shift toward decarbonization, and Japan is following this example by pursuing environmental innovations. This decarbonization cannot be achieved by national efforts alone.
For this reason, there are government measures to harness the power of the private sector, including startups, and businesses related to clean energy are booming like never before.
This article describes global and Japanese trends toward decarbonization and Japan's strategy for leveraging startups.
Table of Contents
Global Trends Toward Decarbonization
Japan's Move Toward Decarbonization
Post-decarbonization energy goals of the country
Decarbonization has become the standard.

Global Trends Toward Decarbonization

The United Nations has set the SDGs as its main goals,Shift from fossil energy that emits greenhouse gases to clean energy for the worldWe are urging you to do the same. This is because since 1950, the earth has been experiencing unprecedented carbon dioxide concentrations and global warming, which is believed to be caused by greenhouse gases, is bringing climate change to many parts of the world.

Some estimates suggest that if nothing is done, the average global temperature will increase by 4.8 degrees Celsius by 2100 compared to the year 2000. Based on this background,The world is undergoing a major shift toward decarbonizationThe following is a list of the most common problems with the

SDGs and the Paris Agreement

Two of the major events that have moved the world to decarbonize are the Paris Agreement, adopted in 2015 at the United Nations Framework Convention on Climate Change Conference of the Parties, and the SDGs, the goals set forth by the UN Summit that same year. The Paris Agreement adopted common long-term goals for the world, including limiting temperature increases to a maximum of 2 degrees Celsius above pre-industrial levels, striving to limit temperature increases to 1.5 degrees Celsius, equalizing anthropogenic greenhouse gas emissions and absorption by the second half of the 21st century, and focusing on environmental innovation.

In addition, one of the 17 goals of the SDGs is to "Take urgent measures to mitigate climate change and its impactsThe "I" was held up as "the most important thing".

Linking Corporate Sustainability Activities to Investment

Transition to decarbonization is a business opportunity for companies and investorsIn fact, the share prices of companies with technologies related to sustainability have tended to rise. In fact, the share prices of companies with technologies related to sustainability have tended to rise.

The market capitalization of U.S. electric vehicle giant Tesla Motors Inc. is the largest in the automotive industry, and Nextera Energy, which deals in renewable energy, has surpassed oil giant Exxon Mobil Corporation to become the largest in the energy industry, symbolizing decarbonization.

Japan's Trend Toward Decarbonization

Japan has followed the world's lead in moving toward decarbonization, and in Prime Minister Kan's 2020 policy speech, he announced the followingDeclaration for a decarbonized society by 2050We are committed to the Paris Agreement. In addition, one of Japan's strategies to commit to the global goals adopted in the Paris Agreement is the Innovative Environmental Innovation Strategy.

2050 "Carbon Neutral

Carbon neutral means that the amount of greenhouse gases emitted by humans and the amount of greenhouse gases absorbed by humans are equal, which in effect means that greenhouse gas emissions are reduced to zero.

Japanese government this 2050Green Growth Strategy" as a growth strategy toward "carbon neutrality."The company has set forth the following The goal of the government's regulatory reforms is to encourage "green investment," investment in environmentally friendly economic activities, and to switch to an industrial structure that balances the economy and the environment.

Innovative Environmental Innovation Strategy

The Innovative Environmental Innovation Strategy defines actions and scenarios to further innovate and establish Japanese technologies to achieve global "carbon neutrality. One of the major initiatives to boost innovative technologies within this strategy is,Policies for greater investment in environmental innovation from the private sectorThe following is a list of the most important factors that are included in the program.

This includes a measure called "Zero Emission Venture Support". Zero emissions refers to a resource-recycling society.

Decarbonizing Innovation with Startups

One of the innovative environmental innovation strategiesZero Emission Venture Support" is a measure aimed at increasing venture capital investment in R&D startups.It is.

Specifically, based on the condition that startups with strengths in R&D obtain cooperation from venture capital firms with strengths in commercialization, we have created a mechanism to obtain cooperation from companies engaged in businesses related to zero emissions, such as energy management and storage batteries, thereby expanding investment by venture capital firms. This is a strategy to increase venture capital investment.

Businesses related to decarbonization require large capital investments and long-term research and development, which is a high hurdle to entry and makes it difficult for the market to grow. To resolve these issues,National encouragement of open innovation for decarbonization by startups with technology seeds, venture capitalists with commercialization know-how, and investors.That is to say.

National post-decarbonization energy goals

The Innovative Environmental Innovation Strategy identifies renewable clean energy and hydrogen as post-decarbon energy sources. It also states that efforts will be made to develop technologies for the stable and safe supply of such energy.

Renewable energy as the main power source

We plan to make solar power generation more efficient by developing new materials and structures to make renewable energy the main source of power. It also plans to establish supercritical geothermal power generation, a method of generating electricity using super-heated and high-pressure water in volcanic regions, and floating offshore wind turbine technology, in which wind turbines float on the ocean floor to generate electricity.

In addition, theStorage battery facilities to store cleanly generated electricity and the use of digital technology to reduce costs associated with power transmissionare also being considered together.

Hydrogen Applications for Mobility

The fuel for automobiles, airplanes, and ships will also be converted from petroleum fuels, and one of the ways to achieve this is through the use of hydrogen. By developing hydrogen transportation and storage technologies and establishing hydrogen stations,Plans to use hydrogen to power mobilityThe government is working on a number of projects in this area. These sectors could also be markets that the government will focus on and encourage to grow.

Decarbonization has become the standard.

So far, we have introduced global and Japanese trends toward decarbonization and Japan's strategy to leverage startups.The world is undergoing a major shift in industrial structure toward decarbonizationIt is becoming There areMany new business seeds exist.The following is a brief overview of the project. This could be a great business opportunity for entrepreneurs, start-ups and investors.

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