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Green Transformation

Denmark's focus and expertise in green transformation within energy and environment provides a market advantage for Danish businesses in the Japanese market, which is undergoing a rapid change in recent years. This is especially within wind energy, energy efficiency, district heating, Power-to-X and sector coupling.

In December 2022, Prime Minister Kishida presented the proposed Green Transformation Law for the promotion of realizing a carbon-free society. This follows a rapid development in Japan in recent years with large investments and increased political focus. With the new Green Transformation Law, Japan is ready to further increase their commitments.

Japan has set ambitious goals of reducing greenhouse gas emissions to net zero by 2050 and increase the energy consumption coming from renewables to 38% by 2030. Japan, which imports 90% of energy consumption, has faced a sharp rise in energy costs which has contributed to an increased focus on developing renewable energy resources, including of course offshore wind.

At the end of 2022, the next large round of tenders for offshore wind was announced at 1.8 GW, with early implementation rewarded in the tender, i.e. by 2030. The Japanese authorities will then continue with an annual offshore wind tender each of the following years.

In the very short term, among other there is demand in Japan for consultation to support bid and project development of wind energy projects. Subsequently, demand will be particularly for components, blades, electrical systems, foundations, etc. for the offshore wind farms themselves, as well as optimisation and efficiency of operation and maintenance, safety measures, spare parts and data solutions. Japan views Denmark as a front-runner within Green Transformation, which creates a good foundation for Danish companies. The Danish Embassy is engaged in close cooperation with the authorities, and the Embassy in Tokyo has also formed strong relationships with relevant partners, which can provide faster access to the Japanese market. Furthermore, with the proposed Green Transformation Law Japan is planning to investigate and announce their target for floating offshore wind energy. To this end, there’s also a great interest from Japanese stakeholders about the development of Danish offshore wind projects and energy islands.

The need for decarbonization, and equally important, self-sufficiency of energy, has led to the promotion of hydrogen and ammonia as part of Japan’s future energy policy. The Green Transformation Law intends to support the development of both an international and domestic supply chain for clean hydrogen and ammonia. In particular, Japan intends to accelerate research and development into domestic production of hydrogen and ammonia from surplus renewable energy, joining the rapidly growing field of Power-to-X.

Japan's per capita energy consumption is about 10% above the EU average. Unlike industrial consumption, which has been declining over the last five years and is highly energy efficient, Japan's consumers account for the large part of the energy consumption. Energy inefficient buildings and homes are particularly to blame. New and stricter legislation is under way to reap big efficiency gains. As a result, the demand for energy-efficient products, equipment and know-how in this segment is steadily increasing. Increased attention is also expected for waste sorting and recycling facilities.

Head of Trade
Dinna Aamand Hansen

Green Transformation
Izumi Tanaka
Kyoko Suzuki