"While there are concerns that decarbonisation efforts could stifle economic growth, incentives of better energy security and improved balance of foreign trade are in play for Japan, given that the country relies on imports for the majority of its fossil fuel needs.
Decarbonisation also has positive implications for the Japanese economy, which is facing a declining and ageing population, by simultaneously increasing labour productivity as well as carbon productivity.
AMO believe that Japan is highly competitive in energy-related technologies, which are set to play a major role in decarbonisation. The development and commercialisation of such technologies will both contribute to decarbonisation in Japan and meet relevant global demand."
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Written by Yuko Iizuka, Economist Asset Management One Co., Ltd.