Nearly 30% of large companies across Japan plan to expand their capital investment in technologies to reduce carbon dioxide emissions, a recent survey showed, reflecting global efforts to achieve a carbon-free society.
The survey conducted by the Development Bank of Japan showed 27% of some 1,000 large companies, defined as those with 1 billion yen ($9 million) or more in capital, will boost their investments in decarbonization, such as in technologies related to electric vehicles and renewable energy.
Manufacturers were particularly keen to increase their decarbonization-related investments, with 46% in the transport machinery industry and 43% in the chemical industry saying they will do so.
The survey also found that about 33% of the respondent companies see the global trend toward a carbon-free society as an opportunity to expand their businesses.
By region, there are investment plans for solar power generation in Tokyo and surrounding areas and for offshore wind power generation in the Tohoku region, as well as investment in electric vehicle batteries in the Shikoku region.
Among the challenges facing companies looking to decarbonize, some 45% said they were concerned by development costs.
The impact of the spread of COVID-19 could also affect capital investment, especially for the nonmanufacturing industry, with the state-backed Development Bank of Japan saying investment could be reduced should profits fall.