We’ve been living so long with the threat and reality of climate change that there’s a chance we can sometimes miss the inflection points.

Like the moment, last month, when the World Meteorological Organization warned that global warming beyond 1.5 degrees Celsius — the change we’ve been accustomed to trying to combat — is now likely to take place, at least temporarily, within the next five years.

It’s not all bad news, though. The urgency around climate change has been accelerating, and so too has the rate of response from governments, companies and individuals all over the world.

We’ve seen a dramatic surge in political and financial capital devoted to climate action, in the form of the U.S. government’s Inflation Reduction Act (IRA) as well as similar initiatives rolled out by the European Union. These initiatives have not only offered the strongest of state support for climate solutions, but also unlocked trillions of dollars in private sector finance. This renewed focus on speeding up global decarbonization was very much on show when world leaders gathered recently in Hiroshima for the Group of Seven.

The talks that took place — as well as a subsequent meeting of “the Quad” security grouping made up of Japan, India, Australia and the U.S. — show how important the Indo-Pacific will be for the net-zero transition that’s underway. That means there is a new urgency for Japan’s economy and the companies and financial institutions that are part of it to reduce their emissions and transition to new ways of operating.

It also means there will be new opportunities for those who are smart enough to identify and grasp them.

It is not just the U.S. and European Union that are shifting fast — across Asia there is stiff competition for first-mover status and the competitive advantages it can confer in a transitioning global economy. Nations such as Vietnam and Singapore are moving aggressively to position themselves as preferred destinations for green finance, while India is investing heavily in renewable energy and ambitious climate solutions. China is leading the world in the major technologies needed for the new economy.

The name of the game in this competitive environment is recognizing risks and grasping opportunities, because both are present in abundance. The race is on to secure access to the resources, commodities, skills and expertise that will be needed for the climate solutions and green industries that must emerge.

Japan has set a clear direction for its economy — adopting a net-zero target by 2050 and pursuing a 46% reduction in emissions by 2030. It has advantages in its ability to carry out research and development, to create and scale new technologies and bring them to the world’s consumers. It has mature industries in key sectors such as battery and auto manufacturing.

But recent weeks have underscored the importance of finding and nurturing the right kinds of partnerships and relationships that Japan and its companies will need if they are to lead on decarbonization, as they have led global industrialization over the past half century.

There is no shortage of intent. Japan’s “environmental, social and governance” investments have multiplied sixfold in recent years, and Japan also has the highest number of businesses that are supporters of the Task Force on Climate-Related Financial Disclosures.

The G7 talks underlined the importance of key mineral resources for the clean energy revolution while also seeking to create pathways for decarbonization that can preserve natural sovereignty interests and strengthen regional cooperation and stability.

The Quad talks also focused heavily on the development of clean energy supply chains, including green shipping and ports — measures that will be critical for future cooperation between markets across the Pacific — and access to new-economy commodities such as green ammonia and green hydrogen.

Among the ambitious targets Japan has set itself are the expansion of the supply of green steel to 10 million tons by 2030 and the supply of carbon neutral cement to 2 million tonnes in that same time frame. The Japanese government has also resolved to make green hydrogen a pillar of its decarbonization strategy.

But while Japan has the chance to seize a key leadership role, it also has plenty of available partners who can support its endeavors.

In each case Australia, and many of the businesses we work with every day, loom as future suppliers, trading partners and natural allies of Japan’s decarbonization project. Long a close trading partner of Japan, it is also well placed to help due to its richness in resources such as lithium and its access to large amounts of renewable energy.

The private investment unleashed by the IRA stands available to both countries as key American allies and closely integrated economies. Sharing a world view and a history of cooperation, Australia, the United States, the EU and Japan can act as key participants in an axis of climate action.

In the emerging net-zero economy, the most important assets for Japanese companies will be intelligence on risks and opportunities; best-in-class expertise that equips them to act decisively; global relationships and partnerships that can help match innovative ideas with available capital; and scaling know-how to create winning solutions.

For Japanese companies, there will be a pressing need to investigate and understand their current business models and supply chains, to be innovative and create new green products and processes, and to connect with emerging sources of capital in search of climate solutions. There will also be a need to find relationships and projects in safe, trusted parts of the world where the resources and commodities needed for future green manufacturing can be secured and accessed.

Companies who want to flourish in this new reality are already positioning themselves for these realities. Those who are not run the risk of being left behind.

Patrick Suckling is a former Australian ambassador for the environment and is managing director and Asia chair of Pollination, a global climate change investment and advisory firm.