Japan’s most powerful lobbyist for business said that the government should issue approximately 2 trillion yen ($15.6billion annually) in green bonds each year to achieve carbon neutrality.
Masakazu Tokura (Japan Business Federation chairman) stated that “Moving towards net-zero carbon dioxide emission” should be a pillar in economic growth strategies. This would be a major makeover since the Industrial Revolution.
Keidanren also released a proposal that asked the government to get involved in green efforts to attract investments from the private sector.
According to the business group, 400 trillion yen would be required to achieve carbon neutrality in 2050. Such investments would result in a nearly doubling Japan’s gross national product to more than 1 quadrillion.
Keidanren insists that the financial resources come from government bonds that are only issued for environmental projects.
The proposal also argued against the introduction of a carbon levy on businesses based on CO2 emissions. This would place too much burden on them.
According to the proposal, government should make commitments about its long-term and mid-term financial expenditures in order to attract private investments.
Keidanren called on the government to provide a roadmap for technology needed for practical applications, investment amounts and government policies.
Keidanren believes that renewable energy should be the main source for power supply.
It also requested that the government reveal a new policy regarding nuclear power, including the construction and operation of small modular reactors.
These government bonds have been issued by more European countries, based on the belief that investing in the environment will also benefit future generations.
Since he was elected chairman of Keidanren last January, Tokura has advocated for a carbon-free society.