A Japanese government panel is calling for investing in equipment to make products that are highly effective in de-carbonization and also for building a system to secure a stable supply of semiconductors.
The Committee on the Growth Strategy worked out a draft plan for a new growth strategy on Wednesday.
The plan says a fund of two trillion yen, or about 18 billion dollars, should be used to create a greener society.
It also proposes encouraging investments in equipment to make products that will drive de-carbonization through tax incentives and suggests that regulations should be reviewed to induce investments.
The draft strategy commits to carbon pricing to boost industrial competitiveness and innovation, and to promote investments. Carbon pricing is a system under which companies and other emitters bear the costs of greenhouse gas emissions based on the amount of their emissions.
In the field of economic security, the draft plan proposes setting up domestic chip production centers to secure a stable supply of advanced semiconductors that support a digital society.
In order to enhance data protection and more resilience against disasters, the plan calls for creating new data centers that provide internet connections and other services. It proposes up to five core locations and up to 10 regional locations.
The draft also recommends introducing a stock listing system to support startups by enabling them to offer their shares through a special purpose acquisition company, or SPAC.
The government plans to approve the draft plan in mid-June after coordinating with the governing parties.