GLOBE-Net, July 12, 2012 - As the world's third
largest economy, and with a government committed to renewable
energy, the market opportunities for clean technology in Japan
today are real and lucrative.
This is the key conclusion of a new report by Kachan
& Co., carried out in partnership with JETRO (the Japan
External Trade Organization), based on an online survey
in June 2012 of Japan and U.S.-based professionals, experts and
academia involved in cleantech in Japan.
Japan is on the cusp of a cleantech revolution, with
landmark new feed-in tariffs ushering in a clean and green
post-Fukushima future. How can North American cleantech companies
tap the Japanese market?
Additionally, a vibrant manufacturing industry makes it an
attractive place to do business if a company knows how to navigate
the system and understands the country's immediate and future
cleantech needs, states the report.
Dallas Kachan, Managing Partner of Kachan
& Co., told GLOBE-Net that
"Japan's reinvigorated focus on renewable energy and supporting
technologies was triggered by the Fukushima disaster, the energy
crisis that followed, and dramatic new feed-in tariffs (FITs)."
"Our report found surprising levels of subsidies, tax breaks and
other incentives available in Japan for cleantech R&D,
manufacturing and energy generation on a national level and in
various regions and cities throughout the country," he said.
"While other countries are just starting to delve into the clean
technology industry, this is not a new area for Japan: companies
like these, as well as others, have been developing and providing
cleantech solutions since the 1970s."Dallas katchan notes that
Japan is known for its technological innovation, vis-à-vis its
multinational, technology and automobile companies.
Japan's reinvigorated focus on renewable energy and supporting
technologies was triggered by the Fukushima disaster, the energy
crisis that followed, and dramatic new feed-in tariffs (FITs).
While solar is expected to lead the way-Japan is projected to
become the second largest solar market (up from its current rank of
sixth)-there are other renewable energy projects projected for the
country.
The key findings and insights of this report
include:
• The Japanese feed-in
tariffs are among the highest in the world and will
likely cause Japan to become one of the key markets for
renewable energy companies, domestically and worldwide.
Japan's interest in North American cleantech companies should
also be predicted to increase; likewise, North American
companies are more likely to locate an office in Japan to
take advantage of new opportunities.
• Subsidies, tax
breaks and other incentives for renewable energy and
clean technology projects, including R&D, manufacturing
and energy generation, are not only available on a national
level, but also in various regions and cities throughout
Japan.
• Japan's unique business
environment requires an understanding of its
customs and culture to be successful: it is helpful to hire
locally.
• Partnerships are
crucial to navigate and break into the Japanese market,
and, with patience, these can reap major rewards.
The research was further supported
by interviews by Katchan and Co. with select
executives and experts in the industry to get their perspectives,
advice and feedback on the cleantech landscape in Japan.
The organizations consulted for this project represent a mix of
Japanese and foreign companies in such areas as equity investment,
technology, manufacturing and professional services.
These include multinational corporations, cleantech and
energy companies, green organizations and engineering firms such as
Mitsubishi Heavy Industries, Digital Grid, Sekisui Chemical Co.,
Ltd, Q-Cells, Green Japan, Sumitomo Corporation, Fujitsu Research
Institute, PADECO, and UFJ Mitsubishi Capital.
Download the free Kachan - JETRO report on Cleantech Opportunities in Japan here