Publication date: June 14, 2024
Japan Cuts Red Tape in Effort to Create Green Hub in Sapporo
On June 4, the Japanese Financial Services Agency designated Sapporo, Hokkaido, as a “Financial and Asset Management Special Zone” to help encourage green investment. The region had asked for the rules around green transition (GX) policies to be loosened, to support its aims to become a national hub for manufacturing and supplying decarbonized fuels and renewable energy.
The designation means that the region will now pursue regulatory reforms across renewable energy, finance, and administration. It also means that there will be a relaxation of the guidelines that allow the use of international self-elevating platform (SEP) vessels for offshore wind project maintenance and installation work, which could reduce costs in the sector.
There will also be a higher volume limit for compressed hydrogen storage. Currently, hydrogen storage in commercial areas is capped at 700 cubic meters, necessitating frequent tank replacements when used in fuel cells for commercial buildings. Easing these storage limits, while maintaining necessary safety standards, could reduce the need for frequent tank replacements, thereby improving the profitability for operators and encouraging further investment.
Hokkaido is considered one of the leading regions for renewable energy potential, especially in wind power generation and in the creation of a domestic hydrogen supply chain. This, combined with the new special zone package from the Financial Services Agency, is expected to attract capital from both domestic and international investors – positioning Hokkaido as a central hub for sustainable development and green finance.
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