Japan creates Clean Tech Fund for overseas ventures

A Japanese government fund will invest as much as 130 billion yen (£1bn) in overseas clean tech projects involving Japanese companies, the Nikkei newspaper reported. The fund, which is run by a new organization called the Innovation Network Corporation of Japan, aims to help Japanese companies win overseas contracts to supply infrastructure equipment and facilities.

It is hoped these projects can be used to earn carbon credits that will count towards reducing Japan's carbon emissions in line with its goal of cutting emissions 25 per cent by 2020. According to the paper, the fund plans to invest 10 billion yen in a smart-city project in Gujarat, India, to be built by firms including Mitsubishi Heavy Industries, Mitsubishi and Electric Power Development.

It was also reported that Japan's Ministry of Economy, Trade and Industry will provide 40 billion yen for the fund in 2011, with a view to financing studies on 15 emission-reduction projects around the world. Ten other Japanese companies are involved in developing the projects, including efficient coal power and nuclear plants in Indonesia and Vietnam, and a carbon capture and storage project, also in Indonesia.

Reforestation, geothermal and energy-efficiency schemes in Mexico, Malaysia, Thailand, the Maldives, Laos and China are also being evaluated by the fund and studies on 180 other potential projects will begin next year.