Climate Integrate’s report presents an independent analysis of Japan’s planned expenditures for climate and energy as well as investment plans in the Green Transformation (GX) as part of the national budget for the 2026 fiscal year starting in April.
Analysis of the climate and energy budget by category shows energy saving (including AI and semiconductors) at 52%, fossil fuels (including price mitigation) at 21%, and nuclear power and fusion energy (including crisis management and innovative reactors) at 10%. Renewable energyremainslow at only 3%.
As for GX investments, the government has committed 20 trillion yen in front-loaded investmentbyFY2032, while the total GX budgetup to andincluding FY2026,comes to 6.5 trillion yen. The analysis also finds that investor demand for Climate TransitionBonds is declining.
Contents
Key takeaways
01. FY2026 spending plan for climate and energy
1-1 Overview
(1) Budget year analyzed
(2) Total budget amounts
(3) Three-year trends in total budget
(4) FY2026 share by ministry
1-2 Breakdown of the climate and energy budget
(1) Percentages by budget category
(2) Three-year trends by category
(3) FY2026 share by category
1-3 Uses of the climate and energy budget
02. GX budget
2-1 Scale and status of GX budget
2-2 Cumulative GX budget vs. 10-year public-private investment targets
2-3 GX Transition Bonds
(1) Issuance methods of GX Transition Bonds
(2) Issuance overview
(3) GX budget and CT Bonds potential allocation amount
(4) Use of proceeds of CT Bonds
(5) Reporting
03. Conclusion
