K I ZU NA
Special Issue

Linking Japan and the World

Summer2022

KIZUNA

KANAZAWA SHOKO
Calligraphy Artist
Born in Tokyo in 1985, she started learning
calligraphy from her mother when she wasfive years old. One of the notable young
calligraphers of today, her solo exhibitions
have been held throughout the world,in cities such as New York, Singapore,and Prague. She was selected as one of theofficial poster artists for Tokyo 2020.

Welcome to KIZUNA, the official
magazine of the Government of Japan.
This bold work of calligraphy is
絆(kizuna) written in Japanese. Kizuna
means the enduring bonds between
people—close relationships forgedthrough mutual trust and support.
Originally describing the rope used
to tether domestic animals such as
horses and dogs, the meaning of
kizuna has evolved over the years. A
passage in The Tale of the Heike,compiled in the 13th century, uses theterm to refer to the bonds of love
between a father and his children.
More recently, kizuna has gone
beyond bonds tying together family
and close acquaintances; it is now
used in a broader sense of human ties
and connections. Of particular note is
the kizuna born among people during
natural calamities, which fosters
feelings of solidarity and serves as theunderlying strength to overcome
hardships.
Similarly, the kizuna cultivatedamong the countries of the world has
the power to deepen cooperation for abetter future. By reporting on a wide
variety of topics concerning Japan, we
hope that this magazine will provide
opportunities for Japan and the rest of
the world to connect and build
strong kizuna.

CONTENTS
04

Prime Minister KISHIDA Fumio’s
Personal Timeline

06

Advancing the Common Vision ofa Free and Open Indo-Pacific:
A Statement by PM Kishida Following
the QUAD Leaders’ Meeting

08

PM Kishida’s Vision for Buildinga New International Order from Asia

12

Japan Stands with Ukraine:
Keeping Education Going for Students

14

PM Kishida’s Speech on the New Form of
Capitalism and Why Japan Is a “Buy”
IN FOCUS: NEW FORM OF CAPITALISM

18

Lessons from SHIBUSAWA Eiichi, the Man Who
Formed the Foundation of Japanese Capitalism

20

Clean Energy Strategy to Achieve Carbon Neutrality
by 2050

Summer 2022

TO READ MORE CONTENT,CHECK OUT OUR WEB MAGAZINE
https://www.japan.go.jp/kizuna/

COVER
On May 23, Prime Minister Kishidaheld a summit meeting with President
Joe Biden of the United States at theState Guest House, Akasaka Palace.

03

PRIMEMINISTERKISHIDAFUMIO’SPERSONAL
TIMELINE

On October 4, Kishidaconducted his first press
conference as prime minister.

July 29, 1957
Born in Tokyo
Kishida was born in Tokyo in the early years of Japan’s economic boom—when the country was getting back on
its feet after the war—as the son of KISHIDA Fumitake, a government official at the Ministry of International Tradeand Industry (currently the Ministry of Economy, Trade and Industry). His grandfather, KISHIDA Masaki, was a
successful department store proprietor who also served as a member of the House of Representatives.

1963
Moves to New YorkWhen his father was assigned to work in the United States, the family
moved to New York. Kishida attended a local public elementary schoolfrom the first to third grades, where he was impressed by the liberal
ambience of the U.S. and learned to respect diversity.

1973
Student Days

Kishida (top row, second from right) withclassmates in Queens, New York.

After returning to Japan, Kishida attended public elementary and middle
schools before going on to Kaisei Senior High School, a prestigious
private academy. He was an enthusiastic member of the baseball team, an
experience that taught him the importance of working together as a team.
In 1978, he entered the School of Law at Waseda University. When his
father ran for the House of Representatives for the first time the following
year, Kishida helped him to campaign.

1982
Gains Work Experience at a Bank

Kishida (center) played second base for hishigh school team.

After graduating, Kishida joined the Long-Term Credit Bank of Japan (currently Shinsei Bank). He worked inforeign exchange in Tokyo and was subsequently transferred to the city of Takamatsu in Kagawa Prefecture where
his clients included maritime shipping firms. He gained firsthand knowledge of the unfavorable economic reality
there by watching small and medium-sized enterprises sometimes founder and fail due to cash-flow problems.

04

1993
Joins the Political World
Helping his father’s campaign and working for a bank awakened in
Kishida an urge to serve the people directly by protecting their lives
and improving society as a whole. That set him on his way to politics.
In 1993, after his father’s death, he ran for his father’s seat in a districtin Hiroshima and won his first political battle. He valued politicalstumping as a way to speak directly to voters—an approach thatbroadened his appeal and led to his winning the seat 10 times.

Kishida receives his
parliamentary badge
after being elected to
the House ofRepresentatives forthe first time.

2007
Receives First Cabinet Posting
Kishida joined the Cabinet for the first time as a Minister of Statefor Special Missions, a position in which he took on assignments invarious fields including Okinawa and Northern Territories Affairs,
Quality-of-Life Policy, and Science and Technology Policy. He
became Minister for Consumer Affairs in 2008, a position from which
he worked for the establishment of the Consumer Affairs Agency.

Kishida favors a hands-on approach and has visitedmany places throughout the country.

2012
Appointed as Minister of Foreign Affairs
In 2015, Kishida strove for the bilateralagreement between Japan and the Republicof Korea regarding the issue of comfort
women which was “resolved finally andirreversibly.” In 2016, he helped to actualize
a visit to Hiroshima by President Barack
Obama, the first ever such visit by a sitting
U.S. president. Kishida served as Minister of
Foreign Affairs consecutively for four years
and seven months, making him the longestserving foreign minister in postwar Japan.

October 4, 2021
Becomes Prime Minister
Upon winning the election for Liberal
Democratic Party president, Kishida was
appointed Prime Minister of Japan by an
extraordinary session of the Diet. He vowed
to lend a sincere ear to the voices of theJapanese people and to conduct politics in
an attentive and broad-minded manner.

Top: Kishida visited New York in 2016 to attend a
G7 Foreign Ministers’ Meeting as the chair.
Left:Kishida explains the symbolism of the Atomic
Bomb Dome to U.S. President Obama.

Kishida filled nearly 30 notebooks in 10
years with comments and appeals from thepeople of Japan.

His favorite food is Hiroshima-styleokonomiyaki ( Japanese savory pancake).
He ate the dish on the day that he waselected to head the Liberal Democratic
Party. “I’ll never forget how wonderful
it tasted,” he says.

05

ADVANCING THE COMMON VISION OF

A FREE AND OPEN
INDO-PACIFICA STATEMENT BY PM KISHIDA FOLLOWINGTHE QUAD LEADERS’ MEETING
MAY 24, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202205/_00013.html

On May 24, 2022, the Japan-Australia-India-U.S. (Quad) Leaders’ Meeting was held in Tokyo. Amid the situation of Russia’s
aggression against Ukraine, which has shaken the very foundations of the international order, the four countries reconfirmedthat no unilateral change of the status quo by force is tolerated in any region, especially in the Indo-Pacific, and they remainstrongly committed to the realization of a Free and Open Indo-Pacific. The four leaders shared the view that the Quad is a force
for good, committed to bringing tangible benefits to the region. They confirmed that they would continue to work in close
cooperation and released the QUAD Joint Leaders’ statement.
Prime Minister Kishida, in his opening remarks at the press conference following the Quad meeting, mentioned that thefour leaders had concurred in the decision to hold the next Leaders’ Meeting in Australia in 2023, and expressed the hope thatthey would further strengthen the Quad’s cooperation.
The following is the full text of the statement.

I invited President Biden of the United States,
Prime Minister Modi of India, and Prime Minister
Albanese of Australia to Tokyo, where today I, as
the meeting Chair, convened the second in-person
meeting of the Japan-Australia-India-U.S. (Quad)
Leaders’ Meeting, following one last September.
The four Quad leaders held candid discussions on

06

the impact the situation in Ukraine has on the IndoPacific region and expressed our concern regarding
the tragic conflict in Ukraine in a way that India alsojoined. We confirmed that the various principles of
the rule of law, sovereignty, and territorial integrity
must be upheld in every region of the world.
We also discussed North Korea, which eventhis month launched ballistic missiles in quick
succession and is intensifying its nuclear and missile
activities, and we agreed to act in cooperation
towards the complete denuclearization of North
Korea. With regard to the increasingly serious stateof COVID-19 infections in North Korea, we also
discussed preventing a geographical blank fromforming. All four Quad countries also saw eye to eyeon the necessity of an immediate resolution to theabductions issue.
In addition to these issues, we engaged in
substantial discussions on the situation in the IndoThe four countries have been promoting practical cooperation invarious fields to realize a Free and Open Indo-Pacific and concurredon the importance of making positive contributions to the region.

BACKGROUND OF JAPANAUSTRALIA-INDIA-U.S. (QUAD)
December 2004
In the aftermath of the earthquake off the coast of
Sumatra and tsunami disaster in the Indian Ocean,Japan, Australia, India and the U.S. formed a coregroup to lead the international community’s support.
May 2007
Quad officials held a meeting for the first time.
Senior officials meetings have been held on a regularbasis since November 2017.
September 2019
The first Foreign Ministers’ Meeting in New YorkThe Quad is playing an important role in promoting a Free and Open IndoPacific. At the Leaders’ Meeting, the Quad confirmed that they will seek tosupply the region with more than 50 billion dollars of further infrastructureassistance and investment over the next five years. AP/AFLO

Pacific region, including our grave concerns regarding
attempts to unilaterally change the status quo in the
East China Sea and South China Sea, responses tothe situation in Myanmar, and other matters.
The Q uad summit is also a venue for advancing
practical cooperation across a wide range of fields inorder to realize a Free and Open Indo-Pacific.
In vaccine-related cooperation undertaken
thus far, our cooperation is advancing, including
progress towards supplying vaccines under the
Quad Vaccine Partnership and the signing of a loan
agreement between the Japan Bank for International
Cooperation (JBIC) and the Export-Import Bankof India (EXIM Bank) that will facilitate a total of
US$100 million in assistance for the healthcare sector.
In the area of infrastructure, we announced we will
aim to provide more than US$50 billion in further
assistance and investment in the Indo-Pacific region
over the next five years. We also agreed to undertake
capacity building support in countries facing debt
problems.
The Indo-Pacific region is a region with frequent
natural disasters and a large number of countries
vulnerable to climate change and other threats. In
the area of space, through this meeting we establisheda system for providing to countries in the region
satellite information owned by the Quad countries.
This information can be used for various objectives,
including disaster prevention, climate change
countermeasures, and the sustainable use of marine
resources. In order to respond more effectively tonatural disasters in the region, we also agreed on apartnership that strengthens the collaboration among

March 2021
The first Leaders’ Video Conference
September 2021
The first in-person Leaders’ Meeting
May 2022
The second in-person Leaders’ Meetingthe four Quad countries in the areas of humanitarianassistance and disaster relief. Furthermore, in the areaof maritime security, the Quad leaders welcomed the
new initiative for maritime domain awareness, which
will promote information sharing among countries in
the region.
Against the backdrop of Russia’s aggression
towards Ukraine, a situation that undermines thevery foundation of the international order, and inlight of the participation in this summit meeting of
President Biden and Prime Minister Modi and also
Prime Minister Albanese, who joined us despite
having just assumed office, I consider it to be ofparamount importance that from Tokyo we sentout a powerful message to the world that unilateralchanges to the status quo by force cannot be tolerated
in any region of the world, and especially not in the
Indo-Pacific region, and that a Free and Open IndoPacific is absolutely imperative now more than ever,and that the four Q uad leaders are committed todoing their very utmost to bring it about.
This kind of cooperation by the Quad countries has
spread across a wide range of fields and collaboration
at various levels is getting deeper day by day. During
our meeting, Prime Minister Albanese proposed
holding next year’s Q uad summit in Australia. Ivery much look forward to further intensifying thecooperation among our four countries towards therealization of a Free and Open Indo-Pacific.

07

PM KISHIDA’S VISION FOR

BUILDING A
NEW INTERNATIONAL
ORDER FROM ASIA
AN EXCERPT

MAY 26, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202205/_00014.html

On May 26, Prime Minister Kishida delivered a speech at a banquet for the 27th International Conference“Future of Asia” held in Tokyo. In the presence of national, political, economic, and academic leadersfrom the Asia-Pacific region, he advocated the need for a “new international order originating from Asia,”
the center of the world economy.
Today, I would like to explain my views on how Japan
should approach this turbulent world and my thoughts on
the future of Asia.
I regard the current international situation as having
three layers. The first layer is diplomatic and security issues
about which decisions and actions are made on a countryby-country basis. The second layer is trade and investment
and the rules governing digital transactions, in which
companies operating across borders play a major role. The
third layer is the challenge of solving global issues such as
infectious diseases and climate change, which are global
in scale and common to all humankind. We will respondPrime Minister Kishidadelivering a speech at the 27th
International Conference“Future of Asia.” He expressed
his hope to make Asia, which
accounts for around 35% of theworld economy, a region thatbrings peace and sustainable
prosperity to the world.

08

to these three overlapping layers by clarifying priorities
among them.
Our highest priority is the first layer. We will respondfirmly to risks that run contrary to the foundations of theinternational order and universal values such as freedom
and human rights. It is based on these priorities that weare strengthening our unity with the G7, bracing ourselves
for the long-term costs of sanctions.
This issue is not a question of, “Do we side with theUnited States or with China?” but rather, “Do we protect
universal values and the peaceful world order, or lose
them?”

For the second layer, we need to take an assortmentof webs of rules, such as the rules of the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership(CPTPP), Regional Comprehensive Economic
Partnership (RCEP), bilateral Free Trade Agreements(FTAs), and Asia-Pacific Economic Cooperation(APEC), and accumulate them, overlaying one right atopof the other, and then another and yet another.
The Indo-Pacific Economic Framework for Prosperity,or “IPEF,” newly established this week, is one of those.
The IPEF reaffirms the economic engagement of the US
with the Indo-Pacific region even after its withdrawal
from the Trans-Pacific Partnership (TPP). The IPEF isan ambitious initiative that aims to address 21st century
issues, making use of a combination of rule-making,human resource cooperation, and infrastructure support.
To ensure that the IPEF becomes an inclusive andsustainable growth platform in the region, Japan will
make its greatest possible contribution. Meanwhile, wewill continue to persistently push for the return of the
U.S. to the TPP.
The TPP, which would be accompanied by access to thehuge market of the U.S., and the RCEP, paving the way topossible access to the enormous market of China, should
coexist strategically.
For the third layer—the challenge of solving global
issues—I believe that the creation of a cooperative
system to address the common challenges of humanity
will have the effect of mitigating any confrontation
or “decoupling” that might arise at the first layer, thelayer of security issues.
Based on these basic ideas, how should we envision the
future of Asia? I will address this point next.
We now need a new international order originatingfrom Asia. This is because Asia now accounts foraround 35% of the world economy and is the fastest
growing region in the world. Our actions in Asia willchange the world.
The “future of Asia” is no longer just for Asia. I want tomake this region a region that brings peace and sustainable
prosperity to the world.
To this end, my vision is that the Indo-Pacific in the
post-Cold War and post-COVID-19 period should
be a free and open region, a sustainable and vigorously
growing region, and a region that contributes to solving
global problems.

When I think about the future of Asia, what I focus on
the most is the relationship between Japan and ASEAN.
Next year, ASEAN and Japan will celebrate the 50th
anniversary of our friendship and cooperation. We will
work together with the members of ASEAN to set out
a new direction for the relationship and a new vision forcooperation.
I will explain my vision for the region in detail. Firstand foremost, it is a free and open region.
“Ukraine might be the East Asia of tomorrow.”
In order to safeguard the peaceful world order and toachieve sustainable prosperity in the region, “no violationof sovereignty or territorial integrity, nor unilateral changeof the status quo by force, shall be tolerated in any region.”
This fundamental principle must be observed.
That is why I believe that in this region we should
build a free and open order based on the rule of law,
not on might.
The second part of my vision is that this is a sustainable
and vigorously growing region.
I am advocating an economic policy of a “newform of capitalism.” The “new form of capitalism” isan effort to upgrade capitalism to meet the challenge
from authoritarian regimes while addressing economic
externalities.
The key is to view social issues not as obstacles, but
to transform them into engines of growth. By attracting
public and private investment to areas identified as
challenges, we will solve social issues and grow robustly.
I would like to share this way of thinking withthe people of Asia as we work together to overcome
challenges and evolve Asia into a sustainable andvigorously growing region.
The third part of my vision for the region is being a
region that contributes to solving global problems.
I believe that in the next generation, Asia, as themain engine of global economic growth and a hub ofinnovation, should actively contribute to solving theworld’s problems.
Under this vision, Japan will work on four specificactions.
The first is the establishment of a free and open
international order. Japan will continue to hold highthe banner of a “free and open Indo-Pacific” in close
cooperation with allies and like-minded countries
that respect international law and the principles of the09international community and share universal values.
In realizing a “free and open Indo-Pacific,” Japanwelcomes the active engagement of the United States in
the Indo-Pacific. We are encouraged by President Biden’scommitment to the region reiterated at the recent JapanUS Summit and other occasions.
The Quad, comprising Japan, Australia, India, and theUnited States, is also important in promoting a free andopen Indo-Pacific. Two days ago, we committed ourselvesto advancing practical cooperation in a wide range ofareas, including addressing COVID-19, infrastructure,and space, to bring benefits to the Indo-Pacific.
Our second goal is cooperation to protect the peacefulworld order in the region.
During my recent visit to Southeast Asia, we madeprogress in concrete efforts, including the signing of adefense equipment and technology transfer agreementwith Thailand and a decision to study the feasibility ofproviding patrol vessels to Indonesia. We will continue tobuild upon such practical cooperation.
We will broaden our scope to include promoting
economic security, addressing cyber security, economic
coercion and disinformation, and other recent issues
facing the region, giving breadth and depth to ourcooperation with other countries.
In addition, we will promote cooperation in areas
where Japan has strengths, such as maritime security
and disaster response. We will also take advantage of the
new initiative on maritime domain awareness and thepartnership in humanitarian assistance and disaster relief,
which was confirmed at the Quad summit meeting.
Third is the revitalization of cross-border movementof people.

On May 23, 13 countries launched the Indo-Pacific Economic Framework(IPEF). President Biden of the United States, who hosted a summit-levelmeeting on its launch (photo), stated that the purpose of the framework is
to work together to achieve sustainable and inclusive economic growth andto address regional challenges.

10

The free and active exchange among people is afoundation of our economy and society, as well as thefoundation of Asian development.
From now on we will further relax our border measures.
Specifically, effective June 1, the total number of daily
arrivals will be increased to 20,000, and countries witha record of low positive rates at the time of entry willbe allowed to enter Japan without border testing for
COVID-19.
Furthermore, following the ongoing demonstration
project and the establishment of guidelines, we will
resume accepting tourists on escorted package tours
beginning June 10. At the same time, preparations will
be made to resume international flights at New Chitose
Airport and Naha Airport by the end of June.
In addition, with regard to countries and regions where
infections have settled down, we have today lowered thelevel of Travel Advice and Warning on Infectious Diseases
for Japanese citizens.
Fourth, we are strengthening relationships to overcomesocial challenges together.
Specifically, we will strengthen our relationship with
Asia in the five pillars of (1) investment in innovation andstart-ups, (2) strengthening supply chains, (3) investment
in infrastructure to connect Asia, (4) realization ofuniversal health coverage, and (5) the Asia Zero Emissions
Community.
The first pillar is investment in innovation and startups.
I am particularly interested in initiatives by startups forcross-border collaborations.
Today, an increasing number of entrepreneurs withstrong aspirations to solve social issues are beginningto emerge in Japan and ASEAN, boldly working
to balance business and the resolution of social issues on
the global stage.
We are working on a program that aims to create morethan 100 collaborations between Japanese and ASEAN
companies every year.
The second pillar is supply chain resilience. Japan and
ASEAN have long been building multilayered supply
chains. It is important that the public and private sectors
continue to invest in maintaining and strengthening
these supply chains.
We will also digitally connect the entire supply chain sothat the goods and services we provide are stably supplied
and it can be shown that they are reliable.

Japan will support at least 100 supply chain resilience
projects over the next five years, and will develop theinfrastructure for supply chain resilience based on new
ideas, such as setting common rules to promote crossborder data sharing and collaboration.
Third is investment in infrastructure.
In order to improve regional connectivity and achieve
integrated regional growth, we will continue to strengthen
investment in quality infrastructure through ODA
and other means. In addition, we will make concrete
contributions to the development of soft infrastructure,including investments in people, institutional
harmonization, and intellectual property cooperation.
We will work in cooperation with the wider
international community, including the G7, the G20, andthe Quad, and work to build the capacity of borrowers
to ensure there is no unfair interference in the policy
decisions of borrowing countries or that borrowing
countries do not become increasingly destabilized asa result of development finance that fails to adhere
to international rules and standards, such as unfair or
opaque lending practices.
Fourth is the realization of universal health coverage, orUHC. Japan has been leading the way in realizing UHC,
even ahead of the COVID-19 situation.
This month, it was decided to establish a secretariat
for the ASEAN Center for Public Health Emergencies
and Emerging Diseases in Thailand. Japan has pledged
its full support for its establishment, contributing
US$50 million.
We will continue to actively contribute to the realizationof UHC in Asia under the “Global Health Strategy” thatJapan newly announced two days ago.
Fifth is the realization of an “Asia Zero Emissions
Community.”
Like our country, many other Asian countries have set
the goal of achieving carbon neutrality and are actively
taking on this common challenge for humanity.
The important thing is to decarbonize in a way
suitable for the realities of each country, while achieving
sustainable economic growth. Of course, the stable supplyof energy is a prerequisite.
Energy conditions vary from country to country.
In comparison to Europe and Africa, Asia has low
potential for renewable energy. In addition, it is estimatedthat the demand for electricity will increase by 2.5 times

Prime Minister Kishida visiting King Mongkut’s University of Technology
Thonburi “kosen” in Bangkok, Thailand. He said in his speech that he wasextremely impressed by two Thai students who explained their experiments
to him in Japanese with technical terms.

over the next 30 years due to growth in the populationand the economy.
The “Asia Zero Emissions Community Initiative” is aframework designed to help Asia decarbonize together
while continuing to promote the introduction ofrenewable energy and energy conservation, while facing
the reality of the situation in Asia. It will aim for the joint
decarbonization of Asia through (1) promoting the joint
demonstration of biomass, hydrogen, ammonia, CCUS,
and other technologies for zero emissions in thermal
power generation, (2) establish rules for an Asian versionof transition finance, (3) establish standards for zeroemission technologies, and (4) utilize emission rights
trading in Asia at large.
In Asia, Japanese companies have already started
initiatives such as a demonstration of the construction ofa supply chain for hydrogen supply in Singapore, studies
on the realization of ammonia co-firing and mono-firingin Indonesia, and the transfer of knowledge and knowhow on decarbonization from Japanese cities to Asian cities.
In the future, we will expand these efforts to Asia at large.
We would like to join forces with other Asian countries
to realize this community.
About a month ago, I visited a “kosen” in Bangkok.
A “kosen” is a unique higher education institution
created by Japan to train engineers who can apply theirskills.
In Thailand, there is “kosen” which was establishedwith the support of Japan.
As is the case with “kosen,” Japan has long provided
support for human resource development in order tocultivate human resources in the countries we support.
As a good neighbor and a good partner, we will work
together with you all to pave the way for the future ofAsia. That is our aim.
Japan is determined to do its utmost towards this end
and actively fulfill its roles and responsibilities.
In closing, I would like to wish all the participants here
today good health and continued growth in the future.

11

JAPAN STANDSWITHUKRAINE:KEEPING EDUCATION GOING FOR STUDENTS
In response to Russia’s egregious aggression against Ukraine, Prime Minister KISHIDA Fumio condemned the act inthe strongest terms, declaring that causing harm to civilians is a clear violation of international law. In Japan, there is a
growing network of support for Ukrainians who have been forced to flee their homes, and universities have risen to standwith Ukraine and have accepted students from the country. Here is one such example.
“Japan stands with the people of Ukraine in thistime of crisis.” The Government of Japan began
working closely with global society soon after the
February 24 Russian invasion of Ukraine, adopting
cumulative measures that include financial sanctions
targeting Russian banks, restrictions on imports andexports, revocation of Russia’s “most-favored-nation”
status, and freezing the assets of persons related to thegovernment of Russia including President Vladimir
Putin and Russian business oligarchs. Meanwhile,
Prime Minister Kishida has held summit telephonetalks with Ukrainian President Volodymyr Zelenskyy

Top: Prime Minister KISHIDA Fumio met with Sergiy Korsunsky,
Ambassador Extraordinary and Plenipotentiary of Ukraine to Japan (right),
on March 23, the day that President Volodymyr Zelenskyy delivered avirtual address to the Japanese Diet. Right: On April 5, Ukrainianevacuees arrived in Japan on a chartered government jet. An increasing
number of local governments and private businesses are supporting themwith regard to housing, employment, education, and daily needs. AFP=JIJI

12

on several occasions, offering food and medical
supplies, as well as defensive equipment from theJapan Self Defense Force including masks and suits
to protect against chemical weapons. Japan has also
pledged to double financial support for Ukraine
to 600 million dollars. As the global community
unites and takes unprecedented action in support ofUkraine, Japan has revised its own policy guidelines
on transferring defense equipment following requests
from the Ukrainian government.
Japan is also accepting an increasing number of
Ukrainian evacuees. Twenty Ukrainian citizens weretransported to Japan on a governmental aircraft on
April 5, and more than one thousand Ukrainians havearrived in Japan. This unprecedented humanitariancrisis has prompted a government-wide response, andUkrainians who do not have relatives or acquaintances
in Japan are now accepted to enter for 90 days, withthe option of changing their status to “DesignatedActivities (one-year work permitted)” if they wish toreside in the country.
Communities and private businesses have steppedup their efforts to support evacuees with housing andemployment, and institutions of higher education are
accepting students who have been deprived of theirBlue and yellow, the colors of the Ukrainian national flag, lighting up buildings all over Japan. Tokyo Metropolitan Government Building (left) and Nijo Castle
in Kyoto, a sister city of Mariupol, in Ukraine, show their solidarity with the country. MAINICHI / AFLO (LEFT), IMAGEMART (RIGHT)

chance to learn. International Christian University(ICU) is one such institution. ICU released astatement by its president almost immediately
after Russia launched its invasion of Ukraine,strongly protesting the act, and moved quickly toaccommodate Ukrainian students. “Education andacademia cannot be secured without peace. Ourperception was that we need to respond to a situationthat threatens that peace,” said IWAKIRI Shoichiro,
the university’s president.
Other universities accept Ukrainian evacuees as
well, but the advantages of ICU are its provisionof on-campus housing in its dormitories, as well as
bilingualism, having both Japanese and English as its
official languages. Above all, the university has thebenefit of past experience in giving young refugees
the chance to pursue higher education, as it has
accepted Syrian refugees through cooperation withprivate organizations as the first Education Pathways
case in Japan. This project follows the vision of the
UNHCR, which recommends the provision ofhigher education opportunities for refugees. For
example, there is a coordinator on ICU’s campus toestablish support teams for students in order to help

them to prioritize their academic and daily life in adifferent culture.
There is a growing movement among institutionsof higher education to foster environments thatwill provide as many students as possible with theopportunity to continue their education after being
forced to flee their own countries. Universities actively
exchange information, and ICU plays a central roleand shares its experience. “The key is to provide
educational opportunities to those who have been
deprived of them,” asserts President Iwakiri.
In late May, five evacuee students from Ukraine
began to study at ICU as auditors. In June, theuniversity’s first Syrian refugee students who had
begun their studies in 2018, will graduate. Iwakiri
stated, “Here in Japan, we hope that these students
will regain the right to live with human dignity. As
for ourselves, we hope to be humane and empathetic
in accepting them into our midst.”
President Iwakiri is not alone in cherishing suchhopes. Russia’s violation of international law is utterly
unacceptable and all of us in the public and private
sectors, along with academia stand firm with Ukraine
and its people in our support.

ICU plans to maintain a peaceful education environment for Ukrainian students.
“The world’s institutions of higher education are linked in solidarity, no matter where
the student undertakes his or her studies. The important thing is that we help eachother to nurture the next generation,” says IWAKIRI Shoichiro, president of ICU.

Following Russian aggression against Ukraine, Japan has made the swift
dissemination of information a priority, detailing its response in nine languages,
including Ukrainian (pictured), on the official website of the Prime Minister’s Office.

The data in this article is up to date as of May 21, 2022.

13

PM KISHIDA’S SPEECH ON

THE NEW FORM OF
CAPITALISM AND
WHY JAPAN IS A “BUY”
AN EXCERPT

MAY 5, 2022
Full Text: https://japan.kantei.go.jp/101_kishida/statement/202205/_00002.html

On May 5, Prime Minister Kishida gave a keynote speech to investors in the financial district of the City of
London. Calling for the audience to “Invest in Kishida,” he explained the economic policy of his “new formof capitalism,” whose core concepts are a virtuous cycle of growth and distribution and the development of anew post-COVID-19 society.
Prime Minister Kishida giving his
speech at the Guildhall in theCity of London. After expressing
his determination at the start ofthe speech to continue to takeresolute action regarding Russia’s
aggression against Ukraine, hedescribed a new form of capitalismof his economic policy.

I would like to introduce to you an economic policy I
am advocating, which I call “new form of capitalism”.
The single message I wish to convey to you is this: The
Japanese economy will continue to see robust growth. You
can invest in Japan with confidence. Invest in Kishida.
Of course, Japan does face many challenges. But I am
prepared to lead reform efforts to tackle these challenges
head-on.One feature of the Japanese economy is stability.
Because we live in an era of geopolitical uncertainty with

14

supply chain disruptions and drastic shifts in energy andother resources, I see this as an advantage for Japan.
Sustained growth; stable markets; and safe, reliable
companies, products and services. This is why Japan is a“buy.”I am the first post-war Japanese Prime Minister withexperience working in the finance industry. From 1982
to 1987, I worked for a bank that supported recoveringbusinesses. As a staff member responsible for loans for theshipping industry, which was struggling with international
competition, I witnessed a number of bankruptcies
first-hand, but also worked with managers to promote
corporate restructuring.
My strong conviction based on these experiences wasthat a robust economy supported by the animal spiritsof the private sector is of paramount importance. Since
I entered politics in 1993, I have worked on industrial
policy, science and technology policy, and policies forsmall and medium-sized enterprises.
Based on my personal experiences, I would argue that
I am the most knowledgeable recent Japanese prime
minister when it comes to the realities of the economy
and finance, and I will continue to advance policies bylistening to the voice of markets as well as the people on
the ground.
So let me be clear: Japan is and will continue to be a
trading and investment powerhouse open to the world.
Japan will grow by being connected to the rest of the world
through the free movement of people, goods, money anddigital technologies across borders.
We have now eased border control measuressignificantly, with the next easing taking place in June,
when Japan will introduce a smoother entry processsimilar to that of other G7 members.
Japan is, and always will be open to the world.
Distinguished guest, I earnestly hope that all of you willvisit Japan. We will offer our utmost hospitality.
Now, let me say a few words about the “new form ofcapitalism” that I have been advocating. What exactly do
I mean by “new”? To put it succinctly, I am talking about
an upgrade—a stronger, more sustainable version ofcapitalism.
Why does capitalism need upgrading? Because we needto solve two crucial present-day challenges.
One is the problem of economic externalities, such as
widening inequality, climate change and issues derivingfrom urbanization. Global capitalism has driven growthand prosperity, and its achievements should be duly
acknowledged. But in its current form, it also has
downsides.
The second pressing challenge is that posed byauthoritarian states. Liberalism and democracy are underpressure from authoritarian regimes. We must makeeconomies in democratic nations sustainable and inclusive
in order to defend freedom and democracy.

Capitalism has changed before. Indeed, it has
experienced at least two major transformations. One was
the transition from laissez-faire to the welfare state. The
other was the shift from the welfare state to neoliberalism.
In both of these transitions, the pendulum swung
between two ideas: “market or state”, “public or private”.
But the next transition will be to a “new form ofcapitalism”, in which the public and private sectors work
together. Instead of “or,” we will have “and.”Under this new form of capitalism, social challenges canbecome engines of growth. We will address social problems
while at the same time driving robust growth. “Two birds
with one stone,” as we say in Japanese as well as in English.
In Japan, there are a number of things we need to do toachieve a new form of capitalism: eliminate distribution
blockages; overcome underinvestment in new valueadded sectors; boost labour mobility to new sectors;
promote diversity; and nurture what I would call a“healthy economic metabolism.”
Accomplishing these things will require investment,
specifically in four key areas: people; science, technology
and innovation; start-ups; and green and digital initiatives.
Let me start with people. Investment in human capitalis at the heart of the growth strategy of the Kishida
Administration.
Creativity and innovation will be crucial in the waves ofdigital transformation and decarbonization—and for that
we need skilled people who can create and innovate. Japan
will face labour shortages. We must produce maximum
value with a shrinking pool of workers.
We need to expand investment in people, both in termsof “flow” and “stock.”On the flow side, the relevant issue is wages. The
government will introduce tax incentives that encourage
employers to increase wages, and work with the private
sector to create a social atmosphere in which it is normal
and natural for pay to rise.
Next, on the stock side, investment in vocational
training, recurrent education and lifelong learning is vital.
We will actively support labour mobility and job mobility
by further increasing investment, and promoting theaccumulation of human capital.
The keyword in this context is diversity. Japan isblessed with many promising women and young people.
Moreover, people from around the world are increasingly
coming to Japan to live and work. For Japanese companies

15

to achieve innovation-driven growth, they need to
become more diverse. My government will support theirefforts by expanding assistance for childcare and making iteasier for people to work in more flexible ways.
Another way I intend to invest in people is to promotea shift from savings to investment. The financial assets ofJapanese individuals are said to amount to 2,000 trillion
yen, more than half of which is held in bank deposits andcash. This is a waste—but also a source of future potential.
I will promote a bold and fundamental shift fromsavings to investment, in order to double people’s incomesfrom asset investments. To this end, I will mobilise all
policy measures in advancing the “Doubling Asset-based
Incomes Plan” including a major expansion of NISA,
a tax exemption program for small investments—the
Japanese version of an ISA—and the creation of a newmechanism to encourage citizens to move their savings
into asset management.
The second pillar is investment in science, technology
and innovation. Science, technology and innovation havethe power to solve many of the social problems facing theworld, such as infectious diseases, global warming, fallingbirthrates and ageing populations.
Science and technology will also play a major role indetermining the victor in the intensifying competition
between democracy and authoritarianism. For example,
development and production of advanced semiconductors
may determine global competitiveness and even national
security.
Unfortunately, current investment in R&D by Japanesecompanies is far less than that of other developed
countries. The same goes for capital investment. We needto present a clear national strategy, and national growthrate targets, and then act as a priming agent to induce
Growth provides resources through increasing
corporate profits and government revenue,
which leads to distribution.

GrowthPublic and private
sectors work
together to achieve“growth” and“distribution.”

Distribution

Distribution increases demand in consumption andin investment while strengthening the potential for
growth, which leads to further growth.

16

corporate investment.
To this end, we will articulate a national strategy in five
fields: AI, quantum technologies, biotechnology, digitaland decarbonization. Strong incentives will be offered tocompanies that increase R&D investment in accordancewith the national strategy.
Collaboration between industry, academia andgovernment is essential for science, technology andinnovation. Revitalising “academia” is especially key. Last
year, a 10 trillion yen university fund was launched.
Through this fund, we will support university R&D.
The third pillar is investing in start-ups. When you
hear “Japanese companies”, you probably think of major
corporations like Honda and Sony. But these large
companies, which have been the driving force for Japan,
were originally start-ups founded by young entrepreneurs
shortly after the end of World War II.
It is my earnest wish to create the next start-up boom inJapan.
Changes are happening on the ground in Japan. Insteadof taking conventional jobs at large corporations, many
brilliant university students are launching their own startups after graduation.
There is another important change. More and more
entrepreneurs have strong aspirations to solve social
problems.
I have high hopes for the future of such practitioners ofa “new form of capitalism”, which pursues the dual goals of
economic growth and social entrepreneurship.
I intend to further encourage these positive changes
in Japanese society. We will create an environment where
young people can jump into start-ups more easily.
This will require a set of integrated measures. Steps tofoster such a start-up ecosystem will be consolidated as afive-year plan, and a cross-cutting command post function
for implementation will be clarified.
Last but not least, investment in green and digital
initiatives.
Russia’s aggression against Ukraine has made clear theimportance of energy security. Climate change remains anurgent issue.
In addition to renewable energy, we will utilise nuclear
reactors with safety assurances to contribute to worldwide
reduction of dependence on Russian energy. Restarting
just one existing nuclear reactor would have the same
effect as supplying 1 million tonnes of new LNG per yearto the global market.
At the same time, with a long-term perspective,
Japan will achieve its international commitments tocarbon neutrality by 2050 and to reduce greenhouse gas
emissions by 46% by 2030, while ensuring a stable energy
supply. To achieve these goals, 150 trillion yen in newinvestments will be raised over the next decade throughpublic-private collaboration, including 17 trillion yen in
fiscal 2030.
In order to draw in 150 trillion yen in new investments,
we will swiftly formulate a comprehensive policy roadmap
to 2030 composed of two policy initiatives; the firstis maximum utilization of growth-oriented carbon
pricing, or “pro-growth carbon pricing,” which increases
predictability for companies while promoting growthand innovation; and the second is the use of investment
promotion measures that integrate regulation, such asenergy efficiency standards, and financial support, such as
assistance to promote long-term large-scale investments,
as a package.
And of course, investment in digital. With a shrinking
workforce, there is an urgent need to utilise digitaltechnology, and Japan will actively promote digitaltransformation in both the public and private sectors.
Japan will develop an environment for the promotion of
web 3.0, such as blockchain, NFTs and the metaverse, andachieve a society that facilitates the birth of new services.
A major reform is being carried out, identifying morethan 40,000 analogue-era regulations and reviewing themin one fell swoop over a three-year period.
Furthermore, Japan will advance 5G and fibre optics
installation to cover nearly 99% of demand over the next
five years, creating a world-class digital infrastructure.
What I have just laid out are the four key pillars of a
new form of capitalism.
The success of these policies requires a strong
macroeconomic framework and financial market reform
to support them.
A bold monetary policy, flexible fiscal policy and a
growth strategy to stimulate private investment, willcontinue to be put in place in an integrated manner.
We will transform the state of public finances in two
ways.
First is single-year budgeting. To make it easier forcompanies to see and predict the long-term directionof the country, and derive expected future growth rates,

The round-table discussion between Prime Minister Kishida and social
entrepreneurs, held on April 27. Mentioned in the speech was the experience of
one of the participating women, who had launched a crowdfunding start-up soonafter graduation from university. Her work has helped both hospitals struggling
with surges in patients and restaurants suffering financially due to COVID-19.

we will make a breakthrough in the single-year budget
principle through funds and other means.
Secondly, on tax policy, our philosophy is that
introducing incentives such as tax cuts now will leadto increased revenues in the future as the economy
accelerates.
Finally, I would like to talk about financial market
reforms.
In order to realise the new form of capitalism, we needto revive Japan as an international financial centre. WhenI was the Chairperson of the Policy Research Councilof the Liberal Democratic Party, I made decisions that
helped to facilitate the entry of foreign investment
managers, revive of the corporate governance code,and introduce greater flexibility in the requirements for
professional investors. As Prime Minister, I will continue
to lead to achieve steady progress. In particular, I will doeven more to promote reforms that enable companies toincrease their value over the mid-to-long term.
In addition, through the “Doubling Asset-based
Incomes Plan”, we will awaken 1,000 trillion yen, currently
sitting dormant in savings accounts.
Also, with a view to carbon neutrality in 2050, Japan
will strongly cultivate the green bond market and go
beyond that to the transitional bond market for Asia.
Kites rise highest against the wind—not with it.
I am now reflecting on the words of Sir Winston
Churchill. The Ukrainian crisis, the rise of authoritarianstates, climate change and inequality. In this world underraging storm, I shall remain unperturbed against theheavy wind.
Next year, Japan assumes the presidency of the G7. As
the flag-bearer of democracies, we will face this “storm”
head-on, with the vision of a new form of capitalism.
Thank you very much for your kind attention.

17

IN FOCUS: NEW FORM OF CAPITALISMLESSONS FROMSHIBUSAWAEIICHI
THE MAN WHO FORMED THE FOUNDATION
OF JAPANESE CAPITALISMSHIBUSAWA Eiichi—the industrialist who helped build Japan’s new economic system in the late 19th to early
20th centuries and who was involved in the establishment and management of nearly 500 companies. What lessons
are there to learn from this man, who made it his goal to build a fair and inclusive capitalist economy based on his
unwavering stance of placing importance on not only profits, but public interests as well?

The global economy is
man who similarly pursued
now at a major turning
not only profits but also
point. Capitalism has long
public interests, aiming tobrought
prosperitytorealize a fair and inclusive
the world, and since theform of capitalism. This
1980s, neoliberalism, with
was SHIBUSAWA Eiichi,
its focus on free-market
an industrialist active fromcompetition, has been thethe late 19th to early 20th
wellspring for growth. Yet,centuries, and who is known
it also has increased poverty
as the “father of Japaneseand social disparities, andcapitalism.” At that time,
made the issue of climate
Japan was confronted with thechange more serious bydaunting task of rebuilding
placing larger burdens on
its political, economic, andA book compiling Shibusawa’s thoughts on various issues,
the natural environment. The Analects of Confucius and the Abacus, is still widely read tosocial foundations in order toAmid such a situation, the this day. Due to his contribution to Japan’s modern economy,
modernize the country after
he has been selected toworld has begun seeking out become the face of thethe end of more than 200
a new model for capitalism. new 10,000-yen bill inyears of national seclusion in
2024.
Prime Minister Kishida of FROM TOP : GETTY IMAGES,
1854.
Japan, who assumed office in THE MAINICHI NEWSPAPERS
A key figure taking up thisOctober of 2021, announced
challenge was Shibusawa.
his determination to realize a “new form of Recognized at a young age for his resourcefulness,
capitalism,” stating that the government will generate he was mandated by the government to travel togrowth by solving such issues as climate change, and Europe when he was 27 years old, where he witnessed
will distribute the fruits of this growth to human advanced industrial and economic systems. Upon his
capital so as to achieve further growth. By creating return to Japan, he quickly climbed the bureaucraticsuch a virtuous cycle of growth and distribution, he ladder to become a high-ranking official in theaims to build a sustainable economy.
Ministry of Finance, but resigned at the age of 33 toMore than a century ago in Japan, there was a promote private-sector business. He then established18

Left: June 1878, in the early days after the Tokyo Stock Exchange was opened as Japan’s first official stock-exchange organization. THE MAINICHI NEWSPAPERS
Right: Photo of Shibusawa (front row, third from the left) together with faculty members from Japan Women’s University at the time of its founding. In
addition to serving as president of this university, Shibusawa was the director of Tokyo Jogakkan Schools for Women, which he also helped to found.
JAPAN WOMEN’S UNIVERSITY

Japan’s first bank in 1873 and the stock exchange
in 1878. He applied himself to directing funds to abroad range of new industries, from sectors concernedwith infrastructure to textiles and insurance, and was
involved in the establishment and management ofnearly 500 companies.
“Many of the companies that Shibusawa helped
establish in a diversity of fields remain today. Thiscannot be found in any other country in theworld,” says Christina Ahmadjian, professor at
Hitotsubashi University Graduate School of Business
Administration, and the director of the Shibusawa
Scholar Program. Moreover, the world-renowned
economist Peter Drucker mentioned in his book, The
Age of Discontinuity, that “[Shibusawa’s] achievements
were a good deal more spectacular than those ofRothschild, Morgan, Krupp, or Rockefeller.”
Ahmadjian notes, “Rather than on profiting for
himself, his business ideas were always based on
how to create a society in which people are happy.
He believed in the power of business as the engine
to solve social problems and create a better world.”
What Shibusawa advocated was gapponshugi, which
can be defined as the pursuit of profits and theraising of capital through stock—similar in concept
to ordinary capitalism—while also calling for the
pursuit of public interests and the distribution of
profits to all stakeholders. “Shibusawa’s goal was tocreate a fair and inclusive economy that would enrich
the lives of a broad range of people and provide themwith various opportunities,” says Ahmadjian.
Believing that nurturing talent for new businesses
would lead to the creation of a prosperous nation,

Shibusawa also focused on education. He establishedmany schools specializing in business, including theCommercial Training School (now Hitotsubashi
University), and gave lectures and guidance at variousorganizations and meetings. Additionally, so thatwomen—who make up half of the population—could
contribute more to society, he also advocated thenecessity of their higher education and supported
the establishment of such schools as Tokyo Jogakkan
Schools for Women and Japan Women’s University.
According to Ahmadjian, “Looking now at the SDGs,
you can see that Shibusawa had already put most ofthem into practice, including gender equality. The
essence of the challenges facing human society is thesame in any era. Shibusawa was able to grasp thatessence.”
How can we create a world that will bring happinessto people? As new ordeals shake the global economy,
now may be the time for us to look to Shibusawa’s
doctrine for new hints on how to address this basic
question. 

Christina Ahmadjian, professor at
Hitotsubashi University Graduate
School of Business
Administration, and the directorof the Shibusawa Scholar
Program, which has the goal of
nurturing global leaders. “Now,more than ever, the world needs
leaders like Shibusawa,” she says.
“Shibusawa is a really good rolemodel, not just for his visions but
for his ability to act on them. The
world has a lot to learn from him.”

19

CLEAN ENERGYSTRATEGY
TO ACHIEVE CARBON NEUTRALITY BY 2050

Japan will draw out extensive investment
in areas of anticipated growth, such ashydrogen. The photos show FH2R
(Fukushima Hydrogen Energy Research
Field) in Fukushima–one of the world’s
largest hydrogen production plants (left),and a hydrogen refueling station and fuelcell buses operated by the Tokyo
Metropolitan Government (right).

The Japanese government issued an interim report on its “Clean Energy Strategy” in May. While aiming to achieve
the goals of carbon neutrality by 2050 and a 46% reduction in greenhouse gas emissions in fiscal 2030, further
growth will be achieved by ensuring a stable and affordable energy supply for the future.
Japan has accelerated the steps
taken to achieve decarbonization inorder to meet two ambitious goals– namely, carbon neutrality by 2050
and a 46% reduction in greenhousegases (GHG) in fiscal 2030.
However, while progress is underway,
the circumstances related to energy
security have been dramaticallyupended by the Russian invasionof Ukraine. It is crucial for Japan to
strive to reduce its reliance on Russia,
and to accelerate decarbonization,
while ensuring a stable supply ofenergy.
Ensuring energy security
Against such a backdrop, thegovernment issued an interim
report in May on its “Clean Energy

20Strategy” so that taking measures tocombat global warming could leadto growth.
Firstly, it outlined a path to firmly
ensure Japan’s energy security andto accelerate decarbonization. A
short-term transition away froma reliance on Russia is necessary
for Japan to reduce its current
dependence. In addition to energy
diversification, the broadeningof procurement sources otherthan Russia is promoted throughthe government’s involvement in
LNG purchasing and so on. Also,
Japan, in cooperation with othermajor energy-consuming nations,will encourage energy producing
nations to increase output. A stablesupply of energy must be absolutely

secured, and on the premise of that,efforts toward decarbonization are
accelerated through “maximum
utilization of power sources withhigh security and decarbonizationsuch as renewable energy and nuclear
power.”
Reforms in economy, society andindustrial structure toward a carbonneutral society
Furthermore, the government
has stipulated such efforts
towards realizing an industrywide green transformation (GX)
for decarbonization to lead toeconomic development and growth,and upgrading social systems andinfrastructure to achieve GX on theinterim report. In order to shift toScale & Timeframe of Investment Related to Decarbonization

17 trillion yen (approx.) in 2030

Amount of investment

a society, economy and industrial
structure centered on clean energy, it
is anticipated that some 150 trillion
yen in investment will be required via
public and private partnerships overthe next decade.
As a framework for policy responses
to draw such investment, five pillars
have been outlined: (1) budgetarymeasures, (2) regulations and systems,(3) financial packages, (4) step-bystep development of the GX League,and (5) global strategies. Prime
Minister Kishida also stated thatabout 20 trillion yen of government
funds would first be raised in theform of GX Economic Transition
Bonds (tentative), backed up by
securing future financial resources,
with consideration given to quickly
directing such funds to support
investment. Further discussions will
be held to materialize these policy
responses.
Fiscal 2023 will see the fullscale launch of the GX League inJapan, enabling discussions acrossindustry, government, and academia

Expandinginvestment related
to decarbonization
15 trillion yen(approx.)averageinvestmenta year

150 trillion yen (approx.)

Breakdown of
the 17 trillion yen (approx.)
Decarbonizationof power sources／ fuel transition

5 trillion
yen

Decarbonizationof manufacturing
processes

2 trillion
yen

End use4 trillion
yen

Infrastructure

4 trillion
yen

R&D

2 trillion
yenover 10 years

The government’s financial aid
for investment in decarbonization
Early 2020s

to implement all aspects of GX,
including emissions trading. During
the preparatory stage in fiscal 2022,
this was endorsed by 440 companies
that account for more than 40% ofJapan’s entire emissions. With the GX
League, participating companies set
their own emission reduction goalsconsistent with those of the country,
and annually disclose their reduction
efforts toward those goals. Then, if
their individual reduction goals set
by the companies are not achieved,
emissions will be traded between
participating companies or carbon
credits will be procured. The intent
is for the GX League to develop into

2030s

a mechanism that stimulates reduced
emissions and promotes investment.
The “Asia Zero Emissions
Community Initiative” as focusedon by the Kishida Administrationis one of the global strategies toenhance cooperation with other
Asian countries. Japan will strive
for cooperative decarbonization
acrossAsia
bypromotingjoint demonstrations, international
investment, and establishing standards
for zero-emission technologies forbiomass, hydrogen, ammonia, carbon
capture, utilization and storage(CCUS), and so forth, while utilizing
the region’s credit markets. 

CREATING A GLOBALHYDROGEN SUPPLY CHAIN FORSUSTAINABLE ENERGY

PM Kishida, attending a ceremony to mark the completion of marine transport demonstration
tests of the world’s first liquified hydrogen carrier, stressed, “We must complete our structuralshift concerning energy, and establish a foundation for our future.”

The use of hydrogen as an energy source is considered
key to achieving carbon neutrality by 2050. Japan has
been quick to focus on hydrogen, as demonstrated
by its drawing up of a hydrogen utilization road map
in 2014 and being the first country in the world toformulate a national hydrogen strategy in 2017.
In February 2022, the world’s first liquified hydrogen
carrier successfully conducted its marine transport
demonstration tests. The vessel was loaded withhydrogen produced in Australia, which was thentransported back to Japan by sea. Upon returning
to the Port of Kobe, its cargo was off-loaded, thus
completing its first trial journey.
Japan aims to commercialize an international hydrogen
supply chain by producing hydrogen in bulk at low costin countries blessed with bountiful renewable energy
resources coupled with marine transport infrastructure.

21

Summer 2022

Published by

Edited by

Public Relations Office, Cabinet Office
andOffice of Global Communications, Cabinet Secretariat
1−6−1 Nagatacho, Chiyoda-ku, Tokyo
100−8914, Japan

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