The government compiled an action plan for economic growth, looking forward to a time after the containment of the novel coronavirus, at its growth strategy council meeting held on Tuesday.
The plan included the creation of a fund to support innovative technology development to realize the government's goal of zero net emissions of greenhouse gases by 2050, and the establishment of new subsidies to encourage the expansion of small and medium-sized businesses.
The plan pointed out that Japan's labor productivity, the lowest among the Group of Seven industrialized nations, has a lot of room for improvement. It stated that increased productivity will lead to higher wages, and to that end, innovation and increased corporate capital investment are necessary.
Specifically, the plan presumes that markets related to measures to combat global warming will grow. The government hopes to establish the fund in the third supplementary budget for fiscal 2020, to be compiled this month, to promote the development of technology in three fields as national projects.
The three fields are the advanced use of electricity, such as next-generation storage batteries; the use of hydrogen; and the collection and reuse of carbon dioxide.
The government will set targets for 2030 and invite companies to apply for the fund, which will be supported for 10 years.
The meeting was chaired by Chief Cabinet Secretary Katsunobu Kato and held at the Prime Minister's Office on Tuesday.
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