Japan’s Cabinet Office announced on November 2nd that it has approved a Comprehensive Economic Package for Achieving Deflation Eradication.
The package is structured around five key pillars: protecting citizens from rising prices, realising sustainable wage increases and income growth, promoting domestic investments that enhance growth and sophistication, initiating and driving social transformation to overcome a declining population, and strengthening the resilience of the national land.
The additional allocation for the general account in the 2023 budget is set at ¥13.1 trillion (approximately $8.6 billion at time of writing)..
In the realm of housing and real estate, there is a strong emphasis on bolstering the economic and societal infrastructure to combat the rising energy costs.
The plan includes further encouragement of energy conservation for both businesses and households.
For businesses, this entails supporting the implementation of energy-saving facilities in factories and other industrial settings over multiple years, as well as advancing energy conservation diagnostics for small and medium-sized enterprises.
For households, there will be support for energy-efficient housing acquisition by families with children and young couples, as well as clear provisions for assistance in energy-efficient renovations and the adoption of highly efficient water heaters, with a one-stop service centre established for these purposes.
Additionally, support will be provided for the introduction of self-consumption-type solar power generation and battery storage solutions, making use of underutilised rooftops.
The acquisition of energy-efficient housing is underlined as a priority in the Green Transformation (GX as abbreviated in Japan) sector.
The government is also implementing measures to provide guarantees for the Japan Housing Finance Agency's Green Bonds.
Furthermore, the package encompasses initiatives such as the promotion of smart city implementation to revitalise local areas using digital technology, as well as enhancing the disaster resilience of buildings with the goal of strengthening the national land.
Further Reading:
Japan Cabinet Office Deflation Reduction Measures Overview (Japanese only)
Japan Cabinet Office Deflation Reduction Measures Specifics (Japanese only)
Source:
R.E. Port News (Japanese only)
