Advancing the energy transition through industrial policy: a transatlantic perspective with lessons for Japan

This paper conducts a comparative analysis of green industrial policy strategies recently advanced by the European Union (EU) and the United States (U.S.), and extends insights to the evolving policy landscape in Japan. Its analysis underscores how the European strategy is characterized by a systematic approach that balances emissions constraints with incentives and support policies under the broader umbrella of the European Green Deal. By contrast, the U.S. approach prioritizes innovation and fiscal incentives to stimulate the clean energy sector, as seen with the Inflation Reduction Act. Japan, navigating its unique socio-economic challenges,
can leverage lessons from both regions to tailor its green industrial policy, emphasizing energy security, climate resilience, and supply chain diversification. The analysis underscores the importance of equity and international cooperation in crafting effective green industrial policies. Drawing on these transatlantic experiences, the paper highlights strategic recommendations for Japan, focusing on the significance of adapting policies to national contexts while contributing to global sustainability efforts.