🚀 Japan Revamps Startup Rules to Unlock Climate Capital as Expo 2025 Showcases Sustainability Vision
I had the opportunity to make a visit at the Kansai Osaka Expo, where I was quite inspired to see all the cutting edge technology for the future!
*Editor’s note: This article was originally published on 9/19/2025 on Linkedin.
🎧🗣️Audio Versions of this newsletter are available thanks to NotebookLM
In English🇺🇲: Japan Climate Curation vol. 170 [5:46 min.]
In Japanese🇯🇵: Japan Climate Curation vol. 170 [7:02 min.]
🚀Now, the English audio digest of a sister publication, Climate Curation, which covers mainly non-Japanese global climate news topics, is available in English.
🇺🇲Climate Curation vol. 175 audio summary in English [14:28 min.]
🇯🇵Climate Curation vol. 175 音声概要 [21:00 min.]
Welcome! I'm Hiroyasu Ichikawa, ichi, and this is issue 170 of the "Japan Climate Curation" newsletter📬, which has been curating hand-picked Japan-related climate news content every week since spring 2022, with over 470 subscribers [ more than 2,970 on LinkedIn]. You can subscribe by clicking on the Linkedin page or the form below.
I hope you find the articles below beneficial for reading (or skimming)!
Found this week's news insights valuable? Please give it a quick "like" or "share" on your preferred network – you never know who else in your network might benefit from staying in the loop on Japan's climate scene🙂🙇
*note : "Climate Curation" a different climate newsletter in Japanese (every Saturday) is available on Linkedin / note / theLetter. It curates Japan and global climate-tech trends. I hope you like it.
【Digest of this week's topics】
Japan's climate innovation landscape transformed as METI eliminated IPO requirements to attract foreign venture capital, while domestic startup fundraising of ¥779.3 billion lagged the US's $209 billion. Major funding breakthroughs included Kyoto Fusioneering securing ¥9.38 billion and US-based Alumni Ventures announcing $100 million for Japanese university spinoffs. Osaka Expo 2025 showcased sustainability vision through circular economy principles with recyclable wooden structures and waste-to-biogas pavilions utilizing algae for CO2 reduction. International partnerships accelerated as Japan-Germany hydrogen corridor connected Toyota, Kawasaki, and Daimler while Japan-Brazil meeting targeted quadrupling sustainable fuel use by 2035. Renewable energy faced mixed signals with offshore wind receiving extended 40-50 year usage periods after Mitsubishi's withdrawal, yet JERA pursued $1.7 billion US shale gas acquisition. Market expansion continued with Looop investing $20 million in Philippines solar, automakers pivoting to kei car EVs, and government allocating ¥24.6 billion in perovskite solar subsidies to Ricoh and Panasonic.
*Disclaimer: Generative AI tools such as Claude Sonet 4 and NotebookLM have been used for summary and translation assistance. 🙂
[🇯🇵📰👀Japan Climate News Headlines]
【1】🚀 Japan to revise investment rules for startups to woo foreign capital [9/18 Nikkei Asia]
Japan will revise startup investment guidelines to attract overseas venture capital. METI will eliminate the uniquely Japanese rule requiring startups to pursue IPOs, instead promoting M&As to align with international standards. While the US has over 600 unicorn companies, Japan has only a handful. In 2024, domestic startup fundraising totaled 779.3 billion yen compared to the US's $209 billion. The revision addresses Japan's practice where 70% of VC exits occur through IPOs. New guidelines will state that M&As and secondary sales are rational choices. Japan will also remove VCs' rights to demand repayment beyond initial investment, which forces founders to buy back shares with personal assets. These changes aim to attract foreign capital and foster innovation.
【2】🌱 Designing Future Society: Osaka Expo 2025 Highlights Sustainability, Climate, And Women [9/13 Forbes]
Osaka Expo 2025, themed "Designing Future Society for Our Lives," showcases advanced sustainability and climate solutions through innovative design. The expo emphasizes circular economy principles with six-story wooden structures built using traditional Japanese nail-free joinery, completely recyclable post-event. Cross Laminated Timber construction demonstrates earthquake-resilient, fire-resistant materials now in international building codes. Japan's pavilion functions as a waste-to-biogas factory while utilizing algae for energy production and CO2 reduction. Brazil's immersive climate pavilion delivers visceral planetary warming experiences through dynamic color-changing displays and environmental simulations that deflate and darken as temperatures rise, offering visitors real-time climate impact understanding with expert guidance.
I had the opportunity to visit the Kansai Osaka Expo taking place this week in Osaka. There, I visited "Farmarium," a demonstration exhibit of Direct Air Capture (DAC) technology utilizing membrane technology developed by Carbon Xtract , located near Benten-cho Station close to the expo venue. By utilizing CO2 captured from the atmosphere to enhance lettuce cultivation, they can reportedly reduce the typical growing period from about 5 weeks to just 3 weeks. I also had the chance to participate in a one-hour tour of RITE: Future Forest, a technology exhibition facility where their technology is displayed. There, I was able to see Japan's cutting-edge technologies in negative emission solutions, including DAC, CCU, and CCUS. It was a truly inspiring experience that made me feel their tremendous potential for the future.
【3】☀️ Japan's METI Allocates ¥24.6 Billion in Perovskite Solar Cell Subsidies to Ricoh, Panasonic [9/9 Nikkei]
The Japanese government has committed ¥24.6 billion in subsidies to support perovskite solar cell development at major corporations Ricoh and Panasonic. This represents a significant investment in next-generation solar technology that could dramatically improve efficiency and reduce costs compared to traditional silicon-based solar panels. The funding underscores Japan's commitment to advancing renewable energy technologies and maintaining competitiveness in the global clean energy market.
【4】💰 US-based Alumni Ventures to invest $100m in Japanese, American startups [9/17 Nikkei Asia]
US-based venture capital firm Alumni Ventures announced a $100 million investment plan targeting startups in the United States and Japan, with emphasis on advanced technologies including nuclear fusion, quantum computing, and robotics. More than half of the funding will support Japanese university spinoffs. The Ministry of Economy, Trade and Industry (METI) and Japan External Trade Organization will announce this initiative at the Global Startup Expo during the 2025 Osaka Expo. As US-China economic tensions make Chinese investments increasingly difficult, Japan emerges as an attractive alternative market for American investors.
【5】💎 Kyoto Fusioneering Closes Series C Extension, Secures ¥9.38 Billion Including Debt Financing [9/10 Kyoto Fusioneering Co., Ltd.]
Nuclear fusion startup Kyoto Fusioneering has completed its Series C extension round, securing ¥9.38 billion in total funding including debt financing and credit facilities. This represents one of the largest funding rounds for a Japanese fusion company and demonstrates growing investor confidence in fusion energy as a viable clean energy solution. The funding will accelerate the company's development of fusion reactor components and systems as the global race toward commercial fusion energy intensifies.
【6】🔋 Toyota, Kawasaki join Japan-Germany hydrogen supply chain partnership [9/15 Nikkei Asia]
Kawasaki Heavy Industries, Toyota, and three other Japan-Germany companies signed an MOU for hydrogen supply chain development on September 15. The ceremony was held at Osaka's Hydrogen Energy Ministerial Meeting with Kansai Electric, Daimler Truck, and Hamburg port operator participating. The collaboration aims to create an economically feasible hydrogen supply chain, addressing high costs that hinder widespread adoption of this next-generation energy source. Kawasaki, the world's first company to develop a liquefied hydrogen carrier, leads the initiative to establish an international hydrogen corridor spanning ports, logistics, power generation, and commercial vehicle sectors.
【7】🌊 Japan offers more aid to offshore wind after Mitsubishi Corp. withdrawal [9/12 Nikkei Asia]
Following Mitsubishi Corp.'s withdrawal from offshore wind projects, the Japanese government has decided to provide additional support to prevent a wave of operator exits. The Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism agreed to extend maritime area usage periods from the current 30 years to approximately 40-50 years. Global inflation has driven up construction costs, causing other operators like JERA and Mitsui to struggle with declining profitability. The government plans to complete its review of Mitsubishi's withdrawal by year-end and is considering revising the bidding system to emphasize sustainable business viability over lowest pricing. With a target to increase wind power's share from 1% to 4-8% by fiscal 2040, enhanced support measures have become essential for Japan's decarbonization goals.
【8】🌿 Japan, Brazil aim to quadruple use of sustainable fuels by 2035 [9/15 NHK World]
Japan and Brazil co-hosted the first Ministerial Meeting on Sustainable Fuels in Osaka City, bringing together ministers from over 30 countries across Europe, Asia and other regions, plus international organization representatives. Participants agreed to more than quadruple global annual use of sustainable fuels by 2035, focusing on biofuels and hydrogen for decarbonization. The meeting emphasized expanding sustainable fuel use for automobiles, including hybrid engines, while recognizing each country should promote initiatives based on their circumstances. This goal aims to reduce fossil fuel dependence, with results to be presented at COP30 in Brazil this November.
【9】☀️ Japan power company Looop to set up $20m solar plant in Philippines [9/15 Nikkei Asia]
Japanese power company Looop will build a $20 million mega solar plant with battery storage in the Philippines, marking its first major overseas project. The facility in Ilocos Norte province will have a 30,000 kW capacity, with half operational by year-end and full capacity by March 2026. To avoid market volatility, Looop will sell electricity directly to Philippine power companies at fixed prices. The company plans to increase overseas profit share from 5% to 20-25% by 2030, with similar projects planned in Malaysia, Thailand, and Vietnam. Japanese new power companies are accelerating overseas expansion due to domestic market instability and rising procurement costs.
【10】🚗 Japanese automakers hitch EV hopes to mini cars [9/12 NHK World]
With sales of battery-powered cars stuck in the slow lane, Japan's auto heavyweights are launching EV models in the mini "kei" car category - one of the country's most popular forms of transport. This strategic shift targets Japan's unique automotive market where kei cars account for a significant portion of vehicle sales, potentially accelerating nationwide electric vehicle adoption by making EVs more accessible and affordable for mainstream consumers.
📬That's all for this week! Thank you for reading(or skimming) 🙇. I hope you will have a wonderful week ahead!
Did you found this week's news insights valuable? Please give it a quick "like" or "share" on LinkedIn – you never know who else in your network might benefit from staying in the loop on Japan's climate scene🙂🙇
The "Climate Curation" newsletter in 🇯🇵Japanese (every Saturday) is available on Linkedin and theLetter.
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ichi (Hiroyasu Ichikawa)