Japan aims to create $628 billion green energy market: government draft

Reuters News
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Posted: Jul 10, 2012 4:46 AM
Japan aims to create $628 billion green energy market: government draft

TOKYO (Reuters) - Japan will aim to create a 50 trillion yen ($628 billion) green energy market by 2020 through deregulation and subsidies to promote development of renewable energy and low-emission cars, a draft of the government's growth strategy showed.

The government will also work with the Bank of Japan to ensure the country exits deflation and achieves stable price growth, according to the draft obtained by Reuters on Tuesday.

"The government hopes the BOJ maintains powerful monetary easing to beat deflation," the draft said.

"We will also continue to monitor currency market moves carefully and act appropriately as needed," it said, warning that excessive currency volatility would hurt Japan's economy.

The government is in the process of crafting a long-term strategy to boost Japan's growth potential and seek new areas of growth, and hopes to finalize it by the end of this month.

($1 = 79.6050 Japanese yen)

(Reporting by Takaya Yamaguchi, Writing by Leika Kihara; Editing by Michael Watson)