The draft envisions combined public and private investment of approximately JPY 5 trillion (about USD 35 billion) in advanced reactor technologies by fiscal 2040, generating an estimated JPY 11 trillion in broader economic impact. Planned investments include research and development, supply chain enhancement, and workforce development.
According to the government, the global market for next-generation advanced reactors is expected to reach USD 100 billion annually by 2050. It states that replacing existing reactors with advanced designs will contribute to Japan’s energy security while ensuring a stable supply of low-carbon electricity.
The policy also identifies strategic priorities, including strengthening the nuclear supply chain and establishing a sustainable industrial base capable of supporting the efficient and timely replacement of existing reactors with next-generation technologies.
To promote public and private investment, the government highlights several challenges, including the weakening of the nuclear supply chain and workforce, the need to improve investment certainty and project predictability, and the erosion of research and development capabilities.
Proposed measures include expanding manufacturing capacity across the nuclear supply chain, establishing a national framework involving industry, government, and academia to coordinate nuclear workforce development, improving the long-term decarbonized power auction system, developing a more predictable regulatory framework based on a graded approach, and strengthening financial support mechanisms, including those provided through the New Energy and Industrial Technology Development Organization (NEDO).
The government also projects combined public and private investment of approximately JPY 3.1 trillion in fusion energy development by fiscal 2040.
Photo: Prime Minister TAKAICHI Sanae attends a meeting of the Council on Economic and Fiscal Policy. © Cabinet Public Affairs Office
