Britain and Japan to build Renewable Energy Partnership as Japanese firms commit £18 bn to British economy

Establishing new partnerships with major global economies is crucial for Britain's success in the post-Brexit era.

Furthermore, as the world becomes more hostile, tense, and competitive, cooperation between like-minded democracies who share common values is increasingly important for the future prospects of the rules-based international order.

One of the consequences of a more competitive global political order "is renewed purpose and cooperation among Britain's core network of allies and partners", according to the Integrated Review Refresh 2023.

One key international partner for Britain is Japan. Alongside Britain, Japan is a fellow member of the G7, a group bound by a commitment to liberal democracy and a rules-based international order. The G7 will meet in Hiroshima for the 2023 summit from the 19th to the 21st of May.

Signed back in 2020, the Japan-UK Comprehensive Economic Partnership Agreement (CEPA) was Britain's "first major trade deal" agreed "as an independent trading nation". Or in other words the first major post-Brexit trade deal.

With £92 billion invested in Britain, Japan is our fifth largest investor. When Britain joins the CPTPP trade bloc, Japanese investment in Britain is only likely to increase according to Number 10.

Building on the trading relationship between the two powers, Japan's Ministry of Economy, Trade and Industry and Britain's Department for Energy Security and Net Zero have issued a joint statement on a new Renewable Energy Partnership.

The two governments "share a commitment" to energy security and the acceleration of "the clean energy transition to achieve net zero by 2050".

Climate change has also been a focus of the G7. Back in April, G7 ministers for Climate, Energy and Environment emphasised their unchanging commitment to the Paris Agreement, which aims to keep global temperature rises to 1.5 degrees Celsius.

The Renewable Energy Partnership with Japan also brings to mind the government's objective of cementing Britain's status as a science and technology superpower by 2030.

Back in March, the PM and the Technology Secretary outlined a plan to achieve this objective. One key approach is to shape "the global science and tech landscape" by pursuing "strategic international engagement, diplomacy and partnerships".

Accordingly, the new Renewable Energy Partnership between Britain and Japan has the potential to drive technological innovation in the development of clean energy.

It welcomes the cooperation of Japanese and British businesses "on deployment of renewable energy including offshore wind". It also encourages "business collaboration" in the renewables sector in both countries and "together in third countries".

Researchers from Britain and Japan and research organisations are encouraged to work together on technological development and to give advice on deployment policy. Furthermore, an "annual official-level Energy and Climate Dialogue" will be staged between Britain and Japan to share policy experience and confront "shared deployment challenges".

Japanese Investment in Britain

As the British and Japanese governments announce cooperation on renewable energies, PM Rishi Sunak has hosted a business reception in Tokyo, outlining further opportunities for the development of the economic relationship between Britain and Japan.

Crucially, Japanese businesses have committed investment just shy of £18 billion into the British economy. According to Sunak, the "new investments are a massive vote of confidence in the UK's dynamic economy, from some of Japan's top firms."

Driving growth and technological innovation, the investment is set to fuel the creation of "high-quality jobs in strategic clean-energy industries" with investment coming from firms such as Marubeni Corporation and Sumitomo Electric Industries.

Marubeni, a leading Japanese trading house, will be a source of investment for "offshore wind, low carbon hydrogen and other clean energy projects". Sumitomo Corporation will increase investment into offshore wind projects located off the coasts of Suffolk and Norfolk, facilitating investment amounting to £4 billion. The investment will help to cement Britain's reputation "as a clean energy pioneer", supporting the objective of installing "50GW of offshore wind capacity by 2030".