The total support for fossil fuels in Japan from 2024 is projected to decline consistently from $2.54 billion in 2024 to $2.39 billion by 2028. This indicates a gradual downward trend with year-on-year reductions of approximately 1.6% to 2.04%. From 2023, where the actual figure stood, the compound annual growth rate (CAGR) estimates support a continuous, albeit moderate, decrease in fossil fuel subsidies over five years, suggesting a shift towards alternative energy sources.
Future trends to watch include the Japanese government's policy changes towards renewable energy development and any fiscal measures that further reduce dependency on fossil fuels in alignment with global decarbonization goals.
