In 2023, Japan's government expenditure on R&D in energy was $1.6 billion (PPP). From 2024 onwards, forecasts suggest a gradual decline: $1.57 billion in 2024, decreasing by 1.3% to $1.55 billion in 2025, a further 1.9% decline to $1.52 billion in 2026, 1.3% down to $1.5 billion in 2027, and finally a 1.3% reduction to $1.48 billion in 2028. The compound annual growth rate (CAGR) for this period is approximately -1.6%, indicating a steady downward trend in government spending on energy R&D.

Future trends to watch for:

Potential shifts in government policy prioritizing renewable energy may influence future R&D funding.
Technological advancements could lead to increased investment if deemed critical for energy security.
International climate agreements or obligations may necessitate alterations in R&D spending patterns.