In 2023, the total support for fossil fuel producers in Japan stood at a certain baseline. By 2024, it is forecasted to be 1.23 billion USD, with an expected steady increase over the subsequent years, reaching 1.38 billion USD by 2028. The year-on-year growth rate from 2024 to 2028 shows a consistent annual increase of approximately 3%-4%. The compound annual growth rate (CAGR) over these five years is projected to be aligned with this consistent rise, averaging around 3.5% per year.
Future trends to watch include potential impacts of global energy policy shifts towards renewables, technological advancements in energy efficiency, and domestic policy changes aimed at energy transition, which could all influence the level of support needed for fossil fuel producers.
