- 70 percent of Japanese organizations believe the energy transition is progressing at sufficent speed, according to ABB research
- Over half (57 percent) of businesses surveyed are boosting energy transition investments in the next five years, while 35 percent are confident this will help meet sustainability targets
- 61 percent of repsondents identify AI and automation solutions as key enablers of the energy transition
More than two thirds (70 percent) of energy leaders in Japan share confidence that the transformation to a low carbon energy future is moving at sufficient pace, according to the Asia Pacific Energy Transition Readiness Index 2025 – industry research conducted by ABB’s Energy Industries division. This confidence is underpinned by strong capital investments where 57 percent of respondents say their organizations plan to allocate over 10 percent of their CAPEX to accelerate the transition, while artificial intelligence (AI) and automation are key levers (61 percent) to achieve these goals.
Japan is poised for significant energy transition progress, as the amount of energy leaders planning to boost investments in clean energy by more than 50 percent is set to rise – from 11 percent this year to 28 percent within the next five years. Reflecting this momentum, 35 percent of respondents are confident that these investment levels are sufficient to achieve their energy transition and sustainability goals, signaling growing confidence in meeting future targets.
“Japan is at the forefront of a transformative energy shift, powered by technological innovation and digitalization,” said Anders Maltesen, President of ABB’s Energy Industries division, Asia. “The research results show that Japanese businesses are leading the way in adopting automation, electrification and AI-driven digital solutions to enhance reliability, safety and sustainability. These opportunities position Japan to set new benchmarks in energy efficiency and growth for the Asia Pacific region.”
Technology is a major driver, with research showing strong belief in AI and automation as a catalyst, with 61 percent viewing them as either transformative for decarbonization (22 percent) or significant for enhancing existing processes (39 percent). With 88 percent citing high operational technology (OT) readiness, Japanese organizations are poised to turn reliable data into results. Japan’s digital transformation1 and green transformation (GX) convergence strategy, is now about leveraging secure, robust digital systems to deliver measurable value and accelerate progress.
Automation, electrification and digitalization are becoming key levers for greater efficiency, sustainability and resilience. Japanese organizations are prioritizing their investments in digitalization (37 percent), followed closely by automation (34 percent) and electrification (29 percent).
The Readiness Index findings also indicate that where challenges exist, breaking down silos and collaboration across sectors are the way forward. Nearly a third of respondents (29 percent) believe public-private partnerships create a significant opportunity, while government incentives (66 percent) and cross-regional grid collaboration (60 percent) are seen as key enablers to drive momentum and deliver results.
Japan’s renewable energy adoption is gaining momentum with solar power leading the way as the primary source of generation for 70 percent of organizations surveyed. Looking ahead, solar (57 percent), wind (48 percent) and hydropower (43 percent) are expected to play an important role over the next five years, mirroring regional trends.
This solid foundation in renewables is not only driving immediate progress but is also paving the way for the adoption of new energy carriers, particularly green hydrogen. The adoption of green hydrogen as a clean energy solution has reached 36 percent among organizations in Japan, reflecting its growing role in supporting hard-to-abate sectors such as heavy industry and transportation. This trend underscores the role hydrogen can play in the nation's energy transition, directly aligning with Japan’s broader ambition to establish a world-leading hydrogen economy by 20502.
The Asia Pacific Energy Transition Readiness Index 2025 is based on a survey of over 4,000 business leaders responsible for automation, electrification, digitalization and sustainability strategies across 10 industries and 12 geographical markets, including Japan. Conducted between May and June 2025, the research focuses on energy-intensive industries including chemicals, data centers, energy and power generation, manufacturing, oil and gas and transportation. Full report available here.
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
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1 https://www.meti.go.jp/english/policy/economy/industrial_council/pdf/250603008_01.pdf
2 https://www.enecho.meti.go.jp/category/saving_and_new/advanced_systems/hydrogen_society/
