According to The Australian Financial Review, Japanese investment in Australia is expected to hit new highs this year as the demand for green energy drives deals, but Tokyo’s concerns about state royalty increases and Labor’s possible constraints on gas exports worries investors.
A report by law firm Herbert Smith Freehills released on Monday showed Japanese activity in Australia rose markedly in 2022 as investors returned to complete due diligence on multibillion-dollar deals in the energy sector after borders reopened.
Japanese companies, under pressure to meet Tokyo’s net-zero target by 2050, would further divest of fossil fuels assets while pumping billions of dollars into green energy projects such as hydrogen, and critical minerals, the report said.
They saw Australia as a safe place to invest, bolstered by deepening political ties between the two countries, it said.
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