4. Toward a “smart city” that leads the world in financial and environmental policies

To create a Tokyo that remains sustainable beyond 2020, we must now build a solid foundation for growth.

Path to a global financial and economic center

Invigorating the financial sector, which is the lifeblood of economy, as well as small and medium-sized enterprises (SMEs), which support Tokyo’s industry, is the core component of Tokyo’s growth strategy.

Invigorating the financial sector through nurturing fintech businesses

To invigorate the financial sector, at the recently held National Strategic Special Zone Meeting for the Tokyo Area, we proposed that the tax reduction for companies less than five years old that meet certain requirements be expanded to also include asset management firms and fintech businesses. Starting in October, the TMG will support innovative business development by overseas companies with the aim of nurturing the fintech businesses in Tokyo. This is part of our efforts to realize our new vision for Global Financial City Tokyo, which is scheduled to be released this fall.

Through such measures, we will boost our efforts to attract or facilitate the business expansion of foreign fintech businesses, and bring about financial innovation. We hope this will help Tokyo move another step forward to becoming Asia’s top global financial city.

Enlarging opportunities for SMEs and long-established businesses

We will also pay due attention to the development of SMEs. Business Chance Navi 2020 is a platform that gathers information on tenders and other procurement opportunities spanning both public and private sectors and provides the data online. This fiscal year, the platform set up an electronic bidding system for the Tokyo Organising Committee of the Olympic and Paralympic Games and the TMG’s extra-governmental organizations, expanding contracting opportunities for SMEs. In addition to this, we will increase the number of coordinators and hold business matching sessions to step up our efforts to connect suppliers with potential clients.

The various skills and know-how of locally based long-established businesses also hold large potential for Tokyo. In the Edo-Tokyo Kirari Project, which shines light on such traditional assets of Tokyo and refines them into “Tokyo Brands,” we recently chose five initiatives that will serve as the models to drive this endeavor. We will hone these selections through marketing and other techniques, convey to the world the manufacturing skills and spirit rooted in tradition, and hope to develop new markets.

Aiming for a zero emission city

To realize sustainable growth, it would be important to aim to become a zero emission city, which produces no CO2 emissions, and seek harmony with the earth’s environment.

Further expanding the use of next generation vehicles

The world has started shifting toward vehicles with no CO2 emissions, with France and then the UK recently announcing plans to ban sales of new gasoline and diesel cars by 2040. As a city aiming to be the world leader in environmental policies, Tokyo will also work to further expand the use of eco-friendly vehicles such as electric vehicles and fuel cell vehicles.

To promote the popularity of electric vehicles, for example, the TMG is conducting a model project on Tokyo’s islands, where driving distances are shorter. This project is aimed at demonstrating the convenience and low cost of electric vehicles to expand their use.

To promote more widespread use of next generation vehicles, it would be also necessary to establish more infrastructure, such as power charging facilities at condominiums and other places, as well as hydrogen stations. We will take bold steps to create a future in which eco-friendly next-generation vehicles have replaced gasoline and diesel vehicles as an everyday means of transportation.

Making better use of hydrogen energy

To build momentum for more widespread use of hydrogen energy through public-private collaboration, the TMG, together with private-sector groups and municipalities in Tokyo, will launch the Tokyo Hydrogen Promotion Team this fall. In cooperation with many groups from both the public and private sectors that share this same goal, we will implement a range of initiatives for expanding the use of hydrogen energy, such as sharing data on best practices and disseminating common information.

In the Tokyo 2020 Athletes’ Village district, the TMG will build a community that will serve as a model for a hydrogen society. The project includes the first practical application of supplying hydrogen to residential buildings in Japan. Yesterday the private company that will conduct this energy project was decided. Work to install hydrogen pipelines will begin by the end of this fiscal year. The hydrogen supply system will be partially online during the 2020 Games, showcasing Japan’s advanced environmental technologies to the world.

Addressing climate change

As a major consumer of energy, Tokyo must take an active stance to address the global issue of climate change. Tokyo is a member of the C40 Cities Climate Leadership Group, and I am planning to attend a C40 meeting to be held in Paris late October. We will strengthen cooperation with the cities of the world to advance measures for climate change.

To further accelerate the reduction of CO2 emissions, the TMG will continue promoting the Tokyo Cap-and-Trade Program and other measures to enhance energy efficiency. In addition, in cooperation with other local governments and private businesses we will look into how we can expand the use of renewable energies.

Issuing the world-class Tokyo Green Bond

To realize a “smart city” that leads the world in both financial and environmental policies, we wish to increase ESG (environmental, social and governance) investment. This fall, the TMG will be the first local government in Japan to issue a green bond, the Tokyo Green Bond, to raise funds for environmental projects.

Recently, a globally reputed German ESG rating agency assessed the Tokyo Green Bond, stating that the projects to be financed offer added social and environmental value and that the sustainability quality is good. The TMG is the first local government in the world to obtain this agency’s rating on issuance of a green bond. A total of some 20 billion yen in Tokyo Green Bonds, the world-class bonds, will be issued. We hope to further deepen Tokyo citizens’ understanding of and support for the TMG’s environmental policies, and have this also invigorate finances and investment.