Strategies Japanese Companies Should Adopt from COP29 – Climate Business Opportunities in the U.S. Market

The annual COP (Conference of the Parties to the UNFCCC) serves as a global forum where participating countries deliberate on diverse climate change topics, including GHG emission reduction targets, action plans, and support for nations vulnerable to climate impacts. COP is, in essence, a "compass" that determines the future course of global environmental policy.
At COP29, held from November 11–24, 2024 (extended by two days) in Baku, Azerbaijan, key debates unfolded that warrant close examination as Japanese companies consider future strategies.
Spotlight on the U.S. After Trump’s Reelection

Just before COP29, Donald Trump’s reelection as President of the United States was confirmed. Accordingly, intense attention was paid to the behavior and remarks of U.S. delegates. This stemmed from Trump’s previous withdrawal from the Paris Agreement during his first term (Jan 20, 2017 – Jan 20, 2021), and the expectation that his second term, beginning in January 2025, would mark a clear break from the climate policies promoted under the Biden administration (2021–2025).
In fact, immediately after his inauguration on January 20, 2025, President Trump signed an executive order to withdraw the U.S. from the Paris Agreement, signaling a decisive policy pivot away from the Biden administration’s climate agenda. Against this backdrop, Japanese companies operating in the U.S. must assess the potential impacts on climate-related business opportunities and consider how best to navigate the American market under the Trump administration.

COP29 discussions extended far beyond the U.S. policy shift. At various country and institutional booths, wide-ranging themes were addressed, including decarbonization technologies, human mobility for carbon neutrality, and sustainable urban development.
Among them, the concept of “Nature Positive,” described as the next major theme following decarbonization, drew strong global attention. With decarbonization now seen as a baseline requirement, the focus has shifted to how countries and companies can transition toward Nature Positive practices over the medium to long term. The global movement toward Nature Positive is accelerating, and Japanese companies, too, are entering a phase where transforming toward Nature Positive management is imperative.

Based on observations from COP29, this article proposes key considerations for Japanese companies regarding the future of climate-related business in the U.S., particularly under the Trump administration’s anticipated policy shifts.

With the start of the new Trump administration, uncertainty looms over the future of the U.S. clean energy market. President Trump...