Japan-Australia Investment Report 2022: Decarbonisation and Energy Security

Herbert Smith Freehills is pleased to present the sixth annual report on Japan-Australia M&A and partnerships, and the prevailing trends driving cross-border investment.

In this report, we review the M&A transactions and partnerships from 2022, key drivers for the future, and our predictions for 2023 and beyond.

Our report reveals there has been a step change in the Japan-Australia relationship in the last 12-18 months. Changes in the global geopolitical environment have brought the two countries closer together as trusted partners, particularly in the mutual pursuit of decarbonisation and energy security.

Japanese M&A and investment activity in Australia was significantly higher in 2022 than 2021. Investments occurred across a broad number of sectors, including energy, technology, financial services, real estate, consumer, infrastructure, construction/housing and services. The energy and technology sectors were especially attractive targets for investment.

In that context partnerships have also flourished as the third paradigm for Japanese investment in Australia. A total of 51 partnerships were announced in 2022, 39 of which were related to decarbonisation or energy security. New energy-related partnerships that were signed in 2019-2021 are now progressing to proof of concept and implementation phases as the projects aim for commercialisation by 2030.

It is an exciting time for the Japan-Australia relationship, which is now a closely aligned partnership with broader government support and business collaboration, and greater bilateral cooperation than ever before.

Download review (English)

Please click on the Japanese link in the top right corner of this page to access the Japanese version.