How Japan's Crisis Could Affect Cleantech

Japan's massive earthquake, tsunami, and now nuclear disaster, is starting to shine a spotlight on just how important the country is in terms of clean energy technology, from solar to electric cars. In these early days, two initial assessments have emerged. The supply of materials and parts for solar and EVs could face serious interruptions in the short term. At the same time, the focus on Japan's partially melting nuclear reactors could also bolster solar and other renewable energy development as policymakers and investors reconsider their support of nuclear power. Japan is both a large producer and user of solar energy equipment. The country accounted for more than a fifth of the world's chip production in 2010, according to IHS iSuppli, and many of the same Japanese firms that make chips and electronic gadgets also make solar energy equipment. While factories for making the final products may not suffer serious long-term damage, they might find it difficult to get raw materials and parts in the near term, the market research firm said.

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