Gilbert + Tobin sponsored the 62nd Annual Australia–Japan Joint Business Conference, bringing together over 650 delegates from both countries to examine shifting global dynamics under the theme “Navigating New Realities: Turbulence, Transition & Technology.” The conference featured deep-dives into geopolitics, conventional and clean energy, advanced technology, defence, modular housing, innovation and infrastructure.
As sponsors, our presence underscored the understanding that Australia-Japan collaboration is critical not only to bilateral opportunities but to national resilience in an era of supply-chain fragmentation, heightened strategic competition, geopolitical uncertainty and accelerating technological change.
The outcomes of the conference point to several clear areas of priority and policy imperatives in which Australia and Japan have mutual interest – and where execution, not intent, will define success.
Key themes and strategic domains
Japan–Australia alignment – foundations and imperatives
Multiple sessions placed emphasis on the enduring alignment between Australia and Japan, rooted not only in trade and investment, but in shared values, regional aspirations and the desire for stable, rules-based order in the Asia-Pacific region. With global supply chains being placed under pressure due to rising protectionism and rapidly shifting geopolitical alignments, the strategic importance of resilient economic ties was a consistent theme.
Alignment alone is not sufficient. The recalibration of global power dynamics, especially the evolving roles of China, the United States and intermediate partners such as India, South Korea, and key ASEAN economies create both risks and opportunities. For Australia and Japan, the challenge is to convert alignment into capability, anchored in strategic autonomy and selective interdependence and to openly recognise and embrace that for both nations’ alignment will not be merely bi-lateral but multilateral.
Defence, critical technology and supply chain resilience
Defence, advanced technology and supply chain resilience were central to discussions throughout the conference. In an increasingly uncertain international environment, the capacity to preserve sovereignty in capability, buffer critical supply chains and deepen strategic partnerships was widely affirmed as a priority growth area.
Japan’s industrial base and technological depth, especially in robotics, sensors, materials and systems integration, offers complementary strengths to Australia’s resource and deployment potential.
The Australia-Japan bilateral relationship within broader regional alliances, seems likely to emerge as a key pillar in the overall architecture of stability and security in the Asia-Pacific region.
Energy and clean transition –hydrogen, carbon and beyond
The clean energy transition, particularly hydrogen and carbon markets, featured strongly in plenary and technical sessions. Issues discussed included:
The Australian Government’s 2024 National Hydrogen Strategy which sets out objectives to accelerate clean hydrogen production, support demand activation, community engagement and trade scale, backed by production incentives such as the Hydrogen Production Tax Incentive and expansion of the Hydrogen Headstart Program.
Hydrogen’s role in decarbonising ‘hard-to-abate’ sectors such as steel, chemicals and heavy transport is central to long-term ambitions, consistent with analysis from the Commonwealth Scientific and Industrial Research Organisation’s Expert Commentary on the National Hydrogen Strategy and the Department of Climate Change, Energy, the Environment and Water’s National Hydrogen Strategy 2024.
However, public reporting and independent commentary such as in Australian Financial Review’s Under Pressure report caution that Australia’s hydrogen ambitions must confront the reality of high production and transport costs, weak demand and global competition.
Elsewhere, downstream opportunities in green steel, ammonia and derivatives were a strong focus. To succeed, hydrogen projects will need to be integrated with conventional energy sources, technological innovation, cost competitiveness and reliable off-take structures.
Carbon farming and nature-based solutions also featured in the program as critical complements to industrial decarbonisation. The design and governance of carbon markets, measurement and integrity frameworks, and joint bilateral pilot projects all emerged as necessary groundwork for scaling-up cleaner technologies to be commercially viable.
There was also a clear recognition that conventional sources of energy, and in particular LNG, would continue to play a critical role in energy transition and energy security for decades to come.
Technology, artificial intelligence (AI) and responsible innovation
The conference’s program explicitly elevated technology as the thread connecting transition, resilience and competitiveness. The Australia-Japan Innovation Alliance Forum (held as a lead-in to the main conference) focused on AI, clean energy innovation, startups and joint research initiatives.
Panels raised important caveats about cyber risk, data sovereignty and the responsible deployment of AI and quantum systems. The need for regulatory guardrails, ethical frameworks and interoperable standards stood out as essential enablers for successful deployment, not afterthoughts.
Housing and modular construction
A persistent constraint in Australia is the cost and supply constraints in housing and infrastructure. The conference looked to Japan’s experience in prefabrication and modular construction as practical models that could relieve capital costs and labour constraints.
Proposals floated jointly included creating bilateral funding mechanisms and applying Japanese modular methodologies to Australian housing development pipelines. With the right pairing of capital, technology and execution, prefabrication and modular construction may deliver more scalable, cost-efficient housing solutions.
The cost reality – ‘Green Premiums’ and consumer constraints
A recurring tension across sectors is that consumers and industries are often unwilling to bear a large ‘green premium’. Multiple panellists noted that for low-carbon goods or cleaner technologies to gain market traction, production costs must shrink – not simply in relative terms, but to parity (or better) with conventional alternatives. Technology scale, supply chain localisation and process optimisation become crucial when viewed through that prism.
Structural imperatives and execution risks
While rich in insight and potential, the conference surfaced several structural frictions that need addressing:
Speed and certainty in approvals: Many hydrogen, infrastructure and modular housing projects cited delays in regulatory approvals, inconsistent alignment across levels of government and funding uncertainty as key impediments. External partners, especially Japanese firms with global options, may redirect capital if transactional friction persists.
Project prioritisation and focus: With finite resources and global competitors moving aggressively, Australia must be discerning. Selecting bold pilot precincts, for hydrogen hubs, modular housing, or clean manufacturing clusters, and dedicating aligned incentives, governance and funding is essential.
Integrated incentives and scale economics: Government incentives need to be structured not only to de-risk early investment but to de-escalate costs with scale. Concessional finance, guarantees, public-private risk sharing and demand aggregation tools will be critical to ensure competitive cost curves.
Bilateral mechanisms and institutional bridges: Existing mechanisms and networks (such as the AJBCC, Japan-Australia Business Co-operation Committee, research alliances, trade agencies) must evolve from convening platforms to activation engines – developing joint ventures, curating pipeline projects, and facilitating coordination among public and private stakeholders.
Trust, standards and responsible technology deployment: Deepening collaboration in technology requires alignment on standards, interoperability and governance, particularly in AI, cybersecurity, data privacy, digital infrastructure and quantum systems. Australia’s reputation as a jurisdiction of regulatory discipline and ethical norms is a comparative advantage to uphold. However, Australia must not be complacent in ensuring its policy settings and relative cost competitiveness do not dissuade international investment from Japan and elsewhere.
Outlook and strategic signal
The 2025 conference reaffirmed that the Australia-Japan partnership remains a strategic regional necessity, not merely a bilateral convenience. In sectors like energy, critical minerals, defence, advanced manufacturing and modular construction, the potential for joint leadership within the Asia-Pacific region is real and a critical part of the architecture for geopolitical stability within the region.
However, ambition must be matched with disciplined execution and institutional coherence. Australia must reduce ‘red tape’ and provide policy frameworks that foster calibration for international partners that choose to invest here.
For the bilateral agenda to be more than aspirational, the coming years demand greater agility, clarity and purpose in turning frameworks and memoranda into real projects, pipelines, factories, precincts, imports and exports.
If Australia and Japan act with alignment, urgency and accountability, the present turbulence may prove to be a key enabler for a much stronger, technology-enabled regional order. In doing so, partnerships will increasingly require legal, commercial and regulatory frameworks that can both unlock opportunity and manage risk. At Gilbert + Tobin, we draw on deep capability across energy, infrastructure, technology and regulatory practice areas to support clients navigating these frontier sectors, particularly where cross-border alliance and innovation intersect.