Japan to formulate new strategy on green transformation

Japan's government plans to draw up a new green transformation strategy for 2040 in a bid to accelerate its efforts to realize de-carbonization and ensure stable energy supplies.

Prime Minister Kishida Fumio on Monday attended a green transformation implementation conference in Tokyo, along with industry minister Saito Ken, Japan Business Federation Chairman Tokura Masakazu and others.

The participants agreed that a new national strategy should be formulated to address de-carbonization and energy supply issues, while ensuring economic growth.

Officials say the strategy will incorporate new government targets for 2040. They will also consider obliging companies with large carbon footprints to participate in an emissions trading system set to launch in fiscal 2026. The system is meant to have businesses bear costs depending on the amount of carbon dioxide they release.

The government plans to issue special bonds worth a total of 20 trillion yen, or nearly 130 billion dollars, which are designed to encourage private-sector investment in carbon-neutrality initiatives.

Officials will consider concentrating industries in areas abundant with carbon-free power sources, such as renewable alternatives or nuclear power. They will also discuss providing support to projects related to next-generation technologies.

The government will aim to compile the new strategy by year-end.