The Japanese government plans to require the country’s electric vehicle (EV) manufacturers to calculate and report the amount of carbon dioxide emitted during the production of batteries, as reported by Nikkei Asia on May 9. The Ministry of Economy, Trade and Industry (METI) plans to implement the requirement on both EVs and plug-in hybrids in fiscal 2024. The data collected will be used to determine eligibility for subsidies. Initially, EVs will be eligible for subsidies by simply disclosing the information. Eventually the government will set a cap on emissions, prohibiting any vehicles exceeding that limit from receiving the subsidies. At first, the emissions data will be directly reported to the METI, and it will eventually be available to consumers as well.
Japan’s emissions disclosure requirements followed the EU’s Sustainable Battery Regulation passed last December. Starting from July 1, 2024, battery manufacturers in the EU will be required to disclose the carbon footprint related to the entire battery lifecycle, from sourcing to production to end-of-life processing. Moreover, from January 1, 2026, each battery sold in the EU market will carry a battery passport that details battery type, model, production date, chemical composition, repair, and durability to better inform consumers. The Sustainable Battery Regulation will affect manufacturers outside Europe as it aims for traceability throughout the battery value chain. EU’s environment policy commissioner, Virginijus Sinkevicius, has called for technical cooperation between the EU and Japan to help EV makers and their suppliers comply with new regulations.