Japan is gearing up to take more ambitious steps in reducing greenhouse gas emissions, aiming to enhance its sustainability development and ESG (Environmental, Social, and Governance) credentials. The government’s top bureaucrat in the environment ministry announced that Japan plans to set a more aggressive emissions reduction target for 2030 and outline a detailed carbon pricing scheme next year. This plan may include the introduction of a carbon tax and the creation of an emissions-trading system. 

Prime Minister Yoshihide Suga has directed his environment and industry ministers to devise a comprehensive carbon pricing strategy as part of Japan’s commitment to becoming carbon-neutral by 2050. According to Vice Environment Minister Tokutaro Nakai, Suga’s directive signals a significant shift in government policy towards a more robust carbon neutral strategy. 

“Both ideas will be on the table for debate next year,” Nakai specified, highlighting the potential inclusion of a carbon tax and an emissions-trading system in the scheme. He emphasized that the carbon pricing must align with Japan’s growth strategy to avoid economic drawbacks. 

Japan’s pledge to achieve carbon neutrality by 2050 aligns with the European Union’s targets but has left some investors wanting stronger measures. Currently, the country maintains a 2030 goal of reducing emissions by 26% from 2013 levels—a target that has faced criticism for its perceived lack of ambition. However, Nakai mentioned that Japan is exploring the possibility of setting a more ambitious target for next year, as the nation has managed to reduce emissions for six consecutive years. 

Although specific numbers haven’t been finalized, Nakai confirmed that the direction is firmly towards exceeding the current 26% reduction goal. This move is part of Japan’s broader efforts to enhance its ESG profile and reinforce its commitment to sustainable development. 

In summary, Japan is poised to take significant strides in its carbon neutral strategy, with new emissions targets and a comprehensive carbon pricing scheme set to be key components of its future sustainability framework. 

Sources: 

https://ca.news.yahoo.com/japan-mull-bolder-emissions-target-091840380.html?src=rss&guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAABFbg0c-WiGW_TVU9M3opuMoFi4rsh_gKPxM95FwbNgGx5M71zDRvb_GOiJtAnTnNY56mv76pNK8W1fR8EAXD1vT69_sFOG1BSm2otT7Yx3p9QrR2KAIxvAX6AL51fuuC9AS5thieOzfyGjbZhnd_MXEFWChPcqGVE_42ZGQmED 

https://www.reuters.com/sustainability/japans-carbon-pricing-scheme-kicks-off-tokyo-stock-exchange-2023-10-11/