Explore the latest trends and actionable insights on the ESG market to inform business strategy and pinpoint opportunities and risks.

Japan Postponed the Plans to Enact New Carbon Tax Due to Rising Cost of Living

  • Resource-scarce country Japan's economy is heavily dependent on fossil fuels
  • Japan intends to cut greenhouse gas emissions to 46% by 2030 and achieve net zero emissions by 205
  • Japanese government postponed the plans to raise carbon tax due to growing inflation

Japan’s Plan to Cut Greenhouse Gas Emissions to 46% by 2030, and Reach Net Zero by 2050

Due to a lack of resources in the country, Japan's economy is heavily dependent on fossil fuels to power the economy. Electricity is generated using coal and other forms of natural gas in the country. However, with the high usage of fossil fuels, Japan is witnessing high levels of greenhouse gas emissions. Japan released its most recent NDC in October 2021, stating its aims to reduce emissions by 46% (45% as an aspirational target) below 2013 levels by 2030. With the new strategy, Japan became the first Asian country to impose a national carbon tax, in 2012 at just ¥289 ($1.97) per ton of CO2 equivalent. The tax imposition strategy resulted in reduced emissions. However, to reach the desired targets, the tax imposed was anticipated to be low to bring changes in the behavior of major industries and electricity generation.

Japan Delays Plans to Increase Tax on Fossil Fuel Emitters

The Japanese government intends to implement a new carbon tax for the fiscal year beginning April 2023. However, due to rising inflation and a weakening yen, the government has delayed raising the carbon tax for the second time, as a higher tax would raise the cost of living even further. The delay in imposing a higher carbon tax is anticipated to push the government’s plan to cut greenhouse gas emissions by 2030 and reach net zero emissions by 2050. 

Explore the latest trends and actionable insights on the ESG market to inform business strategy and pinpoint opportunities and risks. Explore the latest trends and actionable insights on the ESG market to inform business strategy and pinpoint opportunities and risks. Visit Report Store
Still looking?

Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.

Explorer

Access more premium companies when you subscribe to Explorer

Start of HubSpot Embed Code End of HubSpot Embed Code