Follow-up on the Growth Strategy

June 18, 2021

Table of Contents
Introduction................................................................................................................................. 1
1. Concentrated Investment and Implementation of Digitalization as a New Growth
Driver and its Environment ................................................................................................. 1(1) Promotion of digitalization with a focus on the Digital Agency ........................................ 1i) Promotion of digital government from the people’s perspective ................................... 1ii) Development of a common infrastructure for a digital society ..................................... 3iii) Promotion of comprehensive data strategy and development of common
infrastructure in the quasi-public sector, etc. ................................................................ 6iv) Development of digital human resources ...................................................................... 9(2) Early nationwide deployment of 5G, promotion of post-5G, and promotion of socalled 6G (Beyond 5G)....................................................................................................... 9i) Promotion of safe and secure 5G, local 5G and post-5G ............................................ 10ii) Promotion of so-called 6G (Beyond 5G) ..................................................................... 11(3) Lowering of mobile phone rates ....................................................................................... 12(4) Enforcing the Digital Platform Transaction Transparency Act and developing rules tomake the digital advertising market more transparent and fairer ..................................... 12(5) Revising regulations in light of digital technology .......................................................... 14(6) Use of new digital technologies such as blockchain ........................................................ 16(7) Smart agriculture, forestry, and fisheries.......................................................................... 16i) Promotion of smart agriculture ................................................................................... 16ii) Promotion of smart forestry ......................................................................................... 19iii) Promotion of smart fisheries ....................................................................................... 20(8) Promotion of DX in companies, etc. ................................................................................ 21(9) Ensuring cyber security .................................................................................................... 23
2. Growth of the Green Sector ............................................................................................... 24(1) Green Growth Strategy towards Carbon Neutral in 2050 ................................................ 24i) Framework for a Green Growth Strategy based on the 2030 emission reduction
target ............................................................................................................................ 24ii) Key cross-sectoral policy tools .................................................................................... 24iii) Issues and responses by sector .................................................................................... 25(2) Carbon pricing .................................................................................................................. 32i(3) Attracting domestic and foreign private capital to carbon-neutral markets ..................... 32i) Development of infrastructure for smooth provision of funds ..................................... 32ii) Improvement of the environment for green bond transactions, etc. ............................ 33iii) Enhancement of sustainability-related disclosure ....................................................... 33iv) Support for lenders by financial institutions and public-private partnerships ........... 34(4) Regional decarbonization roadmap .................................................................................. 34(5) Transition to a circular economy, business-led international roll-out and international
cooperation ....................................................................................................................... 35
3. Realizing New Investments for Green Growth Strategies ............................................... 39(1) Industrial structural transformation associated with carbon neutrality ............................ 39(2) Electrification and the use of digital technology in conjunction with carbon neutrality . 39
(3) Development of hydrogen stations ................................................................................... 39(4) Development of quick charging facilities for electric vehicles ........................................ 39(5) Gas conversion of coal-fired private power generation, etc. ............................................ 39(6) Development of transmission line networks to promote renewable energy..................... 39
4. Strengthening Investment in “People” .............................................................................. 40(1) The state of the freelance protection system .................................................................... 40(2) Initiatives to establish telework ........................................................................................ 40(3) Realization of new ways of working, such as lifting the ban on second and side jobs
and promoting the introduction of short-time working regular employees...................... 41i) Promotion of second and side jobs .............................................................................. 41ii) Improvement of work environment for essential workers, etc. .................................... 42iii) Ensuring employment opportunities until the age of 70, etc. ...................................... 42① Ensuring employment opportunities until the age of 70 ........................................... 42•

In consideration of the fact that companies are obliged to strive to take measuresin order to ensure employment opportunities for individuals until the age of 70
based on the Amended Act on Stabilization of Employment of Elderly Persons,which was enforced in April 2021, the government will widely disseminate thecontents of such measures to business owners and workers. These measures
include introduction of any of the following: abolition of mandatory retirementage, extending mandatory retirement age until 70 years old, continuous
employment system until 70 years old, or measures to support for starting abusiness, etc. (a system to conclude outsourcing contracts continuously until theage of 70, a system that allows employees to engage in social contribution
programs continuously until the age of 70). ................................................................ 42ii

② Reviewing pension systems due to diversification of work styles, prolongation ofold age, and expansion of employment ........................................................................ 43iv) Supporting work styles that can maximize productivity .............................................. 43① Improving the working environment, including correction of long working hours ..... 43② Promoting the “visualization” of human capital information .................................... 43③ Wages ........................................................................................................................... 44(4) Promoting diversity, including the appointment of women, non-Japanese, and midcareer hires ....................................................................................................................... 45i) Further expanding women’s participation .................................................................. 45ii) Promotion of acceptance of highly-skilled foreign professionals ................................ 47iii) Promoting the hiring of mid-career and experienced workers .................................... 49iv) Promoting corporate organizational transformation .................................................. 50(5) Stabilizing the employment environment for the younger generation by reviewing thepersonnel evaluation system ............................................................................................. 50(6) Facilitating labor mobility ................................................................................................ 50i) Maintaining employment and facilitating labor mobility ............................................ 50ii) Promotion of recurrent education................................................................................ 51iii) Developing an environment that supports independent career development .............. 53(7) Enhancing individualized and collaborative learning by promoting the Giga School
Program ............................................................................................................................ 53i) Human resource development for the Society 5.0 era in primary and secondary
education ..................................................................................................................... 53•

For primary and secondary education, the government will develop the school ICT
environment by FY2022, including one computing device per student at all grades incompulsory education and a high-speed and high-capacity internal network in school
so that students can fully utilize the environment, including taking their devices
home. In conjunction with this, the government will provide necessary support
systems, such as improving the quality of teachers and developing human systems forutilizing ICT. .................................................................................................................... 54ii) Human resource development for the Society 5.0 era at universities, etc. .................. 55iii) Human resource development and utilization for the Society 5.0 era in industry ... 57(8) Implementation of the Policy for Social Security Reform for All Generations ............... 58
5. Ensuring Economic Security and Concentrated Investment .......................................... 59(1) Promoting economic security policy ................................................................................ 59i) Ensuring technological superiority from the perspective of economic security.......... 59iii

ii) Reduction of threats and improvement of autonomy related to core infrastructureand supply chains ........................................................................................................ 59iii) Consideration of a framework for securing medium-to long-term financial
contributions to promote the strengthening of economic security ............................... 59(2) Development of advanced semiconductor technologies and promotion of
manufacturing locations ................................................................................................... 59(3) Promoting optimal deployment of next-generation data centers...................................... 60(4) Development of next-generation battery technologies and promotion of
manufacturing locations ................................................................................................... 60(5) Supply chain of key technologies and commodities, such as rare earths ......................... 60(6) Strengthening manufacturing infrastructure ..................................................................... 60
6. Reviving the Dynamism of Japanese Firms in a “With COVID-19” and a “Post
COVID-19” World: Creating an Environment that Both Creates and Scales Up Startups......................................................................................................................................... 61(1) Review of the pricing process for initial public offerings (IPOs) .................................... 61(2) Consideration of a SPAC (special purpose acquisition company) system ....................... 61(3) Improvement of the environment for the revitalization of private placementtransactions ....................................................................................................................... 61(4) Promoting competition policy to optimize transactions between start-ups and large
companies ......................................................................................................................... 61(5) Comprehensive support for the formation of start-up ecosystems ................................... 61
7. Creating an Environment for Business Restructuring and Revitalization .................... 63(1) Improving the environment for business restructuring and revitalization of large andmedium-sized companies ................................................................................................. 63i) Strengthening the supply of capital funds and promoting the subscription ofpreferred stock ............................................................................................................. 63ii) Consideration of legislative aspects to expand the convenience of privatearrangements (out-of-court workouts), etc. ................................................................. 63(2) Improving the environment for business restructuring and revitalization of SMEs ........ 63i) Guidelines for private arrangements (out-of-court workouts) of SMEs ...................... 63ii) Dealing with personal bankruptcy .............................................................................. 63iii) Initiatives by financial institutions, etc. ....................................................................... 63(3) Recovery of corporate profitability .................................................................................. 63
8. Competition Policy and Other Measures for New Growth ............................................. 65

iv

(1) Promoting regulatory reform ............................................................................................ 65i) Promoting National Strategic Special Zones .............................................................. 65① Further regulatory reform items .................................................................................. 65② Nationwide deployment of special regulatory measures for National StrategicSpecial Zones ............................................................................................................... 66ii) Utilization of sandbox system ...................................................................................... 69(2) Redesigning competition policy ....................................................................................... 70i) Strengthening of the Japan Fair Trade Commission’s advocacy ................................ 70ii) Strengthening of the system and enforcement of the Japan Fair Trade Commission .. 70
9. Building Strong SMEs ........................................................................................................ 71(1) Support for business continuity and business restructuring of SMEs .............................. 71i) Support for business continuity (business succession, transfer, revitalization, etc.) ... 71ii) Support for business restructuring .............................................................................. 72(2) Increasing labor productivity through the growth of SMEs ............................................. 73i) Support for the overseas business expansion of medium-sized companies and
SMEs ............................................................................................................................ 73ii) Improving labor productivity through expansion of scale ........................................... 74(3) Appropriate transactions between large companies and SMEs........................................ 76i) Appropriate subcontracting transactions .................................................................... 76ii) Promotion of cooperation between large businesses and SMEs ................................. 76iii) Abolition of the use of promissory notes...................................................................... 76iv) Expansion of transactions beyond corporate affiliates ............................................... 77(4) Support for local SMEs and small businesses, etc. .......................................................... 77(5) Enhancement of management support through public-private partnerships .................... 77(6) Improving labor productivity through digitalization ........................................................ 77
10. Strengthening Investment in Innovation .......................................................................... 79(1) Promoting reverse innovation .......................................................................................... 79(2) Promoting the integration of the humanities and sciences ............................................... 79(3) Accelerating R&D of cutting-edge technologies, such as quantum technologies ........... 80(4) University reform through the creation of the University Endowment Fund, etc. ........... 83(5) Promoting intellectual property strategy .......................................................................... 85(6) The 2025 World Exposition in Japan as a testing ground for society of the future ......... 87(7) Creating new industries in Fukushima ............................................................................. 88
11. Corporate Governance Reform ......................................................................................... 90v

12. Initiatives in Important Fields ........................................................................................... 92(1) Development and production of vaccines in Japan .......................................................... 92(2) Growth strategies for the pharmaceutical industry........................................................... 93i) Strengthening of life sciences and international expansion ........................................ 93ii) ii) Data -based health and DX in health medical, and long-term care ....................... 96① Promotion of data -based health (utilization of data in health, medical care, andlong-term care)............................................................................................................ 96② Promotion of the use of technology, such as ICT, robots, and AI in medical andlong-term care settings ................................................................................................ 99③ Organizational reform of medical and long-term care settings ................................ 102iii) Preventing diseases and the need for long-term care ................................................ 103(3) Oceans ............................................................................................................................ 107(4) Space .............................................................................................................................. 108(5) Strengthening promotion of PPP/PFI ............................................................................. 109(6) Realizing an international financial center ..................................................................... 111(7) Promoting direct investment in Japan ............................................................................ 112(8) Institutional reform in individual fields.......................................................................... 113
i) Institutional development for automated delivery robots .......................................... 113ii) Institutional development for electric kickboards ..................................................... 113
iii) Institutional development for drones, etc. ................................................................. 113iv) Development of a cashless environment .................................................................... 115(9) Fintech/Finance .............................................................................................................. 115(10) Resolving issues in infrastructure, disaster prevention, logistics, and cities ............. 117i) Development, maintenance, and management of infrastructure ............................... 117ii) Disaster prevention and disaster response ................................................................ 119iii) Transportation and logistics ...................................................................................... 120iv) Improving the competitiveness of cities ..................................................................... 123(11) Mobility ..................................................................................................................... 124i) Social implementation of autonomous driving .......................................................... 124ii) Promotion of a Japanese version of MaaS ................................................................ 125iii) DX of mobility systems and social implementation of next-generation technologies 126(12) Social implementation of robotics technology .......................................................... 126
13. Regional Development ...................................................................................................... 128(1) Realizing a tourism-oriented country ............................................................................. 128i) Thorough prevention of the spread of COVID-19, recovery of domestic demand,viand revitalization of the tourism industry .................................................................. 128ii) Creation of attractive tourist destinations and content ............................................. 129iii) Phased recovery of inbound tourism, etc................................................................... 131(2) Realizing vibrant rural villages through the development of growth industries inagriculture, forestry and fisheries ................................................................................... 132i) Creation of “new markets” through promoting exports, etc. .................................... 132① Promotion of exports of agricultural, forestry, and fishery products, and food ........ 132② Expansion of domestic share of vegetables for processing and commercial use ...... 135•

Since a high percentage of vegetables supplied in Japan for processing andcommercial use are imported, the government will promote the transition todomestic production and aim to increase the shipment volume of domestically
produced vegetables for processing and commercial use to 1.27 million tons by
FY2025. In FY2021, the government will designate commodities, for which there
is a need for domestic production by buyers and there is an established production
system with a high cost reduction effect through the full utilization of agricultural
machinery, as priority promotion commodities, and develop new production areasusing paddy fields and primary processing facilities in production areas to expand
the production of domestically produced vegetables. ................................................ 135③ Development of new business fields .......................................................................... 135ii) Strengthening agricultural production infrastructure ............................................... 135① Securing and strengthening production infrastructure .............................................. 136② Improving productivity of the food industry and strengthening the linkage between
households and agriculture ....................................................................................... 138iii) Transforming forestry into a growth industry............................................................ 139iv) Transforming fisheries into a growth industry ........................................................... 140v) Creating new businesses in rural areas through collaboration with various fields
other than agriculture, forestry, and fisheries ........................................................... 142(3) Strengthening the foundations of regional financial institutions.................................... 144(4) Promoting the matching of management personnel for local companies ...................... 144(5) Expanding the flow of people from urban areas to rural areas by promoting teleworkand other measures that contribute to regional development ......................................... 144(6) Revitalizing local public transportation ......................................................................... 144(7) Promoting the Super City Initiative, etc. ........................................................................ 145(8) Securing human resources for community development ............................................... 145(9) Land policy ..................................................................................................................... 145(10) Carving out a future for the sports industry ............................................................... 146

viii) Transforming sports into a growth industry in the with-COVID-19 and postCOVID-19 world ....................................................................................................... 146ii) Regional revitalization centered around sports ......................................................... 147(11) Economic revitalization leveraged with cultural and arts resources ......................... 149
i) Promotion of the “Basic Plan on the Promotion of Culture and the Arts”, and the“Cultural Economy Strategy” ................................................................................... 149ii) Regional revitalization which centers around cultural and arts resources ............... 150
14. Realizing a Vibrant Japanese Economy in a New Environment of Global Competition............................................................................................................................................. 152(1) Leading the free, fair and rule-based international economic system ............................ 152i) Maintaining and strengthening the multilateral trading system ............................... 152ii) Economic partnership negotiations and investment-related agreements .................. 152iii) Establishment of international rules for DFFT ......................................................... 153(2) Expanding cooperation with like-minded countries that share our fundamental values 153(3) Supporting overseas business expansion of Japanese companies .................................. 154i) Overseas expansion of infrastructure systems ........................................................... 154ii) Business development of Japanese companies through promotion of SDGs andeconomic and social development of friendly nations and areas .............................. 155(4) Cool Japan, etc. .............................................................................................................. 156【Attachment】 Growth Strategy Follow-up Process Chart

viii

The names of laws used in the Action Plan of the Growth Strategy and the Follow-up on the
Growth Strategy will be abbreviated as follows.
Domestic Relations Case
Procedure Act
Act on Standardization of
Local Government
Information Systems
5G ActDomestic Relations Case Procedure Act (Act No. 52 of 2011)
Act on Standardization of Local Government Information
Systems (Act No. 40 of 2021)

Act on Promotion of Developing/Supplying and Introducing
Systems Making Use of Specified Advanced Information
Communication Technologies (Act No. 37 of 2020)
Digital Platform Transaction Act on Improvement of Transparency and Fairness in Trading
Transparency Act
on Specified Digital Platforms (Act No. 38 of 2020)
Amended Personal
Act on the Protection of Personal Information (Act No. 57 ofInformation Protection Act
2003) amended by the Act on the Development of Related
Laws for the Formation of a Digital Society (Act No. 37 of
2021)
Act for the Protection of
Act for the Protection of Consumers who use Digital
Consumers who use Digital Platforms (Act No. 32 of 2021)
Platforms
Premiums and
Act against Unjustifiable Premiums and Misleading
Representations Act
Representations (Act No. 134 of 1962)
Industrial Safety and Health Industrial Safety and Health Act (Act No. 57 of 1972)
Act
Amended Agricultural
Act on Special Measures to Facilitate Investment in
Corporation Investment
Agricultural, Forestry and Fisheries Corporations, etc. (Act
Facilitation Act
No. 52 of 2002) amended by the Act Partially Amending the
Act on Special Measures to Facilitate Investment inAgricultural Corporations (Act No. 26 of 2021)
Road Transport Vehicle Act Road Transport Vehicle Act (Act No. 185 of 1951)
High Pressure Gas Safety
High Pressure Gas Safety Act (Act No. 204 of 1951)
Act
Energy Conservation Act
Act on the Rational Use of Energy (Act No. 49 of 1979)
Local Public Transportation Act on Revitalization and Rehabilitation of Local Public
Revitalization andTransportation Systems (Act No. 59 of 2007)
Rehabilitation Act
Plastic Resource Circulation Act on Promotion of Resource Circulation for Plastics (ActPromotion Act
No. 60 of 2021)
Amended Global Warming
Act on Promotion of Global Warming Countermeasures (ActCountermeasures Act
No. 117 of 1998) amended by the Act Partially Amending the
Act on Promotion of Global Warming Countermeasures (ActNo. 54 of 2021)
Antimonopoly Act
Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade (Act No. 54 of 1947)
Subcontractor Act
Act against Delay in Payment of Subcontract Proceeds, etc. to
Subcontractors (Act No. 120 of 1956)
Subcontracting Promotion
Act on the Promotion of Subcontracting Small and MediumAct
sized Enterprises (Act No. 145 of 1970)
Labor Standards Act
Labor Standards Act (Act No. 49 of 1947)ix

Act Partially Amending the
Employment Insurance Act,
etc.
Amended Act on
Stabilization of
Employment of Elderly
Persons
Act Partially Amending the
National Pension Act inorder to Strengthen the
Functions of the Pension
SystemPart-Time/Fixed-Term
Worker Employment Act

Act Partially Amending the Employment Insurance Act, etc.
(Act No. 14 of 2020)
Act on Stabilization of Employment of Elderly Persons (ActNo. 68 of 1971) amended by the Act Partially Amending the
Employment Insurance Act, etc. (Act No. 14 of 2020)
Act Partially Amending the National Pension Act in order toStrengthen the Functions of the Pension System (Act No. 40
of 2020)

Act on Improvement of Personnel Management andConversion of Employment Status for Part-Time Workers and
Fixed-Term Workers (Act No. 76 of 1993)
Worker Dispatch Act
Act for Securing the Proper Operation of Worker Dispatching
Undertakings and Improved Working Conditions for
Dispatched Workers (Act No. 88 of 1985)
Amended Labor Policy
Labor Policy Comprehensive Promotion Act, andComprehensive Promotion
Stabilization of Employment of Employees, and Enrichment
Actof Their Working Lives (Act No. 132 of 1966) amended by
the Act Partially Amending the Act on Promotion of Women’sParticipation and Advancement in the Workplace, etc. (ActNo. 24 of 2019)
Amended Act on Securing,
Act on Securing, etc. of Equal Opportunity and Treatment
etc. of Equal Opportunity
between Men and Women in Employment (Act No. 113 of
between Men and Women in 1972) amended by the Act Partially Amending the Act on
Employment
Promotion of Women’s Participation and Advancement in the
Workplace, etc. (Act No. 24 of 2019)
Amended Act on Promotion Act on Promotion of Women’s Participation andof Women’s Participation
Advancement in the Workplace (Act No. 64 of 2015)
and Advancement in theamended by the Act Partially Amending the Act on Promotion
Workplaceof Women’s Participation and Advancement in the Workplace,etc. (Act No. 24 of 2019)
Amended Childcare
Act Partially Amending the Act on Childcare Leave,
Leave/Caregiver Leave Act, Caregiver Leave, and Other Measures for the Welfare ofetc.
Workers Caring for Children or Other Family Members andthe Employment Insurance Act (Act No. 58 of 2021)
Act on Promotion of
Act on Promotion of Japanese Language Education (Act No.
Japanese Language
48 of 2019)
Education
Act on Workers’
Act on Workers Cooperatives (Act No. 78 of 2020)
Cooperatives
Radio ActRadio Act (Act No. 131 of 1950)
Civil Aeronautics Act
Civil Aeronautics Act (Act No. 231 of 1952)
Act on Special Measures for Act on Special Measures for Productivity Improvement (ActProductivity Improvement
No. 25 of 2018)
Road Traffic Act
Road Traffic Act (Act No. 105 of 1960)
Arbitration Act
Arbitration Act (Act No. 138 of 2003)xAmended Subcontracting
Promotion Act

Amended Industrial
Competitiveness
Enhancement Act
Amended Companies Act
Pharmaceutical and Medical
Device Act
Next-Generation Medical
Infrastructure Act
Space Activity Act
PFI Act
Act Related to Integrated
Flood Management
Act on Promotion ofRailway Crossings
Building Standards Act
Act on Promotion ofCommunity Development
Projects for Population
Declining Areas
Amended Natural Parks Act

Cultural Tourism Promotion
Act
Agricultural, Forestry, andFishery Products and Food
Export Facilitation Act
Amended Plant Variety
Protection and Seed Act

Act on Promotion of Subcontracting Small and Medium-sizedEnterprises (Act No. 145 of 1970) amended by the Act
Partially Amending the Industrial Competitiveness
Enhancement Act, etc. (Act No. 70 of 2021)
Industrial Competitiveness Enhancement Act (Act No. 98 of2013) amended by the Act Partially Amending the Industrial
Competitiveness Enhancement Act, etc. (Act No. 70 of 2021)
Companies Act (Act No. 86 of 2005) amended by the Act
Partially Amending the Companies Act (Act No. 70 of 2019)
Act on Securing Quality, Efficacy and Safety of Products
Including Pharmaceuticals and Medical Devices (Act No. 145
of 1960)
Act on Anonymized Medical Data That Are Meant toContribute to Research and Development in the Medical Field(Act No. 28 of 2017)
Act on Launching of Spacecraft, etc. and Control ofSpacecraft (Act No. 76 of 2016)
Act on Promotion of Private Finance Initiative (Act No. 117
of 1999)
Act Partially Amending the Act on Countermeasures against
Flood Damage of Specified Rivers Running Across Cities, etc.
(Act No. 31 of 2021)
Act on Promotion of Railway Crossings (Act No. 195 of1961)
Building Standards Act (Act No. 201 of 1950)
Act on Promotion of Community Development Projects forSpecified Areas to Respond to Rapid Declining in Local
Populations (Act No. 64 of 2019)
Natural Parks Act (Act No. 161 of 1957) amended by the Act
Partially Amending the Natural Parks Act (Act No. 29 of
2021)
Act on Promotion of Regional Cultural Tourism Centered on
Cultural Tourism Facilities (Act No. 18 of 2020)
Act on Facilitating the Export of Agricultural, Forestry, andFishery Products and Food (Act No. 57 of 2019)
Plant Variety Protection and Seed Act (Act No. 83 of 1998)
amended by the Act Partially Amending the Plant Variety
Protection and Seed Act (Act No. 74 of 2020)
Act on the Support for Strengthening AgriculturalCompetitiveness (Act No. 35 of 2017)

Act on the Support forStrengthening AgriculturalCompetitivenessAct on Special Measures for Act on Special Measures Concerning the Promotion ofAgricultural Reservoir
Disaster Prevention Construction Projects on Priority
Construction Projects
Agricultural Reservoirs for Disaster Prevention (Act No. 56 of
2020)
Urban Farmland Leasing
Act on Urban Farmland Lease Facilitation (Act No. 68 of
Act
2018)

xi

National Forest Land
Utilization Act
Amended Forestry
Cooperative Act

Act Concerning Utilization of National Forest Land (Act No.
246 of 1951)
Forestry Cooperative Act (Act No. 36 of 1978) amended by
the Act Partially Amending the Forestry Cooperative Act (ActNo. 35 of 2020)
Amended Act on Special
Act on Special Measures Concerning Promotion of
Measures for Thinning, etc. Implementation of Forest Thinning, etc. (Act No. 32 of 2008)
amended by the Act Partially Amending the Act on Special
Measures Concerning Promotion of Implementation of Forest
Thinning, etc. (Act No. 15 of 2021)
Amended Fisheries Act
Fisheries Act (Act No. 267 of 1949) amended by the Act
Partially Amending the Fisheries Act, etc. (Act No. 95 of
2018)
Amended Act on Special
Act on Special Measures Concerning Conservation of the
Measures Concerning
Environment of the Seto Inland Sea (Act No. 110 of 1973)
Conservation of theamended by the Act Partially Amending the Act on Special
Environment of the Seto
Measures Concerning Conservation of the Environment of theInland Sea
Seto Inland Sea (Act No. 59 of 2021)
Act on Special Measures for Act on Special Measures Concerning Facilitation, etc. of Use
Land with Unknown
of Land with Unknown Ownership (Act No. 49 of 2018)
Ownership
Amended Act on Protection Act on Protection of Cultural Properties (Act No. 214 ofof Cultural Properties
1950) amended by the Act for Partially Amending the Act on
Protection of Cultural Properties (Act No. 22 of 2021)

xii

Introduction
As outlined below, in accord with the framework of the Action Plan of the Growth Strategy,
this Follow-up on the Growth Strategy describes the progress of past growth strategies andnew initiatives.

1. Concentrated Investment and Implementation of Digitalization as a New
Growth Driver and its Environment(1) Promotion of digitalization with a focus on the Digital Agency
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Promotion of digital government from the people’s perspective
 In order for both the public and private sectors to adopt and continue to use cloud services
with greater safety and security, the government will add new cloud services, whose safety
was evaluated based on the unified security standards for the Information system Security
Management and Assessment Program (ISMAP), in the list of cloud services released in
March 2021 under the ISMAP and review the existing ones for renewal, urge all
government agencies to use the system, and review the standards, etc. based on theoperational status.
 With regard to the public safety LTE system, the government will start the operation of thebasic functions from FY2021 on a preliminary basis, and after conducting technical reviews
to ensure the safety and reliability, start the full-scale operation from FY2022.
 The government will enhance the convenience of administrative procedures for businesses
by improving digital platforms for business entities, such as expanding the spread of thegBizID system, enhancing the convenience of the jGrants system, and promoting datacooperation through the gBizCONNECT system.
 To realize the world-class business environment, the government will take the following
initiatives.
- With regard to the one-stop company incorporation service, the government will conduct
PR activities so that the service will be commonly used when incorporating a company.
- With regard to the commercial registration electronic certificate, the government willconduct PR activities so that the service will be commonly used as a means to complete
digital verification of the identity of companies/corporations. The government will review
the measures to improve the convenience and the feasibility of making the service
available free of charge by the end of FY2021. At the same time, the government willconduct reviews towards the adoption of cloud computing. Moreover, while considering
the cost effectiveness, the government aims to start operating the new system as soon as1

possible by FY2025.
- With regard to procedures related to year-end adjustments and final returns for income
tax, the government will introduce an automated entry system for various application
forms using the Mynaporta. Specifically, the government will make the automatic entry
system available for (1) medical expense notification data by February 2022 and for (2)Furusato Nozei (hometown tax) donation deduction certificate data after in or after
FY2021.
- With regard to the common tax payment system for local taxes, from October 2021, thegovernment will add withheld tax, levy on dividends, and levy on income from transferof stock or other assets for individual inhabitant tax to the target tax items andcomputerize the tax filing and payment procedures for financial institutions and otherparties subjected to special tax collection.
- With regard to court proceedings, it is expected that while ensuring respect for theautonomous judgment by the judicial branch, (1) remote consultations using web
conferences to be operated under the current Domestic Relations Case Procedure Act ona trial basis at some of family courts by the end of FY2021, and (2) the “Study Group on
Utilization of Information and Communication Technology in Criminal Procedures” topromptly study the necessity and appropriateness of legislation related to the use of online
system, for the receipt and delivery of documents such as warrants and for various
procedures of investigations and trials, and aim to compile the result of study by the endof FY2021.
- The government will review specific issues and policies to realize a database using AI by
the end of FY2021 and work toward the utilization of civil judgment data.
- To promote online dispute resolution (ODR), the government will carry out reviews,
including examining the feasibility of utilizing AI technology, and formulate the basic
policies to make ODR more accessible by the end of FY2021. Started to provide theonline consultations at consultation service for subcontractors from FY2021 at
Kakekomi-dera.
- From the perspective of abolishing the practices of acquiring and submitting certificatesof fixed asset valuation, the government will promote the expansion of online provisionof asset valuation notification to the Legal Affairs Bureau by municipal governments.
To make it possible for the private sector to use electronic preliminary medical
examination forms for routine immunizations for infants, the government willorganize and disclose ideas that allow simple verification of the forms, such as aconsent button or check box that can be clicked by the relevant people (guardians)and doctors instead of putting down their signatures that were required
conventionally, as soon as possible by the end of FY2021. With this, the government2

aims to gradually realize the digitalization of unified preliminary medical
examination forms from the municipalities that can be front-runners in introducing
the system. Regarding support for the standardization of local government work
systems (sending vaccination notifications to relevant people, keeping vaccination
records, sending bills and making payments with medical institutions, etc.), thegovernment will raise the priority of the health management system, including thevaccination register system, which is one of the 17 procedures targeted for the
standardization of local government work systems by FY2025.
ii) Development of a common infrastructure for a digital society(“My Number” system) In FY2021, the government will examine information cooperation using My Number infields other than the three fields of social security, tax and disaster and information
coordination using only agency-specific codes for general administrative work (excluding
public security, diplomacy, etc.) and submit a bill for the one that gained the public
understanding to the ordinary Diet session in 2022.
 The government aims to start registration and use of bank and savings accounts for thetransfer of public moneys linked with My Number by the end of FY2022 as much as
possible. With regard to smooth facilitation of listing My Number on bank and savings
accounts (including services available in the event of inheritance or disasters), thegovernment aims to start it them by the end of FY2024. Carry out further reviews while
monitoring how listing My Number on bank and savings accounts unfolds.
In addition, the government will prepare for smooth enforcement in coordination withrelated parties by promoting the enactment of cabinet and ministerial orders and guidelines
for financial institutions and developing systems at related organizations and financial
institutions.
 As for the optimization of user interface and user experience of Mynaportal, the government
will drastically improve and maximize the level of satisfaction of users (people) (easy tounderstand, easy to operate, fast response, etc.) and the level of satisfaction of local
governments (easy to operate, fewer defects, easy to link with existing work systems, etc.)that use the system in their work by FY2021. At that time, the government will carry out areview including further utilization of the knowledge and technologies of the private sector.
In addition, the government will continue to make improvements even after FY2022 andonwards.
 With regard to about 30 national qualifications related to social security, etc., such as
doctors, dentists and nurses, that require priority attention, the government aims to link with
the Basic Resident Register Network System and the Cooperation Network System for3

Personal Information using My Number. At the same time, the government will conduct asurvey on the scope of various licenses and national qualifications in FY2021, develop andbuild a qualification information linkage system that can be jointly used by administratorsand others who manage qualifications by FY2023, and start digitalization in FY2024.
 The government will digitalize driver’s licenses and start integrating them with Individual
Number cards by the end of FY2024. Prior to this, the government will consolidate thesystems of the National Police Agency and Prefectural Police for managing driver’s licenses
on a common platform of the National Police Agency by the end of FY2024.
 With regard to the integration of My Number cards and residence cards, the government
will reach a conclusion by the end of 2021 and submit the necessary bill to the ordinary
session of the Diet in 2022. After the governmental ministerial ordinances are developedand systems are modified, the government will start issuing the integrated cards fromFY2025.
 In preparation for the start of the continued use of Individual Number cards outside Japanby the end of FY2024, the government will promote the review of issuing Individual
Number cards at overseas diplomatic missions. In addition, following the start of overseas
use, the government will carry out reviews on the ideal way of providing smooth consular
services for Japanese living overseas using Individual Number cards.
 From the fiscal year of 2022, the passport online application system will be inaugurated
with Mynaportal by utilizing the public authentication of the "My Number Card",
Individual Number Card. In addition, by the fiscal year 2024 the Ministry of Foreign Affairs
will consider applications without requiring an attached copy of the Family Register, bymaking use of the Family Register information cooperation System to be established by the
Ministry of Justice.
 The government will review the feasibility of utilizing the My Number system as a measure
to secure child support payment.
 Aiming for the end of FY2022, the government will make administrative procedures,
especially those that contribute to improving the convenience of the people, performed at
all local governments available online by using the Mynaportal and My Number card, inprinciple, so that people can enjoy the improved convenience brought by digitalization at
an early stage.
 By the end of FY2021, the government will implement a model project utilizing theinfrastructure of the Myna Points project at multiple local governments and build an
infrastructure that allows the local governments to implement various point rewarding
projects.
 The government will complete technical verification and system design by the end of
FY2021 to launch services by the end of FY2022 with the aim of realizing electronic4certificates of the Japanese Public Key Infrastructure (JPKI) on smartphones. In parallel,
the government will consider using biometric authentication instead of PINs for JPKI as
well as installing other functions of the Individual Number Card on smartphones, such as afunction to accurately enter information on the card, after addressing various issues,
including interoperability with related international standards. In addition, the government
will identify issues, and solutions to those issues, to further promote the utilization of JPKI
linked IDs provided by private businesses.
 To improve the convenience of the people and improve the efficiency of the vehicle
inspection registration procedures by utilizing digital technology, including the use of the
My Number cards, after thoroughly implementing business practice reforms, thegovernment will sequentially introduce a new business flow from FY2022 by developing
and modifying systems also taking into account the results of the review of the businessflow improvement survey that has been conducted from the beginning of FY2021.
(Promotion of standardization of digital infrastructure, etc. through national and local
governments)
 With regard to the systems (core systems) that process 17 main procedures of local
governments, the relevant ministries and agencies will prepare standard specifications
based on the “Digital Government Execution Plan” (decided by the Cabinet on December
25, 2020). Based on the Act on Standardization of Local Government Information Systems,
while carefully listening to the opinions of local governments, the government will conduct
verification thorough prior projects and provides support by the Digital Infrastructure
Reform Fund, etc. so that local governments can make a smooth transition to a standardcompliant system built on the government cloud systems by the targeted FY2025.
 Based on the “Guidelines on Information Security Policies in Local Governments” (revisedin December 2020), the government will urge local governments to thoroughly implement
appropriate security measures, such as allowing electronic transfer of applications and otherdata via the Internet only for specific communications approved by the government, while
maintaining comprehensive efforts to prevent the leakage of residents’ information.
Additionally, the government will review appropriate approaches for new security measures,
including radical review of the “three-tier measures” based on the standardization andcommonization of the local governments' work systems. Furthermore, the government will
review the necessary security measures for the use of public cloud systems by local
governments based on the operational status, etc. of ISMAP.
 In order to steadily promote the efforts of local governments based on the “Digital
Transformation (DX) Promotion Plan for Local Governments” formulated in December
2020, the government will present the way to proceed with the standardization andcommonization of the information systems and online transition of administrative

5

procedures of local governments as the “Local Government DX Promotion Procedure
Manual (tentative name)” by the summer of 2021.
iii) Promotion of comprehensive data strategy and development of common
infrastructure in the quasi-public sector, etc.
(Data strategy) In order to promote the use of data, the government will develop and operate over the
medium and long-term the infrastructure that will serve as a common base for the promotionof DX in the public and private sectors, such as the government cloud systems, government
network systems and base registries in the public administration field, at the Digital Agency,
which is scheduled to be established in September 2021. The government will provide these
services to each ministry, agency and local government, and work in collaboration with theservices of private businesses to realize public administration as a platform, aiming for
FY2025.
In addition, the government will organize the rules for removing the factors that hinder
data distribution and embody them in efforts to promote data cooperation and platform
development in the future.
In the health, medical, long-term care, education and disaster prevention sectors, theDigital Agency and related ministries will work in collaboration to embody these rules, andidentify policy issues facing each sector by the end of FY2021.
 The government will compile the basic approaches related to data cooperation, such as themethods of data cooperation and provision, safety management measures and the concept
of cost burden related to data cooperation, in the major industrial sectors where datacooperation is progressing, including biotechnology, materials and space sectors by
FY2021.
- The government will formulate the “Guidelines for Biotechnology Data Cooperation andUtilization (tentative name)” in the biotechnology sector by the end of FY2022, with theaim of building the necessary data cooperation platform for acquiring international
markets. For this reason, the government will also utilize research and development
projects, such as SIP to compile an interim report of the guidelines by the middle of
FY2021 so that the requirements for data structuring, cleaning and cooperation APIs canbe demonstrated.
- To promote process informatics to streamline and rationalize the manufacturing process,the government will formulate a policy for developing process data for fine ceramics andfunctional chemicals by the end of FY2021. In addition, after FY2022, the government
will develop an effective data acquisition platform and build a simulation tool for
utilizing the acquired open data. Furthermore, the government will spread the platform6

by improving the accuracy of the tool also through the utilization of closed data at
material development sites.
- To promote materials informatics by creating, accumulating and facilitating utilizationof the necessary data, from FY2021, the government will develop a system to provide
advanced shared equipment and promote research and development based on highquality data that is aggregated at the core data sites due to the AI analysis function
implemented. Additionally, the government will organize the priority areas and storage
formats for the government-funded research data by FY2022 and start a trial operationof the system that centrally utilizes data by FY2023.
- In FY2021, the government will further expand the use and analysis of satellite data on
the government satellite platform, "Tellus" and promote the provision and use of satellite
data using APIs based on international standards. Moreover, encourage the expansion of
the use of satellite data and creation of new businesses by implementing hands-on
training and contests for users, building data cooperation with geospatial information
owned by local governments, developing and demonstrating needs-based applications incollaboration with users and building data cooperation with Europe's Copernicus
program.
- Based on the “Guidelines for Open API Development in the Agricultural Sector”, thegovernment will promote data cooperation and sharing, such as the locations and work
records obtained from agricultural machinery, including tractors and combine harvesters
from FY2021. Moreover, the government will carry out reviews for facilitating theutilization of the agricultural data collaboration platform by API implementation torealize data cooperation and strengthening the operation system, and build a smart foodchain platform that realizes data cooperation from production to sales and consumption
by FY2022.
- By the end of FY2021, the government will create standard specifications of the ICT
production management system that enables data cooperation with the forest cloudsystem, which is being introduced by prefectures, promote its introduction to the privatesector businesses, and accelerate measures to share data, such as supply and demand in
the supply chain and legality verification, on the system.
- To support the advancement of evaluation and management of fishery resources, efficientbusiness operations and management and creation of fishery-related businesses, thegovernment will promote data cooperation and sharing in the fisheries sector based on
the fishery data collaboration platform, carry out reviews to establish data policies andstandardize data to promote data utilization, and formulate data contract guidelines in
FY2021.
- In order to increase the transparency of the real estate market, the government will

7

improve the productivity of the real estate industry and the convenience of consumers,
and facilitate the utilization of under-used or unused real estate and search of the ownersof land plots with unknown ownershipby promoting the linkage of real estate-related

date owned by the public and private sectors, by the end of FY2021, start developing
rules for the real estate ID (common numbers), which will serve as the basis for linking
real estate-related data.
- With regard to the digitalization of ports (Cyber Port), the government will promote theuse and improve the functions of the port logistics field (which started its operation in
April 2021), which digitaizes port logistics procedures among private businesses, as well
as digitaizes the port administration field and port infrastructure field, and aim for the
integrated operation of these three field based on data coordination after FY2023.
- The government will review rules related to API collaboration on oceanic data and thestandardization of data based on the opinions of users from FY2021, encourage therelevant stakeholders to utilize the data, and develop an environment that allows steadypromotion of oceanic data linkage by FY2022. With this, the government will promote
the utilization of oceanic data, such as sea temperature, ocean currents, and ship traffic,
and the sharing of such information with the public and private sectors to optimize
maritime route settings and improve accuracy when searching for fishing areas, release
the trial version of the API for oceanic data in FY2021 to make functional improvements
based on the opinions and requests of users, and release the official version of it by theend of FY2021.
- With the aim of building a cooperative infrastructure data platform for the entire
infrastructure sector in the Cabinet Office, the government will develop an environment,such as a joint management system by the public and private sectors, by the end of
FY2021, and start data collaboration among related organizations.
- The government will start implementing activities to improve data quality in the
manufacturing sector, such as data units and expression methods by the end of FY2021,
and introduce a data distribution system between companies to aim to maximize the useof valuable data at manufacturing sites from FY2022.
- In order to promote the social implementation of MaaS (Mobility as a Service), such as
the provision of MaaS-related data on traffic congestions in public transportation, thegovernment will promote the coordination and utilization of MaaS-related data based on
the “Guidelines for MaaS-related Data Cooperation” revised in April 2021.
(Development of common infrastructure in the quasi-public sector, etc.)
 With regard to the quasi-public sectors, such as the health, medical, long-term care,education and disaster prevention sectors, and mutual cooperation sectors that require intersystem cooperation for contracts, payments, etc. beyond industries, the Digital Agency will8

carry out reviews to create a program to comprehensively support the measures for
digitalization and data cooperation. These measures include (1) extracting social issues andsetting services to be realized; (2) formulating the necessary data and developing data
handling rules and systems; (3) identifying the operation managers and embodying businessmodels. In order to manage this support program beyond the boundaries of ministries andagencies, the Digital Agency will establish a promotion system for each sector, including
related ministries, agencies and organizations, and examine how to promote digitalizationin each sector.
iv) Development of digital human resources
 In order to develop human resources that support the promotion of DX, the government
will develop a digital human resources development platform and create a nationwide
network of regional DX promotion bases involving industry, academia, government andfinance, and implement DX projects that contribute to the creation of successful DX cases
and the development of human resources.
 In order to relieve anxiety in elderly people, etc. regarding the use of digital technology, thegovernment will provide full-scale nationwide support, such as support for advice andconsultation on how to use online administrative procedures and services from FY2021 incollaboration with private companies and local governments.
 In order to secure human resources who will lead digital transformation, the government
will develop an environment where talented people can develop their careers while moving
back and forth between the private sector, local governments, and the government, such as
facilitating the recruitment process using the private sector's evaluation criteria for IT skills.
From FY2022, the government will actively recruit those who pass the digital category,
which will be newly established in the national civil service examination for comprehensive
service and those who pass the digital/electrical/electronic category, which will be renamed
from the digital/electrical/electronic category after the review of the examination contents,
in the national civil service examination for general service in each ministry and agency
centered on the Digital Agency. At the same time, the government will make efforts todevelop digital human resources in governmental agencies, such as enhancing andstrengthening training for the national and local government staff and promoting the settingof career paths. Furthermore, the government will promote the development and securingof digital human resources so that high-level digital human resources can be supplied andutilized by companies to improve their digital capabilities.
(2) Early nationwide deployment of 5G, promotion of post-5G, and promotion of so-called
6G (Beyond 5G)

9The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Promotion of safe and secure 5G, local 5G and post-5G
 In order to promote the development of nationwide 5G and local 5G that enable low latency
and simultaneous connections while ensuring cyber security and openness, the government
will implement tax incentive measures based on the 5G Act.
 In order to promote the nationwide development of 5G, the government will continue to
implement cell phone coverage area development projects in areas with unfavorable
conditions, and provide support based on the division of roles between the private andpublic sectors, such as promoting the development of base stations utilizing infrastructure
sharing.
 In order to promote the spread of solutions using 5G, the government will work to create
solution examples by developing and demonstrating local 5G, etc., and aim to build asystem that makes it easy for many companies to provide and use such solution examples
and mobile phone carriers' solution examples utilizing 5G.
 With regard to the information and communication infrastructure, such as post-5G (5Genhanced with even more simultaneous connections and ultra-low latency functions)required for the expansion into future industrial applications, the government will support
the research and development of each elemental technology, including O-RAN and vRAN,
social implementation and global expansion. Additionally, the government will work on thedevelopment of manufacturing technology to secure the technology that allows theadvanced semiconductors, which are required for post-5G, to be manufactured in Japan in
the future.
 While using the post-5G network, to promote the advancement and DX of various industries,
such as smart factories, autonomous driving, and smart cities, by utilizing 5G-MEC (Multiaccess Edge Computing), which performs high-speed and sophisticated AI learning anddata processing at the closer edge of the network to users than cloud computing, thegovernment will develop devices, systems and applications related to 5G and MEC in
FY2021 to support their introduction for social implementation.
 To contribute to early nationwide expansion of information and communication
infrastructure, the government will take the following initiatives.
- With regard to fiber optics and mobile phones, the government will move theconventional goal one year ahead of schedule and aim to ensure that there are no areas
where they cannot be used by the end of FY2022.
- The government will promote the development of fiber optics through the Project toPromote Advanced Wireless Environment, etc., support the advancement of fiber optics

10

owned by local governments, and work to promote a shift from "public" to "private" forbroadband infrastructure players.
- The government will carry out reviews for adopting universal broadband services,summarize the results by around the summer of 2021, and take the necessary measures
based on the results.
 Given the rapid increase in Internet traffic associated with the spread of the COVID-19
pandemic, the government will formulate guidelines for dealing with the increase inInternet traffic by the end of FY2021 to ease congestion and ensure quality of Internet.
Moreover, demonstrate a mechanism for sharing information on large-scale and unexpectedtraffic beforehand, promote decentralization of IX concentrated in Tokyo and Osaka, andconduct awareness campaigns for users related to improving Internet connection.
 While taking into account the results of tax incentives for efforts to adopt O-RAN andvRAN based on the 5G Act and the status of practical application of the 5G system in Japan,
the government will ensure security and resilience by promoting openness and vendor
diversification in cooperation with G7 countries, and promote the overseas expansion of
5G-related products and systems of Japanese companies.
 Based on the agreement between the leaders of Japan and the U.S., the government willbuild cooperative relationships to further promote the global digital economy, including
Japan by launching the “Global Digital Connectivity Partnership” (GDCP) based on thepartnership that has been cultivated through the Japan-U.S. Policy Cooperation Dialogue
on the Internet Economy (IED) and the Japan-U.S. Strategic Digital Economy Partnership(JUSDEP) and building third-country cooperation and cooperation within a multilateralframework led by Japan and the U.S.
ii) Promotion of so-called 6G (Beyond 5G)
 With regard to Beyond 5G, the government will establish the world’s highest level ofresearch and development environments, actively make upfront investments, and promote
efforts to secure a market share. At the same time, the government will establish a system
to work on strategies under global public-private partnerships toward the realization of
Beyond 5G. Specifically,- By using the research and development funds established by the National Institute ofInformation and Communications Technology (NICT) and shared facilities andequipment, such as test beds, the government will gather the wisdom of the public andprivate sectors and work on the research and development of technologies that open up
utilization of high-frequency waves, such as terahertz waves and high-speed and highcapacity optical network technologies, such as multi-core. Moreover, the government will
examine the use of spectrum user fees for research and development of 5G to make11

intensive investments in research and development for the next five years.
- In order to accelerate efforts toward the realization of Beyond 5G by industry, academia
and government and promote international cooperation, by the end of FY2021, thegovernment will share the knowledge gained by analyzing the sectors that Japan needs tofocus on in the future by utilizing the “Beyond 5G Promotion Consortium”, etc., and build
international partnerships by concluding MOCs including information sharing, etc. withoverseas organizations that promote Beyond 5G.
- With the “Beyond 5G New Business Strategy Center” at the core, the government will
strategically promote efforts to acquire knowledge and international standardization bybringing together major players from industry, academia and government and conduct
international joint research with research institutes in countries and regions that are
reliable and strategic partners that can be expected to bring a synergy effect so that
activities to achieve international standardization can be carried out from the initial stageof research and development. In addition, the government will promote cross-ministerial
efforts for strategic utilization of standards related to Beyond 5G in collaboration with
the Standard Utilization Promotion Task Force of the Integrated Innovation Strategy
Promotion Council.
 The government will develop and maintain radio wave emulator (Japanese version of
Colosseum) 1 by FY2023 and partially release the verification environment for users by
FY2022 to promote the development and verification of new radio wave systems.
 For early realization of communication networks with higher speed and larger capacity, thegovernment will make use of optical transmission technologies to handle a rapid increasein communication traffic and power consumption. Specifically, the government aims toestablish technologies that will increase the transmission speed of the backbone and accessnetworks by 100 times than the current rate by the end of FY2025.
(3) Lowering of mobile phone rates
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Enforcing the Digital Platform Transaction Transparency Act and developing rules tomake the digital advertising market more transparent and fairer
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.

1 A system that enables verification of new radio wave systems in cyberspace on a large scale and with high precision12• Based on the Digital Platform Transaction Transparency Act, the government will promote
the understanding of issues through consultation desks and various fact-finding surveys andmonitoring of trades using digital technologies, and urge regulated businesses to takevoluntary efforts to improve transparency and fairness of their trades.
• From the perspective of promoting competitiveness in the digital market, the government
will make efforts, such as taking strict and accurate measures to address anticompetitive
practices, continuously implementing fact-finding surveys and building partnerships withcompetition authorities abroad, and strengthen the Fair Trade Commission's systems in thefields of digital, economic analysis and audit information analysis, such as improving
personnel infrastructure for specialized knowledge, including the utilization of external
human resources.
• Toward the enforcement of the Amended Personal Information Protection Act, thegovernment will develop an organizational structure at the Personal Information Protection
Commission to centrally monitor and supervise the handling of personal information by
private businesses, national governmental agencies, independent administrative entities, etc.,
and local governments.
• Based on the Act for the Protection of Consumers Who Use Digital Platforms, thegovernment will hold a preparatory meeting for the smooth launch of the public-private
council around the fall of 2021, announce a concrete plan, such as guidelines regarding themeasures to be taken by digital trading platform providers by the end of 2021, and establish
the necessary systems for enforcement.
• In order to realize a fair market environment by optimizing digital trading, the government
will review the approach to the application of the Premiums and Representations Act related
to affiliated advertising and measures to prevent misleading representations, and reach acertain conclusion by the end of 2021.
• In order to promote the utilization of data, which is indispensable for the digital society andto increase the amount of data distributed, the government will develop the environment forstrengthening data processing, mediation and analysis functions of personal data trust banks
in FY2021. Based on the results, the government will review the realization of regional
revitalization through data cooperation between personal data trust banks and local
governments and regional businesses and data portability with personal data trust banks
functioning as hubs, compile the requirements and specifications related to data cooperation,and review the necessary certification guidelines by the end of FY2022.
• In order to properly handle personal information and viewership data, the government willrevise the “Guidelines concerning the Protection of Personal Information of Broadcast
Receivers” by April 1, 2022. At the same time, in order to build a mechanism for utilizing
viewership data of online streaming and broadcast programs that take into account the actual

13situation in the regions, the government will examine what the optimal distribution
platforms and reception environments should be according to the transmission methods andby compiling cases that contribute to the interpretation of the guidelines by the end of
FY2022, and promote the formulation of voluntary rules by industry groups.
• The government will implement monitoring of how slander, fake news and disinformationon the Internet is handled by platform providers and compile an interim report of theassessment results by September 2021. Furthermore, in order to ensure the proper handlingof user information, such as location information of communication terminals related toplatform services, terminal IDs, cookies and activity history on the Internet, the government
will implement monitoring of how the user information is handled by platform providers,review the “Guidelines for Protection of Personal Information in Telecommunications
Business” by the end of FY2021 and apply them from FY2022.
• The government will examine technical specifications to realize Trusted Web that adds a
new trustworthy framework on the Internet, such as a mechanism that strengthens data
control by individuals or corporations without relying on a specific service or a mechanismthat can verify the data to be exchanged and the other party.
(5) Revising regulations in light of digital technology
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
(Mobility field)• With regard to the completion inspection of automobiles, inspection items that can beinspected by using AI, etc. have been organized as a result of the demonstration project.
Based on this, the government will revise the system by the end of 2021 so that these items
that are currently performed by completion inspectors can be replaced with AI, etc. In
conjunction with this, taking into account the results of the examination of the automobile
type approval audit by the national government on automobile manufacturers in FY2020,
the government will carry out a further examination in FY2021 from the perspective ofensuring the security of inspection data, and review the system if it is possible to build asystem that allows the audit to be conducted remotely.
(Finance field)• With regard to the handling of professional investors, items relevant to the abilities of aprofessional investor were identified as a result of the demonstration project. Based on this,the government will revise the system by the end of FY2021 to make the requirements for
professional investors more flexible.
• With regard to the handling of elderly customers in the sales of financial products, items

14

relevant to the abilities of an individual investor were identified as a result of thedemonstration project. Based on this, the government will reach a conclusion by the end of
FY2021 on the revision of the system to flexibly handle customers according to investors’abilities and circumstances.
• In order to improve efficiency of work that is handled by each financial institutionindividually at present, such as detecting suspicious transactions related to money
laundering and collating sanctioned persons, demonstration projects were carried out for thedevelopment of work processes to be jointly undertaken by each company and thedevelopment of systems utilizing AI. In the future, based on the recommendations of thedemonstration projects, the government will clarify the operation, governance, regulatory,
and supervisory positioning of the joint platform so that transaction information can besmoothly utilized and shared on the joint platform.
(Construction field)• With regard to drones equipped with infrared devices to survey exterior walls, improvementin accuracy was confirmed as a result of the demonstration project. Based on this, verify theissues which remained unresolved from FY2021, and after confirming that the accuracy isequivalent to or higher than that of a percussion survey by qualified persons, such as a 1stClass Kenchikushi , revise the system to allow its use in exterior wall surveys in periodic
inspections of buildings from FY2022.
Furthermore, the government will dig deeper into the aforementioned three fields and aim
to develop into other fields, including smart security.
• With regard to businesses in the fields of electric power, city gas, high-pressure gas andliquefied petroleum gas that can independently secure a high level of security while utilizing
technology, the government will allow them to make a transition to a self-managed
regulatory system corresponding to their security capabilities under the appropriate audit
and supervision of the government, regardless of uniform individual or pre-regulation, andreview the appropriate procedures and inspections. For this reason, the government will
carry out the review, with a view to submitting a related bill to an ordinary session of theDiet in 2022.
• For boilers that are subject to the Industrial Safety and Health Act, the government will
publicize that the open inspection cycle has been extended to a maximum of 12 years in
March 2021. Furthermore, with regard to technical issues, such as finding out applicabletechnologies and ensuring their reliability and institutional issues, such as the necessaryorganizational structure and ensuring fairness, including objectivity for the introduction of
the methods to manage the inspection cycle according to the equipment’s condition (CBM)and voluntary inspections by businesses, the government will examine how to handle them15

by the end of FY2021, and reach a conclusion.
• Moreover, with regard to the Industrial Safety and Health Act for anti-explosion regulations,the government will publicize the criteria for determining dangerous areas concerning theuse of electronic devices, etc. shown in February 2021. Furthermore, to review theregulations for bringing in non-explosion-proof portable devices in explosion-proof areas,
the government will examine the appropriate measures to secure safety not depending on acertification system, and reach a conclusion, while taking into consideration the trends in
the IEC being discussed aiming for 2022.
(6) Use of new digital technologies such as blockchain
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(7) Smart agriculture, forestry, and fisheries
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Promotion of smart agriculture
By FY2022, the following measures will be promoted in an integral manner in order todevelop an environment for the steady and full-scale on-site implementation of “smart”
agriculture that technically supports the strengthening of the production infrastructure.
(Promotion of smart agriculture)• Based on the agricultural management data collected from the demonstration project thathas been implemented since FY2019, and with mainly by the National Agriculture and Food
Research Organization (NARO), the government will develop a management diagnosis
system that is easy for farmers to use and promote the introduction of smart agriculture that
contributes to the improvement in farm management.
• In the demonstration project, the government will work on establishing new smart sales
channels, including distribution and consumers from FY2021 so that they will not only leadto labor savings at the agricultural production stage but also increasing added value ofagricultural products, expanding employment and revitalizing rural areas .
• By FY2022, the government will establish a smart food chain platform that realizes datacooperation from production to sales and consumption. In order to promote the social
implementation of the smart food chain, the government will examine the formulation of
the Food Chain Information Disclosure JAS (tentative name) that aims to give incentives tobusinesses and promote value to consumers.
• In order to promote the introduction of smart agriculture technologies for vegetables and16

fruits

that Japan is delayed in development and introduction compared to rice ., thegovernment will encourage the formation of a regional consortium by local manufacturers,
farmers, universities, start-up companies, and local financial institutions, and promote
efforts, such as research and development of highly versatile technologies that lead toeffective social implementation, including the possibility of improvements that meetregional needs.
• For regions where farmland aggregation and consolidation has been progressing, thegovernment will continue to encourage the implementation of smart agriculture byproviding support to farmers for adopting smart agricultural machinery. Additionally, forsmall-scale agricultural production areas that may not have benefited from smart agriculture
and haven’t be aggregated and consolidated sufficiently, the government will work to formand create smart agriculture production areas, while facilitating aggregation andconsolidation of farmland, and promote the improvement in productivity by introducing
smart agriculture technologies. The government will consolidate agricultural work byparticipation of multiple management bodies that have reached a consensus on the regional
vision for smart agriculture technologies, to overcome the challenges on investment by
utilizing agricultural machinery rental and sharing services.
• In order to clarify the benefits of smart agricultural production areas to contribute to building
consensus, the government will form an information dissemination base that will function
as a consultation office related to business models of each production area, centrally collectthe examples of efforts in areas implemented with the smart agriculture demonstration
project and information on smart agriculture technologies by various agriculture support
service providers, and establish a nationwide council led by private sector to spreadexcellent cases across the country.
• With regard to a mechanism to promote the introduction of smart agriculture technologies
that are effective for environmental conservation and significant labor saving by reducing
pesticides and chemical fertilizers in smart agriculture production areas, the government
will conduct a review and take concrete measures, while monitoring the introduction statusof smart agricultural machinery.
• In order to facilitate the implementation of smart agriculture, the government will promote
the expansion of farmland suitable for automated agricultural machineries and thedevelopment of ICT water management facilities.
• In order to improve the communication environment around rural areas that contributes tothe promotion of smart agriculture, the government will effectively utilize the related
projects of the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Internal
Affairs and Communications.
• The government will establish a liaison meeting between the Ministry of Agriculture,17

Forestry and Fisheries and the Ministry of Internal Affairs and Communication to share asense of urgency regarding the necessity of accelerating the smart agriculture, forestry andfisheries industry, issues across each field and region of the agriculture, forestry andfisheries industry and the progress status of measures taken in each field and to review thecountermeasures for solutions with the cooperation of private companies.
• With regard to the development of a smart agriculture curriculum at prefectural agriculturalcolleges, the government will increase the number of colleges from the current 32 to 42 by
FY2022 and enhance the smart agriculture training for farmers who are already working intheir agriculture field.
• The government will establish a consultation system that allows agricultural extension
advisors of prefectural officials to respond to inquiries from farmers and agriculture support
service providers.
• In preparation for FY2022, when the new Upper Secondary School National CurriculumStandard that include learning contents related to smart agriculture and forestry will be
implemented to agricultural high schools (including forestry-related courses), thegovernment will promote the increase in the number of schools that will implement active
learning about smart agriculture ahead of schedule by utilizing the educational contents
created by the Ministry of Agriculture, Forestry and Fisheries, etc.
• In addition to supporting the introduction of smart agriculture machinery to keep the interestof high school students in working in the changing agriculture, forestry and fisheries
industry, the government will utilize external human resources in classes and on-site training,such as graduates who practice smart agriculture, forestry and fisheries, local agriculture,
forestry and fisheries personnel and agriculture support service providers, and enhance
training including online training and promote the participation of high school teachers tofurther improve their leadership.
• The government will establish a liaison meeting between the Ministry of Agriculture,
Forestry and Fisheries and the Ministry of Education, Culture, Sports, Science andTechnology to share the understanding on the necessity of accelerating the smart agriculture,
forestry and fisheries industry and promote the development of human resources withexpertise in the smart agriculture, forestry, and fisheries industry.
• In order to further promote the smart agriculture, forestry and fisheries industry, thegovernment will urge the formation of a regional consortium, which brings together diverse
stakeholders with different technical capabilities and ideas across industries. At that time,
the government will actively urge local colleges and financial institutions that are expected
to play a particularly important role. Moreover, the government will accumulate the effortsof the regional consortia in the public-private council of private sector organizations, whichis responsible for centralized accumulation of nationwide examples of smart agriculture for18the nationwide deployment of best practices, and work to disseminate the information acrossthe country.
• As part of the national university reform, the government will facilitate the supply of humanresources and research and development at local national universities toward the promotionof smart agriculture, forestry and fisheries to contribute to local communities.
• In order to facilitate a smooth regional funds supply, the government will further strengthen
the collaboration between Japan Finance Corporation and local financial institutions, suchas conducting training related to the utilization and evaluation of smart technologies.
(Development of agriculture support services and improvement of service environment)• The government will provide financial support for the agriculture support service providers
by utilizing investment schemes based on the Amended Agricultural Corporation
Investment Facilitation Act and financing provided by Japan Finance Corporation, etc.
• On a portal site that provides one-stop information for new farmers and job opening
information, the government will also provide job opening information for agricultural
support service providers from FY2021. Moreover, the government will share this job
opening information also with technical colleges in each prefecture that have students withhigh technical skills to secure human resources from fields other than agriculture, such asengineers. Furthermore, by the end of FY2021, the government will launch a portal sitewhere the information of services of agriculture support service providers are registered,
which can be easily searched and compared by farmers, and also establish a place where
agriculture support providers can exchange information with each other by the end of
FY2021.
• The government will promote the matching service with farmers provided by local
governments so that agriculture support service providers who have few ties with local
communities can participate smoothly in each region and farmers can receive the necessary
services. The government will expand the agriculture support service market by sharing theconcrete results of the measures of local governments to support the market entry andactivities of agriculture support service providers with private companies and research
institutes of the new smart agriculture service creation platform. Furthermore, thegovernment will examine the structure for providing information to agriculture support
service providers towards the utilization of NARO experts.
• In order to realize the new Pest Forecasting Program by FY2025, the government will workon collecting information on pest incidence through the use of drones and developing
technology to forecast pest incidence through the use of AI, etc.
ii) Promotion of smart forestry
By FY2024, the following measures will be promoted integrally to create an environment

19

for the steady and full-scale on-site implementation of smart forestry.
• In FY2021, the government will establish the “Forestry Innovation Hub Center (Mori Hub)”,which is participated by various experts from industry, government and academia, explore
technologies other than the forestry field to promote the introduction of advanced
technologies regarding the development and demonstration of strategic technologies, suchas unmanned and automated forestry machinery, and utilize the results to promote theformulation of technology development policies and to support commercialization by
private businesses.
• In order to realize highly safe and productive forestry and transform forestry into a safe andattractive industry for youth, women and various forestry business operators, including selfharvesting forestry businesses, the government will utilize the knowledge of Mori Hub, anddevelop and demonstrate machineries to carry out forestry operations, such as tree felling,transportation and afforestation, remotely and automatically and wireless communication
technologies that serve as the basis of this work, aiming for their practical application by
FY2024. Moreover, the government will establish safety guidelines in line with the practicalapplication of these machines.
• The government will introduce Forest Cloud that summarizes the information of forest
resources that can be used by municipalities and forestry managers in all prefectures by
FY2021. Moreover, the government will promote precise measurements using lasers andpost the measurement results in Forest Cloud, as well as information on forest resources innational forests. Furthermore, the government will examine a mechanism to integrally
disclose the information of forest resources of private and national forests to the generalpublic.
• Toward the model introduction of smart forestry across Japan, the government will analyze
and provide practical examples and present technical models in about 12 locations
nationwide by FY2022, while also utilizing fields in national forests.
• The government will expand the curriculum for smart forestry in all College of forestry of
21 schools nationwide by FY2024 from the current 19 schools nationwide. At the same time,
given the fact that the new Upper Secondary School National Curriculum Standard that
include learning contents related to smart agriculture and forestry will be implemented toagricultural high schools (including forestry-related courses) in FY2022, the government
will promote the increase in the number of schools that will implement active learning ofsmart forestry by utilizing educational contents created by the Ministry of Agriculture,
Forestry and Fisheries, etc.
iii) Promotion of smart fisheries
By FY2023, the following measures will be promoted integrally to create an environment

20

for the steady and full-scale on-site implementation of smart fisheries.
• With the aim of expanding the target fish species for the evaluation of fishery resources toall useful fish species (about 200 species) by FY2023, as well as improving the precision of
resource evaluation, the government will develop systems for collecting landing
information of major fish markets and fisheries cooperatives in electronic data. The
government will develop the systems with an aim to cover 200 spots in FY2021 and increase
the number to about 400 spots in FY2023. In addition, the government will promote theintroduction of a system for checking the landing price information on board and a system
for sharing landing information with the market personnel in the production areas on board.
• By FY2023, the government will develop and demonstrate systems for predicting fishingand oceanographic conditions so that more than 1,000 fishing vessels engaged in fishing in
offshore and coastal areas can utilize highly accurate information on fishing andoceanographic conditions from satellite information, including fishing ground prediction.
• By the end of FY2021, the government will implement measures to help fishermen, eventhose who are inexperienced, efficiently reach fishing grounds in 10 or more prefectures by
providing a seven-day forecast on fishing and oceanographic conditions for coastal fishing.
• With regard to aquaculture, the government will implement the measures to utilize the redtide prediction information in 10 or more locations by the end of FY2021 and promote theutilization of fishery support services, such as a service that estimates aquaculture
productivity in individual sea areas and a service that proposes the optimal raft placement.
• In order to develop innovative technologies for aquaculture, which has a high affinity withsmart technologies, the government will develop a platform consisting of various industries
with different ideas of industry, government, academia and finance by FY2022.
• As part of improving the communication environment at sea, the government will develop
the necessary systems by the end of FY2021 to make inexpensive communication services
using satellite constellations promptly become available.
• By FY2024, the government will implement the curriculum for smart fisheries at the
National Fisheries University. Moreover, enhance short-term smart fisheries training for
those working in the fishing industry.
• In preparation for FY2022, when the new Upper Secondary School National CurriculumStandard that include learning contents related to smart fisheries will be implemented, thegovernment will promote the increase in the number of fisheries high schools that will
implement learning utilizing active on-site lessons by experts from universities andcompanies.
(8) Promotion of DX in companies, etc.
• In addition to the selection and announcement of the DX Stock 2021 in June 2021, the21

government will continue to promote the spread of the system (DX certification system) inwhich the government certifies companies that comply with the basic items of the Digital
Governance Code. Moreover, review the Digital Governance Code in FY2022.
• By the end of FY2021, the government will formulate reference scenarios by industry thatare effective for individual companies to evaluate the status of DX measures so thatcompanies and investors can proceed with DX with a more detailed understanding of it.
Moreover, in order for unlisted companies and SMEs to promote appropriate DX, thegovernment will formulate reference scenarios for promoting DX and select outstanding
companies by the end of FY2021.
• The government will summarize the elements necessary for companies to become providersof globally competitive digital technologies through DX by the end of FY2021. In addition,in order to accelerate DX in society as a whole, while promoting the deployment of thesystem for utilizing water supply information by supporting nationwide water supply
utilities in introducing the system, the government will provide technical support to develop
a common platform by forming collaborative areas in various industries, such as long-termcare by utilizing the knowledge obtained from the water supply businesses as an example
and start building platform low-latency services that use embedded software technologies,etc.
• In order to strengthen corporate transformation capabilities (dynamic capability) to respondto the risk of supply chain disruptions, etc., the government will start providing support fortechnical development that contributes to full-scale utilization of wireless communication
technology at manufacturing sites by the end of FY2021.
• With the Digital Architecture Design Center as the central figure, the government willproceed with the leading projects based on the request from the Digital Agency and otherministries and agencies regarding the common technical specification (architecture) thatwill be the basis for promoting data cooperation and utilization amongst multiple operators,
and achieve certain results by the end of FY2021.
• In order to create an environment where system owners can easily ensure the quality of theirservices by utilizing third-party security verification, by the end of FY2021, the government
will start a demonstration project for the utilization of SBOM (Software Bill of Materials),
which is a list of software components that contributes to the appropriate management ofsoftware that makes up the system, etc. At the same time, the government will examine
measures that contribute to the development of Japan's security verification business,
including a system that visualizes the reliability of security verification businesses andsummarize the direction.
• The government will promote the spread of the certification system for share workers andshare businesses to promote the penetration and establishment of the sharing economy in22society while improving safety and reliability. In addition, the government will encourage
the conclusion of agreements by local governments based on the model cooperationagreement in disaster prevention fields for the utilization of the sharing economy in theirregions and by the end of FY2021, and create an implementation manual for sharing
businesses in the event of a disaster, etc. Furthermore, working in collaboration with the
Sharing City Council, the government will examine new sharing economy models to be
utilized as a public service with local governments and have the business associations
present the results of the examination.
• In order to develop “Spatial ID” that expresses the location information in real space with
common specifications under the unified standards so that 3D information in real space canbe shared among users, the government will examine the technical implementation method
and management of “Spatial ID” from FY2021, formulate guidelines for the operation of“Spatial ID” by the end of FY2022, and promote standardization of "Spatial ID" by FY2024.
(9) Ensuring cyber security• The government will formulate the “Cyber Security Strategy” by the end of FY2021, utilize
the measures being promoted for the Olympic and Paralympic Games Tokyo 2020, anddevelop a technical verification system for supply chain risks. At the same time, thegovernment will steadily implement measures, such as changing the mindset ofmanagement, measures for SMEs, and developing and securing human resources, necessary
for promoting DX with Cyber security. In addition, based on the “Basic Reform Policies for
the Realization of a Digital Society" (decided by the Cabinet on December 25, 2020), thegovernment will conduct audits to strengthen cyber security measures for systems of thenational governmental agencies, etc., including the systems maintained and operated by the
Digital Agency, while the National center of Incident readiness and Strategy for
Cybersecurity (NISC) is strengthening its system.
• In order to break away from excessive dependency on overseas for technologies andinformation regarding cyber security, the government will develop Japan’s unique systeminfrastructure for collecting, generating and providing cyber security information in Japanby the end of FY2021, and start analyzing the information on cyber attacks. Furthermore,
the government will start a trial operation of product verification environment and practiceenvironment utilizing this information by 2022, and promote the development of domestic
products and human resource development by opening up to industry and academia.
• In collaboration with the Supply Chain Cybersecurity Consortium established in November
2020, the government will organize and summarize the measures necessary for promoting
the spread of security services for SMEs, the formation of security communities in eachregion and the facilitation of industry-academia-government collaborative security

23

measures across the entire supply chain, including SMEs by the end of FY2021.
• With regards to mechanisms (trust services) to prevent data falsification and sender spoofing,
the government will take the following initiatives in FY2021.
- Investigations and examinations, such as system comparisons in anticipation of mutual
recognition of eIDAS, etc. with other countries- Implementation of measures to expand the use of time stamp so that the national
accreditation system becomes an effective means in laws and regulations for sending,receiving and keeping electronic documents- Formulation of guidelines on the appropriate way of implementing e-seal as a private
accreditation system
Based on the status of these measures, the government will examine the trust infrastructure,including the electronification of privately kept documents.
• With regard to identity verification methods required for safe and secure private transactions
in digital space, the government will launch an expert study group by the end of 2021 inaddition to promoting the use of the Japanese public key infrastructure service, organize theconcrete issues and directions while considering the safety and reliability, and based on the
results, promote the spread of identity verification methods using eKYC, which is one of
the simplest methods.
2.

Growth of the Green Sector(1) Green Growth Strategy towards Carbon Neutral in 2050
i) Framework for a Green Growth Strategy based on the 2030 emission reduction target
As stated in the Action Plan of the Growth Strategy.
ii) Key cross-sectoral policy tools
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will provide up to a 10% tax exemption for production equipment of
products with high decarbonization effects, such as compound power semiconductors andtheir bases, lithium-ion storage batteries, fuel cells and main parts of offshore wind power
generation facilities, and capital investment that lead to improved carbon productivity.
• Based on the “U.S.-Japan Global Partnership for a New Era” launched at the Japan-U.S.
Summit Meeting in April 2021 and such, while making the most of the technologies of bothcountries in clean energy and other related fields, the government will address climate

24

change by promoting the transition to decarbonization in third countries and promote thegrowth and recovery towards a green and sustainable world.
• In order to accelerate realistic transition efforts towards the realization of carbon neutrality
in the world, while securing a stable supply of energy resources and realizing sustainableeconomic growth in emerging countries, such as those in Asia, the government will promotethe "Asia Energy Transition Initiative (AETI)", which is a package of various support
measures, including the formulation of roadmaps and financial aid based on the needs ofeach country, and support the voluntary efforts of emerging countries.
• In order to develop an international framework, such as eliminating tariffs on products that
contribute to addressing climate change and creating regulatory rules, that Japan proposed
at a ministerial-level meeting consisting of like-minded WTO member countries(Ministerial Meeting of the Ottawa Group) in March 2021, the government will collaborate
with interested countries for the WTO's 12th Ministerial Conference scheduled for
November to December 2021.
• The government will utilize the “Japan Innovation Bridge (J-Bridge)” to promotecollaboration between Japanese companies and overseas companies in Europe, the UnitedStates and other countries that have strengths in carbon-neutral technologies, such as
offshore wind.
• The government will intensively hold international conferences concerningenergy andenvironment as the “Tokyo Beyond Zero Week” in the fall of 2021 to disseminate Japan’s
strategies towards the realization of carbon neutrality to the world, promote cooperation
among leading research institutes, and develop an environment for raising funds to support
innovations and transitions. At the same time, the government will lead international
discussions and cooperation on hydrogen, carbon recycling and decarbonization of fossil
fuels.
iii) Issues and responses by sector
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
(Offshore wind industry)• The government will establish a 10-million-kW project by 2030 and a 30- to 45-million-kW
project by 2040, including floating power plants. At the same time, the government aims tocomplete the master plan for system development including submarine DC powertransmission by FY2022 and also promote efforts for infrastructure development, such asorganizing the functions required for Japan’s future base ports by the end of FY2021.

25

• The government will promote capital investments, collaboration between overseas andJapanese companies through J-Bridge, etc., regulatory reform, human resource development,
etc. to build a competitive and resilient supply chain triggered by the domestic market.
• The government will promote the development of next-generation technologies for windturbines indispensable for building supply chains and floating turbines, which are expected
to expand over the medium to long term, and work on international cooperation for thedevelopment of the Asian market in the future and international standardization ofevaluation methods for floating turbines.
(Next-generation solar industry)• The government will promote the development of next-generation solar cell technologies,
which can overcome location limitations and expand the installation of solar cells in homes
and buildings where it is difficult to install existing solar cells due to technical restrictions.
• the government will promote economic independence of solar power generation byintroducing the FIP system, etc. and work to expand industries related to solar power
generation by generating the participation of various players through the creation anddevelopment of aggregation business and other related industries.
• In order to secure suitable locations where the project can be run inexpensively while
coexisting with local communities, the government will reexamine the regulations andsystems in various fields and expand the introduction of solar power generation.
(Hydrogen industry)• Aiming to reduce the supply cost and expand demand of hydrogen, the government will
work on developing and demonstrating technologies related to the enlargement andmodularization of water electrolyzers and stability of hydrogen combustion for power
generation, building hydrogen supply chains in and outside Japan, and developing various
models for a hydrogen society.
• Toward achieving decarbonization of large vehicles as early as possible, the government
will demonstrate hydrogen internal combustion engines from FY2021 and promote theestablishment of a renewable hydrogen supply chain.
(Fuel ammonia industry)• Aiming to introduce and spread 20% use of ammonia co-firing at thermal power generation
toward 2030, the government will implement it in existing power plants based on thedemonstration project of NEDO and clarify the policy position of the fuel ammonia, suchas the manifestation of non-fossil value.
• Toward 2030, the government will promote the construction of new ammonia production
plants, improve the environment, such as ports that support import/export and storage, anddevelop a fuel ammonia supply chain through organic cooperation with producing andconsuming countries.

26

(Automobile and storage battery industry)• In order to stably secure rare metals that are indispensable for the spread of electrified
vehicles, the government will launch the development of technologies that allow efficientcollection of rare metals contained in storage batteries and work on the development anddemonstration of technologies to further reduce the amount of rare metals required for highperformance motors from FY2021.
• In order to reduce the burden of businesses and users toward the expansion of the spread offuel cell vehicles, the government will examine how the regulations should be taking into
consideration the unification of the regulations related to the Road Transport Vehicle Act
and the High Pressure Gas Safety Act, and summarize a certain direction in June and reacha conclusion by the end of 2021.
(Industry related to carbon recycling)• The government will establish artificial photosynthesis technology to manufacture plastic
raw materials using hydrogen and CO2, functional chemicals using CO2 as raw materials(oxygen-containing compounds, such as polycarbonate) and manufacturing technologies forchemicals derived from biomass and waste plastic and aim to achieve the same price asexisting products. Additionally, the government will promote efforts toward theadvancement of naphtha cracking furnaces by adopting a carbon-free heat source.
• With regard to synthetic fuels produced from CO2 and hydrogen as its raw materials, thegovernment will establish high-efficiency and large-scale manufacturing technologies by2030 through intensively conducting technology development and demonstration over the
next 10 years, expand the introduction and reducing costs in the 2030s, and aim forindependent commercialization by 2040 while considering the environmental value.
(Material industry)• Aiming to achieve a significant reduction of CO2 in the steelmaking process, thegovernment will start technological development and demonstration of hydrogen reduction
steelmaking technologies in FY2021.
• For decarbonization and power saving in the manufacturing process for metals, chemical
recycling technologies in the manufacturing process for basic chemicals, decarbonizationof cement manufacturing processes, conversion of combustion process to hydrogen andadvancement of recycling, the government will work on technology development anddemonstration from FY2021 to aim to capture new markets.
(Housing and building industry)• In order to expand the spread of wooden buildings, the government will examine therationalization of building standards by the end of 2021, take the necessary institutional
measures after 2022, develop a portal site that provides information regarding the support
for the introduction of leading design and construction technologies that use CLT, etc. and27

design information, and provide support for the development of designers.
• The government will consider further strengthening of regulations, such as imposing
mandatory energy efficiency standards for houses, and provide support for the maintenanceof highly energy efficient-saving houses and buildings, such as ZEH/ZEB and LCCM
houses and buildings, and energy efficient retrofits. Moreover, the government will promote
zero energy houses and building through efforts, such as encouraging the introduction ofsolar power generation.
(Next-generation power management industry)• The government will promote businesses that utilize distributed energy resources throughefforts, such as the renewable energy market integration through the FIP system,
development of requirements of balancing market, utilization of price signals to easecongestion in local systems, reduction of the prices of storage batteries and demonstrationfor optimal control of each energy source, including EV.
• The government will promote the introduction of next-generation smart meters and promote
the businesses related to power transmission and distribution through efforts, such as thedevelopment of technologies for providing inertia, addressing grid congestion by expanding
non-firm access and inducing demand, advancement of monitoring and operation
technologies for power transmission equipment, and introduction of long-distance DC
power transmission.
• By sharing the knowledge and experience acquired in model projects utilizing microgrid,
operating the power distribution business license and clarifying resilience value, thegovernment will overcome issues, such as technical difficulties related to independent
operation in times of disaster and facilitate coordination among stakeholders, and promote
the introduction of microgrid by encouraging the formation of various business models.
(Next-generation heat energy industry)• In order to replace natural gas with methane synthesized (methanation) fromhydrogen andCO2, etc. to realize decarbonation of heat demand, from FY2021, the government will

work on the development and demonstration of technologies for making methanationequipment larger and efficient higher for practical application and commercialization anddevelop a supply chain through the unifiedefforts of the public and private sectors.
(Nuclear industry)• Utilization of research and test reactors, including fast reactors and high-temperature gascooled reactors, and development of fusion energy technology, and innovative nuclear
reactors, such as small modular reactors are promoted in consideration of other countries
R&D efforts.
(Shipping industry)• In order to strengthen the international competitiveness of Japan’s maritime industry and28promote decarbonization, the government aims to realize the commercial operation of zero
emissionships before 2028 and promote the establishment of international regulations that

contribute to its introduction and spread; the development and spread of gas-fueled ships
and the establishment of those production infrastructures; the development andimplementation of low-carbon and decarbonizingd technologies; the establishment ofinternational regulations to promote the replacement of old inefficient ships with new
greener ships by the end of FY2021 and its domestic institutionalization. At the same time,
the government will work on efforts necessary for achieving lowcarbon and decarbonizationin coastal shipping, including the development of systems, and domestic production of ships
related to offshore wind farms.
(Logistics, people flow, and civil engineering infrastructure industries)• Based on the “MLIT’sGreen Challenge“, the government will strategically promote crosssectoral decarbonization and other initiatives in the field of livelihood, urban development,
transportation and infrastructure through the acceleration of technological innovations andits implementation in cooperation with the private sector.
• With the aim of further improving the efficiency and energy saving of logistics, thegovernment will work to improve the efficiency and energy saving of the entire supply chain
by introducing machinery and digital technologies in cooperation with consignors, logistics
companies, consignees, etc., through demonstration projects, which will be implemented
from FY2021. At the same time, the government will examine how these efforts should be
evaluated under the Energy Conservation Act so that they can lead to further motivation,and reach a conclusion by the end of FY2021.
• The government aims to reduce CO2 emissions by spreading construction machinery withexcellent fuel efficiency and ICT construction to the small and medium-sized constructionindustry engaged in construction projects of local governments.
• In order to support the decarbonization of the sewerage system, the government will
intensively work on accelerating the development of technologies related to energy-saving
renovation, sewage heat, sewage biomass energy and sewage-derived hydrogen andpromote their introduction until FY2025.
• The feasibility of improving dam operations, such as releasing floodwater stored in
multipurpose dams while using it for power generation as much as possible without
interfering with flood response by utilizing the latest weather forecasting technology whenlowering the water level in preparation for the next typhoon, etc., will be verified, fromFY2021, and the government will promote the utilization of unused water energy.
• In order to reduce CO2 emissions from automobiles, the government will take the measures
for road traffic flow and for truck transportation efficiency, improve bicycle user
environment and promote bicycle usage further aiming for 18.2% bicycle share for29

commuting purposes by FY2025. In addition, the government will aim to start experimentsin the middle of the 2020s by supporting research on the electric road system and promote
the spread of electric vehicles by promoting social experiments on the installation of
charging facilities on public roads and the maintenance of information signs.
• By providing incentives for electric vehicles when using expressways, we will reduce
emissions by shifting traffic from general roads to expressways and promote the spread ofelectric vehicles.
• The government will promote the use of LED road lighting and encourage the introductionof new road lighting that can further reduce energy consumption by reviewing the standards
for the installation of road light facilities, etc. by FY2025. Additionally, the government willconduct reviews to promote the use of renewable energy, such as solar power generation inroad management and aim of nationwide deployment.
• In order to further reduce the environmental load caused by railways, the government will
promote the development of fuel cell railway cars and facilitate the introduction of energysaving cars, such as hybrid cars, and the introduction of energy-saving equipment to railway
facilities.
• In order to develop carbon-neutral ports (CNP) by improving the receiving environment thatenables large-quantity, stable and inexpensive imports of hydrogen, fuel ammonia, etc. andincreasing the sophistication of port functions that support decarbonization, the government
will promote the improvement of the environment for developing CNPs, such as formulatinga CNP development plan preparation manual by the end of FY2021. The government will
implement the introduction of technologies, such as onshore power supply to ships at berthand stand-alone hydrogen power supply, as soon as possible.
• In order to strengthen the competitiveness of the aviation industry by decarbonizing theaviation sector, the government will accelerate the introduction of new technologies into
aircraft and equipment, improvement of flight operation methods by upgrading air traffic
control, promotion of the introduction of sustainable aviation fuel (SAF) and reduction of
CO2 emissions from airport facilities and vehicles. At the same time, the government will
study and initate the measures to turn airports into renewable energy hubs by the end of
FY2021, and promote public-private partnerships.
• In order to promote the area decarbonization in cities, the government will establish a
support system, including examining how to set an area and making private funding moreaccessible in FY2021, and strongly promote comprehensive initiatives from FY2022.
• In FY2021, the government will investigate the feasibility of introducing renewable energy
into urban parks, including national govrnment parks, and promote the introduction.
• With the aim of implementing green infrastructure in society, the government will promote
the joint public-private and cross-sectoral development of technologies and introduction to30

regions through the utilization of the "Green Infrastructure Public-Private Partnership
Platform". At the same time, the government will expand private investment by attracting
green bonds, etc. to green infrastructure projects undertaken by local governments andprivate businesses.
• The government will promote the introduction of transportation systems with a low CO2
emission rate, such as LRT, BRT and electric vehicles, and facilitate the use of public
transportation by improving its convenience through the utilization of the Local Public
Transportation Revitalization and Rehabilitation Act, social implementation of MaaS, etc.
(Food, agriculture, forestry and fisheries)
Based on the “Strategy for Sustainable Food Systems”, the government will promote
greening in the agriculture, forestry, fisheries and food sectors through the creation ofsustainable agriculture, forestry, fisheries and food technologies and involving stakeholders
to the initiatives from research and development to commercialization of products andservices while utilizing cross-ministerial framework.
• From FY2021, the government will promote the development of new biochar materials thathave the effect of both carbon sequestration and soil amendment and revision of thestandards, and promote the development of smart machinery necessary for efficient
application to increase the amount of carbon sequestration to cropland soils.
• The government will promote the development of technologies to enable energy autonomy
of rural villages through renewable energy, the development of technologies to the nextgeneration organic farming and the development of environmental control facilities that
achieved the RE100 initiative in horticulture facilities from FY2021. In livestock production,
the government will work on the conversion from the imported feed to domestic feed,
resource recycling through the distribution of livestock-derived compost across wide areas,
and refinement of breeding techniques.
• From FY2021, the government will promote the development of technologies that enableeffective utilization of waste heat from food factories and technologies, such as data-driven
cold chain systems to improve the efficiency of energy and heat use in the process of food
manufacturing and distribution and reduce food loss and waste.
• From FY2021, the government will intensively work on the maintenance of forests, such as
appropriate thinning of artificial forests, and reforestation utilizing the “elite tree” species,
etc. and the development and expansion of the use of building materials that contribute to
the wider adoption of wood in high-rise buildings to secure and increase the carbon
sequestration rate of forests.
• The government will promote the reduction of CO2 emissions by improving energy-saving
and efficiency of fishing vessels, establish a method to measure the amount of CO2 absorbed

31and stored into seaweed beds by FY2023, aim to reflect it in the national greenhouse gas
inventory report, and conserve and create seaweed beds and tidal flats.
(Resource recycling-related industries)• Toward the establishment of the first commercial-scale CCU technology by 2023, thegovernment will advance the demonstration of the production of plastic raw materials bycollecting and using exhaust gas emitted from waste treatment facilities.
• The government will conduct demonstrations to facilitate the use of trees in river channels
for biomass power generation fuel, etc., examine the feasibility of effective utilization ofexisting general waste treatment facilities, and create a guidebook for expanding the use of
biomass power generation facilities and general waste treatment facilities.
(Lifestyle-related industries)• In order to simultaneously achieve true local production and local consumption of energy,
decarbonization and resilience, the government will promote power interchanging between
buildings through DC power supply and development of autonomous decentralized energy
systems.
• In order to revitalize the electric vehicle market and promote decarbonization of mobility inthe next few years, in terms of lifestyle and business aspects, the government will promote
the introduction of EVs, PHEV, and FCVs combined with renewable energies as a moving
storage battery and the development of communities where it is easy to use electric vehicles.
• In addition to working on the computerization of application procedures for the J-Credit
Scheme and simplification and automation of monitoring and credit authentication
procedures, the government will consider the creation of a market that utilizes blockchain,with the aim of launching operation from FY2022 at the earliest.
• The government will engage in industry-academia-government collaborative efforts toenhance the atmospheric and oceanic observations and projections through the advance ofmeteorological satellites and simulation technologies, and promote the results to be utilized
as scientific bases for climate change countermeasures by private and public institutions.
(2) Carbon pricing
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(3) Attracting domestic and foreign private capital to carbon-neutral marketsi) Development of infrastructure for smooth provision of funds
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.

32• From the perspective of creating an environment for smooth funding, the government will
examine and revise the Green Bond Guidelines concerning the issuance procedures, etc.
Additionally, formulate guidelines also for social bonds and consider formulating a
document that shows a broad range of examples, such as specific indicators related tosolving social issues.
• In order to advance transition support for emerging countries, such as Asian countries, thegovernment will promote the formulation and spread of the concept of the Asian version oftransition finance based on the basic domestic guidelines.
ii) Improvement of the environment for green bond transactions, etc.
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• Taking into consideration the opinions that external evaluation methods related to ESG, etc.
are not always clear, the government will verify the ideal conditions of ESG evaluation
organizations, such as transparency and governance.
• With regard to investment trusts related to ESG, the government will promote theclarification of product characteristics and the provision of appropriate explanations, suchas environmental and social effects, at the time of composition and sales from theperspective of protecting investors.
iii) Enhancement of sustainability-related disclosure
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• With regard to the formulation of international standards, the government will actively
participate and disseminate opinions of Japan in the movement of the International Financial
Reporting Standards (IFRS) Foundation to develop a comparable and consistent disclosure
framework for sustainability, including climate change.
• By the fall of 2021, the government will add industries, increase the number of case studies,and carry out other work on the Task Force on Climate-related Financial Disclosures(TCFD) Guidance, include transition finance in the Green Investment Guidance, and whileadvancing the scenario analysis, disseminate it to the world at the next TCFD Summit and
COP26 scheduled to be held in 2021.

33

• In the real-estate sector, the government will promote information disclosure by utilizing
the “TCFD Guidance for Real Estate Sector” compiled in March 2021 and toward therevision of the guidance after FY2022, and examine the ideal way of disclosing information
to further promote ESG investment.
• By the end of FY2021, the government will revise the list of companies engaged ininnovations that enable significantly large CO2 reduction (Zero Emission Challenge) andattract more private funds.
iv) Support for lenders by financial institutions and public-private partnerships
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• As the support for the efforts of local financial institutions, related ministries and agencies
will provide various information and share know-how, while collaborating with related local
governments.
• The government will encourage the mobilization of private funds by promoting dialog
between companies and financial institutions triggered by public fund funds, such as theGreen Innovation Fund and the Green Investment Promotion Fund set up by Development
Bank of Japan (DBJ).
(4) Regional decarbonization roadmap
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
Based on the trends of local governments that are actively working on the transition to
decarbonization, for example, by announcing their intentions to ahieve net-zero carbon
emission by 2050 (Zero Carbon City Declaration), the Council for National and Local
Decarbonization formulated the "Regional Decarbonization Roadmap" (decided bytheCouncil for National and Local Decarbonization on June 9, 2021). Based on the roadmap,
we aim to promote the creation of decarbonization leading areas and aim to achieve
decarbonization of electricity consumption in the consumer sector by 2030 in at least 100
decarbonization leading areas. Moreover, we aim to realize a decarbonization domino effectthat spreads decarbonization efforts throughout the country centering on leading areas byimplementing priority measures nationwide, such as spreading self-consumption solar
power generation systems in houses and buildings, improving the energy-saving function of34

houses and expanding the spread of zero-carbon driving utilizing renewable energy such asEVs, PHEVs and FCVs.
In order to realize this, we will concentrate on promoting these efforts over the next five
years, while also utilizing policy packages of related ministries and agencies, such as "Green
Food System Strategy" and "Ministry of Land, Infrastructure, Transport and Tourism Green
Challenge".
(5) Transition to a circular economy, business-led international roll-out and international
cooperation• In order to support efforts based on the Plastic Resource Circulation Act to strategicallypromote the transition to a circular economy necessary for decarbonization, the government
will promote guidelines related to environmentally friendly design, develop regional
resource circulation systems and promote the advancement of recycling, development anddisseminationof alternative materials and utilization of digital technologies. Moreover, inorder to promote advanced efforts for a circular economy, the government willinternationally advocate the formulation of circular economic principles shared in andoutside Japan that will become the norms of the global industries and financial communities.
• Based on the “MARINE Initiative”, which is a concrete initiative toward the realization of
the Osaka Blue Ocean Vision, the government will deepen the discussions with experts fromother countries and promote international roll-out through means, such as the utilization of
global data compilation by around 2023. The government will also promote measuresagainst marine plastic litter taken by local governments.
• Aiming for the creation and saving of energy in sewage system and advancement andefficiency of facility management, in FY2021, the government will conduct demonstrations
on the development of a common platform, which will be the infrastructure for datautilization, and wide-area management of sewage treatment plants through the use of ICT
and AI.
• With the aim of formulating guidelines for accepting used paper diapers in the sewage
system in FY2022, the government will implement demonstrations to evaluate the effect of
introducing paper diaper treatment equipment in welfare facilities in FY2021 and examine
measures for appropriate use.
• As a chairing country, the government will lead the review of long-term goals for reducing
CO2 emissions in the task group (proposed and established by Japan) under the International
Civil Aviation Organization (ICAO) by 2022.
• In order to promote the global expansion of environmental infrastructure, the government
will strengthen and increase public-private collaboration for JCM with a view to regional
development centered on the Asia-Pacific region through holding workshops for Pacific35island countries, whose inclusion in the Joint Action plan of the 9th Pacific Islands Leaders
Meeting (PALM9) is currently being prepared.
• From FY2022, the government aims to achieve commercialization of CCS by 2030 throughthe full-scale demonstration of methanol synthesis using CO2 and establishment ofTomakomai CCUS as a demonstration base through collaboration between agglomerated
industries.
• In order to establish a technology to transport liquefied CO2 by ships, which leads to longdistance and mass transportation of CO2 and cost reduction, the government will conduct ademonstration test of liquefied CO2 transportation by ships between the locations where
CO2 is emitted and utilized/stored from FY2021.
• Through the “Asia CCUS Network”, which will be built under the leadership of Japan in
FY2021, the government aims to expand the knowledge and technologies gained in the
CCUS demonstration to Asia and in order to commence a large-scale CCUS demonstration
project, which will be the first in Southeast Asia, in FY2022, carry out a feasibility study inview of the utilization of JCM.
• Under the public-private initiative led by Japan, CEFIA (Cleaner Energy Future Initiative
for ASEAN), the government aims to launch projects, such as the development of renewableenergy microgrids in island countries and optimal control of factory facilities using IoT by
the end of FY2021.
• Based on the basic energy plan, which is currently under discussion for review, thegovernment will raise the goal for the self-development ratio and formulate LNG strategies
by the end of FY2021 in anticipation of securing suitable sites for hydrogen, ammonia and
CCS in the future, in addition to petroleum, LNG and rare metals. At the same time, thegovernment will promote the development of comprehensive resource diplomacy and thedevelopment of domestic marine resources, such as methane hydrate, submarinehydrothermal deposits and rare earth mud to raise the self-development ratio based on thegoal.
• In order to promote further energy saving in the industrial and business sectors, thegovernment will sequentially review the target levels of the benchmark system based on the
Energy Conservation Act and expand the target industries from FY2021. Additionally, inthe household sector, the government will review the guidelines concerning the provisionof energy-saving information from energy retailers to general consumers, examine amechanism for evaluating the initiatives of energy retailers for information provision, andreach a conclusion by the end of FY2021.
• For nuclear power, while reducing the dependency as much as possible, the government will
promote the restarting of nuclear power plants, with the understanding and cooperation of
the relevant individuals and local governments, etc., if the Nuclear Regulation Authority

36

finds that the nuclear power plant in question meets the strictest regulatory standards in theworld. Additionally, the government will strive to restore social trust through steadypromotion of the development of a nuclear disaster prevention system, including securing
evacuation routes by maintaining roads, and efforts to improve voluntary safety control.
Furthermore, the government will start strengthening human resources, technology, and theindustrial infrastructure, and promote research and development for the future, such as
pursuing reactors with excellent safety and promoting technological development for the
future, such as research and development to resolve backend issues, including thedecommissioning of reactors.
• In order to expand the introduction of non-fossil energy and optimize the energy use basedon the situations of the supply side and strengthen resilience, in addition to implementing
thorough energy saving efforts, the government will review an institutional framework forreinforcing every initiative of the demand side to realize 3E+S and present a direction by
the end of FY2021.
• With the aim of reducing emissions across the entire supply chain, the government willencourage the formulation of action plans by companies to achieve goals that are consistent
with the Paris Agreement and revise the guidelines that contribute to the decarbonization of
SMEs by the end of FY2021. At the same time, the government will encourage a wide rangeof businesses to practice decarbonization in corporate management by further improving
visualization of their emission levels and reduction efforts based on the Amended Act on
Promotion of Global Warming Countermeasures and conducting awareness-raising
campaigns from FY2022.
The government will promote climate change adaptation efforts by changing the Climate
Change Adaptation Plan in FY2021 taking into consideration the Assessment Report on
Climate Change Impacts in Japan (published in December 2020) based on the latest findings
on climate change and its impacts.
From the perspective of the synergy between climate action and disaster risk reduction, thegovernment will promote the simultaneous realization of regional “climate change andresilience” and Circular and Ecological Economy. This includes the utilization of waste
treatment facilities as local energy centers, implementation of Ecosystem-based Disaster
Risk Reduction, strengthening resilience to disasters taking into account the complex risks
associated with climate change, maintenance and utilization of climate change risk
information related to disasters and strengthening information dissemination through heatstroke alert based on Heat Illness Action Plan (formulated in March 2021).
• In order to contribute to achieving the Post-2020 Global Biodiversity Framework andconserving at least 30% of the global land and ocean by 2030 through protected areas andother effective area-based conservation measures, the government will deliberate a37mechanism to areas under the natural resource management such as company-owned lands,
as the areas that contribute to biodiversity conservation and develop the concept of its
certification criteria by the end of FY2021 and at the same time, formulate guidelines forprivate sector on management and investment by the end of FY2021. By thesemeasurements, the government will support corporate and regional activities.
• Taking the opportunity of the 15th meeting of the Conference of the Parties (COP15) to theConvention on Biological Diversity, the government will promote the Satoyama Initiative,
which aims to conserve satochi, satoyama, and satoumi (Socio-ecological Production
Landscapes and Seascapes) based on landscape approaches, and support about 120
developing countries’ efforts in revising their national biodiversity strategies and actionplans reflecting the concept of the Satoyama Initiative by around 2023 when the COP16 to
the Convention on Biological Diversity will be held.
• At the COP15 to the Convention on Biological Diversity to be held in October 2021, thegovernment will urge the strengthening of international cooperation on the prevention of
unintentional introduction of invasive alien species, such as fire ants, by proposing theinclusion of the strengthening of international cooperation on measures against alien species
in the Post-2020 Global Biodiversity Framework.
• Toward the realization of carbon neutrality, relevant ministries and agencies will
collaboratively develop and conduct research on statistics (Green GDP (tentative name),etc.) and indicators that take into consideration environmental factors while following the
System of Environmental Economic Accounting (SEEA), which is an international standard
set by the United Nations, and research by international organizations.

38

3.

Realizing New Investments for Green Growth Strategies(1) Industrial structural transformation associated with carbon neutrality
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(2) Electrification and the use of digital technology in conjunction with carbon neutrality
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(3) Development of hydrogen stations
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Development of quick charging facilities for electric vehicles
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(5) Gas conversion of coal-fired private power generation, etc.
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(6) Development of transmission line networks to promote renewable energy
Specific measures will be taken based on the Action Plan of the Growth Strategy.

39

4.

Strengthening Investment in “People”(1) The state of the freelance protection system
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• Regarding freelance work, it is necessary to create an environment where individuals canchoose freelance work from the perspectives of expanding diverse working styles,
expanding employment of the elderly through expansion of the gig economy, extending
healthy life expectancy, and increasing supporters and workers for social security. To that
end, the government will inform the contents of the comprehensive guidelines, that clarify
the applications of the Antimonopoly Act, the Subcontractor Act, labor-related laws andregulations, and problematic behaviors based on these laws regarding the transactions
between businesses and freelancers, to freelancers by using leaflets, etc. that provide easyto-understand descriptions of the guidelines, and provide detailed consultation services fortrouble related to transactions. In addition, the government will enhance the enforcement
system based on the Antimonopoly Act and the Subcontractor Act so that any transaction
trouble between the ordering businesses and freelancers can be dealt with promptly.
Furthermore, considering the fact that the contents of the guidelines were reflected into
promotion standards based on the Subcontracting Promotion Act in March 2021, ministries
and agencies with jurisdiction over industries will revise subcontracting guidelines for eachindustry and strengthen enforcement based on these guidelines.
• Moreover, to promote further utilization of the special enrollment system of the workers’
compensation insurance, whose scope was partially expanded from April 1, 2021, thegovernment will continue to consider expanding the scope based on requests, etc.
(2) Initiatives to establish telework
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• As a flexible work style that can effectively utilize time and place, it is important tointroduce and establish new work styles, such as teleworking. Toward the establishment ofteleworking, the government will revise the telework guidelines in March 2021 and take thefollowing efforts for understanding and managing working hours and ensuring health:- With regard to the understanding and managing self-reported working hours of workers
when teleworking, the government will clarify that employers will not be held responsible40

in relation to the Labor Standards Act, except when the employer is aware of the fact the
self-reported working hours are different from the actual hours worked based on objective
facts.
- The government will confirm that there is no problem in relation to the regulations of theLabor Standards Act as long as the start time and end time of working hours (even if there
is a break time) are properly understood and managed.
- The government will make the “overtime, holidays and late-night work” in the telework
guidelines, which are understood to be prohibited during teleworking, in principle, treatedin the same way as in cases other than teleworking.
- For face-to-face guidance by doctors for workers who work long hours and those withhigh stress levels, companies can flexibly choose the guidance to be conducted remotely.
Based on the direction of these efforts, descriptions given in the guidelines have beensignificantly renewed, and the government will thoroughly disseminate the guidelines byusing leaflets, etc. that describe the contents of the guidelines in an easy-to-understandmanner.
• From the viewpoint of preventing the spread of COVID-19 as well, the government will
aggressively promote the introduction and support for teleworking through establishing andoperating telework consultation centers and subsidies related to introducing teleworking.
• Based on the fact that many companies have experienced teleworking as a countermeasureagainst COVID-19, the government will conduct a fresh examination on the evaluation
mechanism for companies that introduced teleworking to establish and accelerate quality
teleworking. Moreover, the government will continue support measures, such as
establishing a nationwide support system for introducing teleworking and providing freeconsultations by experts for SMEs. At the same time, promote the active use of ICT tools tosolve communication, management and other issues involved with teleworking and support
the development of ultra-high-speed broadband infrastructure that enables smoothteleworking.
(3) Realization of new ways of working, such as lifting the ban on second and side jobs andpromoting the introduction of short-time working regular employees
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
i) Promotion of second and side jobs
• In order to allow both companies and workers to feel comfortable with having second andside jobs, the government has just clarified rules, such as how to grasp the number of hours

41

worked at the side job reported by workers and a simple method to manage working hours,
by revising the “Guidelines for Promotion of Second and Side Jobs” in September 2020.
The government will thoroughly disseminate brochures that describe the contents of theseguidelines in an easy-to-understand manner and sample forms that can be used whenreporting working hours.
In addition, the following reviews were made on the safety net for workers with multiple
jobs:- With regard to the application of employment insurance for persons aged 65 and over, thegovernment will test out a system that applies the total number of hours worked at twojobs, from the point when the relevant person requests.
- With regard to the benefits of industrial accident compensation insurance, the government
will add up the wages of workplaces with no occurrence of industrial accidents in thecalculation and approve industrial accident compensation by comprehensively evaluating
the work load of workers with multiple jobs at their workplaces.
The government will widely disseminate the Act Partially Amending the Employment
Insurance Act, etc. enacted in 2020, which includes the above reviews to business owners
and workers.
ii) Improvement of work environment for essential workers, etc.
• The government will promote the improvement of the work environment where essential
workers who are the backbone of our society, such as medical and nursing care, cleaning,
public transportation, transportation, logistics, electricity, gas and water workers, can workwith peace of mind.
iii) Ensuring employment opportunities until the age of 70, etc.
① Ensuring employment opportunities until the age of 70•

In consideration of the fact that companies are obliged to strive to take measures in orderto ensure employment opportunities for individuals until the age of 70 based on the
Amended Act on Stabilization of Employment of Elderly Persons, which was enforced in
April 2021, the government will widely disseminate the contents of such measures tobusiness owners and workers. These measures include introduction of any of the following:
abolition of mandatory retirement age, extending mandatory retirement age until 70 years
old, continuous employment system until 70 years old, or measures to support for startinga business, etc. (a system to conclude outsourcing contracts continuously until the age of70, a system that allows employees to engage in social contribution programs continuously
until the age of 70).

42

② Reviewing pension systems due to diversification of work styles, prolongation of oldage, and expansion of employment• Based on the Act on the Partial Revision of the National Pension Act, etc.to strengthen thepension system approved in 2020,

the government will implement measures, such as

expanding the coverage of the employees’ insurance to part-time workers, raising the upper
limit from 70 to 75 years old when individuals can claim their old-age pensions, rasing thethreshold for income of pensioners in their early 60s who are employed, over which theemployees’ pension amounts are reduced, and increasing the eligible ages for enrollment inprivate pensions (defined contribution pensions).
iv) Supporting work styles that can maximize productivity① Improving the working environment, including correction of long working hours• The government will continue to strive to properly enforce overtime regulations, which wereapplied to large corporations from April 2019 and to SMEs from April 2020. In conjunction
with this, to apply the regulations to the construction industry and doctors starting in April
2024, the government will work on the smooth application of the law, such as byencouraging and supporting efforts to reduce overtime work and to ensure workers’ health,including the necessary legal arrangements, even during the application grace period forenhancement of consultation systems and thorough dissemination of knowledge about thesystems.
• The government will continue to aim to ensure the steady implementation of “Equal Pay for
Equal Work” (Part-time and Fixed-Term Workers Act, Worker Dispatch Act) that has beensequentially enforced since April 2020, and continue to provide consultation support to
SMEs and small businesses at the Work Style Reform Promotion Support Center.
• In addition to the establishment of employment management obligations for businessowners to prevent power harassment, measures to prevent sexual harassment, etc. have beenstrengthened based on the Amended Labor Policies Comprehensive Promotion Act and theAmended Equal Employment Opportunity Act. Considering the fact that employment
management obligations for business owners to prevent power harassment will be enforced
to SMEs in April 2022, the government will disseminate information, raise awareness, andsupport corporate efforts by experts so that SMEs can take appropriate measures.
② Promoting the “visualization” of human capital information• The government will promote companies to build human resource strategies that respond tochanges in the business environment, and from the perspective of improving sustainablecorporate value, related ministries and agencies will work together to further promote the“information visualization” regarding corporate human capital and dissemination of43

information to institutional investors, etc. based on the “Ito Report - Human Capital
Edition” 2 that clarifies the roles that should be played by management, boards of directors,
and institutional investors, etc., and international discussions on the disclosure of nonfinancial information and human capital. At the same time, the government will build amechanism across ministries and agencies to visualize the efforts of companies to support
the active participation of diverse human resources and create a pleasant working
environment to further promote the efforts of companies. Furthermore, following therevision of the Corporate Governance Code in June 2021, the government will facilitate theeffective supervision of the board of directors on the allocation of management resources,
including human capital investment, as well as the disclosure of information in an easy-tounderstand and detailed manner.
③ Wages• In order to achieve an early economic recovery led by private demand, the government will
work to sustain the momentum of wage increases by strengthening the abilities of companies
to create value added, which is the source of wage increase and tax incentive measures that
stimulate income expansion, such as employment increase and wage increase. The labor
share in Japan has been declining for many years, and as the wage disparity is widening due
to the impact of COVID-19, it is essential to raise the minimum wage to correct the disparity.
In order to create an environment where wages can be increased smoothly while maintaining
employment with due considerations to companies that are facing harsh conditions due tothe impact of the COVID-19 pandemic, the government will make further efforts tostrengthen the support for SMEs that are working to improve productivity, optimize
subcontracting transactions and provide financial support, and also aim to raise the national
weighted average to 1,000 yen earlier this year by referring to the efforts of other overseas
countries that have raised the minimum wage even under this pandemic and also taking into
consideration regional disparities based on the wage increases 3 made in Japan before thepandemic spread.
• With regard to the payment of wages to the accounts of fund transfer service providers,
while establishing schemes, such as a system that guarantees the payment of an adequate
amount to workers quickly in the event of the bankruptcy of the fund transfer service
providers so as to protect workers and ensure that they receive payments, the government
will institutionalize the system as soon as possible in FY2021 upon consultation with labor
2 Report of the Study Group on Improvement of Sustainable Corporate Value and Human Capital (September 30, 2020)
3 In the “Basic Policy on Economic and Fiscal Management and Reform 2016” (decided by the Cabinet on June 2, 2016), it isstated, "The government will raise the minimum wage by around 3% per year, taking into account the growth rate of thenominal GDP, to realize the national weighted average of 1,000 yen". Since then, the national weighted average of theminimum wage has been raised by 3.1% in 2016, 3.0% in 2017, 3.1% in 2018 and 3.1% in 2019 on a year-on-year basis. In
2020, the minimum wage was raised by 0.1%.

44and management organizations. At the same time, the government will monitor risks, on arisk-basis, including money laundering risk, while referring to the examples of othercountries.
(4) Promoting diversity, including the appointment of women, non-Japanese, and midcareer hires
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
i) Further expanding women’s participation• Based on the fact that the scope of the obligation to formulate action plans and disclose
information on women’s participation will be expanded to business owners with 101 or
more regularly employed workers from April 2022 under the Amended Act on the
Promotion of Female Participation and Career Advancement in the Workplace, for smooth
implementation, thoroughly disseminate information on the amended contents and support
for consultations and individual visits for companies while promoting cooperation between
prefectural labor bureaus and regional public organizations so that SMEs can steadily makeinitiatives for women’s participation. At the same time, based on the “Fifth Basic Plan for
Gender Equality (decided by the Cabinet on December 25, 2020), further strongly support
and promote the initiatives of local governments for women’s participation, such asproviding support for women’s re-learning/education and training for digital skills andreemployment/job change utilizing such skills and developing female executive candidates
using the handbooks for developing female leaders, through the regional women’s
participation promotion grant.
• The government will promote efforts to achieve the goals for the appointment andemployment of women (58 items) included in the “Fifth Basic Plan for Gender Equality".
Moreover, with regard to gender investment, which considers women's participation atcompanies a factor that carries weight in investment decisions, encourage the promotion ofefforts for women's participation by disseminating the "Report on Gender Investment
Survey" compiled in FY2020 to business owners, institutional investors, etc. Furthermore,in order to secure human resources who will become female officers and executives, thegovernment will promote initiatives regionally and in the private sector, and enhance andfurther utilize the Female Leaders Human Resources Bank.
• In order to build a society where people can make a variety of choices in the era of 100-year
human life spans, the government will promote the re-entry of a diverse array of women,
including those who are in their child-rearing phase and immediately after their child-45

rearing phase, into the labor market through efforts, such as promoting the establishment
and utilization of a “public-private partnership platform” to support new employment,
promoting the development of models that comprehensively support career advancement
through collaboration between universities, gender equity promotion centers and companies,
and supporting initiatives of local governments in collaboration with NPOs that work
closely with the needs of women with various issues and difficulties.
• Regarding the development of childcare capacity, in addition to aiming to eliminate children
being wait-listed for childcare as soon as possible, the government will develop childcare
capacity for about 140,000 children in the four years from FY2021 to FY2024 based on the“ New Childrearing Security Plan” (announced on December 21, 2020) to respond to therise in women's employment rate.
• In order to contribute to attaining balance between work and child-rearing, the government
will provide partial support for the babysitter service charges through the company-led
support project for babysitter users, and improve the convenience of users by digitalizing
the application procedure of the project in the summer of 2021.
• Based on the “New After-school Children Plan”, the government will promote thedevelopment of further capacity in after-school children’s clubs. Furthermore, in order tosupport child-rearing that meets the diverse needs of various child-rearing families, such aswhether or not they are working, the government will further advance the establishment ofregional child-rearing support bases and promote multi-functionalization.
• In order to enable women to continue their careers even after childbirth, the government
will encourage male participation in childcare and household chores, and correct the current
situation wherein the burden of childcare and household chores is biased towards women.
Specifically, the government aims for smooth enforcement of the Amended Act onChildcare Leave, Caregiver Leave, and Other Meaures for the Welfare of Workers Caring
for Children or Other Family Members, etc. enacted in June 2021, which included revisions,such as introducing a new framework that promotes leave in the period immediately after a
spouse gives birth and obliging employers to take measures to inform the leave system toindividual workers who have announced pregnancy or childbirth of their own or their spouseand to improve the work environment, such as setting up training/consultation counters, andpromoting the publication of the rate of men who took childcare leave.
• In the science and technology sector, including the IT sector, the government will create rolemodels close to women and promote efforts to improve the proportion of female teachers inthe sector. The government will promote an increase in the proportion of female students
majoring in science and engineering, including provincial universities by taking
comprehensive support measures, such as setting of the capacities for female students whotake school-recommendation-based and comprehensive entrance exams, implementation of46

open campus and establishment of STEAM education bases for female students.
ii) Promotion of acceptance of highly-skilled foreign professionals(Cross-government approaches to promote employment of foreign students etc. inJapan, and promote their continued activity after employment)• Under the Platform for Promotion of Active Participation by Highly-Skilled Foreign
Professionals, the government will further enhance the portal site for utilizing highly skilled
foreign professionals, “Open for Professionals”, by expanding information on companies
that are motivated to hire foreign professionals with the cooperation of economic
organizations by the end of FY2021. At the same time, the government will further
strengthen dissemination of information for highly-skilled professionals in overseas
countries by holding job-matching events and webinars for companies and supporters incollaboration with related ministries and agencies.
• In collaboration with related ministries and agencies, the government will encouragecompanies to disseminate and utilize the educational video training materials andguidebooks on ways of learning (published in April 2021), which were created to promote
effective communication between Japanese and foreign employees in the workplace.
• The government will promote the conclusion of a cooperation agreement to consistently
provide international students with job hunting support between universities and prefecturallabor bureaus (Hello Work) and strengthen the support of universities and relatedorganizations nationwide and Hello Work for international students by rolling out excellent
examples of the initiatives and know-how of both parties by the end of FY2021.
• Through the “Foreign Residents Support Center” (opened in July 2020), which integrates
the relevant administrative agencies and other organizations that support the residence of
foreign nationals, the government will provide effective and efficient residence support,
including the support for promoting the employment and active participation of highlyskilled foreign professionals in Japan.
• Through the Japan International Cooperation Agency (JICA), the government will support
the expansion and facilitation of the acceptance of foreign professionals by companies andlocal governments in Japan through efforts, such as holding seminars on multicultural
coexistence at the JICA’s domestic bases by the end of FY2021.
(Enhancement of educational programs, etc.)• With regard to measures related to international students, while paying attention to thebalance between the impact of the spread of COVID-19 and measures to prevent technology
leaks, the government will start the accreditation based on the accreditation system foreducational programs to promote employment of international students by around the fallof 2021 to further improve the quality of acceptance, with an aim of accreditation at more47

than 50 educational bases by the end of FY2026. Moreover, the government will implement
and promote efforts, such as thorough enrollment management at educational institutions
that accept international students, provision of education and dissemination of information
using remote and online methods, and strengthening of networks with international students
who returned to their home countries.
• Based on the Act on Promotion of the Japanese Language Education, the government willconsider new qualifications to prove the qualities and abilities of Japanese language teachers
and a mechanism to maintain and improve the standards of Japanese language educational
institutions by the end of FY2021, with a view to submitting a bill to an ordinary session of
the Diet in 2022.
• The government aims to enhance the contents of support for Japanese language instruction
to foreign children and smoothly introduce a system to position individualized Japanese
language instruction in the curriculum at the high school level from FY2023.
• In order to ensure school enrollment for foreign children, the government will make itpossible to integrally manage and understand the school enrollment status of all foreign
children by FY2025 and examine how to manage the health of children attending facilities
that are exclusively for the purpose of educating foreign children (so-called “schools forforeign students”) by the end of FY2021.
• With regard to international students at specialized training colleges, the government will
establish by FY2023 a model that comprehensively accepts international students fromsecuring them to finding employment at domestic companies through efforts, such asproviding online classes for international students at schools where they plan to enter even
before they arrive in Japan and developing an employment support system in close
cooperation with companies.
• In order to create an environment where foreign professionals can live and work smoothly
immediately after arriving in Japan and easily adapt to their host companies and local
communities, the government will promote the development of an environment where they
can learn Japanese language before they arrive in Japan by training Japanese language
teachers in other countries through dispatched specialists of Japanese language education,
supporting the activities of Japanese language education institutions through subsidized
programs, and developing and providing appropriate teaching materials and evaluation
methods. Moreover, promote understanding of Japanese culture overseas and motivate
foreign professionals to come to Japan through projects to disseminate Japanese culture incooperation with relevant local organizations.
(Review and awareness-raising of immigration and residence control systems)• With regard to the measures taken to add entrepreneurial activities in Japan by foreign
nationals who have graduated from Japanese universities to the “Designated Activities”

48

category of residence status and the projects for encouraging foreign entrepreneurs to startbusinesses, the government will share successful examples of entrepreneurial activities withrelated organizations to promote entrepreneurship by foreign nationals.
• As part of the measures to deal with COVID-19, the government will continue to flexibly
allow foreign nationals, including international students, who have difficulty returning totheir home countries to renew their period of stay or change their status of residence, and if
necessary, grant them permission to engage in activities other than those permitted by theirstatus of residence previously granted.
• In order to accurately and continuously grasp the acceptance status of foreign nationals, thegovernment will complete the development of the host institution database system by theend of March 2022, whose partial functions began to be operated in April 2021, and start
operating it to manage enrollment information for each host institution.
• In order to further improve convenience and promote non-face-to-face and non-contact
procedures in residence application procedures, the government will make online
applications by foreign nationals themselves possible from the spring of 2022 and add
applications for status of residence, such as “spouse of Japanese national” to the scope of
online applications.
• From the perspective of improving convenience for foreign nationals and facilitating
landing and residence examination procedures, the government will consider electronic
payment of fees for the issuance of certificates of eligibility by electromagnetic means fromFY2022, and for residence procedures and issuance of registered user cards from FY2023.
iii) Promoting the hiring of mid-career and experienced workers• In order to increase the number of mid-career and experienced hires, it is necessary forcompanies to review their hiring systems and evaluation and compensation systems. With
regard to the obligation of large companies that employ 301 or more full-time workers toperiodically disclose the ratio of mid-career hires to the number of full-time workers hired
based on the Amended Labor Policies Comprehensive Promotion Act enforced in April
2021, the government will disseminate the details of the obligation to ensure its smooth
enforcement. At the same time, the government will disseminate information on subsidies
to support mid-career hiring, which are provided to companies that expand mid-career hiring.
• On the premise that learning environments for students have been secured, and based on therecommendations and progress made by the Industry-Academia Council on the Future of
Employment and University Education, the government will steadily examine the directionof actions, including a review of the “Basic Approach to the Promotion of Internships”, withregard to how students and companies should engage in job-hunting and recruitment
activities appropriate for the future era.

49iv) Promoting corporate organizational transformation• Japanese companies need to change themselves into organizations that include diversity asa basis for growth and transform themselves into corporate organizations that can makedecisions quickly and flexibly. To this end, the government will compile the results of thestudy made by the “Study Group on the Transformation of Corporate Organizations” by thesummer of 2021 and present a list of specific actions to be taken by Japanese companies totrigger a movement for the transformation of corporate organization with the understanding,participation, and cooperation of management. With this, the government will promote theinitiatives for the transformation of corporate organizations, such as reducing the ratio ofmanagers and appointing experts as corporate officers (CxOs), appointing diverse humanresources, such as women and young people, as executive officers and directors based on
the working for one company in his/her career (as we say “HAENUKI”), examples of quota
systems introduced in various countries, encouraging the experience of trying his/her skills
outside of own company by using sabbatical leave, secondment to start-ups and conditional
retirement with reinstatement, and introducing compensation incentives by setting thecriteria for disclosure of executive compensation to be the top three executives.
(5) Stabilizing the employment environment for the younger generation by reviewing thepersonnel evaluation system
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(6) Facilitating labor mobility
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
i) Maintaining employment and facilitating labor mobility• With regard to the special measures for the employment adjustment subsidy, the government
will continue to give consideration to regions where infection is spreading and to companies
facing particularly harsh business conditions, gradually reduce the subsidy while carefully
monitoring the employment situation.
• As part of measures to strengthen support for large companies to maintain their employment
amid the prolonged effects of COVID-19, the government will allow workers who work inlarge companies in shifts or other work patterns to be eligible to receive the support fundand allowance if they have not been paid their wages (or leave allowance) for the leave.

50• When employers, who have been forced to reduce their business activities due to the impact
of COVID-19 to maintain the employment of their workers by means of employment
sharing, the government will provide subsidies to both the employers of the source andrecipient of the secondment through the Industrial Employment Stability Subsidy.
• In order to contribute to the smooth mobility of labor between industries and companies,
the government will strengthen the matching system the Industrial Employment
Stabilization Center, which provides information and consultations on labor mobility that
does not involve unemployment through secondment and transfer.
• The government will reduce the burden of employers who employ, on a trial basis, workers
who have been forced to leave their jobs due to the impact of COVID-19 and who wish towork in an occupation that they have never worked in before and support the smooth labormobility to different fields.
• The government will make the period and contents of vocational training more diverse andflexible, including shorter training periods and online courses, to make the system easier touse, and through Hello Work, provide information on vocational training to those who haveleft their jobs or those who are on leave, mediate their enrollment in vocational training, andsupport them in finding employment based on the results of vocational training.
• The government will increase the amount of the subsidy in the case of reemployment to a
growing company in the Early Hiring Support Course of the Labor Mobility Support
Subsidy.
• The government will ensure the smooth enforcement of the Act on Workers’ Cooperatives,
which promotes the creation of various employment opportunities and the implementationof businesses that meet the diverse demands of the community through workers’
cooperatives.
• In addition to conducting interviews and questionnaires on start-up management humanresources, in FY2021, the government will support the creation of good partnerships that
efficiently and effectively match human resources that contribute to the growth of start-ups.
Moreover, compile and publish the findings and case studies gained in the process to aim to
make the results to be widely used in the private market and the flow of human resources tostart-ups to be accelerated on a large scale.
ii) Promotion of recurrent education(Promotion of recurrent education at schools, such as universities and professional
training colleges)• The government will enhance practical programs at universities and vocational schools,
such as industry-academia partnership programs to acquire ICT skills that meet the needsof society, by implementing initiatives to develop and expand practical programs for51

working adults, foster specialists to support recurrent education, and improve the learning
infrastructure, including information dissemination to promote recurrent education.
• In addition to the efforts to develop value-creating human resources, the government will
promote the discovery and development of immediately effective and high-quality recurrent
programs in a collaborative system centered on universities nationwide to support nonregular workers, those unemployed and young people who have not been able to find their
desired jobs based on the employment countermeasure packages for the “with/post-COVID19” era.
(Promotion of recurrent education at companies and vocational training institutions)• The government will strengthen the development of human resources in response to theneeds of the fourth industrial revolution and other advancements in digital technology bypromoting cooperation among the relevant ministries and agencies to enhance IT courses in
education and training benefits and focusing vocational training (training for unemployedpersons and training for employed persons) on digital-related fields.
• In order to make it easier for workers to relearn independently, the government will enhance
online, weekend and night courses in the education and training benefit system, andstrengthen the dissemination of information on courses covered by education and training
benefits by increasing collaboration with portal sites related to relearning, etc., to promote
the use of the system.
• The government will promote the use of education and training leave systems, shorter
working hours for education and training and overtime exemption systems in companies sothat workers can make time to learn independently.
• In addition to working to develop an environment that makes it easy for workers to use
career consulting services using the Job Card, including online, weekend and nighttime, andto promote long-term career development, the government will support the introduction ofa career consulting service (self-career dock system) within companies and carry thedigitalization of the Job Card forward, including linking it to Myna Portal.
• Through the “Productivity Improvement Human Resource Development Support Center”,
the government will establish new courses in collaboration with universities in fields thatare in great need in industry, such as AI and data science.
• With regard to public vocational training, the government will implement training to acquire
the ability to understand and utilize IT and promote the establishment of training coursesthat meet the needs of human resources desired in industry and regions, as well as theflexibility and diversification of training courses. Moreover, in order to upgrade the training
contents and implement efficient training, the government will conduct a study towards theintroduction of ICT and promptly reach a conclusion.
(Development of value-creating human resources)

52• In order to provide recurrent education opportunities for working adults in their 20s to early
30s who are working in large corporations to brush up their creativity and step up their game,the government will implement the “Project for the Formation of Value Creating Human
Resource Development Centers at Universities, etc.” and the “Project for the Promotion of
New Business Creation by Human Resources from Large Corporations, etc.” from FY2021
to develop educational programs that connect creative ideas based on the innercharacteristics of individuals and customer needs to business. At the same time, thegovernment will provide intensive support over medium- to long-term to establish
universities and other bases that will put these programs into practice as soon as possible.
• The government will consider the development of an environment that enables current
students and graduates of these educational programs, as well as other individuals todemonstrate their creativity in the business world.
iii) Developing an environment that supports independent career development• With regard to the “Japanese version of O-NET” vocational information site, which was
renewed in February 2021 with the addition of a suitable job search function based on theoccupational interest test and value test, and the “Vocational Ability Diagnostic Tool” andfrom the viewpoint of supporting the job-seeking activities of people looking for work andthe recruitment activities of corporations, the government aims to build an organic systemthat can smoothly grasp vocational information and recruitment information by, in addition
to collaborations between them, linking with existing systems, such as Hello Work Internet
Service.
• With regard to a financial relief system for invalid dismissals, the government will compile
a specialized study on the legal and technical issues by the end of FY2021, and, based on
the results, take necessary institutional measures after obtaining the final conclusion of theLabor Policy Council.
(7) Enhancing individualized and collaborative learning by promoting the Giga School
ProgramBased on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
i) Human resource development for the Society 5.0 era in primary and secondary
education• Based on the systematic development of the 35-student class system in elementary schools
and verification of its effectiveness, the government will study the desirable instructional

53

system in schools, including junior high schools, promote a homeroom teacher system inthe upper grades of elementary school, making the ideal strategy of teacher education,
recruitment, training, etc., and promote work style reforms, such as using ICT to improve
school operations and enhance diverse support staff.
•

For primary and secondary education, the government will develop the school ICT
environment by FY2022, including one computing device per student at all grades incompulsory education and a high-speed and high-capacity internal network in school so thatstudents can fully utilize the environment, including taking their devices home. In
conjunction with this, the government will provide necessary support systems, such as
improving the quality of teachers and developing human systems for utilizing ICT.
• Moreover, with regard to school facilities, the government will promote the formulation ofcross-departmental action plans in each municipality and provide necessary support throughrepairs for extending the service life of buildings, from the perspective of promoting an
integrated approach to qualitative improvement and securing a safe and secure educational
environment to accommodate new learning, as well as promoting the use of combined andshared facilities that will lead to the appropriate size and placement of schools and regional
revitalization. In addition, the government will present a vision and model for school
facilities that is suitable for the era of Reiwa by the end of FY2021 and provide support tofurther roll out good practices.
• The government will advance preparations so that all local governments and schools thatdesire to use “SINET” will be able to do so, including the utilization of educational
resources, such as universities in primary and secondary education as well as in education
and academic research, and conduct trial implementations in FY2021. Additionally, basedon the “Future Learning” development package formulated in February 2020, disseminate
the 5G utilization model in order to realize individually optimized effective learning andinstruction without time and distance constraints.
• Based on the recommendations of the expert panel on the utilization of educational data, thegovernment will accelerate measures for continuous utilization of educational data, such as
standardization of data.
• Based on the fact that an environment in which one computing device is provided for eachschool child will be established, we are promoting the spread of digital textbooks while
conducting empirical research on a nationwide scale. In addition, based on the results of theempirical research, we will examine the ideal textbook system and linkage with digitalmaterials with an eye to FY2024, which is the year for the revision of elementary school
textbooks, and FY2025, which is the year for the revision of junior high school textbooks.
• With regard to the Compensation System for Public Transmission for Classes, thegovernment will provide the necessary support to reduce the burden of compensation, with54

full-scale implementation starting in FY2021, to facilitate the use of copyrighted works in
education using ICT, such as on-demand classes.
• To foster the “ability to use information”, the government will conduct surveys, etc. in orderto survey and research what contributes to improving teachers’ instructional ability and toquantitatively measure their ability to use information. Additionally, while taking into
consideration the status of studies on teacher development, training, and licensing, thegovernment aims for high schools to hire at least one person who is well acquainted with
ICT per school, including diverse human resources from society, by FY2024. Furthermore,
publicly seek a flagship university by the end of FY2021 that will take the lead in developing
teachers to have high instructional abilities for Society 5.0., and begin efforts in FY2022.
• The government will develop EdTech that realizes effective learning with AI based on theefforts of the Advanced Educational Software Introduction Demonstration Project (EdTech
introduction subsidy), etc., and create and collect good examples so that educational data,such as learning logs can be effectively utilized for school children’s learning and teachers’
instructions, and aim to deploy it nationwide.
• The government will enhance the educational content of the STEAM library, which wasbuilt in FY2020. At the same time, in order to foster the problem-solving and inquiry skills
that are necessary in the age of Society 5.0, the government will present a model plan,
including the use of the STEAM library, and promote its dissemination nationwide. In
addition, the government will promote hands-on activities that contribute to improving noncognitive abilities, which are particularly important in the digital society.
• Based on the “Future Strategy for Overseas Educational Facilities 2030” formulated in June
2021, the government will improve the environment to enhance instructional systems inoverseas educational facilities and promote the use of ICT as a foundation for the global
development of Japanese companies in the post-COVID era, and enhance support for
educational reforms to strengthen the functions for developing global human resources andteachers.
ii) Human resource development for the Society 5.0 era at universities, etc.
• The government will provide necessary support for students to continue their studies atuniversities, etc. despite the spread of the COVID-19 pandemic. At the same time, in thehigher education system based on the assumption of quality assurance in the “new normal”,
the government will promote the digitalization of education, such as the use of Learning
Management System (LMS) and remote and online education based on therecommendations 4 of the Council for the Implementation of Education Rebuilding, and4 “New Way of Learning in the Post-COVID Era (the 12th proposal)” (Meeting of the Council for the Implementation of

Education Rebuilding held on June 3, 2021)

55

promote necessary studies and environmental improvements for the construction of a new
university education based on well-being, including a shift to data-driven education torealize individually optimized learning.
• In addition to supporting resumption and continuation of international student exchange andinternationalization efforts at universities, etc., which have been greatly affected, thegovernment will examine the reconstruction of global strategies for higher education in the“new normal” based on the discussions of the Council for the Implementation of Education
Rebuilding, while keeping an eye on international trends, and reach a certain conclusion by
the end of FY2021.
• In order to develop digital human resources, the government will deploy educational
materials based on model curricula in mathematics, data science, and AI to universities andtechnical colleges nationwide and promote students to acquire basic skills, in addition toliteracy levels, that they can apply to their own specialized fields, regardless of whether inhumanities or sciences. At the same time, the government will promote the creation ofinternationally competitive, cross-disciplinary doctoral education programs for thedevelopment of the top-level human resources capable of teaching and double majors inhumanities and social sciences graduate education. Furthermore, the government willdevelop and steadily implement a system for early training of specialized teachers in data
science education and statistics. In addition, taking into account the status of efforts, suchas introducing mathematics, data science, and AI education into the curriculum, thegovernment will actively support universities and technical colleges by focusing on
operating expenses and private school grants, etc.
• The government will establish a system for universities and technical colleges to certify
excellent educational programs in mathematics, data science, and AI based on the needs ofindustry, and put it into operation by the end of FY2021 for the basic applied level. At thesame time, the government will promote the development of collaborative industryacademia programs centered on the fields of mathematics, data science, and AI atuniversities and specialized training colleges.
• With regard to the establishment of educational programs to develop human resources withbroad education and deep expertise to support the Society 5.0 era and establishment ofdegree programs that combine the highest level of educational and research capabilities todevelop doctoral personnel who will lead the world, the government will further accelerate
the efforts of human resource development based on the needs of industry and other sectors
and also taking into account the results of the mid-term evaluation to be conducted fromFY2021.
• In order to evaluate the academic skills necessary for the Society 5.0 era, the government
will steadily implement the Common Test for University Admissions, which places an56

emphasis on solving problems by demonstrating the ability to think, judge and express
oneself. In addition, examine the feasibility of including “Information” in the test fromFY2024, reach a conclusion by the end of FY2021, and also study the way of using CBT in
the future.
iii) Human resource development and utilization for the Society 5.0 era in industry• In the “MITOU program”, the government will examine a new initiative to develop humanresources capable of creating innovations by utilizing next-generation information
processing technologies that are expected to be put into practical use in the future, with an
aim to start in FY2023.
• Regarding cyber security human resources, in order to promote matching between
companies and human resources, the government will work on clarification and promotionof required duties/roles and necessary skills/certifications, as well as development andregional deployment of core human resources who are well-versed in Information
Technology and Operation Technology for critical infrastructure and industrial
infrastructure. In addition, the government will work on the development of security humanresources in regional areas and highly skilled human resources for cyber-attack analysis inregional areas, the establishment of a cyber exercise implementation platform that can beutilized by educational institutions, etc., and the implementation of “practical cyber defense
exercises” for the person in charge of information systems of national and local
governmental agencies, etc.
• In order to create a global-scale industry in the ICT field, the government will discoverhuman resources who will take up the challenge of disruptive innovation through theInnovation Network, etc., and support the challenge of ambitious technological issues witha view to global deployment.
• The government will promote the further development of “Community ICT Clubs” thatprovide local children with opportunities to learn ICT skills, such as programming, by
sharing successful cases good examples and building a nationwide network, etc.
• For the participation of core technical personnel from a wide range of industrial fields inworld-class skills competitions held in the WorldSkills Competition, the government will
support the strengthening of their skills through overseas training and domestic joint
training, and also foster the momentum for respect for skills through publicly promoting
and raising awareness of the competition.
• In Society 5.0, the government will continue to improve the environment so that all people
can continuously learn the ICT skills that are necessary throughout their lives, even into
adulthood.

57

(8) Implementation of the Policy for Social Security Reform for All Generations
Specific measures will be taken based on the Action Plan of the Growth Strategy.

58

5.

Ensuring Economic Security and Concentrated Investment(1) Promoting economic security policyi) Ensuring technological superiority from the perspective of economic security
Specific measures will be taken based on the Action Plan of the Growth Strategy.
ii) Reduction of threats and improvement of autonomy related to core infrastructureand supply chains
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• As the vulnerability of Japan’s supply chain has become apparent in the midst of the spreadof COVID-19, the government will continue to provide support for Japanese companies tointroduce production facilities overseas for products and materials whose production bases
are highly concentrated and goods necessary for the healthy lives of people. At the sametime, we will follow up on projects related to support provided for the introduction offacilities that have been implemented so far. In addition, the government will promote thevisualization of supply chains using digital technology while utilizing the “Supply Chain
Resilience Forum”, which is organized by the industry, government and academia of Japan,
Australia, India and ASEAN, and the “Supply Chain Resilience Initiative (SCRI)”, which
is a cooperative framework among the economic ministers of Japan, Australia, and India.
With this, we will strengthen both the resilience of supply chain and industrial
competitiveness in the region to lead to the economic growth in the region as a whole.
iii) Consideration of a framework for securing medium-to long-term financial
contributions to promote the strengthening of economic security
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(2) Developmentofadvanced

semiconductor

technologies

andpromotionofmanufacturing locations
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The environment surrounding the digital industry, infrastructure and semiconductors is59changing due to factors, such as the progress of digitalization, tight global supply-demand
for semiconductors and economic security. To realize Society 5.0, it is necessary to increase
the competitiveness of the semiconductor and digital industries, which are the foundationof social and economic activities, by grasping the changes of the times. The government
will implement the “Semiconductor and Digital Industry Strategy” to solve many of theissues Japan is facing and create a society that can achieve sustainable growth.
• In order to realize a digitalized and electrified society, the government will support thedesign and technological development of advanced logic semiconductors and highly
energy-saving high-performance semiconductors, which will be used in information andcommunication infrastructure, such as 5G, post-5G and data centers, as well as in automateddriving and robotics. In addition, the government will refine semiconductor production
equipment and materials technologies, which are Japan’s strengths, and engage in domestic
joint development with overseas advanced semiconductor foundries. At the same time, thegovernment will work to strengthen domestic manufacturing infrastructure and resilience
for the supply chain for semiconductors, such as memory, sensor and power.
(3) Promoting optimal deployment of next-generation data centers
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Development of next-generation battery technologies and promotion of manufacturinglocations
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• With regard to lithium, which can also be used as a raw material for batteries, examination
will be made for establishing basic technology to recover it from seawater, etc.
(5) Supply chain of key technologies and commodities, such as rare earths
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(6) Strengthening manufacturing infrastructure
Specific measures will be taken based on the Action Plan of the Growth Strategy.

60

6.

Reviving the Dynamism of Japanese Firms in a “With COVID-19” and a “Post
COVID-19” World: Creating an Environment that Both Creates and Scales Up Startups(1) Review of the pricing process for initial public offerings (IPOs)
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(2) Consideration of a SPAC (special purpose acquisition company) system
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(3) Improvement of the environment for the revitalization of private placementtransactions
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Promoting competition policy to optimize transactions between start-ups and large
companies
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(5) Comprehensive support for the formation of start-up ecosystems
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to solve social issues through the creation of start-up companies, the government
will compile the “Innovation Ecosystem Formation Package” by the end of FY2021, andbased on this package, while utilizing the platform for unified support for start-ups(commonly known as Plus), promote initiatives by local governments, universities, and theprivate sector in an integrated manner. These efforts include expanding start-up companies
overseas and fostering entrepreneurs in the start-up ecosystem hub cities and conducting
research and development and implementing the results in society through the new Japanese
SBIR system.
• To ensure that open innovation between start-up companies and business companies does
not get weakened due to the impact of the spread of COVID-19, the government will
improve the system and environment related to start-up funding and promote various types

61

of funding to start-up companies, which are the leaders of innovation.
• By the end of FY2021, the government will establish a consortium of VCs, staffing agencies,
etc. to organize the requirements for management personnel, and examine efficient andeffective measures to realize the smooth transfer of management personnel to start-up
companies. In addition, the government will support the creation of new businesses(secondment entrepreneurship) by employees of large companies, etc., who establish a startup companies by using capital independent of the companies they belong to without
resigning the company, and run the new company in the form of temporary secondment.
• In the J-Start-up Program, the government will add 30 to 50 start-up companies by the endof FY2021, and provide intensive support to promising start-up companies in the region incooperation with local governments through the expansion of the program to each region.
• At the Organization for Small & Medium Enterprises and Regional Innovation, Japan, thegovernment will provide support for start-up companies to take on challenges by facilitating
financing and reusing promising assets from the middle of FY2021, and support start-up
companies that are having difficulty to continue business due to the impact of COVID-19.
• The world’s largest technology conferences, “Web Summit” will be held in Tokyo from2022, to promote Japan’s promising start-up companies overseas and attract foreign
investment.
• In order to develop human resources with entrepreneurial skills, the government will
implement entrepreneurship education programs at institutions participating in the
consortium of start-up city by FY2025, and consolidate the case studies and deploy themnationwide. In addition, through the support for the creation of a start-up ecosystem instartup cities, including local universities, strengthen the system to integrally promote thedevelopment of entrepreneurial human resources and creation of start-up companies.

62

7.

Creating an Environment for Business Restructuring and Revitalization(1) Improving the environment for business restructuring and revitalization of large andmedium-sized companiesi) Strengthening the supply of capital funds and promoting the subscription ofpreferred stockSpecific measures will be taken based on the Action Plan of the Growth Strategy.
ii) Consideration of legislative aspects to expand the convenience of privatearrangements (out-of-court workouts), etc.
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(2) Improving the environment for business restructuring and revitalization of SMEsi) Guidelines for private arrangements (out-of-court workouts) of SMEs
Specific measures will be taken based on the Action Plan of the Growth Strategy.
ii) Dealing with personal bankruptcy
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to create an environment where businesses, such as venture companies, that do nothave tangible assets, such as real estate, can raise funds without relying on management
guarantees, and where financial institutions can focus on business improvement support
measures, while supporting business continuation and development of companies, thegovernment will examine a new collateral system that covers the entire business, including
intangible assets, such as goodwill and intellectual property, with reference to overseas
systems and practices, while paying attention to how to ensure convenience and protect
other creditors.
iii) Initiatives by financial institutions, etc.
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(3) Recovery of corporate profitability

63

Specific measures will be taken based on the Action Plan of the Growth Strategy.

64

8.

Competition Policy and Other Measures for New Growth(1) Promoting regulatory reform
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Promoting National Strategic Special Zones
With regard to the National Strategic Special Zone system, the government will continue
to work intensively on the reform of “bedrock” regulations. In addition, the government will
accelerate the national deployment of special regulatory measures for special zones byfocusing on conducting studies toward the nationwide deployment of the results of special
measures that have no particular adverse effects and for which a certain period of time has
passed since the use of special regulatory measures.
① Further regulatory reform items(Special measures for acquisition of farmland by corporations)• With regard to the “Corporate Farmland Acquisition Program” that is being utilized in Yabu
City, the government will conduct a survey on the needs and problems of the special measuresystem for the program in areas outside the special zones by the end of FY2021, and basedon the results, make adjustments for expanding the application of the system nationwide
and submit the necessary bill as soon as possible.
(Measures to promote appropriate use of farmland)• Given the rapid population decline, the government will broadly examine the measures tosecure the number of farmers in each region and promote the appropriate use of farmland,
including measures that allow agricultural corporations to smoothly raise funds to grow theirfarming business, and reach a conclusion by the end of FY2021 and take necessary measures
as needed.
(Facilitating the establishment of simple accommodation facilities to promote“countryside stays”)• In the case of developing the facilities necessary for innovation in rural areas, including thepromotion of “countryside stays” where people stay in rural areas and enjoy meals andexperiences using the rich local resources during their stay, the government will takenecessary measures after reaching a conclusion by the end of FY2021 to allow procedures
to be carried out quickly while maintaining harmony with farmland use.
(Simplification of the demonstration procedures for infrastructure inspection using
high-speed PLC)
• In applying for permission under the Radio Act to conduct demonstration experiments using
high-speed PLC (broadband power line communication) on power lines between robots and65control devices in pipes (limited to those on the surface or underground) or underwater,using anindependent power source outdoors, the government will reach a conclusion by

the end of FY2021 on how to respond to the need for quick installation permission forexperimental facilities, such as eliminating the need for preliminary experiments, if
measures are taken appropriately, such as quick response to the occurrence of interference.
(Promoting innovation by facilitating the employment of foreign engineers)• For the purpose of strengthening the international competitiveness of industries bypromoting the employment of foreign engineers, the government will reach a conclusion by
the end of FY2021 regarding the shortening of the examination period for the applications
for the issuance of the certificate of eligibility for foreign engineers who work in companies
certified by local governments and meet certain requirements.
(Promoting the elimination of daycare waiting list through the use of nursing personnel)• In nursery schools and certified childcare centers where four or more 0-year-olds areenrolled, only one nurse, etc. can be considered as a nursery teacher. However, for the
purpose of promoting the elimination of daycare waiting list by further utilizing nurses, etc.
in the childcare field, the government will consider allowing only one nurse, etc. to beconsidered as a nursery teacher on the condition that the nurse does not care for the children
alone, regardless of the number of 0-year-olds enrolled, while paying attention to ensuring
the quality of childcare, and reach a conclusion by the end of FY2021.
② Nationwide deployment of special regulatory measures for National Strategic Special
Zones
With regard to the special regulatory measures for the National Strategic Special Zones,
the Basic Policy for the National Strategic Special Zones (decided by the Cabinet on
February 25, 2014 and partially amended on October 30, 2020) states “accelerate national
deployment of special regulatory measures for special zones by focusing on conducting
studies toward the nationwide deployment of the results of special measures that have noparticular adverse effects and for which a certain period of time has passed since the use of
special regulatory measures”. Based on this, the government will firstly implement or
examine the nationwide deployment of the following items by the end of FY2021 and thenproceed with other items as they become available.
(Shortening of the procedure period for the cancellation of the designation of safety
forests)• By the end of FY2021, the government will implement nationwide a special measure thatallows the shortening of the procedure period for the cancellation of designation as a safety
forest if certain requirements are met.
(Special measure to the Specified Experimental Station System)66

• As a measure for the national deployment of this special measure, the government will
establish an operational system by the end of FY2021 to promote smooth and prompt priorcoordination related to the general license application system, etc., in the ministries andagencies with regulatory jurisdiction after the establishment of this special measure, in orderto respond nationally to future needs for the use of frequencies that are not covered by thenationwide system established to simplify licensing procedures for the use of frequencies indemonstration experiments.
(Extension of the job search period after graduation from Japanese language education
institutions)• The special measure to promote the employment of talented foreign nationals in Japanesecompanies realizes the nationwide deployment of a special measure as early as possible in
FY2021. This measure grants, under certain requirements, a status of residence for up to
one year for international students, who have graduated from overseas universities, etc. andenrolled in an appropriate Japanese language education institution in Japan that is accreditedby the relevant local government, if they wish to continue their job-hunting activities after
graduation.
(Establishment of a new special additional item for the point-based system for highly
skilled foreign professionals)• In order to actively promote the acceptance of highly-skilled foreign professionals, thegovernment will reach a conclusion by the end of FY2021 on the national deployment of a
special measure to the “point-based system for highly-skilled foreign professionals”, which
provides preferential treatments in terms of Immigration Control, for foreign nationals who
work for companies whose establishment, etc. is supported by local governments.
(Expansion of the establishment of “Michi-no-Eki” roadside rest areas by the private
sector)• The government will reach a conclusion by the end of FY2021 on the nationwide
deployment of a special measure that allows the establishment of “Michi-no-Eki” roadsiderest areas to be expanded from municipalities or public entities that can replacemunicipalities, but also private businesses, on the premise of concluding an agreement withmunicipalities.
(Removal of the planning and provision of travel products by accommodation business
operators, such as farmhouse inns)• While conducting a fact-finding survey on regional travel agencies and interviews withrelated industries regarding the special measure, which allows those who completed training
conducted by the Commissioner of the Japan Tourism Agency to be partially exempted fromthe subjects of the examination for Certified Domestic Travel Service Supervisors according
to the regional needs, the government will reach a conclusion by the end of FY2021 on

67

reviewing the operation of the examination for examination for Certified Regional Travel
Service Supervisors.
(Relaxation of bus-related regulations to improve airport access)• From the perspective of enhancing airport access that responds quickly and flexibly to needs,
the government will implement the nationwide deployment of a special measure, whichallows the upper limit of approval for setting fares to be notified and the notification period
for setting operation schedules to be shortened (from 30 days to 7 days in advance), forairport access bus services for airports in National Strategic Special Zones.
(Opening up of area management to the private sector (relaxation of road occupancy
standards))• With regard to a special measure, which allows multilingual signboards, benches, sheds,
open cafes, etc., which contribute to the formation of the international activity bases, to be
exempted from the application of the room requirements related to the permission foroccupancy of roads (permitted only when it is unavoidable because there is no room outside
the road site), the government will reach a conclusion by the end of 2021 on the nationwide
deployment of this special measure after also verifying the operational status of the
Improving Pedestrian Convenience Road System.
(Special measure to the height restrictions of the Civil Aeronautics Act)
• For the height restrictions based on the Civil Aeronautics Act, which are subject toindividual examination for each building, the government will implement a nationwide
deployment by the summer of 2021, with regard to presenting a certain height as a guideline
for the area as a whole, and then taking procedures for prompt approval in parallel with
district plans that have been specifically reviewed.
(Special measures to the calculation of the employment rate for persons with disabilities)• With regard to the nationwide deployment of a special measure to add limited liability
partnerships (LLPs) to the list of partnerships that can be counted toward the employment
rate of persons with disabilities, the government will conduct a study at the Labor Policy
Council’s Subcommittee on Employment of Persons with Disabilities, and reach aconclusion by the end of FY2021.
(Permitting the establishment of hospitals or the increase in the number of hospital beds
by granting the exemption from the regulations on the number of hospital beds)• The government will reach a conclusion by the end of FY2021 as to the nationwide
deployment of the exemption on the ground of which a prefectural government can permit
a medical institution to open a hospital or increase the number of hospital beds for the sakeof the world’s highest level of advanced medical care by adding the number of hospital beds
required for the medical care to the existing standard number of hospital beds.
(Creation of “regional childcare workers” and implementation of examinations for68regional childcare workers by various entities)• In order to solve the shortage of childcare workers, the government will examine thenational deployment, including the regulatory arrangement of the special measures, which
grant the qualification of regional childcare worker valid only in the area of operation forthree years from the date of registration and allow various corporations, including jointstock companies, to be used as the designated testing institutions for the regional childcare
worker examination, and reach a conclusion by the end of FY2021.
ii) Utilization of sandbox system(Making the system permanent)
The demonstration system for new technologies, etc.

(regulatory sandbox system)

restricts the duration and participants for the demonstration of innovative technologies andbusiness models, such as AI, IoT, Big Data, blockchain, digitalization, automation andautonomy, remote control and the provision of digital platforms and gains the consent ofparticipants. By doing so, it permits the implementation of demonstrations without theapplication of existing regulations, utilizes information obtained through the demonstrations,and realizes regulatory reforms and the swift social implementation of new technologies.
Based on the Act on Special Measures for Productivity Improvement, from June 2018 toApril 2021, 139 parties have been certified for 20 projects in fields, such as Fintech,healthcare, mobility, IoT, and real estate, leading to the subsequent review of laws andregulations, development of special measures, clarification of interpretation, and smoothcommercialization.
Based on these achievements, the government will continue to actively utilize thedemonstration system for new technologies, etc. while taking necessary measures to makeit permanent.
(Major demonstrations for which ideal form of regulations will be examined in the
future)
The competent minister will examine the ideal form of regulations based on thedemonstrations and take necessary regulatory measures based on the results. In addition,
follow-up will be conducted by the evaluation committee stipulated by law.
• Based on the results of the demonstrations, when a “motorized bicycle” equipped withpedals that meets certain requirements regarding its structure and appearance is switched toan operation mode in which it is driven by human power using the pedals in the same manneras a bicycle without using the power of the motor, it will be treated as a “bicycle” under theRoad Traffic Act. Clarify the interpretation by issuing a notice, while taking into accountthe situation of product manufacturing and sales.

69• Based on the results of the demonstration of non-face-to-face sales of over-the-counter drugs
using vending machines, the government will examine the ideal form of regulations, andbased on the results, take the necessary regulatory and other measures.

(2) Redesigning competition policyi) Strengthening of the Japan Fair Trade Commission’s advocacy
Specific measures will be taken based on the Action Plan of the Growth Strategy.
ii) Strengthening of the system and enforcement of the Japan Fair Trade Commission
Specific measures will be taken based on the Action Plan of the Growth Strategy.

70

9.

Building Strong SMEs

(1) Support for business continuity and business restructuring of SMEs
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Support for business continuity (business succession, transfer, revitalization, etc.)• Taking the opportunity of the start of one-stop support for business succession/transfer by
the Business Succession/Transfer Support Centers in April 2021, the government will
strengthen the centers’ human resources and cooperation with private businesses in andoutside the regions, and fundamentally revise business succession diagnosis in FY2021 andFY2022 to strengthen integrated support for business succession/transfer by providing pushtype business support and a matching service between SMEs that have no successors withother businesses.
• Including the promotion of the use of corporate and individual versions of a businesssuccession tax system and a tax system that contributes to the concentration of management
resources of SMEs, the government will implement intensive publicity for businesssuccession, including M&As, so that business succession/transfer is conducted smoothly
even under the impact of COVID-19.
• From FY2021, the government will establish a system in each region to smoothly implement
sponsor-based business revitalization by aligning the Business Succession/Transfer Support
Centers with the SME Business Rehabilitation Support Co-operative through regular
information exchange, training and the horizontal deployment of good practices.
• In addition to providing support for the cost required for any change or discontinuance ofbusiness following business succession and business transfer, the government will provide
seamless support through the Business Succession/Transfer Support Centers in cooperation
with specialized organizations, etc., so that professional consultation and support can beprovided at an early stage in cases where change or discontinuance of business isunavoidable even after pursuing M&A.
• In order to support the financing of businesses affected by COVID-19, at the SME Business
Rehabilitation Support Co-operative, the government will consult over the counter, request
for deferment of principal payment for up to one year for existing debt, and provide supports
to formulate financing plans for existing debt and new loans including coordination with
relevant financial institutions. (COVID-19 special rescheduling support)• At the SME Business Rehabilitation Support Co-operative, the government will launch an
initiative to introduce experts in business revitalization support according to the request of
businesses by the end of FY2021. In addition, the government will consider training experts
in business revitalization support to strengthen the business revitalization support system.

71• In order to promote loans that do not rely on management guarantees, the government willcontinue to disseminate the “Guidelines on Management Guarantees” and “Comprehensive
Guidelines for Lifting Management Guarantees at Business Succession” to SMEs andfinancial institutions. In addition, the government will review the workflow in the BusinessSuccession/Transfer Support Centers to further strengthen cooperation between the centersand external organizations so that data on the demand for management guarantees offinancial institutions can be utilized and smooth support to meet the needs of businesses for
management guarantees can be provided.
ii) Support for business restructuring• With regard to the SME Productivity Reform Promotion Project, which supports SMEs’
capital investment, introduction of IT, development of sales channels, etc., based on theimpact of COVID-19, the government will provide priority support to businesses that not
only strive to improve productivity but also to try to control the spread of the infection.
Among these, the government will continue to request the formulation of business plans toachieve an annual increase of 3.0% in value added for the subsidies for manufacturing andan annual increase of 3.0% in the labor productivity rate for subsidies for the subsidies for
introduction of IT.
• The government will promote management support for SMEs affected by COVID-19 by the“Companionship Support-based Special Guarantee System”, under which credit guarantee
fees are significantly reduced on the condition that financial institutions continue to provide
one-on-one support.
• At the Japan Finance Corporation (JFC), etc., the government will support the financing
necessary for business reconstructing, etc., by reducing the interest rates of applied to capital
investment for the development of new business fields and changes in business categories.
• The government will promote the supply of capital funds, including the active use of capitalsubordinated loans at regional financial institutions, government-affiliated financial
institutions, public-private partnership funds, etc.
• The government will continue to promote the growth of regional medium-sized companies
and SMEs through business transformation, business succession, etc., by sharing know-how
and developing human resources through joint funds with regional financial institutions,etc., utilizing DBJ’s Special Investment Operations, etc., and investing in LP investments
for business succession funds, etc.
• In order to improve the management of major medium-sized companies and SMEs in theregion whose financial base has deteriorated due to COVID-19, the Regional Economic
Vitalization Initiative Corporation (REVIC) will provide support using the business
revitalization framework and supplying capital funds in cooperation with regional financial

72

institutions.
• In order to promote the recruitment of young people from urban areas by regional mediumsized companies, the government will demonstrate an optimal method for a series ofrecruitment processes, from the formulation of recruitment strategies to the use of digital
recruitment tools and remote interviews by 2021, and based on the results obtained, takemeasures to expand the matching market for human resources from urban to rural areas.
• As the impact of COVID-19 continues to spread, the government will continue the“Advanced Human Resource Matching Projects” with the aim of improving the growth andproductivity of regional SMEs and building sustainable business models for regional
financial institutions. In addition, the government will strengthen the business support
system through measures, such as the full-scale operation of the “Business Support Knowhow Sharing Website”, which was put into trial operation in FY2020 and the identificationof distinctive examples of regional financial institutions at the “Re:ing/SUM (Regional
Banking Summit)”.
• In order to sustainably provide services that are essential for local residents, such as theservices for people who have difficulty with daily shopping and monitoring of elderly
people, the government will deepen the study on building a collaborative system between
organizations inside and outside the region by the end of FY2021, and establish about 10
new collaborative systems nationwide. At the same time, the government will identify
regional and social issues that are common to multiple regions, and promote efforts to solve
them by using business approaches.
• In order to provide nationwide and simultaneous support for businesses, relevant ministries
and agencies will conduct research on efficient and effective support methods using AI and
ICT, as well as on common and typical business revitalization methods for each industry.
• In order to promote the growth of companies and industries that will be the central figuresin the region, the government will encourage regional financial institutions to support theestablishment, expansion and succession of businesses in the region.
(2) Increasing labor productivity through the growth of SMEs
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
i) Support for the overseas business expansion of medium-sized companies and SMEs
(Support for market development, human resources and financial support)• Based on the fact that it is becoming more difficult to create overseas sales channels due tothe spread of COVID-19, the government will expand overseas local support through theConsortium for New Export Nations and the SME Overseas Business Support Platform.

73• The government will strengthen support for the use of Electnic Commerce (EC) web sites
and online business negotiations by improving products based on the digital marketing
information, improving PR methods on EC sites, exhibiting products at the “Japan Mall” of
the Japan External Trade Organization (JETRO) set up on overseas major EC sites, andsupporting product proposals that meet the needs of EC businesses.
• In order to significantly improve the success rate of overseas expansion of SMEs and thecontinuation rate of their business transactions, the government will provide support for theoverseas expansion of SMEs through the Project to Support SMEs in Developing Japan
Brand Products and Services on the premise of the collaboration with private support
providers who are well-versed in local market development and have support know-how
and experience.
• With the aim of developing a mechanism that will autonomously increaseexpand theoverseas expansion of SMEs, the government will support the demonstration of new
business models, such as cross-border EC businesses by private businesses and the creationof new businesses in the SDGs fields.
(Support for overseas expansion)• As there has been an increase in the number of contractual and labor-related problems inoverseas locations and international travel has been restricted due to the spread of COVID19, the government will promote corporate support using lawyers at overseas diplomatic
missions and support using infrastructure advisors. In addition, the government will makeefforts that contribute to further respect for human rights by Japanese companies at overseas
locations, including efforts to improve the human rights situation and standards indestination countries.
• The government will disseminate a service launched by Nippon Export and Investment
Insurance (NEXI) in January 2021 that provides a list of overseas trading companies(buyers) in specific countries and sectors free of charge to help medium-sized companies
and SMEs gather information on potential business partners when they consider expanding
their business overseas.
• In order to respond to the latest Model Law on International Commercial Arbitration issued
by the United Nations Commission on International Trade Law (UNCITRAL) to revitalizeinternational arbitration, the government will reach a conclusion by the end of FY2021 on
the study conducted to revise the Arbitration Act, such as making provisional measures
issued by arbitral tribunals enforceable, and promote human resource development, public
relations, and awareness-raising, while utilizing arbitration facilities equipped with thestate-of-the-art ICT.
ii) Improving labor productivity through expansion of scale74• The government will strengthen the functions of the “Business Succession/Transfer Support
Centers” by reinforcing cooperation with M&A support organizations, including reviewing
the ideal form of cooperation, as well as promoting standardization of operations and humanresource development.
• The government aims to further improve the convenience of SMEs with regard to subsidies
for business succession/transfer, which support new initiatives, such as capital investment
and development of sales channels after business succession/transfer, costs of using
specialists at the time of business succession, and insurance premiums for expressed
guarantee insurance.
• In order to encourage SMEs that have no successors to start a new business with reduced
risks and costs while utilizing their management resources, etc., the government will support
the establishment of a new business by taking over the management resources of others(start-up with management resources taken over), while also utilizing subsidies for businesssuccession/transfer.
• The government will formulate the guidelines on the ideal state of post-merger integration(PMI) after M&A by the end of FY2021 so that M&A will be considered as part ofmanagement strategy and integrated efforts, including management integration after M&A,
will be encouraged.
• The government will promote efforts to expand the range of funds for SMEs, including theuse of funds to support the strengthening of the management capabilities of SMEs, such as
promotion of efforts in search funds and other new investment fields.
• In order to form a market view of transfer prices and fees for M&A involving SMEs andalso to enable SMEs that do not have sufficient knowledge and experience in M&A to beable to judge the appropriateness of proposals from M&A support organizations, in FY2021,
the government will promote trial efforts to provide corporate value evaluation tools andsupport efforts to obtain second opinions from other M&A support organizations.
• By establishing a registration system for M&A support organizations in collaboration withsubsidies for business succession/transfer by the end of FY2021, together with theestablishment of a self-regulatory organization by private intermediaries, etc., thegovernment will develop an environment in which SMEs can receive appropriate support
for M&A.
• The government will further promote efforts for SMEs, such as dissemination andawareness-raising and human resource development related to the use of IoT throughcollaboration between National Institute of Advanced Industrial Science and Technology(AIST) and prefectural public testing/research laboratories (Kosetsushi), which started in
FY2020, in order to support productivity improvement and digitalization that leads tocollaboration between companies under the appropriate collaboration and role sharing

75

between the AIST and prefectural Kosetsushi for SMEs and medium-sized companies.
(3) Appropriate transactions between large companies and SMEsi) Appropriate subcontracting transactions
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will consider strengthening the enforcement system of the Act on
Prohibition of Private Monopolization and Maintenance of Fair Trade and Act against Delayin Payment of Subcontract Proceeds, Etc. to Subcontractors. The government will also
consider strengthening the collection of information related to the actual status oftransactions by SMEs by strengthening the system of subcontracting inspectors andsubcontractor G-Men at the Small and Medium Enterprise Agency in FY2022. At the sametime, the government will strengthen the collaboration between the Small and Medium
Enterprise Agency and the Japan Fair Trade Commission and reinforce the system to link
the collected voices of SMEs to law enforcement.
• The relevant ministries and agencies will work together to correct trade and businesspractices based on the guidance and advice given by the ministers with jurisdiction overindustries based on the “promotion standards” by utilizing investigations by thesubcontractor G-men based on the Amended Subcontracting Promotion Act. In addition,lead this to the formulation of new subcontracting guidelines and voluntary action plans byindustries that are facing problems.
• Based on the Amended Subcontracting Promotion Act, the government will establish asystem to certify businesses that create transaction opportunities utilizing the strengths of
SMEs through the use of digital technology, etc. At the same time, by providing financial
support, etc., promote the creation of new transaction opportunities for subcontracting
SMEs that do not rely on conventional business relationships and transparency oftransactions through appropriate price pass-through, etc.
ii) Promotion of cooperation between large businesses and SMEs
Specific measures will be taken based on the Action Plan of the Growth Strategy.
iii) Abolition of the use of promissory notes
Specific measures will be taken based on the Action Plan of the Growth Strategy.

76iv) Expansion of transactions beyond corporate affiliates
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Support for local SMEs and small businesses, etc.
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will determine how to handle the implementation of the Go To Shopping
Street Campaign based on the future status of the COVID-19 pandemic, after thoroughly
implementing measures to prevent its spread.
• In order to promote sustainable regional development, in FY2021, the government will
provide support for the demonstration of the introduction of attractive functions that willlead to the creation of new demand by SMEs in collaboration with local governments
through the project to revitalize the functions of SMEs for sustainable regional development.
(5) Enhancement of management support through public-private partnerships
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to promote the growth of medium-sized companies, the government will establish
a new network of support organizations, which will also include the private sector, at“Yorozu Support Centers” in each prefecture. For this purpose, the government will selecta model demonstration center that will provide active support to motivated SMEs in FY2021
and expand it nationwide after FY2022.
(6) Improving labor productivity through digitalization• By the end of FY2021, the government will develop 600 human resources with the skills to
implement AI and verify how to collaborate with SMEs, and establish a mechanism to
improve the productivity of companies through human resources with the skills to
implement AI, and disseminate it through local universities, etc.
• In addition to disseminating the “AI Introduction Guidebook” (visual inspection anddemand forecasting edition), the government will examine and publish new themes of theguidebook by the end of FY2021.

77

• In order to promote the introduction of telework in SMEs, taking into account the impact of
COVID-19, the government will provide support for the introduction of software andcommunication devices that contribute to telework.
• In order to promote the transformation of business operations and business models utilizing
digital technologies in local companies, such as the companies driving regional growth, thegovernment will promote the development of a framework in each region in which people
from industry, academia, government and finance work together to support local companies,
promote support for activities of local companies, and foster digital human resources.
•

The government will digitize all administrative procedures of the Small and Medium
Enterprise Agency by FY2023 and open up the data owned by the government, such as thestatus of utilization and results of SME measures, to private businesses, with an aim to create
and activate the private-sector service market to support SMEs.

• In addition to encouraging the creation of private-sector services to support SMEs by
opening up the data owned by the government, such as subsidy data, to the private sector,
the government will establish a mechanism that enables SMEs to find management
consultation and new business partners online by FY2022 to form a community involving
SME management support experts and support business operators.

7810. Strengthening Investment in Innovation(1) Promoting reverse innovation
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(2) Promoting the integration of the humanities and sciences
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
(Strengthening research capabilities through the reform in competitive researchfunding, etc.)• With regard to “comprehensive knowledge” that contributes to the comprehensive
understanding and problem solving of human beings and society through the fusion ofknowledge from the humanities and social sciences and the knowledge from the naturalsciences, the government will compile the basic concept and measures to strategicallypromote its creation and utilization by the end of FY2021.
• In order to strengthen basic research capabilities, the government will ensure thatcompetitive research funds, such as the Grant-in-Aid for Scientific Research and JST’s
Strategic Basic Research Programs are seamlessly allocated based on the research phase andcareer stage of researchers. At the same time, from FY2021, the government will accelerate
the review (review of allocation, examination, etc.) of the system so that support for young
researchers can be enhanced, including flexible step-up for talented young researchers, andstable and sufficient research funding can be secured for talented mid-career and above
researchers.
• In order to maintain and strengthen Japan’s international competitiveness in science,technology and innovation, the government will formulate a strategy for the international
expansion of science and technology by the end of FY2021, and strongly promote theestablishment of an international research network by supporting participation ininternational joint research funded by Grants -in-Aid for Scientific Research andinternational projects and promoting interactions among researchers.
• Under the new mission, which includes the development of young researchers linked tohigher education, the government will systematically and continuously promote theformation of hubs for international brain circulation, including new hubs to be establishedby the end of FY2021 based on the World Premier International Research Center Initiative.
• In order to formulate effective science, technology and innovation policies, the government
will advance the analysis of the relationship between research funds and research results by79

utilizing consolidated data of public research funds, papers, university finances, etc. fromthe evidence data platform constructed by Council for Science, Technology and Innovation(e-CSTI) , as well as by extracting and analyzing factors that significantly affect research
productivity through the use of Artificial Intelligence.
(Realizing Research DX)• In order to promote AI/data-driven research to realize Research DX, the government will
strengthen efforts to strategically collect, share and utilize data in various fields, such as
materials, life sciences and global environment from FY2022 by also effectively andefficiently utilizing advanced shared facilities and large research facilities nationwide. In
addition, continue to promote the development of research facilities and equipment thatenable automation of experiments and remote access.
• By utilizing the supercomputer “Fugaku”, the government will focus on conducting researchthat contributes to measures against COVID-19, etc., and research in the next-generation
computing field in FY2021. In addition, with regard to next-generation computing resources,by the end of FY2021, the government will review the evaluations conducted on the
supercomputer to date and the direction of next generation computing resources, andpromptly implement necessary actions, such as research and studies based on the review.
• In order to provide the forefront research and education environment as a next-generation
scientific research platform, the government will start integrated operation of the ultra-highspeed and high-capacity network infrastructure (SINET) and the research data infrastructurein April 2022, and continue to advance the platform as well as promote research anddevelopment on necessary technologies.
• In preparation for the operation of the next-generation synchrotron radiation facility in
FY2023, the government will promote the steady development based on public-private
regional partnerships.
(3) Accelerating R&D of cutting-edge technologies, such as quantum technologies
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to address various important issues that need to be resolved to realize safety andsecurity, the government will strengthen science and technology capabilities, which will be
the basis for comprehensive security, taking into account the ambiguity of science andtechnology. As for the following issues that require urgent actions, the government willsequentially establish a policy to address them, and take necessary actions, while80

coordinating with existing projects.
In order to promote necessary international joint research amid concerns over new risks
associated with the internationalization and opening of research activities, the government
will revise the guidelines, etc. related to competitive research funding early in FY2021 basedon the “Policy for Ensuring Research Integrity for New Risks Associated with
Internationalization and Opening of Research Activities” (decided by the Integrated
Innovation Strategy Promotion Council on April 27, 2021).
In order to secure and maintain Japan’s technological superiority, the government will
clarify critical technologies, allocate resources to critical technological fields, andimplement appropriate countermeasures against the outflow of technologies. In particular,
the government will collect the necessary information and examine the establishment of aframework/system, including institutional aspects, to take countermeasures against theoutflow of technologies in a gradual and appropriate manner according to the actual
situation of various types of technology outflow.
In order to realize the safety and security of Japan and its people, the government will
establish a think tank function by the end of FY2021 to make recommendations on policies
related to critical technologies that should be strategically fostered, and based on the statusof the think tank function, examine the establishment of an organization to take on this thinktank function by FY2023. In addition, in order to strengthen economic security, thegovernment will create new projects that will provide strong support for the practicalapplication of critical advanced technologies that Japan should secure, while also utilizing
this think tank function.
• In order to respond to changes in socioeconomic conditions caused by COVID-19, thegovernment will set a new moonshot goals around the fall of 2021 making use of ideas ofyoung researchers, etc., and launch R&D projects to achieve the goals around the spring of2022. In addition to this, the government will drastically strengthen research anddevelopment projects in the fields of moonshot goals, such as environment, agriculture, AI,
robotics, quantum and health and medicine, by strengthening collaboration with othercountries and flexibly changing targets.
• With regard to the Cross-ministerial Strategic Innovation Promotion Program (SIP), thegovernment will identify social issues to be tackled in the medium term based on the “Sixth
Science, Technology, and Innovation Basic Plan” (decided by the Cabinet on March 26,2021), investigate and examine technological development themes to be tackled acrossgovernment ministries and agencies while utilizing comprehensive knowledge to solve theidentified issues, and select the candidates by the end of 2021.
• The government aims to establish innovative technologies that will enable the reduction of
CO2 emissions based on past carbon stock (“beyond zero”) in accordance with the81Environment Innovation Strategy (decided by the Council for Integrated Innovation
Strategy on January 21, 2020), and develop resource utilization using cutting-edge
biotechnology, technology for the absorption/fixation of CO2 by agricultural land, forests,
and oceans, and products utilizing highly functional materials, such as cellulose nanofiber.
In addition, work to strengthen international joint research and international collaboration
by AIST, etc.
• Based on the “AI Strategy 2021” (decided by the Integrated Innovation Strategy Promotion
Council on June 11, 2021), the government will take the following initiatives and formulate
a new AI strategy by the end of 2021.
- The government will conduct research and development of theoretical systems for deeplearning, knowledge integration AI technology, and simultaneous multilingualinterpretation for use at the Expo 2025 Osaka, Kansai, Japan.
- In order to solve the black box problem of AI, the government will start the research anddevelopment of explainable AI, etc. by the end of FY2021, after examining thecollaboration of core centers related to AI.
- By the end of FY2021, the government will compile the efforts of government agencies
that contribute to ensuring the reliability and fairness of AI, and start AI-related education
for government officials on a trial basis by the end of FY2021.
• Based on the “Follow-up on Bio Strategy” (decided by the Integrated Innovation Strategy
Promotion Council on June 11, 2021), the government will strongly promote the following
initiatives.
- In addition to conducting public recruitment and accreditation of global bio-communities
in the Tokyo area and Kansai area by the end of FY2021, taking into account the statusof public recruitment and accreditation of regional bio-communities, the government will
promote biodata collaboration and utilization to accelerate the expansion of the market
area.
- The government will have the results of the Tohoku Medical Megabank (TMM) Project,
Biobank Japan (BBJ), and the National Center Biobank Network (NCBN) linked anddeveloped to promote the establishment of a large-scale genome and data infrastructure.
• Based on the “Quantum Technology Innovation Strategy” (decided by the Integrated
Innovation Strategy Promotion Council on January 21, 2020), the government will strongly
promote the following initiatives.
- The government will establish a council that aims to create new industries based on
quantum technology in the first half of FY2021, and examine the practical application ofquantum computers, quantum communication, cryptography, etc.
- The government will step up the activities of the Quantum Technology Innovation Hubs,
including the deepening of collaboration between the hubs, and vigorously promote82research and development in critical technological areas, such as quantum computing,quantum measurement and sensing, and quantum communication and cryptography forthe establishment of a global quantum cryptography communication network.
- Based on the joint statement issued at the Japan-U.S. Summit Meeting in April 2021, thegovernment will strategically strengthen international collaboration through joint
research and researcher exchange on quantum technology by international symposiums(Japan, the U.S., and Europe) scheduled to be held in the second half of FY2021.
• In order to strengthen material innovation power, the government will vigorously promote
the following initiatives based on the “Strategies for Enhancing Material Innovation Power”(decided by the Integrated Strategy Promotion Council on April 27, 2021).
- With the aim of promoting data-driven research in the materials field, the government
will develop shared facilities and equipment that can acquire high-quality data andimplement AI analysis functions.
- The government will accelerate research and development from FY2022 by embodying
technological issues to be tackled preferentially from the perspective of decarbonizationand overcoming resource constraints.
- In addition to working to build a database of manufacturing processes from FY2022,
which is the source of competitiveness in the materials field, the government will promote
the development of fundamental technologies that contribute to the improvement of theperformance of ultra-high-performance ceramics and resist, which are required for 6G
electronic devices and high-performance semiconductors.
• Based on the “Industrial Technology Vision 2020” (Ministry of Economy, Trade andindustry, May 29, 2020), a research and development base for next-generation computing
technology contributing to Society 5.0 will be established in AIST, a core institute of thebase, by the end of FY2021, where formulation of a technology strategy and research anddevelopment according to the strategy are conducted.
• With the aim of promoting open innovation that will lead to solving social issues of postCOVID-19, the government will form a base for backcast research and development andsocial implementation of the results while sharing the vision with local universities, local
governments and companies, and build a mechanism for sustainable activities in the regions
from FY2021.
In addition, the government will work on the production of radioisotopes using test andresearch reactors, etc.
(4) University reform through the creation of the University Endowment Fund, etc.
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken83

in addition to the measures described in the plan.
• In order to appropriately reflect the opinions of universities and industry in the systemic
reforms necessary for the establishment of university endowment funds, the government
will compile recommendations at the “PEAKS University Support Forum” by the summerof 2021.
• By the end of FY2021, the government will review the accounting standards for national
university corporations based on the recommendations of the PEAKS University Support
Forum for the 4th medium-term target period and the final report of the Study Council for
the Realization of Strategic Management of National University Corporations.
• With regard to the allocation rules for operating expense subsidies for the 4th medium-termtarget period of national university corporations, the government will organize the directionof the review by around the summer of 2021 and take the measures by the end of FY2021
in order to allocate subsidies in a more balanced manner, such as by carefully reviewing thecommon performance indicators by utilizing e-CSTI, etc., to make them more objective andquantitative, while taking into account the missions of each university, such as world-classresearch and regional development hub functions.
• The government will review the mechanisms for the strategic accumulation of diverse
financial resources acquired by national university corporations themselves and the carryover of the appropriated surplus to the next medium-term target period, and reach aconclusion by the end of FY2021.
• In order to create attractive regional universities that develop human resources, social
implementation of research outputs and world-class research in specific fields based onregional characteristics and needs, the government will examine measures that integrally
conduct university reform, and support for human resource development, and improvementof research capabilities, by the end of FY2021, including a review of existing projects.
• With the aim of realizing a campus that can flexibly respond to education and research inanticipation of post-COVID-19, the government will work to improve the environment of
universities, etc., based on “ the Fifth Five-Year Program for Facilities of National
Universities” (decided by the Minister of Education, Culture, Sports, Science andTechnology on March 31, 2021).
(Support for doctoral students, young researchers, etc.)• The government will steadily promote the support for doctoral students, which was
reinforced in FY2020, to improve the treatment of outstanding doctoral students and expand
their career paths, and to create an environment in which young researchers can play anactive role and secure time for research.
• In addition to steadily implementing support though Fusion Oriented Research for84disruptive Science and Technology program, which provides financial support for creative
research continuously up to 10 years, the government will promote verification of the effects
of new mechanisms introduced in the program to deepen the efforts to ensure an
environment in which researchers centered on young researchers can focus on free andchallenging research.
• From FY2021, the government will strengthen the matching function between young
researchers and companies by utilizing the know-how of the professional coordinaters, etc.,
and develop human resources who are highly needed in industry by supporting internships
and cross-appointments for young researchers to gain experience in social implementation.

(5) Promoting intellectual property strategy
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to expand the investment and utilization of intangible assets, such as intellectual
property, including human capital, technology and know-how, which are factors that
determine a company’s competitiveness and profitability, the government will encouragecompanies to disclose their strategies for investing and utilizing intangible assets throughthe Guidelines for the Disclosure of Intangible Assets, which are planned to be formulatedby the end of 2021, based on the revision of the Corporate Governance in June 2021 and therevision of the Guidance for Collaborative Value Creation. At the same time, throughdialogue with investors and financial institutions, the government will establish amechanism to visualize the companies’ investment and utilization performance of intangible
assets and reflect it in investment and finance decisions. In addition, the government willdevelop human resources capable of performing specialized evaluation and analysis.
• Based on the “Basic Guidelines for the Dissemination of Value Design Management”, thegovernment will promote the dissemination and utilization of the Management Design Sheet.
In addition, the government will further expand its use as a tool to assist companies in thedisclosure of their investment and utilization strategies for intangible assets, such as
intellectual property.
• With the Task Force for the Promotion of Standardization of the Integrated Innovation
Strategy Promotion Council playing a central role, from FY2021, the government will
promote the strategic utilization of standards including in areas, such as smart cities, Beyond
5G, green growth and smart agriculture, which will be the focus of cross-agency efforts, andprovide support for accelerating the development of standards, conducting research and85

analysis, and activities necessary for the formation of international standards.
• In order for the public and private sectors to share the recognition of issues regarding thestrategic utilization of standards in terms of national and management strategies and also toembody the measures to address these issues, the government will hold a conference topromote collaboration between the public and private sectors in FY2021 to share successful
and unsuccessful examples and to encourage companies to raise their awareness anddevelop human resources so that the utilization of standards will be promoted as amanagement strategy.
• From FY2021, in order to support the private sector’s standardization activities, thegovernment will start providing test beds for demonstrations and dispatching experts
through the standardization support service platform.
• From FY2021, the government will secure strategic standardization efforts in government
research and development projects by examining the open and close strategy in management,
etc. from the initial stage and conducting follow-up inspections of the status of strategic
utilization of standards.
• With regard to disputes over licensing of standard essential patents (the patents essential in
implementing standards) between different parties, which are expected to continue toincrease in the future against the backdrop of the progress of the IoT, the government will
examine the enhancement of the “Guide to Licensing Negotiations Involving Standard
Essential Patents” based on judicial precedents and trends of governments in each country
on clarification of good faith negotiations, and reach a conclusion by the end of FY2021. In
addition, in order to create a transaction environment that makes it easier to resolve disputes
between the parties concerned, the government will examine a mechanism to increase thetransparency and predictability of the license negotiation process, including the rules for theprovision of information between the parties concerned, and reach a conclusion by the endof FY2021.
• In order to further promote the dissemination and practice of education for creating
intellectual property, the government will select schools to serve as promotion bases andteachers to play a central role in its dissemination and practice in a community-led
consortium from FY2021.
• Based on the “Menu of Comprehensive Measures against Piracy Distributed Online andTime Schedule of the Measures” updated in April 2021, the government will implement
comprehensive measures, such as strengthening international cooperation and enforcementof measures against piracy through bilateral consultations, etc. and promoting the
introduction of access control functions in security software.
• In order to promote the utilization of intellectual property by medium-sized companies andSMEs, the government will provide hands-on support for the establishment of intellectual86

property strategies for the utilization of intellectual property, based on the “Second Regional
Intellectual Property Revitalization Action Plan” (formulated in July 2020), and dispatch
experts, such as attorneys, as necessary in cooperation with the National Center for
Industrial Property Information and Training.
• In order to achieve both the facilitation of the use of copyrighted works and the appropriate
return of compensation to right holders in the context of the structural changes in the content
market accompanying the progress and spread of digital technology, the Agency for Cultural
Affairs will work to realize a system that enables the simple and unified processing of rights
based on the expanded centralized licensing system, etc., assuming various usage situations
for a vast and diverse range of copyrighted works, including past content, UGC, works withunknown right holders and other works that are not centrally managed by businesses
managing copyrights, etc. In doing so, with the cooperation of the Cabinet Office(Intellectual Property Strategy Promotion Bureau), the Ministry of Economy, Trade andIndustry, and the Ministry of Internal Affairs, the Council for Cultural Affairs will examine
and reach a conclusion during by the end of 2021, while obtaining consent from right holders,such as creators, users, and businesses, and take necessary measures in FY2022.
• In order for content creators, etc. to be able to gain appropriate profits, the government will
work on the dissemination of guidelines for appropriate production transactions andimprovement of working environment and survey on the status of compliance with them by
the end of FY2021, and for the film industry, establish a certification system, etc. to ensure
appropriate transactions.
(6) The 2025 World Exposition in Japan as a testing ground for society of the future
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
• Based on the theme of “Designing Future Society for Our Lives”, we will use the 2025
World Exposition (Expo 2025 Osaka, Kansai, Japan) as a place to present the ideal state ofsociety after COVID-19 as well as a “People’s Living Lab” where Society 5.0 can beexperienced by demonstrating new technologies and systems. Specifically, we will take thefollowing initiatives to enhance the content of the Expo 2025 Osaka, Kansai, Japan. If there
is any regulation that hinders the promotion of these initiatives, such regulation will be
actively reviewed.
- Toward the realization of carbon neutrality in 2050, Japan will present to the worldmodels for utilization of innovative technologies, such as negative emission technologies,
next-generation solar cells, carbon recycling, hydrogen and ammonia power generation,and the development of sustainable food systems through innovations, such as zero CO287emissions in agriculture, forestry, and fisheries. At the same time, utilize renewableenergy, hydrogen and ammonia, distributed energy, and energy-saving and environmentrelated technologies for energy at the venue.
- Toward the Expo, efforts to present to the world Japan’s cutting-edge technologies will
be promoted, such as mobility technologies on land, sea, and air, including the experienceof moving in a flying car, space development and food production system that support it,
marine science and technology, practical level AI-based “simultaneous multilingualinterpretation”, Beyond 5G (so-called 6G), ultra-labor-saving smart agricultural
technology systems, next-generation robots, etc.
- The Expo will present to the world the charm of Japan, such as various types of art, design,and pop culture using traditional Japanese culture and cutting-edge technologies,
Japanese food, food culture, Japanese food ingredients and sake brewing, and promote
visits to Japan.
• The government will strengthen the customs, immigration control, and quarantine systems
to accept foreign visitors, and in addition to the safe and smooth transportation of visitorsand management staff, it will strengthen the functions of the transportation infrastructure
and the infrastructure around the venue so that they will serve as the platform for the growthof Osaka and Kansai after the expo.
• In addition to implementing invitation activities with an all-Japan effort, including overseas
diplomatic missions to secure the participation and exhibitions from countries around theworld, the government will promote efforts to realize “the safest Japan in the world” andtake measures to ensure security.
(7) Creating new industries in Fukushima
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
• Based on the “Fukushima Plan for a New Energy Society” (revised in February 2021), thegovernment will promote the further expansion of the introduction of renewable energies,
including wind power, strengthening of the functions of research and development centers,
creation of hydrogen innovation centers and development of models for a hydrogen society.
At the same time, the government will promote the development of future-oriented urban
areas under the cooperation agreement signed between the Ministry of the Environment andFukushima Prefecture (August 2020).
• Toward the social implementation of drones, “flying cars”, etc., the government will
improve the environment for test flights, etc. at the Fukushima Robot Test Field, whichshould be made to be a base for the development and demonstration of next-generation88

mobility as well as for the development and operation of systems. At the same time, thegovernment will develop new technical standards for disaster operation guidelines fordrones, and support the development of practical applications in Fukushima Hamadori inclose collaboration with related organizations by FY2021.

8911. Corporate Governance Reform
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will work to improve the environment for dialogue between companies
and investors by encouraging the use of electronic means in the shareholders’ meeting
process, including further penetration of hybrid virtual shareholders’ meetings andpromotion of the use of virtual-only shareholders’ meetings based on the Amended
Industrial Competitiveness Enhancement Act.
• In order to promote the spread of M&As in which companies use their own shares as
consideration, the government will disseminate the series of systemic amendments andpromote their use. These systems include share delivery established by the Amended
Companies Act, tax deferral on capital gains or losses through the transfer of shares related
to share delivery, which was implemented in the FY2021 Tax Reform, and exception fromthe application of share purchase request under the Amended Industrial Competitiveness
Enhancement Act.
• With regard to the market structure reform of the Tokyo Stock Exchange, the government
will promote the necessary system development, such as market selection procedures bylisted companies based on the revision of the Corporate Governance Code, etc. in June 2021,
and at the same time, separate the Tokyo Stock Price Index (TOPIX), which currently
matches all stocks listed on the First Section of the Tokyo Stock Exchange to shift to a new
segmentation/index in April 2022.
• In addition to promoting financial and economic education by utilizing ICT, such as creating
digital contents for each age group, to help households to build stable assets, the government
will promote the spread of Tsumitate NISA, disseminate and publicize the introduction of a
new NISA system in 2024, and promote the introduction of electronic procedures atfinancial institutions in order to establish long-term, installment-type diversified investment
and improve financial literacy. In particular, the government will work to improve thefinancial literacy of young people in anticipation of the lowering of the age of adulthoodfrom April 2022.
• DBJ will continue to contribute to strengthening corporate governance as a responsible
investor by utilizing its Special Investment Operations, etc. and making joint investmentswith regional financial institutions and investments in private funds. Moreover, through LP
investments, such as VCs and search funds, strengthen the supply of risk money for theprivate sector and the development of investment human resources in the private sector, andpromote the establishment of an ecosystem for the growth capital market. In addition, the90government will steadily implement specific measures for public-private funds based on the
improvement targets and plans formulated based on the “Reform Time Schedule for the
New Economic and Fiscal Revitalization Plan 2020”.
• At the Financial System Council, the government will comprehensively examine the ideal
disclosure system that contributes to constructive dialogue between listed companies andinvestors, while listening to the opinions of a wide range of stakeholders, including thoseon the disclosure related to sustainability and governance.
• In order to improve the quality of accounting standards used in Japan, the government will
work to improve the quality of Japanese standards and promote the expansion of companies
that voluntarily adopt IFRS by making further efforts to make it easier for Japanesecompanies to make the transition to IFRS, including strengthening efforts to reflect Japan’s
viewpoint in IFRS in discussions on future projects related to IFRS. In addition, thegovernment will develop human resources for international accounting and participate in
the formulation of international standards.
• From the perspective of ensuring the reliability of accounting audits, the government will
review the standards related to quality control at audit companies, etc., examine the ideal
form of non-audit work and the further promotion of IT utilization, and reach a certain
conclusion by the end of FY2021.
• With regard to consumer-oriented management, the government will examine how objective
evaluation standards and systems should be based on the concept of ESG investment, etc.
to facilitate fund procurement in the market, and reach a conclusion by the end of FY2021.

9112. Initiatives in Important Fields(1) Development and production of vaccines in JapanThe following specific measures will be taken based on the Action Plan of the Growth Strategy.
• Based on the “Strategy for Strengthening the Vaccine Development and Production System”(decided by the Cabinet on June 1, 2021), the government will work together to rebuild thenecessary systems and take the following initiatives as a long-term, continuous national
strategy. In addition, the government will secure stable financial resources for the initiatives
necessary for this purpose.
- From the perspective of strengthening vaccine-related research, the government will form
an unprecedented world-class research and development flagship center that conducts
cross-disciplinary research and utilizes new modalities in collaboration with clinicalpractice and industry, and utilize, strengthen and maintain the research infrastructure of
the flagship center and other distinctive centers that can be expected to generatesynergistic effects, such as BSL-4 facilities. In addition, in order to strengthen the funding
function of research funds with a strategic approach, the government will establish a new
system in the Japan Agency for Medical Research and Development (AMED) thatstrategically allocates research funds together with the government toward the practicalapplication of vaccines, based on the status of research and development in industry andtrends in new modalities in and outside Japan.
- From the perspective of strengthening vaccine-related development and in order toimprove and expand the clinical trial environment, the government will improve thesystem of the Clinical Research Core Hospitals, etc. by promoting the employment ofbiostatisticians, etc.; require the Clinical Research Core Hospitals to cooperate in clinical
trials in times of emergencies; secure clinical trial beds, etc. in normal times; enhance theenvironment for international joint clinical trials in Asia. In addition, as part of systemand standard development to expedite the pharmaceutical approval process, thegovernment will develop procedures regarding the framework for clinical trials in
advance to be prepared for new infections. At the same time, the government will examine
the ideal form of a system to allow special use in emergency situations, and reach aconclusion on the direction of the system by the end of 2021 while the government as awhole discusses how to deal with emergency situations when the spread of COVID-19
becomes under control in the future.
- From the perspective of strengthening the vaccine-related production system andfostering the industry, the government will develop dual-use facilities used for vaccinesand biopharmaceuticals in order to develop vaccine manufacturing bases, and raise the92

level of the entire drug discovery venture ecosystem by finding and fostering excellent
venture companies in order to develop drug discovery venture companies. In addition,with regard to the development and promotion of the vaccine development andmanufacturing industry, the government will examine ways to ensure the smooth supplyof vaccines in Japan, such as the purchase of vaccines by the government in the case ofan outbreak of a new infectious disease, and with regard to vaccines that have beensuccessfully developed, examine their global supply through international frameworks
and the use of ODA according to the support needs of developing countries. At the sametime, the government will establish a system to support companies that develop vaccines,
domestic production of raw materials, stockpiling, etc. at the Ministry of Health, Labourand Welfare.
- To respond to the urgent threat of COVID-19, the government will preempt consensus
for pharmaceutical approval based on discussions by the ICMRA (International Coalitionof Medicines Regulatory Authorities), support the initiation and prompt completion ofvalidation tests, and promote the participation of medical institutions conducting clinical
trials in order to promote validation tests of vaccines produced in Japan.
(2) Growth strategies for the pharmaceutical industry
Based on the Action Plan of the Growth Strategy, the following specific measures will betaken in addition to the measures described in the plan.
i) Strengthening of life sciences and international expansion(Strengthening of life sciences)• Based on the “Healthcare and Medical Strategy” (decided by the Cabinet on April 9, 2021),
and other policies, the government will promote consistent research and development fromgroundwork to practical application, under “Integrated Projects” that are focused on themes,such as modality that enables flexible and swift response to a wide range of diseases.
• In response to COVID-19, the government will strengthen the inspection and treatment
systems and also promote the development of a data bank through collaboration between
the National Institute of Infectious Diseases and the National Center for Global Health andMedicine to drastically strengthen the development of therapeutic drugs and vaccines.
• By the end of FY2021, the government will form a global biocommunity in the Tokyo area
and the Kansai area to promote collaboration among academia, pharmaceutical companies,
venture companies and venture capitalists.
• In order to promote the practical application of Software as a Medical Device, thegovernment will accelerate the approval process based on the Act on Securing Quality,

93Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices.
Specifically, the government will identify sprouting seeds of Software as a Medical Device
at an early stage, and organize and announce the concept of review based on theircharacteristics by the end of FY2021. At the same time, the government will study the
introduction of a new approval review system that takes into account the characteristics ofSoftware as a Medical Device, such as a system that designates innovative Software as a
Medical Device to be granted priority review, and reach a conclusion by the end of FY2021.
• Based on the Medical Engineering Collaboration Innovation Promotion Project establishedin FY2020 and other initiatives, the government will strengthen collaboration with academic
associations, support for benefactors of young researchers, and support for venturebusinesses, as well as promote new entry into the medical equipment and healthcare service
sectors. Furthermore, the government will provide support for medical ventures, such as
consultation on their pharmaceutical applications and business plans, through the Medical
Innovation Support Office (MEDISO) and strengthen networks within and outside Japan in
the field of life sciences through the Healthcare Innovation Hub (InnoHub).
• With regard to the cancer treatment system using heavy-ion beams that Japan is leading theway in its research and development, the government will promote efforts for thewidespread deployment of the system based on the basic design for groundbreaking
miniaturization and sophistication that will be started in FY2021.
• By utilizing the “DBJ Innovation Life Science Fund” established in March 2021 as part of
DBJ’s Special Investment Operations, the government will further strengthen the supply of
capital funds for initiatives that contribute to strengthening the competitiveness andpromoting innovation in the life science industry (especially drug discovery andbiotechnology), which is gaining rising importance in the wake of the spread of COVID-19.
• The government will examine the use of medical containers, which can be transported andconnected and can be used as medical facilities for medical treatment, etc., for flexibly
providing medical care in times of emergencies, such as a large-scale natural disaster, as
well as for providing mobile medical services in depopulated areas, remote islands andvarious events during normal times.
(International expansion)• Under the “Asia Health and Wellbeing Initiative” and “Africa Health and Wellbeing
Initiative”, the government will promote the international expansion of Japan’s healthcarerelated industries with a view to contributing to the achievement of Universal Health
Coverage (UHC). In particular, in order to realize “smart healthcare” through the utilizationof ICT in ways that are related to Japanese corporations, the government will engage in thedevelopment of soft infrastructure, including measures against infectious diseases. In
addition, in order to contribute to the promotion of the pharmaceuticals and medical

94equipment industries as well as to the practical application of vaccines produced in Japan,
in collaboration with the Strategy for Strengthening Vaccine Development and Production
System, the government will further promote the harmonization of regulations forpharmaceuticals and medical equipment in Asia based on the “Implementation Strategy forthe ‘Grand Design for Asian Pharmaceutical and Medical Device Regulatory
Harmonization’” (decided by the Headquarters for Healthcare Policy on July 14, 2020), as
well as the establishment of an international clinical trial system within and outside Japan
toward the enhancement of a clinical development system.
• While continuing to ensure consistency with the measures related to COVID-19, thegovernment will steadily implement the international expansion of medical care centeredaround Medical Excellence Japan (MEJ) and JETRO and inbound medical tourism throughthe Japan International Hospitals (JIH) system, and improve the international response
capabilities of Japan’s medical system, while taking into account the “Comprehensive
Measures for Securing Appropriate Medical Care for Foreign Visitors to Japan”.
• With regard to countermeasures for infectious diseases, which poses an international threat,
the government will strongly and urgently promote the development, manufacturing anddelivery of diagnostics, therapeutics and vaccines, including contributions to theinternational framework, ACT Accelerator and its COVAX Facility, as well as strategicinternational joint research strongly and urgently. At the same time, the government will
promote the strengthening of outbreak trend surveys, testing systems, and medical caresystems in preparation for the Olympic and Paralympic Games Tokyo 2020.
• In anticipation of the post-COVID-19 era, the government will promote the international
expansion of medical and healthcare products and services that will see high demand invarious countries in the future. In addition, work to promote the spread of healthmanagement, including initiatives for prevention and health promotion and the introductionof systems based on Japan’s medical and nursing care initiatives.
• Through international conferences and other means, the government aims to promote UHC
and boost Japan’s international status in the area of response toglobal publich healthemergencies, as well as to strengthen cooperation with other countries through bilateralassistance and assistance to organizations, such as the World Health Organization (WHO),the Global Fund to Fight AIDS, Tuberculosis and Malaria, Unitaid, Global HealthInnovative Technology Fund (GHIT Fund), Gavi, the Vaccine Alliance, Coalition for
Epidemic Preparedness Innovations (CEPI), World Bank Group, Asian Development Bank,and United Nations Children’s Fund (UNICEF). At the same time, the government will fromthe perspective of infectious disease measures, including zoonotic diseases, consider theestablishment of a global hub for attracting global human resources and financial technology
through industry-academia-government collaboration, and review systems that can cope95

with emergency situations in the future. In addition, the government will promote measures
for antimicrobial resistance (AMR) through the “One Health” approach. Furthermore,strengthen the development of human resources to contribute to international infectious
disease control, as well as dispatch human resources to international organizations.
• Based on the global response to COVID-19, the government will strengthen the commandand-control functions of the government, formulate a strategy for global health by June 2022,
work to support the achievement of UHC, and aim to expand related funding from the public
and private sectors.
ii) ii) Data -based health and DX in health medical, and long-term care
The spread of COVID-19 has brought about renewed recognition of the importance ofmaking testing and treatment widely available to those who need it, and of collecting andanalyzing data quickly. Hence, the government will promote, with a greater sense of urgency
and in a “holistic” manner, individual policies in the fields of medical care and welfare. This
will be achieved by harnessing technological innovation and ensuring a high level of costeffectiveness, so as to promote health among the people, enhance the quality of medical careand nursing care as well as raise productivity, and bring about work style reforms on the
ground.
① Promotion of data -based health (utilization of data in health, medical care, and longterm care)(Online confirmation of health insurance qualification)• By October 2021, start the full-scale operation of the “Online Confirmation System for
Health Insurance Qualification”, which enables medical institutions and pharmacies toimmediately check the most recent eligibility information of patients. At the same time, thegovernment will steadily advance system development for medical institutions andpharmacies, aiming to introduce the system by virtually all medical institutions andpharmacies by the end of March 2023.
(Coordination and utilization of health and medical information in medical institutions,etc.)• With regard to frameworks that enable medical institutions nationwide to verify patients’
health and medical information based on claims, such as information on medicines andspecific health checkup information, the government will make the specific health checkup
information available by October 2021 at the latest, and also make the information on
medicines available from the same month. Furthermore, the government will expand thescope of information, such as information pertaining to surgeries, so that it can be verified
by the summer of 2022.

96• With regard to the standardization of electronic medical record information and exchange
methods, it was decided in December 2020 to consider using the HL7 FHIR standards basedon international data cooperation specifications, etc. that can respond to technologicaldevelopments, taking into account the usefulness in the medical field. Based on this, thegovernment will reach a conclusion on concrete measures for promoting the standardizationof electronic medical records based on practical coordination and design, as well as theirintroduction, including small and medium-sized medical institutions, by utilizing theMedical Information Support Fund and other sources.
• With regard to the electronic prescription system based on the “Online Confirmation System
for Health Insurance Qualification”, the government will establish an environment for thesafe and accurate operation, including verification during implementation, and start
operating it from FY2022.
(Coordination and utilization of medical and long-term care information)• In order to promote coordination between medical care and long-term care through the useof ICT, the government will advance the creation of standard specifications for sharing
patients’ medical and long-term care information between medical institutions and longterm care facilities at the time of admission and discharge. At the same time, the government
will promote the creation and dissemination of standard specifications, etc. as necessary,
based on the necessity of other coordination between medical and long-term care and thepossibility of the use of ICT considered.
(Promotion of PHR)
• The government will continue to promote Personal Health Records (PHR). These enable
individuals and their families to obtain, from a central source, their personal health checkup
and prescription records, as well as facilitate improvements in their everyday life, medical
consultation and treatment where necessary, and accurate communication in medical
settings.
• With regard to the provision of personal data through the “Mynaportal” and other sources,in addition to information on vaccination history, information related to medical checkups
for infants, and other data, the government aims to start providing information on specifichealth checkups by October 2021 at the latest, and pharmaceutical data from the same month.
As for other medical checkup and screening information, the government aims to start
providing the information in electronic and standardized format by around 2022 by creating
an environment for its realization, such as support for local governments, etc. based on the“Intensive Data-based Health Management Initiatives” formulated in the summer of 2020.
With the aim of promoting the use of PHR services, the government will disseminate the“Basic Guidelines for the Management of Health and other personal data by Private-sector
PHR Business Operators” compiled in April 2021, request compliance with the guidelines,

97and formulate guidelines for high quality service levels in cooperation with the public andprivate sectors by the end of 2022. In addition, the government will provide the necessary
support to establish a system to certify the status of compliance with the guidelines.
(Utilization of health, medical, and long-term care information as Big Data)• In order to extend the healthy life expectancy of the people and provide world-class medicalcare, examine a system at AMED for the safe, the government will secure and efficientutilization of quality-controlled data in industry-academia research and development as aplatform for the utilization of data obtained from research and development supported by
AMED and aim to start operating it at an early stage.
• In order to improve the accuracy of the concatenation between medical and long-term careinformation, such as the National Database of Health Insurance Claims and Specific Health
Checkups of Japan (NDB) and the Comprehensive Database for Long-term Care Insurance(Long-term care DB), the government aims to start operating from March 2022 a system,
which enables the Social Insurance Medical Fee Payment Fund, etc. to utilize the history of
the numbers of insured people to provide the information necessary for accurateconcatenation, while ensuring safety, based on the “Online Confirmation System for Health
Insurance Qualification”.
• It is important to promote the effective use of the NDB, which accumulates the informationof the public’s medical treatment covered by health insurance, in order to formulate
evidence-based medical policies. Therefore, the government will allow researchers
conducting research using the NDB to conduct analysis on the attributes of regions, income
groups, medical institutions and pharmacies, on the premise that the individual patients will
not be identified. Specifically, the government will add the patient’s zip code and income
group information (applicable categories for maximum copayment amount for high-cost
medical care) to the claim information, and allow the provision of codes that reveal theattributes of medical institutions and pharmacies.
• In consideration of the convenience of researchers who conduct research using the NDB,
the government will modify the NDB to shorten the time required from the request forprovision to the provision of the information as much as possible, and make the public fundrecords be also available to enable research and analysis of the actual situation of COVID19, medical assistance and intractable diseases. In addition, the government will develop a
medical and long-term care linkage analysis infrastructure that can be operated in a public
cloud to create an environment where researchers can research and analyze NDB data more
quickly.
• In order to promote the utilization of medical information in research and development in
the medical field, the government will work to improve the environment for the business
operation of certified businesses with regard to the Next-Generation Medical Infrastructure

98Act, and examine how pseudonymized information should be handled by certified
businesses based on the status of enforcement by the end of FY2023.
② Promotion of the use of technology, such as ICT, robots, and AI in medical and longterm care settings(Promotion of telemedicine)• In cooperation with the relevant academic societies and business operators, etc., thegovernment will promote efforts to collect data related to the safety and effectiveness of
online medical consultations, and to understand the actual status of case studies. At the sametime, based on the specific evidence, the government will examine the contents ofpermanent measures, taking into account the issues that were revealed by the temporary
measures for the spread of COVID-19 and convenience for patients. As for the permanent
framework for temporary measures, including the handling of initial consultations, thegovernment will compile the structure by the summer of 2021 based on the results of thetemporary measures, and revise the “Guidelines for the Appropriate Implementation ofTelemedicine” by the fall of the same year.
• Toward the next revision of medical treatment fees, the government will survey and verify
how widespread telemedicine is, and consider the addition of diseases for which safety andeffectiveness have been verified to the scope of coverage by the telemedicine fee system. In
addition, the government will ensure appropriate spread and promotion of telemedicine byconducting the necessary reviews of the telemedicine fees, including the review of therequirements for the implementation method and system of telemedicine, based on the
results of verification for making telemedicine permanent taking into account the results ofthe temporary measures for telemedicine to be implemented by the summer of 2021.
• The government will prepare a “Telemedicine Model Reference Book” as a reference for
doctor-to-doctor telemedicine (DtoD) using ICT to promote the spread and deployment ofsafe and effective telemedicine. As a system to support telemedicine, the government will
promote the development and spread of a system that enables the verification of the healthstatus of individuals over time, remotely and without face-to-face contact. Furthermore, tosupport difficult surgeries that can only be performed by doctors who are available remotely,
the government will promote the development of high-performing, high-precisionequipment, as well as the creation of a high-capacity, ultra-low-latency communications
environment, which is a prerequisite for the use of such equipment.
• Based on the results of the temporary measures taken for the spread of COVID-19, thegovernment will review the rules regarding online drug administration guidance based on
the Pharmaceutical and Medical Device Act by the summer of 2021, and verify evaluationof medical treatment fees for online drug administration guidance to consider necessary99

reviews.
(Utilization of technologies, such as AI)• In order to reduce the burden of medical practitioners and improve the quality of medical
services, the government will build a platform for promoting the development andutilization of AI. In addition, from FY2021, the government will strengthen the developmentof early detection and diagnostic technologies that utilize AI through medical-engineeringcollaboration. Furthermore, in order to resolve the issues identified in the development ofAI, the government will put in place initiatives based on the “Process Chart for Eliminating
Roadblocks” and “Process Chart for Promoting AI Development Based on a Bird’s Eye
View” formulated in June 2020, and aim to expand AI technologies developed in Japanoverseas and accumulate AI technologies in and outside Japan through collaboration withoverseas medical institutions in Asia and other regions.
(Promotion of genomic medicine)• The government will continue to promote genomic medicine for cancers, intractablediseases, etc. by making use of all genomic information, etc. From the perspective ofsignificantly enhancing the precision of treatment for each individual and providing newtreatment methods to patients for whom no treatment methods are available, the government
will promote analysis based on the “Action Plan for Whole Genome Analysis” (formulated
in December 2019) and “Roadmap 2021” (formulated in June 2021). In the analysis, thegovernment will first utilize the main biobank specimens and new specimens to be provided
in the future by FY2023, and target a maximum of nearly 100,000 cases of cancer andintractable diseases for analysis, after carefully examining those that can be utilized forresearch. For cancer, the government will target cancers and intractable cancers with a highincidence rate, rare cancers, and hereditary cancers, and for intractable diseases, target single
gene diseases, multifactorial diseases, and diseases that are difficult to diagnose.
• Based on the progress of the analysis, the government will make an interim summary ofissues by the end of FY2021, and identify issues, such as human resource development, thestance on system development and cost sharing, and addressing ethical, legal and social
issues, to establish a system that enables smooth analysis and is beneficial to patients witha view to FY2024 and beyond. At the same time, the government will accumulate genome
information obtained from whole genomic analysis, etc., and clinical information andestablish a system that enables industry and academia stakeholders to apply it to drug
discovery for a wide range of diseases and development of treatment methods.
(Ensuring cyber security in medical devices)• In order to further strengthen countermeasures against cyber attacks on medical devices thatare conducted beyond national borders, the government will take collective defensive
measures by developing technical requirements, such as international resistance standards

100against cyber attacks and guidance on cyber security measures for medical institutions whenintroducing medical devices, based on the activities in international frameworks, such as theInternational Medical Device Regulators Forum (IMDRF). In addition, the government will
improve the international competitiveness of domestic manufacturers by introducing
international standards into the standards for approval review and post-marketingsurveillance of medical devices in Japan.
• The government will formulate the development targets and evaluation standards for the
cyber security of medical devices according to the systems of medical institutions, etc., andcompile the guidelines by the end of FY2022 to further enhance the level of cyber security
in manufacturing and sales of medical devices. At the same time, the government will
establish a system that enables verification of the cyber security of medical devices inlicensing and approval at the Pharmaceuticals and Medical Devices Agency (PMDA).
• The government will establish a system that enables prompt collection and evaluation ofdomestic and international incidents and accidents caused by cyber attacks on medical
devices, and disseminate information and create guidelines that contribute to enhancing
cyber security measures to promote the development of medical devices with security
features to defend against cyber attacks and the enhancement of systems in medical
institutions when using medical devices.
(Realizing scientific long-term care)• To bring about the realization of long-term care with the scientifically-backed effectivenessof self-reliance support, the government will implement a full-scale analysis using
information from the database (LIFE) that collects and analyzes data, such as the status andcontents of care of elderly persons, which commenced operation from FY2020. Then, thegovernment will use the data for discussions on the revision of long-term care fees from thenext fiscal year, and conduct evaluation and optimization based on the results of theverification. In addition, the government will provide the acquired data to long-term carefacilities, and promote efforts to improve the quality of care, including the formulation ofbest practices for long-term care services. Furthermore, the government will conduct a
review on the evaluation of outcomes to ensure that incentives will work to encourage
efforts to support the independence of the elderly and prevent them from becoming severely
ill.
(Development and introduction of robots, sensors, etc.)• In order to realize sustainable care systems to overcome major diseases by 2040, forenjoying ones’s life with relief and release from health concernsuntil 100 years old, thegovernment will promote challenging research and development and accelerate the promptsocial implementation of advanced technologies. In addition, the government will promote
the development of evaluation methods to allow the people to understand their own health101

status, etc.
• With the aim of spreading technologies that are effective in increasing work efficiency inthe long-term care sector, the government will develop models for the provision of care attrial demonstration facilities, conduct demonstrations at long-term care settings, anddisseminate and promote nationwide the models with verified effectiveness in the platform
for the development, demonstration, and dissemination of long-term care robots establishedin August 2020.
• Alongside with promoting long-term care robots through the utilization of the Fund for
Medical and Long-Term Care as well as support for the adoption of ICT, the government
will accumulate and analyze evidence data obtained through large-scale demonstrations inlong-term care settings and demonstrations on the effectiveness of the introduction of longterm care robots, and use this data for evaluation in the next revision of long-term care fees.
At the same time, the government will promote initiatives on the introduction of long-termcare robots and ICT in the field of welfare for people with disabilities, based on the situationin the long-term care sector.
③ Organizational reform of medical and long-term care settings• In order to promote work style reform for doctors, etc., the government will promotemanagement reform for medical institutions by means, including promoting thorough labor
management and task-shifting, and the lateral expansion of measures for utilizing ICT,
which contributes to streamlining work processes in ways, such as reducing working hours
for doctors. In addition, the government will undertake a radical review of the medical
information network that allows users to search for medical institutions, disseminate andraise awareness on the consultation hotline for emergencies, and strengthen initiatives that
contribute to individual behavioral changes, such as the lateral expansion of advanced,
outstanding practices.
• In order to solve the shortage of medical personnel capable of responding to social needs,
such as infectious diseases that have become apparent due to COVID-19, the government
will review the training courses for doctors at university medical schools and promote thereview of educational programs.
• In order to reduce the burden on long-term care staff and provide high-quality long-termcare services, the government will provide support for the spread of long-term care robots
and ICT by utilizing the Fund for Medical and Long-Term Care. At that time, thegovernment will apply the “Guidelines for Improving Productivity” and disseminate themeffectively to long-term care settings, with a view to realizing the integral promotion of
initiatives to enhance the efficiency and productivity of long-term care settings.
- From the perspective of maintaining and improving the quality of long-term care services,102the government will promote the lateral expansion of pilot projects implemented in
FY2019 and FY2020 as well as the convention of a prefectural version of the “Conference
on the Innovation of Long-term Care Settings” to support efforts to enhance the work
efficiency of long-term care settings in accordance with local needs.
- In order to implement efficient work management functions that enable diverse work
styles from the perspective of work style reforms for long-term care settings, thegovernment will strongly promote the development of Wi-Fi environments in long-termcare facilities as well as the introduction of tablet devices in long-term care settings, andbased on the conclusions of the harmonization and standardization of items related toefficient work management functions compiled in March 2021, promote theharmonization and standardization of work management functions.
• As for initiatives to reduce paperwork, the government will take necessary actions
sequentially in the long-term care sector, based on the conclusions reached on the directionof reviews toward the establishment of more simplified, standardized formats for documents,
as well as the utilization of ICT and other tools, based on the interim report (December2019) of the Expert Committee on Reducing Burdens Related to Documents in the Longterm Care Sector of the Social Security Council. In the medical and welfare sectors as well,
the government will successively advance the reduction of the volume of paperwork andstandardization, while taking into consideration the characteristics of each sector.
• The government will make comprehensive efforts to secure long-term care personnel byutilizing the Fund for Medical and Long-Term Care and providing support for the utilizationof diverse human resources, such as “long-term care assistants”, and the practice of diverse
work styles, such as second and side jobs.
iii) Preventing diseases and the need for long-term care
The citizens are increasingly recognizing the importance of health, which is thefoundation for the establishment of a 100-year life society. In order to advance reforms
toward the establishment of a social security system oriented to all generations, thegovernment will promote initiatives on evidence-based prevention and health promotion.
(Strengthening incentives for prevention and health promotion, etc.)• With regard to the incentives for insurance premium rates for each prefectural branchaccording to the status of efforts for preventive and health promotion projects at the Japan
Health Insurance Association, the government will conduct a review on expanding
performance indicators and increasing the explicitness of allocation criteria, and reachcertain conclusions by the end of FY2021.
• In reviewing each evaluation indicator and point distribution for incentives for insurers ineach medical insurance, the government will review the appropriate indicators, such as

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increasing the explicitness of point distribution, through a thorough PDCA cycle in order toensure that prevention and health promotion initiatives are further strengthened withconsideration given to the characteristics of the insured under the respective medical
insurance.
• Under the collaboration with various sectors, such as industry, academia, government, andtheir partnerships, including the Committee on the Promotion of a Healthy and Sustainable
Food Environment, the government will continue to consider comprehensive measures,
including the collection and analysis of evidence on effective approaches to reducing salt
intake and addressing other nutritional issues, taking into consideration the possibilities ofmaking a commitment for the “Nutrition for Growth Summit”, and of international
expansion to other countries including Asian countries.
• In order to elucidate the effects of chemical substances on children’s health, growth anddevelopment, the government will steadily conduct the Japan Environment and Children’s Study (JECS) and other surveys, examine a policy to effectively return the results tosociety by the end of FY2021, and promote efforts to encourage people to take actions to
reduce risks.
(Strengthening efforts for early detection of diseases)• In order to improve the uptake rate of various medical checkups and screening tests withestablished evidence, the government will roll out good examples, such as creating anenvironment for receiving medical checkups that match the lifestyles and needs of people,
and examine effective measures to encourage medical checkups based on the results oflarge-scale demonstrations to promote the implementation of appropriate preventive healthservices for insurers, etc. In addition, based on the results of the investigation into the causesof the reluctance to receive medical checkups and screening tests due to the spread of the
COVID-19 pandemic, the government will examine measures to implement medical
checkups and screening tests corresponding to COVID-19.
• In order to establish a framework for the early detection and treatment of cancer and toachieve a dramatic improvement in the 5-year survival rate, the government will promote
the development of simple, minimally-invasive screening methods, such as liquid biopsy
and other methods based on blood or saliva, and the development of treatment methods for
intractable cancers. In addition, the government will conduct an impact analysis on
initiatives toward improving screening rate, such as through the application of the nudge
theory, and based on the results, consider measures to improve the screening rate. As forrisk-based screening, the government will promote the accumulation and analysis ofscientific evidence that contributes to its realization.
• From the perspective of early detection of cancer, the government will conduct
demonstration tests to quickly establish screening technologies that can easily, precisely,104

and quickly detect cancers with high incidence, such as breast cancer, esophageal cancer,
and colorectal cancer, and based on the results, promote the practical application of thecancer detection technology. In addition, the government will promote the improvement andenhancement of diagnostic accuracy through techniques, such as image analysis using AI.
• In order to strengthen measures for dental diseases that are also related to overall health,such as periodontal disease, the government will conduct a review on expanding theopportunities for dental checkups (screening) that are currently held every 10 years, basedon the results of verification through the Dental Health Checkup Promotion Project, andreach a conclusion on the direction of reviewing the implementation method of dental
checkups (screening) by FY2021. At the same time, while working to raise the uptake rateof dental checkups (screening), the government will collect and analyze effective measures
to encourage people to receive necessary checkups based on the results of their checkups(screening) and evidence related to the relationship between oral health and general health,and promote medical and dental collaboration.
(Collaboration between insurers and companies and promoting health management,
health investment and health services)• In order to further deepen efforts for prevention and health promotion in collaboration withcompanies and insurers (“collaborative health”), from FY2021, the government will
implement the health scoring reports at the employer level for health insurance societies andthe Federation of National Public Service Personnel Mutual Aid Associations, in addition
to the current reports at the insurer level, and strengthen the approach to health insurance
societies and employers.
• In order to establish a system in which companies engaged in health and productivity
management are recognized in the capital and labor markets, the government will develop
an environment for the disclosure of the results of health and productivity management andpublish a summary of the evaluation results for initiatives of 500 or more companies on thewebsite of Ministry of Economy, Trade and Industry from the first half of 2022.
• In order to respond to an increase in mental health problems during the COVID-19
pandemic, the government will launch a demonstration project on the efforts to improvemental health in the workplace in FY2021 and collect and analyze evidence.
• The government will work on the promotion of FemTech 5, which addresses issues specificto women, such as menstruation and menopause, with products and services using advanced
technologies. In particular, the government will provide support from FY2021 for thecreation of a system to encourage the use of FemTech products and services to prevent
unwanted turnover caused by life events specific to women.
• With regard to “beyond2020 My Best Program,” an initiative triggered by the Olympic and
5 A coined term that combines Female and Technology.

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Paralympic Games Tokyo 2020 (decided by the liaison/joint meetings of the relevant
ministries and agencies on measures to create momentum through culture toward the
Olympic and Paralympic Games Tokyo 2020 on December 21, 2018), the government will
announce the results promptly by the end of FY2021 after the games and promote healthpromotion among the citizens with a view to creating a legacy.
• The government will continue to implement demonstration projects to confirm andaccumulate evidence related to the health promotion effects of prevention and healthpromotion using data to make it available for preventive health projects of insurers and local
governments. Based on the results, the government will promote efforts for appropriate
prevention and health promotion by insurers, etc.
• In order to promote the development of an environment for establishing a distribution
structure for health care services that ensure a certain level of quality, the government will
support the voluntary development of industry and cross-industry guidelines and achieve
the use of such structure by 1,000 companies, organizations, etc. by FY2025.
(Strengthening incentives for long-term care prevention)• With regard to the evaluation indicators in FY2022 for the subsidy to promote thestrengthening of insurers’ functions and the subsidy to support the efforts of long-term careinsurance insurers for long-term care insurance insurers and prefectures, the government
will conduct necessary reviews, including strengthening the outcome indicators andfocusing and simplifying the system in the direction of evaluating indicators that lead tomunicipal efforts to support independence, prevent people from becoming severely ill, andoptimize the cost of long-term care, with an eye to reduce regional differences.
• With regard to health services for the elderly aged 75 and above, the government will apply
insurers’ incentive measures for medical treatment for the latter-stage elderly, and enhancedetailed support, including measures against frailty.
(Strengthening comprehensive measures for dementia)• Based on the National Framework for Promotion of Dementia Policies (decided by the
Ministerial Council on the Promotion of Dementia Policies on June 18, 2019), thegovernment will promote comprehensive dementia measures based on the pillars of“coexistence” and “prevention,” and at the same time, advance initiatives to realize abarrier-free approach to dementia in cooperation with the Japan Dementia Public-Private
Council. Toward the establishment of the methods to prevent dementia, strengthen the
research and development efforts, such as the establishment of a system that can enable
immediate response to drug trials by FY2021. In addition, the government aims to establish
evaluation indicators and preventive methods through public-private collaboration in thefield of dementia by FY2022. Furthermore, with the aim of realizing a society in coexistencewith dementia, the government aims to operate a system in which the people concerned are106

proactively involved in product development by FY2022.
(3) Oceans
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will strengthen the abilities to collect and systems to aggregate and sharemarine information and promote international collaboration and cooperation to enhance thecapacity to understand the marine situation.
• In order to improve the sophistication and efficiency of marine observation technologies,
which are indispensable for utilizing Japan’s Exclusive Economic Zone (EEZ) and ensuringsafety and security, the government will promote the development of unmanned marine
observation systems using autonomous unmanned vehicles (AUVs) and submarine opticalfiber cables, based on the “6th Science and Technology Basic Plan”.
• In order to strengthen the international competitiveness of Japan’s marine industries,
including shipping, shipbuilding, and offshore wind industry, the government will work to
improve productivity in the shipbuilding industry through business restructuring, etc., suchas DX at shipyards and intercompany collaboration and cooperation across the supply chain,including the marine equipment industry.
• In order to contribute to securing an open and stable maritime order, including “free andopen Indo-Pacific”, and maintaining global supply chains, the government will strengthen
the support for improving coast guard capabilities in addition to the export of ships,
including government vessels and infrastructure for port maintenance and operation for thesea lane’s littoral countries.
• In order to improve the business environment with shippers, etc., the government will
increase the management efficiency and reform the work styles of sailors to transform into
new coastal shipping, develop the necessary laws and regulations and establish guidelines
for proper transactions by the end of FY2021.
• In order to improve the convenience of the MDA Situational Indication Linkages (MSIL)
system and to share and utilize marine data among the national government, local
governments and marine-related businesses, such as shipping, fisheries and resource
development, the government will promote the following efforts integrally so as to create
an environment to facilitate the steady progress of cooperation on marine data by FY2022.
- The government will enhance the real-time information of the “MSIL” on seawatertemperature, ocean currents, etc. by utilizing the function to accept data requests fromusers of marine data.

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- The government will review the rules related to API collaboration and standardization ofdata based on the opinions of users.
- The government will make efforts to build a network with private organizations and local
governments that have marine data and needs, hold forums that involve the participationof stakeholders from both the public and private sectors, and encourage the registrationof data on the “MSIL”.
• In order to address global issues, such as climate change and to contribute to the utilizationof the Arctic region, the government will ensure that an Arctic research vessel is built byaround 2026, and engage in international collaboration and cooperation by continuing toconduct observation and research in the Arctic region and develop research personnel basedon the Joint Statement of Ministers that was adopted at the Third Arctic Science Ministerial
Meeting 6.
• The government will promote the use of next-generation mobility in the sea, such as small
autonomous surface vessels (ASVs), AUVs that are expected to be used as underwater
drones, and remotely operated unmanned underwater vehicles (ROVs) to solve the problemof marine use in coastal areas and remote islands. In FY2021, the government will promote
the development of an environment that will lead to concrete utilization andcommercialization, in addition to conducting on-site demonstrations.
(4) Space
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
Based on the “Basic Plan on Space Policy” (decided by the Cabinet on June 30, 2020),
space development and utilization will be expanded through the following measures.
• Under the satellite development and demonstration platform in collaboration with various
ministries and agencies, while clarifying exit strategies based on future needs, thegovernment will conduct the development and high frequency demonstration of basic
technologies, such as satellite digitalization, underlying technologies related to small
satellite constellations, and quantum cryptographic communications, and promote thedevelopment of satellites, such as meteorological satellites and Earth observation satellites.
• In addition to steadily developing and improving the fifth to seventh satellites and groundfacilities for the Quasi-Zenith Satellite System to establish a seven-satellite constellation
capable of ensuring sustainable positioning by FY2023, the government will launch the
6 The first meeting of the Arctic Science Ministers Meeting (ASM) was convened by the US and held in 2016 to strengthen
collaboration with countries engaged in Arctic research and Arctic indigenous people’s organizations. The third meeting was heldin May 2021 in Japan for the first time in Asia and co-hosted by Japan and Iceland.

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development of the successor satellites necessary to maintain and improve the capability torealize sustainable positioning. In addition, the government will steadily improve thefunctions of the GNSS Earth Observation Network System (GEONET) and provide highquality data through stable operations. At the same time, the government will use theseinfrastructures to advance demonstration projects in a wide range of fields, such as
agriculture, transportation and logistics, and construction, and accelerate their social
implementation.
• The government will establish a ten-satellite constellation of information gathering satellites
to improve the immediacy and responsiveness and expand and strengthen their functions toimprove the quality of information.
• In order to realize a geospatial society with the advanced use of geospatial information toachieve disaster prevention and mitigation, resilient national land and smart agriculture, thegovernment will formulate the next Basic Plan for the Advancement of Utilizing Geospatial
Information by the end of FY2021.
• In addition to strengthening the development of advanced technologies for space security
and space science and exploration, while incorporating the cutting-edge knowledge of AI,
etc., the government will promote the development of specialists who will drive the creationof new industries, and transfer the results of the development to industrial fields.
• With regard to suborbital flights 7 that are expected to enable space travel and airborne
launch of small satellites, the government will develop the institutional environment for the
expansion of new space businesses based on the trends of private companies that aim tocommercialize suborbital flights in the early 2020s. In addition, the government will
examine the development of necessary systems for the exploration and development of
resources in space, including the moon’s surface, by private businesses.
• With regard to measures against space debris, the government will conduct research anddevelopment in collaboration with private companies to demonstrate technologies toremove space debris, and aim to formulate Japan’s mid- to long-term policies for thecreation of international rules for orbit use by the end of FY2021.
(5) Strengthening promotion of PPP/PFI
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.

7 The Space Activity Act only regulates the launch of satellites to an altitude of 100km or higher, and suborbital flights (flying

to an altitude of about 100km) are not subject to the Act. Meanwhile, suborbital flights are also not subject to the Civil Aeronautics
Act since the Act does not regulate aircraft flying at an altitude of about 100km. Therefore, it is necessary to establish a new
system for suborbital flights.

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The government will promote initiatives toward achieving the numerical targets for thepriority areas for the key areas of public facility management (concession) projects (airports,
waterworks and sewerage, roads, educational facilities, public housing, passenger terminals
for cruise ships, MICE facilities, public hydropower generators, and industrial waterworks)
set out in the PPP/PFI Promotion Action Plan (2021 revision) (decided by the Council for
the Promotion of Private Finance Initiatives on June 18, 2021). In addition, the government
will promote the utilization of the timber harvesting rights system. Furthermore, thegovernment will utilize the know-how of the private sector while suppressing the financial
costs of the government, and promote the utilization and popularization of the PFS (Pay For
Success, an outcome-based private consignment contracting method), which is a mechanism
to solve social issues and enhance administrative efficiency.
With regard to the index-linked system for infrastructure that does not generate usage
fees, investigate and organize advanced domestic cases and overseas systems and based onthese results, the government will formulate practical guidelines that describe how to utilize
the system by the end of FY2021. In addition, recruit national agencies and local
governments that are considering the use of this method, and implement feasibility studies
for at least 10 cases by FY2022 to move forward on project formation.
(Promotion of the priority areas for public facility management projects and the timber
harvesting rights system)• The government will examine how to respond to the fact that the COVID-19 pandemic issignificantly affecting public facility management projects. While taking into account theresults of the examination, the government will submit a bill to revise the PFI Act to theordinary Diet session in 2022 to enable public facility management operators to carry out
not only “maintenance” but also “construction”, “manufacturing” and “renovation” that areclosely related to the PFI project so that operators can operate more efficiently.
• The government will verify the purpose and mechanism of the public facility management
project for airports by the end of FY2021, taking into account the impact of the COVID-19
pandemic.
• The government will examine the feasibility of introducing a benchmarking system in Japanthat compares the business conditions, service levels, and sustainability of each waterworks
and sewerage project side by side based on the investigation results of the systems in othercountries.
• With regard to the timber harvesting rights system, with a view to designating specifictimber harvesting areas from FY2022, the government will examine the amount of supply
from national forests necessary to ensure a stable supply of 100,000m3 of raw timber, whichis the volume required by large-scale lumber mills, and the duration of timber harvestingrights based on market soundings.

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(Promoting the spread of the Pay For Success contracting model)• From FY2021, the government will implement a project that provides multi-year subsidies
to local governments that implement PFS projects for the outcome-linked portion of thecontracting costs that are required to produce greater outcomes, and supports the evaluationof the outcomes required for the PFS projects by specialized evaluation organizations. In
addition, through this project, the government will verify how the government supportshould be for PFS projects implemented by local governments and work to enhance thesupport.
• In order to promote collaboration and information sharing among parties involved in PFS
projects, such as local governments, service providers, intermediary support organizations,evaluation institutions, such as universities, and fund providers, the government will
establish a “PFS Public-Private Partnership Platform” in 2021.
• In order to smoothly promote the formation of PFS projects, the government will conduct
research and surveys on domestic and overseas precedent cases on how to calculate thereduction amount in social costs (public costs) as an effect of the implementation of PFS
projects, and prepare and provide data necessary for the calculation.
(6) Realizing an international financial center
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• The government will review the issuance of unlisted stocks and revitalization of thesecondary market and regulations regarding the policy of financial institutions executing
customer orders on exchanges and the proprietary trading system (PTS) for trading without
going through an exchange. In addition, while ensuring investor protection and fair trading
as a precondition, the government will consider reviewing the auction system, such as easing
the criteria for transferring from PTS to exchanges.
• The government will work to promote awareness and disseminate tax measures for theestablishment of an international financial center, and for the measures with a time limit,
verify their effectiveness in the middle of their applicable period and consider reviewing
them as necessary.
• In addition to overseas asset management companies, the government will conduct priorconsultation, registration and licensing examinations, and supervision, etc. in English for
new foreign businesses in the securities and banking industries that mainly deal withcustomers in English.
• Through the joint efforts of the private and public sectors, the government will build a111

financial business start-up support network that eliminates silos, and disseminate
information about related measures, opening an office and helpful tips for living. Promote
in collaboration with overseas diplomatic missions.
(7) Promoting direct investment in Japan
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• For the business platform, “Japan Innovation Bridge (J-Bridge)”, which promotes
cooperation and M&As between Japanese companies and foreign companies and start-ups
in Asia and other regions, we will expand the number of overseas bases to strengthen
inbound and outbound matching, especially in the carbon neutral and digital fields. With
this, we will create new business models that incorporate outstanding technologies andbusiness methods from Japan and abroad.
• The government will launch a new “Project for Supporting Regional Brand Building” toenhance the creation of key concepts and the advancement of strategies for attracting foreigncompanies to a region.
• With the “Regional Business Conference”, we will strengthen pre-matching between
foreign companies and local governments, local companies and universities through the useof an online platform.
• The government will form an international startup ecosystem base cities centered onuniversities, and integrally and comprehensively promote the accumulation of foreign
human resources (faculty members, researchers, entrepreneurs, etc.) and foreign start-ups
and investors.
• We will hold a Japan Business Conference participated by top executives of foreigncompanies and relevant Japanese ministers, and actively communicate to the world Japan’s
open business environment and efforts toward “carbon neutrality by 2050”.
• Through the"Japanese Law Translation Project” which will set the goals for translation of
new laws and regulations by utilizing machine translation, we will promote efforts to speed
up the release of translated laws and regulations and to enrich their contents.
• In principle, support should be provided also in English from the time of the next renovation
for the systems related to incorporation of corporation, taking into account cost effectiveness.
• For the procedures related to incorporation of corporation,- Guidebooks for applications in English and sample forms will be prepared by the end of
FY 2021, and- For online application procedures, consideration and determination will be made on112adding an automatic translation system to the registration information system used in theprocedures for applying for incorporation registration by the end of FY 2021.
Moreover, in cooperation with professional experts who offer services to executeprocedures, it will be possible to smoothly submit the applications for incorporation to
the Labour Standards Inspection Office, Hello Work, and the Pension Office after theapplication for registration is filed.
(8) Institutional reform in individual fieldsi) Institutional development for automated delivery robots
Specific measures will be taken based on the Action Plan of the Growth Strategy.
ii) Institutional development for electric kickboards
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In addition to promoting initiatives based on the Action Plan of the Growth Strategy, thegovernment will examine how to ensure the safety of the traffic environment and vehicle
bodies based on the reviews of traffic rule systems.
iii) Institutional development for drones, etc.
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
(Social implementation of drones)• In order to overcome various challenges faced by Japan, such as declining birthrate andaging society, depopulation, and labor shortage, the government will realize a system thatallows drones to fly “beyond visual line of sight” flights (Level 4) in populated areas by theend of FY2022. At that time, the government will develop systems and structures necessary
for the smooth operation of the system. In addition, examine how the operation of drones
should be controlled for more efficient drone flights. Along with these efforts, thegovernment will promote the practical application and spread of drones in fields, such as
logistics, disaster response, infrastructure and plant maintenance and inspection, to makeour daily lives safer, more secure, more comfortable and convenient. Furthermore, under
the recognition that drones are an important field that will support the future of Japan,

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including the perspective of strategic autonomy and indispensability, the government will
foster the industry from a technological aspect, including the development of underlying
technologies and the development and international standardization of evaluation methods
for aircraft performance.
(Realization of Level 4)• In order to realize a system that enables Level 4 by the end of FY2022, the government willorganize the requirements necessary for the enforcement of a system for certifying the safetyof aircraft and a system for certifying the skills of pilots, and formulate requirements forprivate organizations that undertake inspection, testing and training to ensure theeffectiveness of these systems.
• In preparation for the enforcement of the registration system around the summer of 2022,
the government will formulate and publish technical standards for remote ID to identify
registration codes remotely by the summer of 2021, and establish an input system foroutgoing information by the end of FY2021.
• In order to reduce the burden and speed up the procedures related to flight, the government
will realize the functional linkage between various application systems related to the Civil
Aeronautics Act by the end of FY2022. In addition, the government will promote theprovision of online and one-stop services for procedures based on the Civil Aeronautics Act
and the Radio Act by utilizing private services. Furthermore, the government will determine
the necessity of providing online and one-stop services for other various legal procedures
and examine how they should be coordinated.
(Contribution to daily life)• In order to achieve the practical application of various drone services to solve logistics
issues, such as maintaining the last-mile delivery network in remote islands andmountainous areas, through the use of drones, the government will take the necessary
measures, such as revising the “Guidelines for Delivery of Goods Using Drones” aroundthe summer of 2021 to organize the methods and safety measures to ensure businessprofitability as well as to clarify the handling of pharmaceuticals.
• For prompt and effective understanding of the disaster situation, evacuation guidance,
search, etc., at the time of a disaster, the government will collect the examples of the use ofdrones and promote their introduction and horizontal deployment through the “Disaster
Prevention and Technology Public-Private Partnership Platform” to be established in 2021.
(Promotion of technological development)• The government will develop technologies for safe and secure drones with the goal ofbringing them to market in 2021 and promote their use in Japan and abroad. In FY2021, thegovernment will develop drones with high payload capacity for transporting emergency
supplies at the time of a disaster. By 2025, the government will develop drone technologies

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that enable even higher payload capacity and longer flight distances that contribute toensuring carbon neutrality and the supply chain. For advanced use of drones in agriculture,
the government will integrally develop high-performance drones for agriculture andtechnologies for utilizing drones, such as data-driven cultivation management technologies
that effectively utilize data, and put them into practical use by FY2023.
• Targeting for FY2022 and FY2024, the government will develop performance evaluation
methods for Level 4 aircraft and multiple aircraft operations that will lead to further
manpower saving.
(Realization of “flying cars (eVTOL)”)• With the aim of launching the “flying car (eVTOL)” project from FY2023, the government
will continue to examine the development of systems, such as safety standards for aircraft
and flight operation and competence certification standards for pilots, based on the“Roadmap toward Air Mobility Revolution”, and revise the roadmap by the end of FY2021.
In addition, the government will promote the full-scale development of automatic andautonomous flight technologies and flight control and safety technologies, and conduct
flight demonstrations in the water areas around Osaka after 2023, with the aim of
introducing “flying cars” at Expo 2025 Osaka, Kansai.
iv) Development of a cashless environment
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
• In addition to following up on the status of handling of interchange fees in the “Survey on
Credit Card Market” released by Japan Fair Trade Commission in March 2019, thegovernment will work to achieve further transparency of commission-related costs toencourage competition within the industry through the deeper discussions at the Ministry of
Economy, Trade and Industry and fact-finding surveys of the Japan Fair Trade Commission
on on-us transactions, interchange fees, etc.
(9) Fintech/Finance• The government will continue to encourage financial institutions to keep on providing
financing support that is aligned with their customers’ needs by actively checking theirbusiness and financial conditions and to provide support for business improvement andrevitalization with a view to the post-COVID-19 era in collaboration with governmentaffiliated financial institutions and regional support organizations.
• The government will conduct fine-grained data analysis on the financial and funding
situations of companies in the COVID-19 pandemic from the perspective of industry, region,115

etc., and use the results to promote financial support for companies through dialogue withfinancial institutions. In order to advance such data analysis in financial administration, thegovernment will work to establish frameworks and rules for data collection, management,
and utilization and to develop human resources for data analysis.
• By the end of FY2021, the government will conduct research and demonstrations to realize
quantitative visualization of the benefits of introducing cashless payments for stores, etc.
• In order to improve the convenience of users by promoting competition and ensuring
interoperability of payment services, the government will make steady progress on the study
to expand the eligibility of non-bank payment service providers to participate in the Zengin
System by the end of FY2022. At the same time, the government will follow up on theinitiative of the small-lot payment infrastructure concept, which aims to be operational byearly FY2022, while continuing discussions from a medium- to long-term perspective on
the establishment of a new low-cost fund payment system based on the premise of frequent
small-lot payments. With regard to expanding the eligibility for participation in the Zengin
System, the government will take the necessary measures from the perspective of ensuring
the safety of payments, such as monitoring of businesses connected to the payment system.
• The government will continue to explore Central Bank Digital Currency (CBDC) while
coordinating with other countries by, for example, conducting a Proof of Concept on
additional functions by the end of FY2022, following the ongoing Proof of Concept on thebasic functionsby the Bank of Japan.
• The government will promote digital innovation in the financial sector by collecting
information on trends among financial institutions and technology companies, including
start-ups, and actively contributing to the activities of the Blockchain Governance Initiative
Network (BGIN), which is an international network for blockchain technologies.
• In order to improve the responses of the entire financial industry in Japan to money
laundering and terrorist financing, the government will strengthen the inspection andsupervision systems by ensuring inspection personnel, etc. and inform users by using
government public relations, etc., and examine and implement the necessary measures forthe practical application of a joint system and related regulations and supervision.
• With regard to sensitive information held by financial institutions, such as their customer
information, the government will strengthen the monitoring system to understand the actual
situation of risk management systems, including those of subcontractors, and to conduct
more in-depth verification.
• The government will strengthen the information sharing system by improving the ability tocollect and analyze information on the trends of cyber threats, disseminating information tofinancial institutions, and holding seminars. In addition, expand the participation of small
and medium-sized financial institutions and fund transfer companies in the cross-industrial

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cyber security exercises, and strengthen the operational resilience of the entire industry byreferring to the examples of overseas exercises.
(10) Resolving issues in infrastructure, disaster prevention, logistics, and cities
In order to cope with changes in the socioeconomic conditions caused by infectious
disease and other factors, and to support economic growth, the government aims tostrengthen the functions of industrial infrastructure through the early development andutilization of infrastructure including high-speed transportation networks, such as highstandard highways, projected Shinkansen lines, and the Linear Chuo Shinkansen Line, as
well as international hub airports, international container bulk strategic ports. Furthermore,as the government has the important responsibility of protecting the lives and livelihoods ofthe people from increasingly severe and frequent flood disasters, imminent large-scale
earthquake disasters 8, and volcanic disasters that can occur at any time, the government willstrongly promote initiatives that integrate the structural and nonstructural aspects throughthe united and collective efforts of all stakeholders, such as the national and local
governments, to open up a “new era of disaster prevention/mitigation and national land
resilience”, while at the same time moving toward digitalization and the development ofsmart infrastructure. In addition, the government will take advantage of new technologiesof the Fourth Industrial Revolution to advance initiatives in areas, such as “invest wisely,
use wisely” strategic infrastructure management and the Compact Plus Network, andadvance efforts to maximize the stock effect of infrastructure, such as improvements in
productivity and convenience, and stimulation of private investment.
i) Development, maintenance, and management of infrastructure• In order to improve productivity at construction sites, the government will enhance theenvironment for small and medium-sized construction companies to use ICT construction
by creating a system to certify ICT construction equipment and establishing standards
necessary for promoting the introduction of ICT construction by the end of FY2021. At thesame time, the government will promote i-Construction by expanding the introduction of
construction methods and materials, such as precast products, and promoting overseas
expansion.
• In order to promote DX in the infrastructure sector, the government will formulate an action
plan by the end of FY2021 for promoting the introduction of power-assisted suits, thesharing of 3D data and other information between contractees and contractors, and thepromotion of unmanned construction using local 5G.
8 Massive earthquakes, such as the Nankai Trough earthquake, a Tokyo near-field earthquake, and an earthquake along theJapan Trench and Chishima Trench (including the tsunamis caused by these earthquakes).

117• Based on the “Guidelines for BIM Standard Workflows and Their Application in theArchitectural Field (Version 1)” (decided by the Architectural BIM Promotion Council on
March 31, 2020), the government will introduce BIM in architectural design andconstruction projects ordered by the public and private sectors on a trial basis, verify its
effects, such as cost reduction and productivity improvement, and identify operational issues,
and based on the results, conduct a review to revise the guidelines by the end of FY2021.
• In order to ensure the smooth execution of public works projects, as well as to secure thenecessary human resources based on the improvement of working conditions and the reformof working styles, in FY2021, the government will promote the leveling of construction
schedule and optimization of construction period by facilitating the use of “unified format
for leveling” in all municipalities. In addition, the government will use the Construction
Career Up System to visualize the construction capabilities of construction companies, set
wage ranges by job category, and revise standard quotations by the end of FY2021 in orderto build a market structure where construction workers are paid appropriate wages.
• The government will work to improve productivity through the use of an electronic
application system for construction permits and other procedures by FY2022, back-officecollaboration with other organization’ systems, and the streamlining of the engineer system
based on the use of ICT technology.
• In order to attract private investment, the government will research investment andtechnological development through the utilization of data, promote the generalization andimplementation of underlying technologies for the “MLIT Data Platform” and work to
expand cooperation with data other than that of the Ministry of Land, Infrastructure,
Transport and Tourism.
• In order to improve the efficiency of infrastructure maintenance, the government will
examine a system that enables the introduction of new technologies, data utilization, andcomprehensive private sector contracting by FY2024, and strengthen the functions of theJapanese Congress for Infrastructure Management to promote technology matching
between the public and private sectors. In addition, the government will make public thelocation map and the number of road facilities, such as bridges, that have been determined
to require early and urgent actions by FY2021.
• The government will speed up the development of necessary standards to promote theintroduction of new technologies that can be used for road bridges and tunnels. In addition,
the government will expand the catalog of new technologies that can be used for road facility
inspections, and revise the periodic inspection guidelines in preparation for the third
inspection of road facilities starting in FY2024.
• In addition to developing standards for the creation of 3D maps, which are indispensablefor the realization of digital twin by FY2023, the government will prepare 3D point cloud118

data, including buildings that will serve as the basis for 3D maps, in advance for 38,000km2
centered on urban areas by FY2025.
• In order to improve the efficiency of maintenance of erosion control facilities, thegovernment will develop a new maintenance and management method by the end of
FY2021 that incorporates AI analysis technology that automatically analyzes any
deformation of the facilities based on the obtained data by utilizing green laser-equipped
UAVs, etc. that can monitor the condition of the facilities, including underwater areas.
ii) Disaster prevention and disaster response• In order to promote “river basin management” in which all stakeholders work together tocontrol flood by taking a bird’s eye view of the entire basin, including upstream,
downstream, main river and branch rivers, the government will formulate the “River BasinManagement Project” for rivers nationwide, and reduce flood damage in 20 to 30 years
against the largest postwar floods. In addition, based on the Act Related to River BasinManagement, the government will enhance the effectiveness of the “river basin
management” by promoting well-designed urban development and living styles against
water disasters, strengthening rainwater storage measures including the use of state-owned
land, and eliminating blank areas of flood risk information.
• In order to strengthen the flood control functions of existing dams, the government will
improve the accuracy of weather forecasting, including the development of rainfall
forecasting technology focused on the basin of the dam, develop technologies to support
dam operation and assessment using AI, and improve facilities to increase the pre-releaseamount of water, such as dams for water utilization. In addition, from 2021, the government
will expand the operation of pre-release also for Class B rivers nationwide, and establish astatutory council to improve the flood control functions of dams for water utilization, etc.
• In order to improve the sophistication and efficiency of river management, the government
will prepare guidelines for river patrols using drones and image analysis technologies by
the end of FY2021, and utilize the 3D point cloud data obtained from airborne laser scanningsurvey to identify deformations of embankments.
• As measures against heavy rain disasters, the government will disseminate “meteorologicalinformation on significant heavy rainfall” related to linear precipitation belts from FY2021;
utilize the predicted water levels of rivers for up to a day and a half ahead on a trial basis;
introduce new technologies, such as the next geostationary meteorological satellite andnext-generation supercomputer; expand the number of meteorological disaster prevention
advisors; further improve the sophistication of flood forecasting; strengthen support forregional disaster prevention. In addition, in order to improve the accuracy of storm surge
and tidal wave prediction, the government will introduce a wave overtopping detection

119technology using AI video analysis, and compare and verify the prediction and observation
results. The government will examine the application of a sensing technology using
terahertz waves that NICT has been researching and developing to contribute to the relief
of disaster victims and prevention of secondary disasters.
• The government will establish a data sharing environment utilizing cloud computing
technology to improve the efficiency and effectiveness of meteorological services, andconsider reviewing the system to enable the use of the latest technologies of IoT andobservation equipment in meteorological services by the end of FY2021, and take thenecessary institutional measures.
• With the aim of promoting the introduction of advanced technologies in disaster response,
the government will establish a website for matching local governments and privatecompanies with technologies by the end of FY2021, and conduct demonstrations in FY2022
to promote the creation of advanced examples.
• In addition to examining the information items necessary for prompt lifesaving and rescue
activities immediately after a disaster occurs, as well as how to obtain such information by
the end of FY2021, the government will examine the establishment of a new system for
aggregating and utilizing information based on the information items sorted out, and in
FY2022, demonstrate the technologies necessary for estimating and understanding damage
at an early stage.
• In order to ensure the smooth flow of people and distribution of goods at the time of disaster,
the government will promote the removal of utility poles on emergency transportation roads
in urban areas where there is a risk of utility poles collapsing, based on the plan to promote
the removal of utility poles. In addition, in accordance with the Act on Promotion of Railway
Crossings, the government will designate about 500 railway crossings on important roads,
for which the management method in case of disaster should be specified, by FY2025, andimplement measures, such as providing road users with information of the blockage ofrailway crossings and opening railway crossings on a priority basis. Furthermore, thegovernment will promote the designation of automobile parking lots as disaster prevention
bases and the formulation of BCP to strengthen the disaster prevention functions of Michino-Eki roadside rest areas.
iii) Transportation and logistics• Toward the realization of “AI terminals that support people”, the government will introduce
face recognition technology and improve the efficiency of container damage checks so thatverification and procedures required in person or on paper at ports can be performed
efficiently without contact. At the same time, the government will promote the deploymentof the new port information system (CONPAS), which began full-scale operation at the Port120

of Yokohama in April 2021, to other ports. In addition, the government will directly link the“Cyberport”, which is a platform for computerizing port logistics procedures among private
businesses, with the Nippon Automated Cargo and Port Consolidated System (NACCS),
and computerize port administrative procedure information and port facility information by
the end of FY2022.
• In view of the rapid recovery and reconstruction from disasters, the realization of fast andsmooth logistics while there is a shortage of truck drivers, and the government’s goal of
automated driving on expressways, the government will promote the elimination of missing
links on high-standard highways, the conversion of temporary two-lane sections into fourlane sections, and the strengthening of a double network of high-standard highways anddirectly controlled national roads that can function as alternatives. At the same time, thegovernment will promote the development of loop roads in three major metropolitan areas,
improve access to airports and harbors, and strengthen the road network with high standards.
• As measures to promote the use of double-connected trucks and address the shortage ofparking spaces, the government will increase the parking spaces at SA/PA, introduce aparking reservation system, and promote the use of rest areas outside highways.
• Aiming to ensure safe and secure traffic on roads and provide advanced services, thegovernment will implement the following initiatives to promote the DX in the road system.
- In addition to aiming to nearly complete the conversion to ETC exclusive lanes in 5
years in urban areas and 10 years in rural areas, the government will promote theutilization of ETC2.0 data in cooperation between the public and private sectors, bothin normal times and in times of disasters, such as by using the expressway bus location
system, providing ETC2.0 data to private companies, and using the “passable road map”.
- In addition to starting to operate a new traffic system for special vehicles from 2022 toestablish a system to allow registered special vehicles to pass through immediately, thegovernment will promote effective measures against overloading using ICT, such as
automatic weight measuring devices and in-vehicle load measuring devices.
- By FY2022, the government will start examining the repair of the road occupancy
system so that the location information of the properties occupying the roads can beconverted to 3D data and the applicants for road occupancy permits can easily check thelocations. At the same time, the government will start examining the use of online
application procedures for stop permits for facilities where special vehicles are allowed
to stop.
- In addition to obtaining 3D data of government-managed roads by FY2025, thegovernment will share various road-related data through API and partially disclose data
to the private sector.
- In addition to aiming for the nationwide deployment of an automatic traffic obstacle

121detection system using image analysis technology, the government will share images
from the cameras installed in road patrol vehicles in real time, and complete theinstallation of CCTV cameras on about 50% of the sections of emergency transportation
roads (primary) that require real-time monitoring by FY2025.
- The government will select the areas to which traffic demand management (TDM) is tobe applied to eliminate traffic congestion by the end of FY2021, and analyze changes intraffic conditions due to the spread of telework and other factors by using big data.
- In order to address the shortage of technicians to operate snow removal vehicles, thegovernment will conduct a demonstration test to introduce snow removal technology
using ICT, and deploy it nationwide from FY2026.
• By taking advantage of the current low-interest rate situation, the government will work todevelop, as soon as possible, high-speed transportation networks, such as high-standard
highways and the Linear Chuo Shinkansen Line, as well as airports and major urban rail
networks.
• As part of DX in the logistics sector, the government will promote the introduction ofequipment and systems using AI and IoT for achieving automation and manpower saving
through collaboration among related businesses to improve the transportation efficiency ofthe entire supply chain, and launch social implementation of initiatives that utilize logistics
and commercial distribution data infrastructure by the end of FY2021. In addition, thegovernment will start conducting detailed verification by establishing a forum for industry,
government, and academia to examine the standardization of pallets, slips, etc. related tologistics by the end of FY2021, and hold a symposium to foster and secure advanced
logistics personnel through public-private collaboration.
• In order to realize work style reform and improve efficiency in truck transportation, thegovernment will work on optimizing the trading environment, such as the “White Logistics”
promotion campaign, and examine the institutional development to expand the number ofoffices that can use a real-time roll call system from FY2021, on the condition of using
advanced IT equipment, etc. At the same time, by the end of FY2021, the government willsurvey advanced efforts to remotely and efficiently manage truck allocation and disseminate
best practices for realizing the optimal truck allocation.
• In order to speed up and improve the efficiency of transportation even in times of disasters,
the government will formulate guidelines by the end of FY2021 on the ideal way of relay
trucking, in which multiple drivers are assigned different parts of one long-distancetransportation, and establish a platform for the transportation of emergency relief supplies
that enables the national government, local governments, and designated public institutions
to share information on the optimal routes, transportation status, etc.

122iv) Improving the competitiveness of cities• In order to promote the development of walkable cities that are compact, comfortable, andlively for revitalizing local economies and realizing various ways of working and living, thegovernment will examine the utilization of urban infrastructure, private facilities and digitaltechnologies, and take the necessary institutional measures by the end of FY2022. In
addition, the government will promote the support for environmentally friendly, outstanding
private urban development projects and reconstruction of the plaza in front of the station tostrengthen the international competitiveness of cities and create decarbonized cities.
• In order to create an environment in which various urban services, such as mobility anddisaster prevention, are provided by diverse public and private entities by making full useof digital technologies and data, such as 3D urban models (PLATEAU), aiming for DX in
urban development, the government will promote the development of use cases and thenationwide deployment of initiatives. In particular, the government will convert 3D urban
models of nationwide cities into open data by the end of FY2021.
• In order to further promote ESG investment in the real estate investment market in Japan,
the government will promote the disclosure of information related to the responses forclimate change risks, and examine the ideal way of disclosing information related to social
issues (S) based on the actual situation in Japan. Summarize the reference items fordisclosure in FY2021, and prepare basic reference materials (guidance) for the disclosureof information on the responses of the real estate sector for social issues by the end of
FY2022.
• With regard to the Building Standards Act, the government will examine the rationalizationof standards by the end of FY2021, and take the necessary institutional measures from 2022
to promote the use of wood, make effective use of existing buildings, and facilitate thelocation of facilities that meet the “new normal”.
• In order to promote the universal design of roads, the government will compile theguidelines for the facilitation of mobility on roads by the end of FY2021, organize futureissues and measures for utilizing technologies based on the progress of new mobility andtechnological development, and examine the review of standards.
• In order to establish a 5G communication environment in the road space and verify thefeasibility and effectiveness of upgrading road management through the use of highresolution images from in-vehicle cameras, etc., the government will launch ademonstration test through public-private collaboration by the end of FY2021.
• In addition to disseminating the pedestrian-friendly road system (Hokomichi) to create
liveliness in the regions, the government will organize the division of functions of each roadby the end of FY2021 to meet the various needs of roads, and examine the necessity of new
standards and systems by compiling measures for the flexible use of each road, etc.

123(11) Mobilityi) Social implementation of autonomous driving(Spreading and promoting autonomous driving)• In order to make it possible for one remotely monitoring operator to simultaneously drive
three or more vehicles in a specified area by FY2022, the government will continue to
conduct technological development and verification, and make the necessary institutional
development as early as possible in FY2022 after reaching a conclusion on how the remotely
monitoring operator should be involved, etc.
• With regard to driverless automated driving transport services in specified areas on publicroads, the government will formulate guidelines that will contribute to the demonstration by
the end of FY2021, and introduce the services in at least 40 locations by 2025 and 100
locations across Japan by 2030.
• Toward the development of a driving environment for autonomous vehicles and vehicles
equipped with advanced technologies, such as a lane-keeping assist system on national
expressways, the government will conduct demonstrations related to vehicle infrastructure
integration through public-private partnerships from 2021, and based on the results,
formulate specifications for the information provision system for autonomous vehicles, etc.
required for Level 4 autonomous driving.
• To realize Level 4 automated driving in complex driving environments, such as mixed traffic
in urban areas, the government will establish an international collaboration base by industry,
academia, and government research institutions that will consistently carry out research anddevelopment, demonstration tests, standardization and commercialization from FY2021. In
addition, by FY2025, the government will examine and implement the environmental
arrangements, such as business models and data collaboration schemes, for automateddriving using road-to-vehicle and vehicle-to-vehicle communication systems.
• By the end of FY2021, the government will launch automated driving services between
locations, such as “Michi-no-Eki” roadside rest areas in rural area, in at least five regions.
• With the aim of introducing Level 4 autonomous driving within the restricted areas of
airports by 2025 for achieving further labor-saving and automation in airport groundhandling operations, the government will start demonstration tests for the introduction of
Level 4 autonomous driving at Narita Airport from FY2021. At the same time, thegovernment will conduct technical verification and examine the necessary infrastructure andoperational rules to revise the guidelines and guidance by 2024.
• In order to put autonomous ships into practical use by 2025, the government will formulate
guidelines that organize the concept of safe ship operation and make international proposals
to lead international standardization by the end of FY2021, and start reviewing related laws

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and regulations. In addition, in order to promote digitalization of ship operations, etc., thegovernment will formulate technical standards for remote monitoring technology and securetechnical competence for the active use of autonomous ships after 2025.
(Formulation of international standards)• Based on the results of Level 3 automated driving technology, which has already been put
into practical use, the government will lead the formulation of international standards at the
UNECE World Forum for Harmonization of Vehicle Regulations (WP29) for Level 4
automated driving technology and its safety evaluation methods, in collaboration withinternational standardization efforts.
• With regard to connected cars, the government will examine initiatives to lead international
discussions on performance requirements for in-vehicle communication devices that enableadvanced automated driving and information provision to drivers in the event of a disaster,and reach a conclusion, including institutional measures by the end of FY2022.
ii) Promotion of a Japanese version of MaaS(Regional mobility services)• The government will promote efforts to introduce and spread MaaS in the Council for
Promoting the Smart Mobility Challenge Project, and based on the demonstration results of
MaaS linked to medical care, organize and disseminate from FY2021 the issues andexamples of providing online medical care using automobiles.
• In order to implement MaaS in society, the government will develop the infrastructure topromote new mobility services, such as the introduction of an AI on-demand transportation
system, which effectively allocates vehicles by using AI and the introduction of cashless
payment for public transportation.
(New urban development and mobility)• Toward the diversified use of roads that contribute to improving the convenience of new
mobility services, such as ultra-compact mobility, personal mobility, and bicycle sharing,
the government will formulate guidelines for the sharing of functions and flexible use ofroads, such as securing driving space for new mobility services and providing parking
spaces on sidewalks and road shoulders, by the end of FY2021.
• In order to promote the spread of bicycle sharing, the government will compile guidelinesthat contribute to securing locations for cycle ports, improving the efficiency of business
operations through the use of IT, and increasing convenience through the expansion of
search, reservation, and payment services in collaboration with public transportation by
FY2021. In addition, the government will improve spaces for bicycle traffic by formulating
development plans centered on urban areas to correspond to the increased volume of bicycle
traffic.

125iii) DX of mobility systems and social implementation of next-generation technologies• Considering the fact that compliance with international standards for the use of advanced
emergency braking systems will become mandatory in phases from November 2021, thegovernment will examine the introduction and spread of advanced safe driving support
technologies using high-performance sensors, etc. for Safety Support Cars (Suppocars), andimplement those that are feasible in a sequential manner. In addition, in order to prevent
traffic accidents involving elderly drivers, the government will grasp and analyze the actual
status of the use of Suppocars and strengthen public awareness through the collaboration
between the public and private sectors.
• The Ministry of Land, Infrastructure, Transport will promote the institutional design for the
introduction of a software taximeter that can replace the current taximeter. Specifically, we
will carefully examine the remaining issues, including the assurance of accuracy, at the“Study Group for the Introduction of Software Taximeter” established in March 2021, andreach a conclusion by the end of FY2021. In addition, we will examine the functions thatthe software taximeter should have and how they should be used with the participation oftaxi dispatch application providers, etc., and work on advancing taxi services by utilizing
transportation and other data.
• The Ministry of Land, Infrastructure, Transport and Tourism will examine the ideal
approach to the dynamic pricing system from 2021, and will take measures as soon as itreaches a conclusion. At that time, we will carefully conduct an overseas fact-finding survey,
demonstration using actual vehicles, and understanding of the intention of users. In addition,
we will obtain supply and demand matching data for various cases, such as regions, days of
the week, time of day, and weather conditions, and hold discussions based on evidence withthe participation of taxi dispatch application providers. Furthermore, we will ensure that therange of price fluctuation is reasonable and understandable to users for public transportation.
• The Ministry of Land, Infrastructure, Transport and Tourism will promote the advancementof operation management by expanding the current real-time roll call system, which isallowed only between sales offices and garages at adjacent sites and close range, to be
implemented even between offices at long distances based on the progress of IT technology
by the end of 2021. Specifically, we will set the performance requirements for equipment toexpand the scope of the real-time roll call system and establish a certification system forroll call equipment for the introduction of automatic roll calls through the demonstration
tests conducted by the “Study Group on the Advancement of Operation Management”
established in March 2021.
(12) Social implementation of robotics technology126• The government will promote standardization and normalization related to user-oriented
robot development, data cooperation, communications, and facility design, etc. to realize
remote, labor saving, and unmanned operations in service fields, such as facility
management, retail, food and drink, and food products. In FY2021, the government will
formulate standards for communication linkage between elevators and robots in the facility
management field.
• With the aim of creating a technological foundation for future robotics and IoT in Japan, thegovernment will support the implementation of robot contests, including regional efforts
that contribute to robot-related learning and education for high-school students, vocational
school students, and university students.
• By the end of FY2021, the Consortium of Human Education for Future Robot System
Integration will provide support for robotics training for teachers and students, and for theformulation of educational curricula at technical colleges, polytechnic colleges, andpolytechnic centers.
• The government will hold the “World Robot Summit”, where robot technologies fromaround the world come together to hold an award-based competition to promote social
implementation and research and development, at Aichi International Convention &Exhibition Center and at Fukushima Robot Test Field in FY2021.

12713. Regional Development(1) Realizing a tourism-oriented country
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
In the tourism-related industries, there are approximately 9 million workers nationwide
who play an important role in supporting local economies. Since the spread of the COVID19, there has been a significant decline in domestic and international tourism demand,
severely affecting the tourism industry, and it is extremely important to maintainemployment and business continuity. The government firstly implements support measures
such as financial assistance and employment adjustment subsidies, delivering in push-type
to businesses through District Transport Bureaus, etc.
As for the Go To Travel Campaign, the government determines the handling of thecampaign taking into account the infection situation in the future. For now, while thoroughly
implementing measures to prevent the spread of COVID-19 at accommodation facilities andtourist spots at first, support for regional tourism projects are provided. In addition, thegovernment takes measures to smooth out the travel demand, etc, and reduce crowded places
and close-contact settings by popularization of “workation”.
In preparation for the recovery of tourism demand, strengthening the structure of the
tourism industry is an urgent matter. the government makes short-term intensive efforts torevitalize accommodation facilities and tourist spots in order to improve the attractivenessand profitability of the regions as a whole.
The COVID-19 pandemic has not affected various attractions that Japan can offer, suchas “nature”, “climate”, “culture”, and “food”. By making full use of these tourism resources,
rediscovery of the regional charm by domestic tourists, and increase of the average spending
money and day per tourist will be realized. Furthermore, the govenrment steadily improves
the environment for receiving tourists at tourist spots, etc., and promotes efforts for thegradual revival of inbound tourism assessing the infection situation in and outside Japan.
Tourism is a pillar of the growth strategy and a trump card for regional development, Japan
will realize a tourism-oriented country through the united efforts of the public and private
sectors.
i) Thorough prevention of the spread of COVID-19, recovery of domestic demand, andrevitalization of the tourism industry• While requesting accommodation facilities, travel agencies, charter buses, and other tourism
and transportation businesses to thoroughly follow the guidelines for each industry, thegovernment will support the introduction of measures to prevent the spread of COVID-19,

128

and work to establish a safe and secure travel style by thoroughly informing travelers of the“new travel etiquette”.
• The government will determine the handling of the Go To Travel Campaign taking into
account the infection situation in the future, and implement support for regional tourism
projects at first.
• The government will provide support to about 100 regions nationwide to revitalize
accommodation facilities and tourist spots mainly through government subsidies for adding
value to facilities and removing abandoned buildings that remain in the city so that the entire
local tourist facilities, including accommodation facilities, restaurants, and souvenir stores,
can offer tourists a high-qualify environment to stay, as well as through loans from Japan
Finance Corporation, etc.
• The government will provide support to the accommodation and travel industries throughthe dispatch of experts, etc. for diversifying profits by developing new businesses throughcollaboration with restaurants, transportation, etc., promoting DX, separating meal service
from the accommodation plan, integrating businesses, improving productivity through theseparation of ownership and management, and responding to inbound tourism. At this time,
the government will work to develop human resources for core and practical operations, andalso promote the use of human resources with second and side jobs to match humanresources from different industries, such as IT workers, with the tourism industry.
• In order to smooth out travel demand, the government will work together with economic
organizations to promote workers to actively take days off. Implement model projects toimprove the environment for both companies and local communities to promote“workation”, “bleisure”, and satellite offices. In particular, the government will support
collaboration between local governments and tourism businesses to develop an environmentthat accommodates people with children. Furthermore, the government will implement
campaigns to promote “decentralized travel”, which encourages decentralized times andplaces for traveling, through collaboration between the public and private sectors to smoothout travel demand.
• In order to promote short trips to nearby destinations (so-called micro-tourism), thegovernment will support efforts that will lead to refinement of local tourism resources andrediscovery of local attractions. In addition, support the development of a safe and secureenvironment for school trips, etc. through the united efforts of the public and private sectors,
and support the creation of content that is meaningful for learning to realize the steady
implementation of school trips, etc.
ii) Creation of attractive tourist destinations and content• The government will support efforts to break down silos within the region, and discover and129refine the region’s potential tourism resources through collaboration among various
tourism-related businesses rooted in the region.
• In order to promote adventure tourism, the government will train and secure humanresources, such as guides, and at the same time, market tourism content that has been
discovered and refined.
• In order to create snow resorts that are unique to Japan, the government will make regionwide improvements, such as improving ski resort infrastructure, refining base towns, andenhancing content for after skiing.
• The government will expand the initiatives of the Project to Fully Enjoy National Parks to
all national parks in Japan, and improve the quality of the environment for visitors bypromoting nature activities in accordance with the Amended Natural Parks Act, improving
the landscape by removing abandoned buildings, and introducing the vitality of the private
sector.
• In order to develop about 400 cultural tourism hubs and regions nationwide, the government
will provide support for initiatives based on the Cultural Tourism Promotion Act and for
raising the level of Japanese heritage sites as a whole, and promote high value-added cultural
facilities and resources. The government will expand public access to the artworks related
to the Imperial Family that are stored at the Museum of the Imperial Collections byimplementing regional deployment efforts, such as actively lending them out and holding
their exhibitions at local museums. In addition, the government will promote the nationwide
deployment of the “Japan Cultural Expo”, its dissemination in both Japan and abroad, andthe use of museums, etc. for tourism.
• In order to promote the conversion of historical resources, such as old traditional Japanesehouses, shrines, temples, and castles, into accommodation facilities, the government will
dispatch experts to the local governments to assist the renovation of such resources into
accommodation facilities. At the same time, the government will discover and support local
leaders, provide know-how to local communities, and promote the extended use of old
traditional Japanese houses, shrines, and temples around the local communities. In addition,
the government will create contents that allow people to fully enjoy rural experience withcountryside stays, as well as contents that take advantage of outdoor activities, martial arts,
and urban sports.
• With regard to tourism facilities owned by local governments, the government will provide
support for the renovations to improve profitability and attractiveness by using the vitalityof the private sector and the creation of tourism contents using these facilities.
• In addition to promoting efforts to use locally unique food ingredients, the government will
provide more attractive cuisine, offer vegetarian and vegan options, and refine souvenirs,
work on creating contents and disseminating information for inbound tourism utilizing food,

130food culture, and Japanese alcoholic beverages.
• The government will promote efforts that contribute to DX in tourism services, such as
refining tourism resources and creating tourism contents using advanced technologies andadvancing the management of tourist areas using data and other information on tourist
behaviors.
• The government will improve the environment for tourists to have pleasant travel
experience, such as providing multilingual support, free Wi-Fi access, cashless payment
system, barrier-free design, CIQ system, and strengthened airport ground handling andsecurity systems at tourist spots, national parks, cultural properties, cultural facilities, public
transportation systems, and airports.
• The government will support the collection and analysis of tourist data by destination
management organizations (DMOs), etc. to improve the marketing capacity of regions andtheir ability to attract repeat visitors. In addition, the government will support efforts toimprove the environment for distributing travel products online to distribute tourism
contents as travel products.
• In order to attract tourists who seek high-quality services, the government will develop
human resources, create content, improve the use of business jets, and promote visits toJapan. At the same time, the government will conduct the matching between developers,
hotel management companies and local governments to promote the development of highquality accommodation facilities.
• Through the airline and airport support packages, the government will support the capital
investment of airlines and airport companies, which is indispensable for achieving the targetof attracting 60 million foreign tourists to Japan by 2030, and at the same time, promoteaviation innovation and strengthen the functions of airports.
• While thoroughly implementing measures to prevent the spread of COVID-19, thegovernment will promote the development of an environment where people can enjoy
cruising with peace of mind, such as supporting the safe operation of cruise ships andimproving tourism at ports of call.
iii) Phased recovery of inbound tourism, etc.
• In addition to disseminating information on Japan’s efforts for safety and security throughthe Japan National Tourism Organization (JNTO), etc., the government aims to create a safe
and secure travel environment for both tourists visiting Japan and regions visited by tourists
by implementing small-scale package tours on trial, while monitoring the status of the
COVID-19 pandemic in and outside Japan.
• Through the use of JNTO’s digital marketing and other means, for the time being, thegovernment will strengthen efforts to attract repeat visitors and other groups who are highly131motivated to visit Japan, as well as to attract visitors to local regions through disseminationof various attractions that Japan can offer and collaboration with local communities.
• For the phased recovery of outbound tourism, the government will examine the necessary
measures for creating a safe and secure environment for outbound tourism in collaboration
with the public and private sectors, such as preparing guidelines to enable schools to go on
overseas school trips safely.
(2) Realizing vibrant rural villages through the development of growth industries inagriculture, forestry and fisheries
The following specific measures will be taken based on the Action Plan of the Growth Strategy.
As Japan’s agriculture, forestry, and fisheries industries are faced with a declining
domestic market due to the declining population and the declining and aging population ofagricultural, forestry, and fishery workers, we must establish a system that allows us to makethe most of the enormous overseas markets created by economic partnership agreements,
such as TPP11 and the Regional Comprehensive Economic Partnership (RCEP) Agreement.
In addition, while there are major issues to be addressed on a global scale, such asaddressing global climate change and ensuring biodiversity, as well as addressing thegrowing public interest in food and health-conscious lifestyles due to the COVID-19
pandemic, it has become even more important for Japan’s agriculture, forestry, and fisheries,
and food industries to appropriately respond to these issues to ensure their sustainable
development.
By vigorously promoting reforms for this purpose, and recognizing the agriculture,
forestry, and fisheries industries as a growing industry, the government will work to improve
local incomes and realize vibrant rural villages.
i) Creation of “new markets” through promoting exports, etc.
① Promotion of exports of agricultural, forestry, and fishery products, and food
Based on “The Strategy to Realize Export Expansion of Agricultural, Forestry, Fishery,
and Food Products” (decided by the Headquarters on Creating Dynamism through
Agriculture, Forestry, and Fisheries, and Local Communities on December 15, 2020), thefollowing initiatives will be taken to support 27 priority items and more than 1,200 exportingareas and businesses to achieve the export value targets for each priority item.
(Strengthening of overseas marketing capabilities through united efforts of the public andprivate sectors)• While taking into account examples of other countries, the government will examine the132following initiatives to strengthen overseas marketing capabilities, including the revision of
the Agricultural, Forestry, and Fishery Products and Food Export Facilitation Act by the endof FY2021: formulation of standards for export on behalf of industry stakeholders fromproduction to export and development of national brands; organization of product groups
that conduct joint marketing, strengthening of their activities, and review of the ideal
financial resources; formulation of a platform and establishment of local advisors tostrengthen collaboration between product groups, diplomatic missions overseas, JETRO,and the Japan Food Product Overseas Promotion Center (JFOODO).
• By the end of FY2021, the government will disseminate cooking videos using Japanese foodingredients that meet the demand for home cooking through SNS, and provide virtual trips
where people can have a simulated experience of Japanese food and food culture. In addition,by 2025, the government will examine measures to strengthen sales of local products on
private EC sites across borders, mainly targeting the destination countries (about fivecountries) of priority export items.
(Encouraging agriculture, forestry, and fisheries companies to take on the challenge ofexporting with a market-oriented mindset)• In addition to enhancing support through the formulation of export business plans inexporting areas that produce products that meet the needs of destination countries andregions, the government will establish a strategic supply chain that connects priority markets
with exporting areas with the aim of creating profitable export businesses. In order toencourage the export of local processed foods, the government will promote capital
investment to comply with the regulations of destination countries, and market research,sales channel development, and product development, which are conducted in collaboration
with local food businesses. At the same time, the government will promote the utilizationof ports and airports, the development of logistics facilities that will serve as bases for cargocollection, and the development and securing of cold chain bases overseas to establish
export logistics, and examine measures, such as the amendment of the Agricultural, Forestry,
and Fishery Products and Food Export Facilitation Act, including the use of financial
support and tax incentives.
• In order to uncover and develop exporting areas, the government will provide detailed
support according to the level of maturity of businesses engaged in export, such as rollingout good practices for export expansion based on the export diagnosis, etc. conducted on
agriculture, forestry, and fisheries businesses in FY2020, through the Global
Farmer/Fisherman/Forestry/Food Manufacturer Project (GFP).
• With regard to support, including loans and guarantees, to mitigate risks specific to exportsof agricultural, forestry and fishery products and food, such as the outbreaks of swine fever
and avian influenza and tightening of import regulations by destinations countries, the133government will examine measures, including the amendment of the Agricultural, Forestry,
and Fishery Products and Food Export Facilitation Act, by the end of FY2021.
• In order to further expand the export of Japanese alcoholic beverages, the government will
implement onl ine business meetings, disseminate and utilize Geographical Indications (GI),and provide support for solving technical issues, such as preventing quality deterioration,and improving brand value. In addition, the government aims to have cultural resources,
such as Japanese sake, shochu, and awamori registered as UNESCO Intangible Cultural
Heritage.
(Overcoming obstacles to exporting through the united efforts of the government beyond
the organizational boundaries of ministries and agencies)• Based on the Agricultural, Forestry, and Fishery Products and Food Export Facilitation Act
and through the unified efforts of the government, the government will promote discussions
with destination countries and regions to lift import restrictions / measures on Japanese food,and to accelerate the accreditation of facilities that conform to the standards of destination
countries and regions (for example, by 2025, increase the number of beef processing
facilities for the U.S., EU, Hong Kong, etc. to 25, and the number of fish processing facilities
for the U.S. and EU to 760 and 135, respectively). In addition, the government will actively
expand the number of accredited facilities by strengthening the accreditation system, suchas by increasing the number of registered accreditation bodies that accredit conforming
facilities based on the Agricultural, Forestry, and Fishery Products and Food Export
Facilitation Act to six or more by the end of FY2021.
• In order to further facilitate export procedures, the government will make the one-stop
application and issuance system, which has been used for many export certificates since2020, available for all export certificates by the end of FY2021, and examine adopting an
online payment method for fees.
• With regard to the restrictions on taking protected plant varieties to foreign countries basedon the Amended Plant Variety Protection and Seed Act, the government will complete therestrictions for more than 90% of the protected varieties that have been developed by public
institutions by the end of September 2021, and protect Japanese high-quality varieties, suchas Shine Muscat, by promoting the registration of new plant varieties overseas andestablishing a system to make countermeasure against infringement.
• In order to encourage further expansion of exports and create diverse ways of earning money
overseas, the government will implement a market-making system, such as disseminating
the correct evaluation of Japanese products, and also examine measures to address the issuesof each stage of overseas expansion of the food industry by FY2022.
• The government will develop export specialists within the government and build a networkwith public and private stakeholders in and outside Japan.

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② Expansion of domestic share of vegetables for processing and commercial use•

Since a high percentage of vegetables supplied in Japan for processing and commercial use
are imported, the government will promote the transition to domestic production and aim
to increase the shipment volume of domestically produced vegetables for processing andcommercial use to 1.27 million tons by FY2025. In FY2021, the government will designate
commodities, for which there is a need for domestic production by buyers and there is anestablished production system with a high cost reduction effect through the full utilizationof agricultural machinery, as priority promotion commodities, and develop new production
areas using paddy fields and primary processing facilities in production areas to expand the
production of domestically produced vegetables.

③ Development of new business fields• In order to promote commercialization of FoodTech, which is a field using new technologiesof the food sector and businesses using those technologies, the government will formulate
a vision and roadmap for promoting FoodTech at the Council for Public-Private Partnershipin Food Technology by FY2022, and promote the provision of funds for business activities
of FoodTech by utilizing investment schemes based on the Amended Agricultural
Corporation Investment Facilitation Act.
• In order to ensure that soybean meat products are properly evaluated, the government will
establish JAS by 2022, which will serve as a standard for names (definitions), etc. that makeit easy for consumers to understand their content rate.
• With regard to long-term care foods (“smile care food”, etc.) whose market is expanding,
medicinal plants used as raw materials for Kampo medicines, and new functional foods that
contribute to extending healthy life expectancy, the government will promote research andother activities that integrate agriculture, forestry, fisheries, and food industries with medical
and social welfare focused on the perspective of health-conscious consumers. In addition,
the government will introduce production technologies for medicinal plants (peony, etc.)
found through research and development into production areas, share information on supply
and demand, and promote the matching between places of production and Pharmaceuticalcompanies for contract cultivation.
• We promote research and development, verification, and social implementation for thecommercialization of wood derived materials such as glycol lignin and cellulose nanofibers,
as alternatives to petroleum- based plastics, such as fiber reinforced plastics for automobileinterior and exterior materials, to aim at the market creation of after FY2026.
ii) Strengthening agricultural production infrastructure135

① Securing and strengthening production infrastructure(Improvement of productivity, human resource development, etc. to address the declining
population)
In promoting the development of agriculture as a growth industry and the improvementof income in agriculture, the following initiatives will be integrally promoted, while
ensuring soundness, to maximize the sustainable use of farmland, which is the basis ofproduction.
• The government will position the Farmers and Farmland Plan, which is important for theaccumulation of farmland, as a rule to be continuously followed, including making it
statutory, and clarify the concrete image of the future farmland use that regions should aimfor (“target map”), with emphasis on the consolidation of farmland.
• In order to realize the “target map” of the Farmers and Farmland Plan, the government willtake measures to vigorously promote systematic lending and borrowing, including
agricultural work outsourcing, encouraged by related organizations, with the croplandintermediary management institution (farmland bank) being the central figure.
• In order to secure and develop new young farmers who will drive the future of regional
agriculture, the government will provide detailed support for communicating theattractiveness of agriculture, acquiring farmland, etc., and promote the matching of humanresources over a wide area.
• In order to develop motivated farmers with management skills, the government will enhanceefforts to improve the management skills of farmers, and review the promotion system, suchas the proactive encouragement of incorporation of agricultural management by relevantorganizations with clear targets.
• In cases where a community-based corporation, which is qualified to own farmland, intends
to improve its performance while gaining the trust of the local community to transform its
farming into a growth industry, it should be able to flexibly raise funds through equity
investment, after securing the right to decision-making by agricultural stakeholders
regarding the farmland, etc., and taking measures to dispel concerns of the rural site.
• The government will examine a system for sustainable farmland use, including grazing,
buffer-zone areas for birds and animals, and organic farming, as well as a system for boldly
promoting the development of new businesses in rural areas.
(Rice policy reform)• The government will achieve the goal of lowering the production cost of rice for the bearers
to about 9,600 yen/60kg in 2023 so that it leads to the development of new demand in andoutside Japan. Specifically, the government will promote the elimination and consolidationof small-scale scattered farmland by farmland integration and consolidation, and the
reduction of production material costs by reducing production material prices, etc. In

136particular, from FY2021, the government will promote the nationwide expansion of lowcost production technologies, such as direct seeding and the introduction and sharing ofsmart agricultural machinery through technological demonstrations and horizontal
deployment of advanced cases.
• To enable the selection of agricultural produce based on the management decisions of the
farmers themselves, the government will establish rice policy reform, such as by creating
500 highly profitable crop producing areas by FY2025 through support for the provision ofdetailed information and the full utilization of paddy fields.
• By FY2023, the government will create model production areas that carry out integrated
cultivation of rice, wheat, and soybeans in almost all prefectures in the main production
areas.
• Toward the digitalization of rice inspection and distribution, the government will formulate
standards that assume machine appraisal separately from the current agricultural inspection
standards, and apply them from the inspection of rice produced in 2022. In addition, thegovernment will establish a JAS led by the private sector that utilizes the smart food chain
with an aim for its use from the rice produced in 2023.
(Strengthening production infrastructure)• Aiming to increase the proportion of women in agricultural committees to 30% and the
proportion of women among officers of agricultural cooperatives to 15% by FY2025, thegovernment will take measures to create an environment where female farmers can freely
demonstrate their abilities and play an active role, as well as an environment where womencan easily choose agriculture as a career in FY2021.
• With regard to the reform of agricultural cooperatives, the government will establish a cycle
for practicing self-reform through dialogue with members at agricultural cooperatives, andcontinue and strengthen efforts to improve the income of farmers by ceaselessly promoting
self-reform at agricultural cooperatives.
• Based on the Act on the Support for Strengthening Agricultural Competitiveness, thegovernment will promote the reorganization of the materials and distribution industry, while
disseminating the direction of policies, such as the reduction of the use of chemical
pesticides and fertilizers to agricultural production-related businesses, including agricultural
material wholesalers and retailers.
• The government will strengthen the livestock production infrastructure by providing support
to introduce labor-saving machinery to address labor shortages and support for new farmers
to invest in facilities and so forth, in addition to increasing the number of Wagyu, in orderto stabilize the supply and expand the export of domestically produced livestock products.
Moreover, disseminate farmers the information of the Act on Special Provision of the
Building Standards Act concerning Building Standards of Livestock Facilities and the137benefits of using them, which contribute to the reduction of its building cost which arise
with the expansion of production scale.
• With regard to land improvement, the government will promote the conversion to crops forwhich demand can be expected, such as crops with high profitability, and the enlargementof farmland plots and multi-purpose use of paddy fields for the implementation of smart
agriculture, etc., while reducing costs. At the same time, in addition to launching disasterprevention measures for highly urgent agricultural reservoirs with a disaster prevention
priority by FY2025 based on the Act on Special Measures for Agricultural Reservoir
Construction Projects, the government will promote measures to strengthen the resilienceof irrigation facilities, accelerate the expansion of rice paddy dams, realize labor-saving andadvanced infrastructure management, such as ICT water management, and establish an
information and communication environment that contributes to the implementation ofsmart agriculture, etc.
• For the conservation and effective use of urban farmland by motivated urban farmers, thegovernment will compile and disseminate examples of efforts by urban farmers to expand
and diversify their management scale through the use of the Urban Farmland Leasing Act
by the end of FY2021 to achieve the target of 255 ha of leased area by FY2024 through theuse of the same Act.
(Establishment of a new system)• Towards the establishment of a sustainable food system based on the “Strategy for
Sustainable Food Systems”, the government will examine a policy mechanism and takenecessary measures by the end of FY2021 to promote the behavioral change of each entity
in each process from sourcing and production to consumption as well as increasing private
investment.
② Improving productivity of the food industry and strengthening the linkage between
households and agriculture• For improving the productivity of the food industry, which is facing a labor shortage, thegovernment will promote the introduction of labor-saving and automation technologies,
digitalization, streamlining and advancement of food distribution, and review of businesspractices, such as the one-third rule and lead time (the period from the placement of an orderto delivery).
• For creating sustainable business models that address both social issues and economic
efficiency in the regions, starting in FY2021, the government will promote efforts to develop
and sell new local cuisine products using long-term preservation technologies that
correspond to the significant decrease in tourism demand due to COVID-19, with theparticipation of the main food companies in the regions, as well as other various businesses,

138

including tourism and finance.
• While the impact of the COVID-19 pandemic drags on, the government will provide support
for efforts to cope with the “new normal”, including compliance with the “Guidelines for
Business Continuity of the Food Service Industry” formulated by food service organizations,as well as for “ghost kitchen”, which is a shared kitchen specialized for delivery, and fooddelivery initiatives that allow new entrants to the delivery business without capital
investment. In addition, the government will provide support for the transformation ofbusiness formats in the food service industry through the remodeling and reorganization ofexisting restaurants and opening of new restaurants.
• The government will strengthen the creditworthiness of medium-sized food service
businesses, etc. that are facing a severe business environment due to the impact of the
COVID-19 pandemic through debt guarantees so that they can smoothly procure funds, andencourage them to develop businesses adapting to the “new normal”.
• With regard to home cooking, which has increased due to the COVID-19 pandemic, thegovernment will examine the provision of recipes through SNS and strengthening ofpartnerships with businesses that provide food ingredients related to such recipes anddomestic agricultural producers.
• The Go To Eat Campaign has contributed to raising the level of the regional economy so far.
Based on the future situation of the COVID-19 pandemic, etc. and after taking thoroughmeasures to prevent its spread, prefectures will determine how to handle the implementationof the project.
iii) Transforming forestry into a growth industry
In anticipation of the Green Growth Strategy towards Carbon Neutral in 2050, thegovernment will promote the transformation of forestry and wood industry into a growthindustry, which will also lead to CO2 absorption and emission reduction.
• With the aim of reinforcing the structure of municipalities responsible for the forest
management system, the government will provide information on technical personnel
necessary for securing human resources in municipalities, and implement various training
programs to develop technical personnel in prefectures, etc. that support municipalities.
Collect, analyze, and horizontally spread advanced examples of system operation across thecountry, including examples of the establishment of councils to support municipalities. By
doing this, the government will ensure that almost all municipalities with privately-owned
planted forests will implement initiatives related to the forest management system, such as
setting the forest management right to municipalities based on intention surveys for forest
owners, by the end of FY2023.
• In order to develop forestry managers who will play a key role in the forest management

139system for privately-owned forests and from the perspective of securing a stable volume ofbusiness, the government will designate about 10 tree-harvesting areas nationwide by
FY2022 on a pilot basis based on the National Forest Land Utilization Act, and conduct a
review based on market soundings towards the designation of tree-harvesting areas fromFY2022, including large-scale ones.
• With the aim of securing and developing forestry management entities capable ofconducting sustainable management over the long term, from FY2022, the government willdevelop and horizontally deploy model management entities that integrally work tostrengthen management capabilities and ensure occupational safety through the use of smart
technologies, such as drones, securing of business volume, and development of
implementation systems for reforestation.
• In order to respond to an increase in the scale of timber mills, etc., and to promote the exportof wood products, the government will promote the use of new methods of cooperation in
the sales business among forest cooperatives based on the Amended Forestry Cooperative
Act, and expand the sales lots by forest cooperatives.
• In addition to promoting initiatives, such as integrated logging and afforestation operations,low-density planting of the “elite tree” species, etc. that grow fast, and the omission of
weeding, the government will ensure the implementation of reforestation after logging andthe elimination of unplanted areas by promoting reforestation in specified planting
promotion areas based on the Amended Act on Special Measures for Thinning, etc. fromFY2022. In addition, the government aims to increase the supply of seedlings of the “elitetree” species, etc. to 30% of the total supply of forestry seedlings by FY2030. Furthermore,
the government will promote reforestation with the participation of the public, such as tree
planting.
• In order to promote the use of wood in non-residential buildings, etc., the government will
provide support for the establishment of a network of private companies engaged in the useof wood and for the raising of awareness of consumers. At the same time, the government
will promote the development and spread of technologies for fire-resistant wood materials,
CLT, JAS structural materials, etc., to create demand for wood in medium- and large-scalebuildings and to improve the environment for the expansion of wood use.
• In order to achieve 71.8 billion yen in exports of forest products targeted by 2025, thegovernment will develop export production areas through collaboration between upstream
and downstream sectors with the aim of expanding exports of high value-added wood
products, such as lumber and plywood.
iv) Transforming fisheries into a growth industry(Promotion of new resource management)140

• In addition to expanding the number of target species for the stock assessments of fisheryresources to about 200 in FY2021 and collecting necessary data for the asseesments,
perform MSY (maximum sustainable yield)-based stock assessments, and publish their thegovernment will results one by one by the end of FY2021.
The government will expand the scope of TAC (total allowable catches) management system
to cover 80% of the fisheries production by FY2023, based on the management aiming at
the achievement of MSY.
• In addition to introducing resource management by the IQ (individual quota) system underthe Amended Fisheries Act into the large and medium-scale purse seine fisheries in the
management year starting from July 2021, the government will hold consultations with theaim of introducing the IQ management into other fisheries managed under the permitting
system by the Minister of Agriculture, Forestry and Fisheries, in the fishing season of
FY2022.
• In order to address issues, such as the medium- to long-term stagnation of stock status andresponses to global environmental issues, in light of poor catches of squid, saury, salmon,
etc. in recent years, the government will examine an operational system and management
structure that can flexibly respond to environmental changes by diversifying and adapting
to risks, such as introducing multiple species and fishing methods and cooperative
operations. At this time, the government will conduct the examination also with an eye tothe introduction of multiple fisheries that can catch not only specific species of fish but also
multiple species of fish, and reach a conclusion by the end of FY2021.
• In preparation for the enforcement of the Amended Act on Special Measures Concerning
Conservation of the Environment of the Seto Inland Sea, the government will make efforts
on elucidating the relationship between nutrient salts, such as nitrogen and phosphorus,
which are in short supply and fishery resources, such as sand lance and seaweed, whose
productivity is declining, and propose management measures for the supply of nutrient salts
to coastal councils and other entities by FY2023.
(Transforming aquaculture into a growth industry)
While aquaculture production accounts for about 50% of the total production in the world,it accounts for only about 20% in Japan. Unlike natural fishery resources, which arevulnerable to impacts, such as climate change and operations of foreign vessels, aquaculture
enables producing fish on time with fixed quality, fixed quantity, and fixed price, and ishighly compatible with various smart technologies, such as remote automatic feeding.
Therefore, while fully utilizing these technologies, the government will promote thetransformation of aquaculture into a growth industry with a view to significantly expanding
exports, by integrally promoting the following initiatives and shifting from a productoriented to a market-oriented approach.

141• For yellowtail and red sea bream, which are strategic aquaculture commodities, thegovernment will gradually increase the production volume to achieve the export targets (160billion yen for yellowtail and 60 billion yen for red sea bream) and production targets(240,000 tons for yellowtail and 110,000 tons for red sea bream) for 2030.
• To that end, the government will work on the introduction of large-scale offshore
aquaculture using remote automatic feeding systems; the securing of calm waters suitable
for aquaculture by using floating breakwaters, etc.; the efficient utilization of land forfishing ports for onshore aquaculture by reorganizing and consolidating the functions offishing ports; the reduction of costs by using local geothermal, wind power, etc. In addition,
given the fact that feed costs account for at least 60% of the production cost, the government
will promote the development of low-cost compound feed using soybeans, etc., that canreplace fishmeal, and yields high growth efficiency, based on scientific data. Furthermore,
the government will promote research and development for the realization of complete
aquaculture of yellowtail and bluefin tuna using artificial seedlings, which is not reliant on
natural resources.
• Based on the Amended Fisheries Act and from the perspective of appropriate and effective
use of fishing grounds, the government will utilize investment schemes based on the
Amended Agricultural Corporation Investment Facilitation Act to promote new entrants tothe aquaculture industry. In addition, the government will disseminate the guidelines forbusiness feasibility evaluation of the aquaculture industry to regional financial institutions,etc., to promote financing based on the business feasibility evaluation without relying onreal estate collateral.
• By FY2022, the government will work to create model management entities by aquaculture
management entity type (for example, entities that work in collaboration with business
operators in production areas and those that conduct all operations by themselves).
• In order to speed up measures against fish diseases in aquaculture, advance telemedicine forfarmed fish, the government will promote the use of a list of veterinarians specialized in fish
diseases, and review the standards for the use of aquatic drugs based on the needs ofaquaculture businesses by the end of FY2021.
v) Creating new businesses in rural areas through collaboration with various fields otherthan agriculture, forestry, and fisheries• In order to secure income and employment opportunities in rural areas, the government will
create 300 model cases of “Innovation from Rural Areas” by FY2025, which is an initiative
to create new value by discovering and refining available local resources and combining
them with tourism, healthcare, and other fields. At the same time, taking into account thegrowing interest in returning to the countryside and diverse working styles due to COVID-

14219, the government will promote the accumulation of diverse human resources regardlessof generation or gender by creating Region Management Organizations for rural areas totake on the flow of people and communicating the attractiveness of rural areas throughvideos and SNS.
• With the aim of creating attractive countryside stays, the government will expand the
population related to rural areas by developing attractive accommodation facilities using old
traditional Japanese houses and refining attractive tourism content using various local
resources in rural areas, such as food and scenery.
• In order to continue to strengthen countermeasures for wildlife and further reduce damage
to agriculture, the government will promote wide-area capture by prefectures and theparticipation of farmers and other various people, as well as the advancement of capturing
techniques using ICT. In addition, in order to increase the amount of gibier used to 4,000
tons in FY2025, which is double the amount in FY2019, the government will promote
efforts to expand the use of gibier through public relations activity using video and othermedia, improved hygiene management, and collaboration between processing facilities anddistribution and sales personnel.
• With regard to the Japanese agricultural direct payment system, the government will
intensively promote the formulation of village strategies that define the future vision of eachvillage by FY2022, and promote various initiatives, such as the conservation of rice terraces,
making value-added agricultural products utilizing the characteristics of mountainous
regions, and the introduction of multiple management.
• With the aim of achieving the goal of creating 3,000 entities involved in agriculture andwelfare partnerships by FY2024, the government will promote matching of the needs ofboth the agriculture, forestry, and fisheries and the welfare parties, nurturing of professionals,
and supporting the acquisition of skills related to agriculture, forestry, and fisheries bypeople with disabilities. At the same time, the government will promote such partnerships
nationwide by presenting awards for excellent initiatives in FY2021. In addition, throughagriculture and welfare partnerships, the government will promote employment of people
with disabilities based on their characteristics, mainly for mushroom cultivation and woodprocessing, and support and horizontally deploy initiatives to develop high-value added
local wood products that are conducted through collaboration between welfare and local
stakeholders.
• In addition to setting mountainous regions that intend to engage in the “forest service
industry”, which utilizes forest spaces in various fields, such as health, tourism, education,and sports, as model areas, and providing them support, such as giving advice on how tosolve problems, the government will horizontally deploy excellent practices throughindustry-academia-government platforms, etc., to create forest service industries in more143

than 30 regions by FY2022.
• In order to strengthen economic activities in fishing villages to improve local employment
and income, the government will create about 10 new districts to engage in the “marine
industry”, which is an industry related to the sea, such as sales and processing of marine
products, fishing business experience, fishing, and beachside stays, by the end of FY2021.
At the same time, the government will reorganize and improve the land for fishing ports andexamine measures to promote the use of fishing ports by fishing cooperatives and private
businesses to further expand the number of these districts.
(3) Strengthening the foundations of regional financial institutions
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(4) Promoting the matching of management personnel for local companies
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(5) Expanding the flow of people from urban areas to rural areas by promoting teleworkand other measures that contribute to regional development
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• In order to secure new human resources in the regions, the government will encourage theintroduction of the “Regional Project Manager” system established in FY2021 through thehorizontal deployment of the examples of initiatives. At the same time, the government willfurther promote the “Local Vitalization Cooperators” by expanding the range of applicants
through the dissemination of the “Regional Development Cooperator Internship” program,which was also established in FY2021, and the “Trial Regional Development Cooperator”
program.
• In order to promote the further expansion of the initiatives of local governments to support
the repayment of scholarships for students who will be the leaders of local industries, andto facilitate the use of the support systems, the government will work in collaboration with
the Japan Student Services Organization, etc. to promote the flow of young people to local
areas by actively disseminating information, such as strengthening public relations activities.
(6) Revitalizing local public transportation

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Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
• Looking ahead to the post-COVID-19 era, the government will support efforts by public
transportation operators to improve profitability through the use of new technologies tomaintain and revitalize regional public transportation services through the unified effort of
the government and private sector. In addition, the government will support local
governments to prepare 1,200 or more regional public transportation plans by FY2024, andpromote the improvement of public transportation services from the perspective of users byreviewing routes, schedules, and fares based on the same plans. At the same time, thegovernment will promote the introduction of low-carbon transportation systems that utilize
new technologies to realize carbon neutrality.
(7) Promoting the Super City Initiative, etc.
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
The government will vigorously promote the Super City Initiative to realize future
lifestyles ahead of time through bold regulatory reforms and the provision of progressive
services through multi-field data collaboration.
• From the perspective of contributing to achieving a digital society and the “new normal”,
the government will steadily work toward the early realization of the Smart City concept,
which will realize future lifestyles ahead of time through bold regulatory reforms and theprovision of progressive services through multi-field data collaboration. Specifically, thegovernment will designate areas through deliberations by the Expert Committee on the
Designation of Super City Areas and the Council on National Strategic Special Zones, andimmediately after designation, prepare a basic concept, including regulatory reform for eacharea at the area meetings.
(8) Securing human resources for community development
Specific measures will be taken based on the Action Plan of the Growth Strategy.
(9) Land policy

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The following specific measures will be taken based on the Action Plan of the Growth Strategy.
 Based on the “Basic Policy on Promotion of Measures for Unclaimed Land” (Decision on
June 7, 2021 at the relevant ministerial meeting to promote measures against unclaimed
land, etc.), the government will promote necessary studies for the review of the Act on
Special Measures for unclaimed land, including a mechanism for the utilization andmanagement of insufficiently managed land and under-used or unused land, and submit anecessary bill to an ordinary session of the Diet in 2022, as well as enhance support
measures. In addition, including securing the capacity of relevant organizations, thegovernment will prepare for the introduction of a new system related to the review of thebasic civil law system and a mechanism to facilitate the registration of description of landwith unknown adjacent land ownership. At the same time, the government will promote
land registry surveys, etc., utilizing survey methods that can also respond to the new normal.
(10) Carving out a future for the sports industry
The prolonged spread of the COVID-19 pandemic has cast a significant impact on sports
activities. In order to connect sports to the future, the government will take all possible
measures against COVID-19 at present and continue to steadily promote fundamental
initiatives, such as strengthening the management capabilities of sports organizations.
Furthermore, in anticipation of the world with and after COVID-19, the government will
actively support sports organizations trying new initiatives to generate revenues even during
this pandemic. In addition, in preparation for the Olympic and Paralympic Games Tokyo
2020, the government will engage in the effective and efficient implementation of a wide
range of relevant measures, while strengthening Japan’s ability to compete in international
games, and promote measures to encourage people to participate in sports and develop
communities using sports so that there will be a “sports legacy” left behind after the Games.
i) Transforming sports into a growth industry in the with-COVID-19 and post-COVID19 world• Based on the results of the conformity audit conducted to National Federations by theorganizing bodies (Japan Sport Association, Japan Olympic Committee, and Japanese ParaSports Association) in accordance with the “Governance Code for National Sport Federation
Members”, the government will provide advice to the organizing bodies and National
Federations, and examine measures to further strengthen sports organizations.
• In order to reinforce the business infrastructure of National Federations, the government
will develop a dissemination strategy model according to the size of each federation, andconduct research for the sharing of administrative work common to each federation. At the146same time, the government will hold a national conference to share the knowledge andknow-how of each federation on reinforcing the business infrastructure about twice by theend of FY2021. In addition, the government will support National Federations that
formulate advanced business plans, such as business plans that actively adapt to the “newnormal”, in materializing their plans for up to four years.
• In order to further promote the “Sports Open Innovation Platform (SOIP)”, which aims tocreate new businesses and solve social issues through the fusion of the sports sector andother industries, the government will hold the “Acceleration Program” to support
commercialization through the fusion of the sports sector and other industries, the “Sports
Open Innovation Contest (SOIC)” to commend advanced initiatives of the sports sector andother industries to improve the value of sports and solve social issues, and conferences todisseminate information on the latest trends in and outside Japan. In addition, from FY2021,
the government will collect best practices of sports businesses and present them at overseas
exhibitions in addition to introducing advanced examples originating from Japan, whichwere created by the SOIP.
• The government will provide support for new initiatives that lead to profits even during this
COVID-19 pandemic, such as creating and distributing sports content using the latest digitaltechnologies.
• In addition to conducting sectoral and international comparisons on the trends of the size ofthe sports market and analyzing the impact of the COVID-19 pandemic, the government
will examine the strengthening of the fund circulation system for the sports industry taking
into account changes in the environment, such as the progress of DX, and formulate
strategies for the independent growth of the sports industry in the with-COVID-19 and postCOVID-19 world by the end of FY2021.
• To ensure that large-scale sports events, such as professional sports, can be held safely andsecurely even during the COVID-19 pandemic, the government will support efforts to
identify the areas in the venue that are likely to become crowded by using various
technologies when operating events, analyze the flow of people, effectively disperse or let
people out of the venue, and use the knowledge gained for further measures to tackle thepandemic.
ii) Regional revitalization centered around sports• In order to promote people to engage in sports in the “new normal” through the collaboration
between the public and private sectors, the government will expand the number of member
organizations of the consortium established under the “Sport in Life Project” and promote
cooperation among them, and promote the provision of sports opportunities in various forms,
such as horizontally deploying best practices collected in FY2020. At the same time, taking

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advantage of the momentum of the Olympic and Paralympic Games Tokyo 2020, develop
campaigns that involve public participation for the creation of a “Sport in Life” movement
after the Games.
• Taking into account the importance of stadiums and arenas as the interaction hubs where
various generations can gather, the government will develop 20 stadiums and arenas by 2025,
and establish a new cooperation between them, including the main and candidate ones, tofurther strengthen the functions of stadiums and arenas.
• In order to promote the development of “regional SOIP” that encourages community
development and the creation of high value-added services through collaboration between
local professional sports teams, companies, universities, etc., the government will create
advanced examples by supporting acceleration programs in about three regions by the endof FY2021. In addition, the government will prepare and publish a guide for theestablishment of regional SOIP in FY2021 for the purpose of horizontally deploying“regional SOIP”.
• With the aim of securing and enhancing the local sports environment, the government will
support the creation of model examples for the effective use of local school sports facilities
through collaboration among local governments, private businesses, etc., and compile andpublish the results by the end of FY2021. At the same time, the government will enhancesports websites related to local sports facilities, such as “Kokospo” and coordinate thesewebsites so that people doing sports can easily find and use sports facilities.
• In order to promote college sports, the government will promote initiatives to ensure safety
and security in college sports in collaboration and cooperation with the safety and security
guideline certification system, which is to be newly implemented by the Japan Association
for University Athletics and Sport by the end of FY2021. At the same time, the government
will promote regional development using local college sports, and compile and publish theresults by the end of FY2021.
• In addition to continuing to support efforts to develop organizations that play a role in
implementing initiatives, such as the Host Town, into the “regional sports commissions”,
the government will support efforts to diversify the management of “regional sports
commissions” from FY2021, and compile and publish the results. In addition, thegovernment will establish a cooperation system between sports administration and medicalcare to help people, including those with disabilities, to engage in physical exercises andsports as a habit, and promote the development of an environment in which elderly people
and others who have not been able to engage in physical exercises and sports due to theimpact of the COVID-19 pandemic can safely and securely start exercising and doing sports
again.
• The government will work on the development of outdoor sports that can be conducted even148

during the COVID-19 pandemic, as well as experience-based programs and contents thatmake use of martial arts originated in Japan, with an eye to the post-COVID-19 era, andsupport sports tourism and other multiple initiatives conducted by “regional sports
commissions”, etc., and compile and publish the results by the end of FY2021.
(11) Economic revitalization leveraged with cultural and arts resourcesi) Promotion of the “Basic Plan on the Promotion of Culture and the Arts”, and the“Cultural Economy Strategy”• While respecting the unique significance of culture and arts, the government will accelerate
the building of positive economic cycles through culture and arts.
• In order to keep the light of hope shining brightly through cultural and artistic activities, thegovernment will support organizations related to culture and arts that were affected by the
COVID-19 pandemic and establish the foundations necessary for the continued creation,
development, and succession of culture and arts by supporting initiatives to nurture artists
and other human resources in the field, secure opportunities for performances, strengthenfoundations for sustained activities, and gain viewers through the use of ICT. At the sametime, from FY2021, the government will promote efforts to understand the actual situationof the activities of those involved in culture and arts, including freelance artists, and to
improve their business environment.
• With regard to the Go To Event Campaign, which aims to stimulate demand while balancing
the prevention of the spread of the COVID-19 and social activities, the government will
determine how to handle project after thoroughly implementing measures to prevent the
spread of the virus taking into account the infection situation in the future. At the same time,in anticipation of the post-COVID-19 era, the government will promote efforts to strengthen
the revenue bases of performances to be held in Japan, such as diversifying andstrengthening the source of revenue by delivering performances withadvanced technologies.
• The government will promote the “Japan Cultural Expo”, which is a large-scale program
embodying the beauty of Japan, and other initiatives based on the “Basic Plan for the
Promotion of the Implementation of International Cultural Exchange Festivals” (decided by
the Cabinet on March 29, 2019), such as the project to create centers for the disseminationof international culture and arts, to establish a national brand.
• Through the “Culture, Industry, and Government Partnership Council”, which is a forum
for dialogue among the three parties of the culture and arts sector, the business circles, andthe government, we will promote the reform of corporate culture and the creation of
innovation through the use of arts and cultural resources and the relevant technologies. At
the same time, the government will develop a virtuous cycle of investment in arts and culture
and economic growth. In particular, with an aim to realize the internationalization and149

revitalization of Japan’s art market, from FY2021, work to attract international art fairs andauctions to Japan and develop an environment to attract customers from overseas markets.
• The government will make efforts to disseminate the appeal of Japanese culture thatharnesses advanced technologies to adapt to the “new normal”, promote the utilization of
museum collections, and improve the quality of curators at museums across the country, by
horizontally deploying the experiments of the Tokyo National Museum and other national
museums. At the same time, the government will steadily advance initiatives to promote
understanding of the Ainu culture at the National Ainu Museum that opened in 2020, suchas by enhancing its video content to adapt to the with-COVID-19 era. As for the Japan Arts
Council, the government will advance reviews to strengthen its functions as a national center,such as advancing reviews for the redevelopment of the National Theater of Japan incollaboration with related organizations to contribute to the promotion of cultural tourism.
• In order to promote the creation and dissemination of Japan’s outstanding media arts, suchas manga, anime, and games, organizethe Japan Media Art Festival, the government will
support the creative activities of young creators, and spread such arts overseas incooperation with global festivals. At the same time, the government will establish
information hubs to archive art works. In addition, the government will promote creative
activities, such as film production, disseminate them in and outside Japan, and develop
young human resources to promote Japanese films.
ii) Regional revitalization which centers around cultural and arts resources• In addition to the nationwide expansion of cultural programs based on the “Japan Cultural
Expo”, the “beyond2020 program”, and the results of these programs, the government will
strengthen the dissemination of Japanese culture and arts both in and outside Japan throughinitiatives to enhance the brand power of diverse Japanese food and food culture andpromote international cultural exchange among artists and cultural facilities.
• In order to promote the strengthening of the functions of local cultural facilities, which playa central role in regional revitalization, the government will examine the review of measuresrelated to museums, etc., including institutional measures, from 2021.
• In order to develop about 400 tourism hubs and regions which centers around cultural
resources, the government will promote the development of cultural tourism hubs andregions based on the Cultural Tourism Promotion Act, improve the attractiveness of cultural
resources, such as Japan Heritage, strengthen the dissemination of these cultural resources,
and promote support for the approval and preparation of “Regional Plan for the Protection
and Utilization of Cultural Properties”. In addition, the government will promote efforts toutilize cultural facilities, such as art galleries and museums, for tourism, including thedevelopment of an environment to receive inbound visitors in anticipation of the post-

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COVID-19 era.
• In addition to adding high value to local cultural facilities and resources as cultural tourism
resources and promoting local food culture, the government will promote the creation of astrategic preservation and utilization cycle for cultural properties that have a core presensein the regions, through initiatives including the utilization of private funds. In addition,
taking the opportunity of the Amended Act on the Law for the Protection of Cultural
Properties, the government will promote efforts to hand down the cultural heritage andlifestyle of the regions, such as traditional events, while accelerating the survey andregistration of intangible cultural properties, etc. At the same time, the government will
strategically implement initiatives, such as carryng out of repairs atappropriate intervals,
securing of traditional repair tools, raw materials as well as technicians, and taking measures
to prevent disasters and crimes, to ensure that cultural properties are handed down to thenext generation.
• The government will further enrich hands-on cultural and artistic activities for children,
such as appreciation classes conducted by cultural and arts organizations that have been
impacted by the COVID-19 pandemic, and promote arts education in schools, etc. At thesame time, the government will promote the creation of an environment to support culturaland arts activities for people with disabilities and to enable them to continue to enjoy culture
and art.

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14. Realizing a Vibrant Japanese Economy in a New Environment of Global Competition(1) Leading the free, fair and rule-based international economic system
Based on the Action Plan of the Growth Strategy, the following specific measures will be taken
in addition to the measures described in the plan.
i) Maintaining and strengthening the multilateral trading system• In order to build a risk-resilient international economic system, such as driving a strong
economic recovery and boosting the resilience of the global supply chain affected by the
COVID-19 pandemic, Japan, in cooperation with other concerned countries, will promote
WTO reforms towards the 12th WTO Ministerial Conference (MC12) in the areas ofrestraining trade-restrictive measures for medical supplies, establishing rules in new fields,such as e-commerce or trade and climate change, and rules to ensure a level playing field,
reforming dispute settlement procedures, and strengthening of reporting and improving
transparency.
• In order to take the lead in rule-making in the digital field, Japan will accelerate efforts,
including the strengthening of the negotiation team, in cooperation with each country. In
particular, in the negotiations on electronic commerce with other concerned countries, thegovernment aims to achieve a high-standard outcome with as many WTO members as
possible, and will make substantial progress by the 12th WTO Ministerial Conference(MC12).
ii) Economic partnership negotiations and investment-related agreements• In addition to working to ensure the early entry into force of the RCEP Agreement and its
reliable implementation, Japan will lead discussions for the steady implementation andexpansion of the TPP11 Agreement as the chair of the TPP Commission in 2021. The
government will also promote other economic partnership negotiations speedily taking into
account strategic perspectives. Domestically, the government will work to promote theutilization of the EPA, and as part of such effort, promote the development of a businessenvironment related to trade, including the digitalization of certificates of origin, whileconsidering the systems of partner countries.
• While considering that the goal of concluding investment-related agreements with 100
countries and regions, which has been set in the “Action Plan to Promote the Conclusion of
Investment-Related Agreements to Consolidate the Investment Environment” announced in2016, the government will continue to promote initiatives that take into account the strategicand quality assurance perspectives with the aim of developing potential future investment
destinations and creating a business environment that is not inferior to that for investors in152

other countries. With regard to the agreements that are currently under negotiation, thegovernment will continue to work to achieve early conclusion, utilizing various diplomatic
opportunities. And when negotiating, ensuring the highest possible quality level is pursued.
With regard to new investment-related agreements, the government will make efforts to startnegotiations taking into account the specific needs of Japan’s business circles and thepolicies of the partner countries regarding investment agreements. The focus will be on Ltin
America and Africa when examine the feasibility of starting negotiations with countries thathave potential as future investment destinations will be considered. In order to promotefurther utilization of agreements that have been concluded, the government will strive toactively disseminate information on investment-related agreements.
iii) Establishment of international rules for DFFT
• In order to realize the concept of “Data Free Flow with Trust (DFFT)” agreed at the G20
Osaka Summit held in June 2019, the government will promote the establishment ofinternational rules that will serve as the basis for global data governance. To that end,promote initiatives in each field, such as trade, environment for data use, privacy, security,
reliability and infrastructure, based on the direction of Japan’s international data strategy,
which will lead to the creation of new value brought about by data.
• The government will strengthen international partnerships centered on like-mindedcountries that seek to preserve “a free and open Internet space” to protect the right of people
to freely access data, work to include stakeholders in and outside Japan to strengthenInternet governance, and lead international discussions for the Internet Governance Forum(IGF), which will be hosted by Japan in 2023.
• In order to regulate data localization and unrestricted government access, which are newrisks to the distribution of personal data, with the OECD Privacy Guidelines, while
promoting dialogue between the US, EU, and Japan on the development of an internationalframework for the reliable distribution of personal data, the government will promote
discussions on data localization and lead the discussions towards the formulation of higherlevel principles related to government access.
In anticipation of the post-COVID-19 era and also keeping in mind the growing interests
in green and digital transformation, the government will examine new KPIs to measure theprogress of policies on trade.
(2) Expanding cooperation with like-minded countries that share our fundamental values
Specific measures will be taken based on the Action Plan of the Growth Strategy.

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(3) Supporting overseas business expansion of Japanese companiesi) Overseas expansion of infrastructure systems
In order to realize economic growth through the export of infrastructure systems, various
measures have been promoted based on the “Infrastructure System Export Strategy” (former
strategy) formulated in 2013. Taking into account the recent changes in the environment
surrounding the overseas expansion of infrastructure, the government will promote various
measures based on the “Infrastructure System Overseas Promotion Strategy 2025” (newstrategy, December 2020), which sets the objectives of overseas expansion of infrastructure
systems into three key pillars: a) achieve economic growth through carbon neutrality anddigital transformation; b) contribute to resolving social issues and achieve SDGs in partnercountries; c) realize Free and Open Indo-Pacific, and the “Policy for the Steady Promotionof the New Strategy in Anticipation of Post-COVID-19 Era” (June 2021).
(Specific measures)• Promptly respond to changes in the environment caused by the COVID-19 pandemic. Whileutilizing each function of public financial institutions and multilateral development banks,
the government will continue to handle suspended projects, etc., provide international
cooperation in the fields of medical care, health, and public health according to the needs ofpartner countries, and provide support for supply chain resilience.
• Toward realizing carbon neutrality by 2050, the government will work to capture overseas
markets through joint development and demonstration for the utilization of Japan’s superior
technologies and the provision of support for the formation of overseas infrastructure
projects, while also promoting support for decarbonization transition policy-led
infrastructure exports. In addition, while also utilizing the JBIC Post-COVID-19 Growth
Facility and ODA, support the efforts of Japanese companies with decarbonization
technologies to strengthen their international competitiveness and develop sales channels.
At the same time, the government will promote the overseas expansion of infrastructure
systems in fields, such as disaster prevention and meteorology.
• Efforts for the strategic overseas expansion of 5G and other safe, secure and highly reliable
ICT infrastructure, in cooperation with partner countries, will be promoted the advancementof infrastructure development, maintenance and operation using digital technologies; theformation of projects to develop digital solutions, including services that utilize dataacquired from infrastructure; active use of FS and demonstrations that support theseprojects; the expansion of support to Japanese companies that utilize the “Japan Platformfor Driving Digital Development”; the international standardization of Japanesetechnologies and systems. The overseas expansion of ICT-based model infrastructure
systems in the fields of transportation software infrastructure, such as smart cities and MaaS,

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and medical and health care, disaster prevention, and agriculture will be promoted.
• The development and operation of ports, airports, railroads, etc. that contribute to enhanced
connectivity with the regions, and the development of roads to access these ports, etc., andthe overseas expansion of government ships will be promoted.
• In order to spread and practice the “G20 Principles for Quality Infrastructure Investment”,
which includes openness, transparency, economic efficiency, and debt sustainability, thegovernment will utilize public financial institutions and multilateral development banks toform high-quality projects, and also strengthen efforts to develop human resources. In
addition, collect, aggregate, and analyze information on local projects, and use advisors,lawyers, etc. to strengthen their expertise. Furthermore, support for the development of legal
systems in each country, including the dispatch of legal personnel to support theestablishment, operation, and improvement of legal systems and the development of humanresources in each country will be promoted.
• Public financial institutions, multilateral development banks, and public-private funds, etc.
will be utilized for the overseas expansion of Japanese companies, including PPP,
environmental measures including decarbonization, building partnerships with foreign
governments, and achieving SDGs. The formation of projects will be actively promoted by
NEXI through the LEAD Initiative.
ii) Business development of Japanese companies through promotion of SDGs andeconomic and social development of friendly nations and areas(Strengthening connectivity that contributes to the realization of a “Free and Open IndoPacific”)• In addition to strengthening connectivity through the development of high-quality
infrastructure in the Indo-Pacific region and promoting development of the area which is
free and open, the government will encourage the business development of Japanesecompanies in the region. Specifically, for the ASEAN region, we promote the developmentof infrastructure, such as major roads, railroads, ports, and airports that will serve asjunctions within and outside the region, develop human resources and strengthen networks
that support economic development, and implement industrial cooperation to build a crisisresilient economy through the “Japan-ASEAN Connectivity Initiative”, “Initiative on
Overseas Loan and Investment for ASEAN”, “Mekong SDGs Investment Partnership”, and“ASEAN-Japan Economic Resilience Action Plan”, etc. Also for the Pacific island countries,
Japan will promote initiatives on climate change and infrastructure development, which areplanned to be discussed at the 9th Pacific Islands Leaders Meeting. As for India, thegovernment will encourage Japanese companies to expand their operations to strengthen
their industrial competitiveness through the “India-Japan Industrial Competitiveness155

Partnership”. The reinforcement of diplomatic implementation structures, including
overseas diplomatic missions, which provide a platform for these initiatives will bepromoted.
(Support for the development of Africa for the 8th Tokyo International Conference on
African Development (TICAD8))• With a view to TICAD8, which will be held in Tunisia in 2022, the government will strongly
support the development of Africa both by the public and private sectors in anticipation of
the post-COVID-19 era, while promoting the expansion of Japanese companies to Africa,
including SDGs businesses, to expand business opportunities for Japanese companies. To
that end, we will promote close cooperation among JICA, JETRO, and private businesses,
taking advantage of such events as the “Japan-Africa Public-Private Economic Forum” andthe “Public-Private Joint Mission” and also taking into account the discussions at the Japan
Business Council for Africa. At the same time, the government will continue to make efforts
to develop industrial human resources and improve the business environment in Africa,
while also utilizing ODA.
(Promotion of the Program for Supporting SDGs Business and Japanese SMEs)• Through the JICA’s “Program for Supporting SDGs Business and Japanese SMEs”, we will
utilize ODA to match the development needs of developing countries and advanced products
and technologies of Japanese companies , and provide support for surveys on local andmarket situations by companies to contribute to both the overseas expansion of JapaneseSMEs and the development of developing countries.
(Acceleraton of STI for SDGs)• In order to promote the “Science, Technology and Innovation (STI) for implementing theSDGs (STI for SDGs)”, the government will support the formulation of the STI for SDGs
Roadmapofy Kenya in collaboration with India through the contribution to the World Bank.
In addition, we will consider the utilization of Japan’s know-how in science, technology,
and innovation to solve social issues in India, etc. through the contribution to the United
Nations Development Programme (UNDP). Furthermore, we will conduct verification
studies on the approaches of Japanese companies to tackle specific issues related to the
SDGs at the STI for SDGs Platform, which aims to promote business creation in developing
countries.
(4) Cool Japan, etc.
• The government will steadily implement the necessary measures to support Cool Japan (CJ)
sectors that have been severely impacted by the COVID-19 pandemic, such as the restaurant
business, tourism, culture and arts, and event and entertainment, and to ensure their survival
and further development.

156• The government will restructure the “CJ Strategy” (decided by the Intellectual Property
Strategy Headquarters on September 3, 2019), promote the cooperation between the related
ministries and agencies through the CJ Strategy Council, etc., and promote CJ initiatives by
digging deeper into the charm of individual fields, such as tourism, food, culture, art,
national parks, long-established businesses, and regions, strengthening cooperation between
sectors, and building a virtuous cycle of inbound tourism and exports.
• In order to keep people around the world interested in Japan and to develop new fans ofJapan, we will strengthen Japan’s ability to communicate as a whole by carefully examining
the contents of disseminating information, devising ways to tell stories, and utilizing means
appropriate in the digital age and projects, such as the Japan Cultural Expo. In addition, we
will support initiatives that optimally combine the real and online worlds to establish new
business models, taking into account the accelerating shift to a digital and online society.
• In order to ensure sustainable development of the content industry and other industries
related to culture and art, the government will examine the necessary measures for thedevelopment of human resources, the optimization of transactions related to production, andthe improvement of working environment, etc., while also keeping in mind the expansion
into overseas markets. In addition, from FY2021, it will further promote the development
and demonstration of systems that contribute to improving the efficiency of content
production and distribution processes, and disseminate the systems in cooperation withvarious industries.
• With regard to the overseas expansion of broadcasting content, the government will analyze
and examine measures to address rapid changes in the environment, such as the growth ofvideo streaming services, and with this, promote the charm of Japan, including the regions.
Additionally, initiatives to provide programs to overseas broadcasting stations free of charge
will be promoted.
• The government will verify the effects of attracting international film productions to Japanas their shooting destination, such as the promotion of the film industry through humanresource development, regional vitalization, and an increase in inbound tourism, while
taking into account the filming and release status due to the impact of the COVID-19
pandemic, and reach a conclusion on sustainable measures for attracting foreign film
productions to Japan as a shooting destination, including financial support.
• In order to further expand the export of Japanese alcoholic beverages, the government will
actively support the efforts of alcoholic beverage businesses to increase recognition, expand
sales channels, develop brands, and sake brewery tourism through online and other means,
and make efforts to disseminate and utilize Geographical Indications (GI) and to provide
technical support for developing high-value added products. Efforts will be made to inscribe
cultural resources such as Japanese sake, shochu and awamori, etc., on the Representative

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List of the Intangible Cultural Heritage of Humanity of UNESCO.
• The government will develop the necessary environment for the healthy and multifaceted
development of esports, while also taking into account the social significance of esports,such as its contribution to the realization of regional vitalization and symbiotic society, as
well as its utilization in education and social welfare.
• Overseas offices of Japanese diplomatic missions, Japan House, the Japan Foundation,
JETRO, JNTO, and other organizations are utilized to promote the charm of Japan to leadto exports and inbound tourism. The funds supplied by the Cool Japan Fund Inc are alsoutilized.
• In order to ensure cooperation among a wide range of stakeholders for the “CJ PublicPrivate Partnership Platform”, it will revitalize the activities of its members and strengthen
its networking and research functions to develop the platform into a more a systematic
activity.
• the government will promote preparations for the realization of the International
Horticultural Exposition to be held in Yokohama in 2027 to make it an opportunity todisseminate the Japanese model of green infrastructure for the realization of the SDGs andthe development of a green society.

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