Provisional Translation

The Basic Policy for the
Realization of GX :Reference document

End-to-end roadmap for the next 10 years
2023

2024

2025

2026

2027

2028

2029

2050

2030s

2030

Government support integrated with regulation for GX investment to stimulate public-private investment

GX
EconomyTransition
Bonds

Carbonpricing
GX-ETS
incentivizes
early-stage
GX
investment(e.g., choosing areas for long-term multi-year “industrial competitiveness buildup and economic growth” x “emissions reduction”)
Offer support to businesses investing early, withfocus on existing technologies
Support commercialization/startup of new technologies

Stronger regulations and structural development to create demand for decarbonization and new industries(e.g., higher standards set by Act on Rationalized Energy Use, Sophisticated Methods Act, Building Energy Efficiency Act, and other provisions, as well as extended coverage and introduction of
public procurement, among other measures)

Incremental introduction of stringent regulations in line with technological stages

Issue GX Economy Transition Bonds
Experimental period (FY2023-)
・Supported by many companies,
accounting for over 40% of Japan’s
total CO2 emissions

Full-scale launch of emissions trading market (FY2026-)
・Actionsfor extending support base・Targets aligned with government policies, mandatory third-party certification
・Stronger discipline (through guidance, instructions, and compliance...)Carbon surcharge (FY2028-)
・Introduce carbon surcharge system for, e.g., fossil
fuel importers

Carbonsurcharge

Exploitnew
financial
tools

InsideJapan
Inside/outsideJapan

Further development
・Payment introduced
incrementally from FY2033(paid auction)

Develop/establish
blended finance tools

Establish/implement blended finance

Establish environment for green/transition
finance and other tools, communicate globally

Develop environment for sustainable financemarkets and many more

150+ trillion yen public-private
investment over next 10 years

Government Support
supportintegrated
with
regulation Regulation/structurefor GX
investment

Powerful supply of risk money by combining public funds andprivate finance for transitions and innovations in industries

Efforts to materialize AZEC initiative to push for energy transition in practical ways (e.g., accelerate AETI implementation, promote the JCM, and bilateral/multilateral energy partnerships)

Asia
Globaldeployment
strategy

Organize AZAC
ministerial meetings

G7 (hosted by Japan)

GlobalContinue organizing AZEC ministerial meetings(support in terms of technology, finance and human resources and policy coordination for market development aimed at spreading new technologies and reducing cost)

Extend practical approaches for transition globally

Create Clean Market, drive innovation collaborations (e.g., establish global methods for evaluating green products, create new value sets for appreciating reduction contribution of each business)

Leverage G7 and other global frameworks to lead global rule-making process, thereby disseminate Japan’s technologies

2<Future milestones> Case 1: Hydrogen and ammonia◼

Domestic targets for hydrogen/ammonia introduction: 3 million tons (ammonia equivalent) each by 2030, 20 million tons hydrogen and
30 million tons ammonia (ammonia equivalent) by 2050. Exploit support programs for building supply chains and establishing facilities
over the next 10 years to create large and resilient supply chain (for production/transportation/utilization).
2040
2023

2024

2025

Build large resilient supply chain
Establish “S+3Es” for hydrogen/ammonia

Target andstrategy

2026

2027

S: Safety in business operation
E: Energy security (stable supply) by diversifying sourcesand other measures

2029

Promotion stage - clear cost/introduction
goals(up to around 2025)
・Revise basic strategy and roadmap
・Formulate industrial strategy for
winning global market
・Formulate safety strategy(up to around 2030)
・Large-scale public/private investment
・Develop technologies to reduce supply costs
・Create demand by developing
market/environment

Develop/refurbish infrastructure

more than some ¥5 trillion

Target costs - hydrogen: ¥30/Nm3 (CIF)- ammonia: ¥15-19/Nm3-H2- hydrogen: ¥20/Nm3

Note) cost of supplying hydrogen: more than twice the natural gas cost,
cost of supplying ammonia: almost triple the coal cost

Volume introduced in Japan: 3 million tons
(hydrogen and ammonia together)
1% in power generation mix

Hydrogen: 20 million tons
Ammonia: 30 million tons

(launched around 2027 or after)

More than some ¥1 trillion

Develop technologies for large-scale transportation, (single-fuel) power generation, and purposes(-2024)2040s

Dissemination stage - demand
stimulation and supply stability

More than some ¥1 trillion

RTD to establish Japan’s technological superiority, build advanced research centers
Demonstration project for 20% ammonia co-firing

2030s

2030

E: Now “gray” >>> go environment-friendly (blue/green) quickly
E: Efficiency improvement and economic independence

Focus program establishment
stage

Build large resilient supply chain
GX
investment

2028

2050

>>> Invest more thansome ¥7 trillion overnext 10 years

Develop comprehensive regulation/support structure
Conceive comprehensive
regulation/support-package
programs
Develop programs aimed at support initiatives
focusing on price gap from traditional fuel(up to FY2024)

Regulation/
structure

In tandem with long-term
decarbonized power source auction

Develop framework for supporting facility
development projects aimed at creating massscale demand(up to FY2024)

Build large resilient supply chain inside/outside Japan for transitioning to clean hydrogen/ammonia

Market-building actions aimed at accelerating investment andcreating initial demand from public/private entities(e.g., GX League, growth-oriented carbon pricing, transition finance)

Accelerated investment and larger
initial demand leading todevelopment of independent supply
chain by private businesses

Formulate hydrogen safety strategy (by FY2022) Develop environment encouraging hydrogen/ammonia usage, including rationalization/optimization of safety and other regulations/rules
Support for providing JOGMEC risk money to produce, store, and other hydrogen/ammonia processes
Position/promote hydrogen/ammonia as non-fossil energy (Rationalized Energy Use and Sophisticated Methods Acts)

Industrial strategy for winning global market
International
strategy

Hydrogen industry strategy for(up to FY2023)
extended innovation support

Resource diplomacy to expand supply countries for building resilient supply chain and enhancing competitiveness
Survey, demonstration, and other actions for introduction support and user technologies in Asian and other demand countries

Lead international standardization discussions
Consider CO2 measurement methods, standardization/regulation for hydrogen/ammonia usage and control

3

<Future milestones> Case 2: Battery industry◼

Target is to establish a domestic annual manufacturing base of 150 GWh of batteries by 2030. Use Act on Rationalized Energy Use andother tools to approach demand side to create demand over the next 10 years, also focus on investment for battery manufacturing baseover the next five years.
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Public/private partnerships for enhancing domestic manufacturing base (investment, boosting production technologies, etc.)
150 GWh domestic manufacturing base (by 2030 at the latest)

Focus investment period
・DX and GX to establish/enhance advanced manufacturing technologies
・Establish mother factory platform with global deployment in scope

Build manufacturing base in Japanthat is internationally competitive>>> manufacturing process innovation and mass production to keep costs competitive

Automotive battery pack: under ¥10,000/kWh
Household battery system: ¥70,000/kWh Note)
Commercial/industrial battery system: ¥60,000/kWh Note)
Note) Installation costs included

Target andstrategySome 20 GWh manufacturing base

130 GWh investment decision

Develop next-generation technologies

・Establish all-solid-state and other types of large-capacity batteries and resource-saving
technologies
・Establish high-level recycling technology for batteries(around 2030)

・Develop structure for
producing all-solid-statebatteries

Stage gate
Invest in manufacturing lines for battery and material
GX
investment

Battery
manufactu
ring

mid-2030 or after
Introduce
innovative batteries

Full-scale
introduction of
all-solid-statebatteries

More than some ¥4 trillion>>> Invest more than some
¥7 trillion over next 10 years

Focus investment period
RTD (next-generation battery/material/recycling technologies): more than ¥3 trillion
・Develop solid state battery technology (design, material...) ・Separation/collection technologies for recycling batteries

Regulation/
structure

Battery
manufactu
ring
Demandforelectrified
vehiclesDemandforstationary
systems

Mechanism for visualizing CO2 emissions from battery production
Clear efficiency targets set by Top Runner program under Act on Rationalized Energy Use bypromoting xEVs including battery electric vehicle (BEV) development as well as performance
improvement

New passenger
cars sales: 100%xEVs

Introduce long-term decarbonized power source auction (FY2023) Drive to ensure decarbonized balancing power using batteries and other methods
Build market that household batteries and other distributed power sources can enter
Conceive programs for improving
performanceof home-use batteries

Establish international rules, formulate global standards...

Establish CFP international
standards for industrial LiB

Vehicle, stationary, and other types of batteries
can be connected to the grid as balancing power

Setting safety and other standards for stationary battery system

Strategic formulation of global alliance (Japan-US, Japan-Europe, Quad, G7...)・Securing finance for global supply ・Stronger partnerships with relevant entities outside Japan
Globalstrategy

New passenger cars sales:
50-70% next-gen. vehicles(20-30% EV/PHV)

Based on safety standards for industrial LiB andother rules to develop market outside Japan for
safe, high-performance batteries

2030
Secure global production
capacity of 600 GWh

4

<Future milestones> Case 3: Iron and steel industry◼

Clear the target of supplying 10 million tons of green steel in 2030 by leveraging the Act on Rationalized Energy Use, GX investment instep with structural reforms, and other measures to promote fuel/material switching (e.g., shifting to electric furnaces) while procuring
electricity priced at internationally competitive levels and winning global market shares through formulation of international rules.
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Seek multiple options while paying attention to international development to win promising markets, with an eye to net-zero GHG emissions by 2050
Target andstrategy

Quickly establish innovative technologies for hydrogen reduction steelmaking, efficient usage of electric furnaces, and other purposes
Quick establishment of green steel market

30% CO2 emissions (vs. FY2013)
Supply over 10 million tons of green steel

Invest in shifting production process from blast furnaces to electric furnaces (electric furnaces, power infrastructure, scrap yards...)e.g. Develop technologies for removing impurities for electric furnaces

Continuous investment
neededFull-scale demonstration(extended demonstration/introductionof innovative technologies andinvestment in advanced facilities
inside/outside Japan)

Introduce hydrogen reduction steelmaking technologies (e.g., COURSE50 facilities)

GX
investment

Capitalexpenditure

Modify COURSE50 systems

Full-scale demonstration

Introduce reduction iron production facilities and other systems
Invest in energy switching/reduction(switch fuels in auto power plants, make steelmaking process more
efficient and non-fossil, energy-efficient equipment...)

RTD

Introduce GX-ready production process(Decisions to convert existing production facilities will
be based on developments in international competition
and technological innovations)

RTD for hydrogen reduction steelmaking with external hydrogen supply, and other technologies
Develop elemental technologies
Build/test demonstration systems>>> Invest more than
¥3 trillion over next 10
yearsNote) Operation costs will be
incurred separately byusing clean energy
and other actions

Develop comprehensive regulation/support structure
Utilize non-fossil energy switching targets in the Act on Rationalized Energy Use to promote fuel/material switching
Regulation/
structure

Energyusage

Public/private
procurement

Stable procurement of electricity at internationally competitive prices(e.g., promote optimization of electricity demand via the Act on Rationalized Energy Use, and apply electricity prices to facilitate demandincreasing DR)
Promote government procurement of green steel by reviewing public procurement requirements
Actions including push for disclosure of Scope 3 emissions

Industrial strategy for winning global market
International
strategy

Establish a platform helping Japan lead the creation of global green steel market(e.g., establish measurement methods and definition for evaluating decarbonization of both electric and blast furnaces, develop
environment for using mass balance approach, and gather information internationally to support these initiatives)

Setting international
standards

5

<Future milestones> Case 4: Chemical industry◼

In order to complete structural transformation to green chemicals (e.g., processing 2.5 million tons in 2050) leverage the Act on Rationalized Energy Use, GX
investment support in step with structural reforms, and other tools over the next 10 years to promote fuel/feedstock switching (e.g., carbon cycling by chemical
recycling) while building a circulation system for plastic resources using the Act on Promotion of Resource Circulation for Plastics, reaching out to the global market
by formulating international rules.

2040
2023

2024

2025

2026

2027

2028

2029

2030

2030s

2050
2040s

Seek multiple options while paying attention to global development to win promising markets, with an eye to net-zero GHG emissions by 2050
270 thousand
tons processedby chemical
recycling process

Target andstrategy
Biomass
plastic:
60 thousand
tons

Promote collaborations across industries

Accelerate collaborations for building CN complexes

Early establishment of green chemical market
Develop RTD/business environment to establish carbon-circulating/decarbonized production process

1.5 million tons processed bychemical recycling process
Biomass plastic up to 2 million tons
(milestone)

Establish production process technologies based on carbon circulation(CO2-based production process for basic chemical products andammonia-fueled naphtha cracker)

Structural transformation investment (including RTD) (e.g., CO2-based production facility for chemical products, chemical recycling plants, and ammonia-fueled naphtha cracker)

RTD/demonstration for CO2-based chemicals production

Implementation/extension of CO 2--based chemicals production

Implement/extend chemical recycling plants
GX
investment

Carboncirculation/
decarbonization

RTD/demonstration for ammonia-fueled naphtha cracker

Ammonia-fueled naphtha cracker implementation

Energy switching/reduction investment (incl. RTD) (fuel switching in coal-fired auto power plants and other facilities, moving away from fossil fuel in various production plants, energy efficient equipment...)Switching to hydrogen, ammonia,

Fuel switching in coal-fired auto power plants (e.g., gas or biomass)e-methane...
Switching to hydrogen, electricity,
Fuel switching for glass melting furnace and other facilities (e.g., gas)and others
Utilize non-fossil energy conversion targets in the Act on Rationalized Energy Use
Electrificationof other facilities,
investment for energy efficient equipment, and other approaches
to promote fuel/material
conversion
Develop comprehensive regulation/support structure
Utilize non-fossil energy switching targets in the Act on Rationalized Energy Use to promote fuel/feedstock switching
Energy usage

In around 2050
2.5 million tons>>> Invest more than around¥3 trillion over next 10
yearsNote) OPEX costs will be
incurred separately byusing clean energy andother actionsNote) Decisions to convert
existing production
facilities will be based on
developments ininternational competition
and technologicalinnovations

Stable procurement of electricity at internationally competitive prices(e.g., promote optimization of electricity demand via the Act on Rationalized Energy Use, and apply electricity prices to facilitate demand-increasing DR)

Regulation/
structure

Resource
recycling

Leverage the Act on Promotion of Resource Circulation for Plastics and other tools to build a system for circulating plastics

Publicprocurement

Review requirements for public procurement

Reorganization/consolidation

Clarify the cooperation and collaboration thinking for building green society

After the review, the government will facilitate its public procurement of green chemicals

Leverage systemic frameworks and other tools and survey markets to optimize facilities

Industrial strategy for winning global market
International
strategy

Establish a platform helping Japan lead the creation of global green material market(e.g., develop environment for leveraging mass balance methods such as green chemicals, build a platform for this by gathering data internationally, standardization aimed at winning global markets, or any other actions)Publish global standards for mass balance method (2025)

6

<Future milestones> Case 5: Cement industry◼

In order to complete structural transformation to carbon-recycling cement (e.g., supplying 2 million tons in 2030), leverage the Act on Rationalized Energy Use, GX
investment support in step with structural reforms, and other tools over the next 10 years to promote fuel/material switching (e.g., transformation to cement
production process using CO2 capture method) while creating predictable demand through public procurement and other approaches and reaching out to the global
market by formulating international rules.

2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Win carbon-recycling cement market
Seek multiple options while paying attention to global development to win promising markets, with an eye to net-zero GHG emissions by 2050
Target andstrategy

CO2emissions:−11.6% vs.
2013

CO2 emissions: -15% vs. 2013

Stronger competitiveness by collaborations across industries to build CN society

In around 2050
18 million tons

Carbon-recycling cement market established quickly

Carbon recycled cement
2 million tons

Develop RTD/business environment to establish carbon-circulating/decarbonized production process

Social implementation of CO2-capturing cement
production technologies

Structural transformation investment (including RTD) (e.g., CO2-capturing cement production facilities)

GX
investment

Carboncirculation/
decarbonization

Develop/demonstrate CO2-capturing cement production process

Social implantation/extension of CO2capturing cement production process>>> Invest more than around¥1 trillion over next 10 years

Other CCU facilities (e.g., methanation)

Energy switching/reduction investment (incl. RTD) (fuel switching in coal-fired auto power plants and other facilities, moving away from fossil fuel in various production plants,
energy efficient equipment...)Fuel switching in coal-fired auto power plants (e.g., gas or biomass)

Switching to e-methane, ammonia...

Note) Operation costs will be
incurred separately by using
clean energy and other actions

After 2030
Electrification of other facilities, investment for energy efficient equipment, and other approaches

Develop comprehensive regulation/support structure
Utilize non-fossil energy switching targets in the Act on Rationalized Energy Use to promote fuel/material switching
Energy usage

Regulation/
structure

Stable procurement of electricity at internationally competitive prices(Promote optimization of electricity demand leveraging the Act on Rationalized Energy Use and other actions)

Resource
recycling

Build raw material and fuel system for cement by waste recycling

Publicprocurement

Review requirements for public procurement

Push for government procurement of carbon-recycling cement and CO2 reduction concrete

Industrial strategy for winning global market
International
strategy

Establish a platform helping Japan lead the creation of global market for carbon-recycling cement(Examples: standardize volumes for capturing/storing CO2, develop environment for promoting the use of green cement
and concrete with eco-friendly additives, and gather information internationally to support these initiatives as well as
standardize for winning global market)

Build upon the success of Japanese
NSP kiln models, aim to selltechnological licenses and standardize
volume of captured CO2

7

<Future milestones> Case 6: Pulp/paper industry◼

In order to complete structural transformation of pulp/paper industry (e.g., switch to bio-refineries), leverage the Act on Rationalized Energy Use,
GX investment support in step with structural reforms, and other tools over the next 10 years to promote fuel/material switching while creating
predictable demand through public procurement and other approaches and reaching out to the global market by formulating international rules.
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Seek multiple options while paying attention to global development to win promising markets, with an eye to net-zero GHG emissions by 2050
Target andstrategy

CO2emissions: Stronger competitiveness by new collaborations across industries to build CN society−15.9%
vs.2013 Early establishment of green material market

CO2 emissions: 38%
reduction from 2013
CNF composite material
Market size ¥2 trillion

2050¥6 trillion

Develop RTD/business environment to establish bio-refineries in production process
Structural transformation investment (including RTD)
(e.g., investment for bio-refinery transformation, investment for CNF production facilities helping reduce fossil-based resin usage)

RTD/demonstration aimed at bio-refinery transformation

Implement/extend bio-refinery facilities

Social implementation and extension of CNF production facilities helping reduce fossil-based resin usage
GX
investment

Carboncirculation/
decarbonization

Energy switching/reduction investment (incl. RTD) (fuel switching in private power stations and other facilities,building advanced energy supply/demand structure by renewing recovery boilers...)Switching to hydrogen, ammonia, e-

Fuel switching in coal-fired auto power plants (e.g., gas or biomass)
methane...
Building advanced energy supply/demand structure by renewing black liquor recovery boilers
Electrification of other facilities, investment for energy efficient equipment, and other approaches

Develop comprehensive regulation/support structure>>> Invest more thanaround ¥1 trillion overnext 10 years
Note) OPEX costs will be
incurred separately byusing clean energy andother actionsNote) Decisions to convert
existing production
facilities will be based on
developments ininternational competition
and technologicalinnovations

Utilize non-fossil energy switching targets in the Act on Rationalized Energy Use to promote fuel/material switching
Regulation/
structure

Energyusage

Stable procurement of electricity at internationally competitive prices(Promote optimization of electricity demand leveraging the Act on Rationalized Energy Use and other actions)Publicprocurement

Review requirements for public procurement

Based on the result, push for introducing green material to government procurement

Industrial strategy for winning global market
International
strategy

Establish a platform helping Japan lead the creation of global green material market(examples: develop environment for leveraging bio-refineries, and gather information internationally to support these initiatives as well as standardize forwinning global market)

Develop methods to evaluate CNF products’ performance

For example, CNF market is expected to
grow by being accepted as automotive parts,
especially in advanced environment-friendly
countries (in Europe and elsewhere) - seize
this opportunity

8

<Future milestones> Case 7: Automotive industry◼

Make automotive industry carbon neutral (example: new passenger cars sold in 2035 - 100% xEVs) by leveraging Act on Rationalized
Energy Use and other tools over the next 10 years to facilitate investment in develop, improve performance, and introduce xEVs, whilesteadily adapting to international rules to reach out to the global market.
2040

2023

2024

2025

2026

Seek multiple options for achieving automotive CN(Building many paths by best combinations of power trains andenergy/fuels through innovations)

Building electricity-powered society
Target andstrategy(Set up charging/filling infrastructure indispensable for xEV dissemination)

2027

2028

2029

Develop each manufacturer’s xEV model
range to accelerate xEV dissemination
Accelerate infrastructure development in linewith expanded xEV introduction
Full-scale introduction of self-driving carsand collaboration with other industries tobring new mobility services

Transform car usage(Sustainable mobility service leveraging digital technologies,
efficiency/productivity improvement in logistics...)Note) Basic Policy on Economic and Fiscal Management and Reform 2022 (Cabinet decision of June 7, 2022)
With regard to cars, in order to clear the goal of having 100% of the new cars sales to be so-called electrified vehicles (xEVs: electric cars, fuel cell cars, plug-in hybrid cars, and hybrid cars) by
2035, facilitate massive introduction through measures such as promoting large-scale investment for batteries, support for buying cars, and development of charging/filling infrastructure, as well
as facilitating transition of small-/middle-sized suppliers and other businesses, while also considering the possibility of using synthetic fuel for internal combustion engines in the future.

xEVs

Some ¥12 trillion

Investment required for dissemination of electrified commercial vehicles

Some ¥3 trillion

Some ¥9 trillion

Battery production/RTD investment (see appendix)

Some ¥7 trillion

xEV infrastructure investment

Some ¥1 trillion

Carbon-recycling fuelSome ¥400 billion

Infrastructure

Manufacturing

Efficiency
regulation

Regulation/
structure>>> Invest more than around¥34 trillion over next 10
years

Some ¥1 trillion

Clear efficiency targets set by Top Runner program under Act on Rationalized Energy Use by promoting xEV development
as well as performance improvement
Passenger vehicle standards 2030
Passenger vehicle standards 2020

Small freight vehicle standards 2022
Heavy duty vehicle standards 2015

Non-fossil
energyusage

International
strategy

Manufacturing process decarbonization

2040s

・New xEV sales target
・All new・New xEV sales target
Passenger cars:passenger cars Commercial (up to 8.0 tons
Next-generation vehicles sold: 100%
Total of xEVs and vehicles
50-70%(20-30% EV/PHV)
ready for synthetic or any
xEVs
Commercial (up to 8.0 tons):
other decarbonized fuel:xEVs: 20-30%
100%Commercial (over 8.0 tons):
・Commercially available
Pilot project to introduce
synthetic fuel5,000 vehicles(Accelerated
・Install charging infrastructurecommercialization)in 150 thousand places,
including 30 thousand public
quick-chargers, together with1,000 hydrogen stations

Investment required for dissemination of electrified passenger vehicles
RTD (for next-generation automotive CN)
GX
investment

2030s

2030

2050

Small freight vehicle - next-step standards (P)Heavy duty vehicle standards 2025

Facilitate switching to non-fossil energy for freight movers/
owners through the schemes under the revised Act on
Rationalized Energy Use

Heavy duty vehicle next-step standards (P)Freight carrier/shipper setting ambitious targets for non-fossil switching by FY2030

International cooperation for automotive CN (G7, G20, ASEAN, Asia Zero Emission Community, ZEVTC, Glasgow Breakthrough...)Incorporating global/overseas regulations/standards/rules (chargers and CO 2 emission evaluation methods under in LCA)
2024-: battery rules in Europe
2035: EV/FCV
100% in Europe
California target for PHEV/EV/FCV: 35% in 2026, 68% in 2030, 100% in 2035

9

<Future milestones> Case 8: Resource circulation industry◼

To accelerate resource circulation by arteriovenous collaboration and establish an independent and resilient resource circulation system, build an information
distribution platform and other mechanisms using digital technologies over the next 10 years, leading to the creation of resource circulating markets by reviewing
institutional frameworks to accelerate arteriovenous collaboration and supporting GX investment in step with structural reforms.
2040
2023

2024

2025

2026

2027

2028

2029

2030

2030s

2050
2040s

Social implementation of CN/CE-ready resource circulation system/facility

Target andstrategy

Circulareconomymarket size some ¥50 trillion

Double the volume of recycled metal resource (discarded electronic substrates and batteries)

Double recycled plastics, introduce 2 million tons of biomass plastic

Circular economy
market size - some
¥80 trillion

10% of aviation fuel used by Japan’s airlines switched to SAF

Build solar PV panel recycling facilities and reuse/recycling systems
Investment for accelerating resource circulation

GX
investment

Arterial
investment,
venousinvestment(Arterial)
・Introduction of manufacturing facilities for products using low-/zero-carbon circulatedresource (recycled/bio-based material)
・Introduction of manufacturing facilities for material-saving products
・Introduction of facilities for lease/sharing services(Venous)・Introduction of metal/Lib/solar PV recycling facilities
・Introduction of plastic recycling facilities
・Initiatives for producing/supplying sustainable aviation fuel (SAF) based on biomass waste
and other eco-friendly material>>> Invest more thanaround ¥2 trillion over next
10 yearsMore thanaround¥2 trillion

Review institutional framework to accelerate arteriovenous linkage
Arteriovenous
linkage

Regulation/
structure
Platform
development

Setting targets for introducing/supplying circulated resource, and other arteriovenous initiatives foradvancing resource circulation throughout the entire supply chain
・Circulation-oriented design deep-dive, labels showing the percentage of circulated material component,
building a resource circulation system for stable supply of circulated resources...
Using digital technologies to build information distribution platform for ensuring traceability and other mechanisms

Measure/disclose circulation rate and CO2 emissions...
International cooperation for bringing circular economy(G7, G20, ASEAN, Expo 2025 Osaka, Kansai, Japan...)International
strategy

Compliance with the revised Basel Convention, measures to facilitate procuring recycled metal resources from Asia and other sources outside Japan

Compliance with plastic pollution treaty

10

<Future milestones> Case 9: Houses/buildings◼

To realize houses/buildings fundamentally designed to use energy efficiently (e.g., new houses/buildings built in 2030 to have energy
efficiency on par with ZEH/ZEB levels), extend/enhance regulation coverage over the next 10 years by leveraging the Building Energy
Efficiency Act and other policy tools.
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Push the improvement of energy efficiency in houses/buildings for net-zero GHG emissions by 2050
Disseminate new houses/buildings with ZEH/ZEB-class energy efficiency
Target andstrategy

Disseminating energy efficiency renovations

2030

2050

・Ensure newhouses/buildings
Higher energy efficiency standards for insulated windows and other building material, push for wider application have energy
efficiency ofDemonstration/promotion of building material aimed at improving their performance
Review Building Material Top Runner program and take other actions for more stringent regulations
ZEH/ZEB-class Note)

Wider introduction of wood structures
New houses/buildings: investment required for ZEH/ZEB-class energy efficiency
Existing houses/building: investment required for renovating houses/buildings with low energy efficiency(including investment required to develop/disseminate insulated windows that have performance that far exceeds Building Material Top Runner targets)

Focus support for introducing insulated windows
CO2
reduction

SavingenergyRegulation/
structure

Wider usage of building materials with higher efficiency (including insulated windows)

Investment required for using wood in non-residential/medium- and high-rise buildings
Mandatory compliance with energy efficiency
requirements for new houses/buildings basedon the Building Energy Efficiency Act

Raising energy efficiency requirements to ZEH/ZEB levels Note) (nolater than FY2030)

Add spec residential complex to the
Housing Top Runner program based on
the Building Energy Efficiency Act

Raise Housing Top Runner standards to ZEH level

Enforce energy efficiency disclosure requirements for house/building
Review/disseminate window performance
disclosure requirements

CO2
reduction>>> Invest more thanaround ¥14 trillion overnext 10 years

Early-stage review of FY2030 targets for the Building Material Top Runner program under the Act
on Rationalized Energy Use, also extend the program coverage

e.g. Fire resistance margin design for woodmaterial to be extended to large
structures

Rationalize structural standards for wooden buildings and other facilities

Note) Additional 20% reduction from the current energy
efficiency standard for houses except for renewable energy
sources, 30-40% reduction for other buildings except for
renewables (20% for smaller structures)

Continuously reviewed

GX
investment

Savingenergy・Ensure ZEH/ZEBclass energy
efficiency on averagefor house/buildingstock

Promote use of wood leveraging the Act on Promoting Wood Structures in Urban Environment and other policy tools
International
strategy

ZEB demonstration and dissemination for ASEAN and other markets outside Japan
Leverage international standards to differentiate from other countries’ products

Independent global
outreach11

<Future milestones> Case 10: Digital investment aimed at decarbonization◼

In order to develop semiconductor industry, continuously invest in semiconductor business and relevant supply chains into 2030s for
successful GX, and push for social implementation of next-generation semiconductor, photonics electronics convergence, and otherfuture technologies. Furthermore, leverage these technologies to promote CN in data centers (DCs).
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

2050
2040s

Maintaining/enhancing a semiconductor
ecosystem for ensuring the sustenanceproduction platform for advanced
semiconductors that ensures GX, DX,(around 2030)economic security, and other requirements
as well as highly indispensable
Establish production technology for next-generation
Japan-US partnership to develop production technology for next-generation semiconductors
semiconductors.
semiconductors, investment for mass production
by around 2027
by around 2030•
Increase total (semiconductor-related) sales of companies making
semiconductors in Japan to more than ¥15 trillion in 2030
Dissemination and full-scale introduction of indigenous•
Build resilience into a wide range of semiconductors and relevant SC
next-generation semiconductor and•Improve semiconductor power efficiency by improving performance
Develop photonics electronics convergence technology indispensable for GX
Second half of 2020s(around 2030)
Between second half ofExpedited/continuous enhancement of production platform for IoT semiconductors(Adding resilience to advanced semiconductors helping GX, highly indispensable semiconductors, and relevant SC) by around 2030

Target andstrategy

Inside data centers (DCs)・Photonics electronics convergence
・Disaggregated computing

Including between DCs
・Photonics electronics convergence
・Disaggregated computing

From RTD to social implementation for next-generation memory and other components targeting 2030s to realize next-generation computing platforms

2030s and 2040
Realize photonics
electronics convergenceinside package

From RTD to social implementation of future technologies
Accelerate energy-saving in DCs, expand green DCs

GX
investment

DC CN by 2040

Adding resilience to advanced semiconductors helping GX, highly indispensable
semiconductors, and relevant SC - more than around ¥5 trillion
RTD and social implementation of next-generation semiconductor, photonics
electronics convergence, and other technologies - more than around ¥6 trillion>>> Invest morethan around¥12 trillion in GX
over next 10 years

Continuous digital investment forsuccessful GX

Disseminate energy efficient DCs some ¥1 trillion
Semiconductor
facility investment

Regulation/
structure

Semiconductor
RTD

DC development

・Business commitment for continuous production ensure successful GX
・Active additional investment to expand production (2023 onwards)
Business commitment for steady social implementation of RTD results (2023 onwards)
Extend the scope of benchmark scheme under the Act on Rationalized Energy Use toexpand energy efficient information processing environment (2022 onwards)
Japan-US partnerships for RTD and social implementation of next-generation semiconductor, photonics electronics convergence, and othertechnologies (Leverage frameworks such as the Basic Principles on Semiconductor Cooperation and the joint task force agreed by the leaders of both Japan and the U.S.)

International
strategy

RTD (up to around 2027)

Social implementation

Leverage GAMS, QUAD, and other multilateral spaces to build relationships with willing countries/regions for resilient andcomplimentary supply chain, ensuring a stable supply of semiconductors indispensable for GX. (2022 onwards)

12

<Future milestones> Case 11: Aircraft industry◼

In order to decarbonize aircraft industry while simultaneously achieving economic growth with next-generation aircraft, develop
demonstration model by 2030s and also take actions for establishing international rules as well as study specific measures such as
frameworks relevant to mandatory CO2 reduction under the 2050 net-zero emissions target (ICAO agreement).
2040
2023

2024

2025

2026

2027

2028

2029

2030s

2030

Decarbonize aviation industry while simultaneously achieving economic growth with next-generation aircraft<Focused technological development and strategy formulation>
Target andstrategy・Conceptual research, development of core technologies for next-generation aircraft,develop demonstration environment, build structure for domestic/international partnerships
・Focus study for international rule-making<Technological demonstration and market creation>
・Develop/demonstrate flight system by integrating elemental technologies
・Develop demonstration model of next-generation aircraft
・Create market by engaging with international rule-making initiatives<Flight
demonstration>
・Evaluate safety, businessfeasibility, and other factors
for social implementation

2050
2040s

Realize next-generation aircraft (introduction of small
aircraft in the second half of 2030s or beyond)

Next-generation aircraft
development/mass-production stage(application of the relevant
technologies to larger aircraft is within
scope)

Realizing steady growth of aircraft market through development/demonstration of SAF production technologies, introduction of fuel-efficient aircrafts, and other actions
Create demand for next-generation aircraft in line with basic principles set by ICAO’s net zero emissions target and revised Civil Aeronautics Act
Increased supply of indigenous SAF

Public/private investment for next-generation aircraft - more than around ¥4 trillion

GX
investment

Core technologies

AircraftConceptual research on next-generation aircraft(Marketability, environmental impact, technology...)Develop technologies for next-generation aircraft (electrification,hydrogen technology, weight saving, and efficiency improvement )Build demonstration model of next-generation aircraft
Integrate elemental technologies, system development,
ground demonstrations)

Develop demonstration environment inside Japan(New test facilities in line with energy source transformation, facilities for validating the entire system...)Mass-production

technologies

demonstration

Flight demonstration(Use existing test beds
suited to each technology
for demonstration)Note) Fuel-efficient aircrafts will be introduced as required

Public/private SAF investment: production technology development, mass-scale demonstration, production facilities, and so on
Develop (biomass-based) SAF production

Flightdemonstration>>> Invest more thanaround ¥5 trillion overnext 10 years

Around ¥1 trillion

Massive investment for production facilities and other equipment

SAF
Develop (synthetic fuel) SAF production technologies

International
Regulation/
structure

InsideJapan

Pilot plant demonstration

Further development to reduce
cost

Study specific measures such as frameworks relevant to mandatory CO 2 reduction under the 2050 net-zero emissions target (ICAO agreement)
Preliminary discussions for ICAO Assemblies in 2030s and beyond
Preliminary discussions for 2028 ICAO AssemblyPreliminary discussions for 2025 ICAO Assembly
Study/promote specific measuresincluding frameworks relevant to mandatory CO2 reduction

Create decarbonization promotion plans for airlines based on the government’s basic policy for promotion of decarbonization inaircraft sector (revised Civil Aeronautics Act)...
Create decarbonization promotion plan

Facilitate decarbonization promotion plan

net-zero GHG emissions
by 2050 in the field ofinternational aviation

Strategic partnerships with manufacturers outside Japan for next-generation aircraft
Study partnership strategies
International
strategy

Extended strategic partnerships for technology demonstrations and building demonstration aircraft

AircraftEstablish international rules (safety standards for new technologies), formulate global standards
Build structure for domestic/international partnerships

SAF

Engages incrementally with rule-making process for each technology

Build structure for partnering with raw material suppliers outside Japan, build structure for having indigenous SAF
registered and certified as CORSIA-compliant fuel, initiatives for raising SAF mixture rate under ASTM regulations

13

<Future milestones> Case 12: Zero-emission ship (maritime industry)◼

In order to clear goals such as net-zero GHG emissions for international shipping by 2050 and those set by the Plan for Global WarmingCountermeasures, establish regulatory and structural frameworks by leading initiatives such as the introduction of zero emission ships and so on as
well as discussions to establish international rules over the next 10 years to build up international competitiveness of maritime industry.
2040
2023
2023

International
shipping
Target andstrategy

Revision of IMO’s
GHG reduction
strategy

2024

2025

2026

2027

2028

2029

・Building international rules by working from both technical and economic aspects
・Introduction of zero emission ships and so on, promotion for their wider acceptance・Develop manufacturing capacity and establish environment for training seafarers on zero emission ships and so on
2026

2027

up to 2028
Start commercial
operation of ammoniafueled ship

Start commercial
operation of hydrogenfueled ship・Introduce more energy efficient ships, push for their wider acceptance

Regulation/
structure

tons reduction(vs.
Dissemination 1,810,000
of ammonia-fueled
ships
2013)

Develop manufacturing capacity for hydrogen/ammonia-fueled ships
Some ¥200 billion
Develop manufacturing capacity for ships carrying cargos such as hydrogen, ammonia and liquefied CO2

Seafarers

Development/introduction of training simulators for seafarers on hydrogen-/ammonia-fueled ships

International
rules

SafetySeafarers

Economic/technical measures set by
IMO

Dissemination of electric ships
and so on

CO2 emissions: -17% vs. 2013

Shipbuilding

Environment(vs. 2008 levels)

Dissemination of hydrogenfueled ships

Dissemination of electric ships and so on

GX
investment

100% reduction(vs. 2008 levels)

Wide acceptance of ships fueled byhydrogen, ammonia and so on
2030

Actions for clearing CO2 reduction targets in FY2030

Note) Additional investment for ships in comparison to traditional types

50% reduction

2030 onwards

・Introduction of zero emission ships and so on some ¥2.9 trillion Note)
Shipping

2040s
targets proposed
2040 by Japan 2050

Actions to clear GHG reduction strategy goals

Develop ships fueled by hydrogen,ammonia and so on
Start experimental
Start experimental
operation of ammonia- operation of hydrogen(Green Innovation Fund)fueled ship
fueled ship

Domestic
shipping

2030s

2030

2050

Some ¥2.5 billion>>> Invest more than around¥3 trillion over next 10
yearsNote) Additional operation costs
will be incurred by using zero
emission fuels and othermaterial

Enforce economic/technical measures

IMO guidelines for the safety of ships
using hydrogen/ammonia as fuelIMO guidelines for seafarers on hydrogen/ammonia-fueled ships
Comprehensive review of the STCW Convention Note)

Note) The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers,

Lead discussions for revising the above GHG reduction strategy
International
strategy

Lead discussions for creating the above
economic/technical measures
Establish Green Shipping Corridors Note) within QUAD frameworkNote) Establish two or three shipping corridors with low orzero emissions between Japan, US, Australia, and India

14

<Future milestones> Case 13: Bio-manufacturing◼

To build a bio-economic society, push for developing bio-manufacturing technologies and introducing bioplastics and other various bio-based products to a wider
audience. To facilitate transformation to bio-based processes, advocate establishment and standardization of programs for evaluating environmental values,
together with creation of predictable demand through public procurement and other measures, leading to the development of markets inside and outside Japan,
thereby stimulating investment inside the country.
2040
2023

2024

2025

2026

2027

2028

2029

2030

Total around ¥92 trillion

Bioplastics - introduce some2 million tons

Introduction of sustainable bioplastics

・Establish technologies through RTD

2040s

Build world’s leading bioeconomic society
Market size (global)

・Establish bio-first attitude
・Attract talents/investment and supply goods/services to the market by creating bio-communities
・Push for data integration aimed at bio-digital fusion
Target andstrategy

2030s

2050

・Cost reduction, mass production, and demonstration for social implementation
・Creating rules in line with RTD movements

GHG reduction of
1.35 billion tonsSize of alternative
market created bytransition investment(Global)Some ¥65 trillion

GHG reduction of
4.21 billion tonsSize of alternative
market created bytransition investment(Global)Some ¥199 trillion

Market conversion inside Japan
Winning markets outside Japan

Study and activate regulatory/support measures for creating/expanding demand

Capital investment for converting to bio-processes
GX
investment

Carboncirculation/
decarbonization

More than around ¥2 trillion

RTD for advanced functionalities, cost reduction, adapting to different raw material...
(Manufacturing technologies for bio-based products to realize carbon recycling, Green Innovation Funds...)

RTD for social implementation

More than around ¥1 trillion

Mass production demonstration, field test for social implementation

Extend thevariety/functionality ofchemical products that can be
manufactured commercially

Introduce bio-manufacturingmethods using atmospheric
CO2 for raw material>>> Invest more than around ¥3 trillion
over next 10 years throughpublic/private initiatives
Social implementation/cost reduction/market development

Carboncirculation/
decarbonization

Regulation/
structure

Publicprocurement

Promote certifying and awarding credit scores for environmental values gained by bio-based products suchas CO2 absorbent/emission reduction
Extending public procurement scopes to wider range of bio-based products

・Diversifying into agriculture and other fields
CreatedemandInternational
strategy

Further extension of public procurement scopes in line with diversified standards andproduct lines

Creation of initial demand

From social implementation to full-scale introduction to Japan market

・Seek programs for shifting from fossil-based to bio-based products
・Build eco-system for using/collection of bio-products

Strategic formation of global alliances for biotechnologies, economic security...
(e.g., Japan-US, Japan-Europe, and QUAD)
Facilitate creation of international standards for definition, product labels...

Promote further international standardization
based on latest RTD aimed at dissemination

Winning overseas market incompliance with international
rules

15

<Future milestones> Case 14: Renewable energy◼

To maximize the introduction of renewable energy sources, strive for social implementation of next-generation renewable energy technologies over the
next 10 years by, for example, establishing a structure for mass production of next-generation indigenous solar PV panels and developing large-scale
offshore wind projects.
2040

2023

2024

2025

2026

2027

Maximize the introduction of renewable energy that can coexist with local communities

2028

2029

2030

Bring renewable power generation mix to 36-38%

2030s

2050

2040s

2030 Introduce next-generation renewable
technologies

Indigenous next-generation solar photovoltaics (including perovskite)
Establish technologies
through user-side
Extend demonstration-ready fields
demonstrations

Target andstrategy

Establish specific actions forcreating demand, set relevant rules

Total project capacity of over 1.0 GW every year

Formulate offshore wind projects
Consider targets for
introducing floating models

Project formulation in linewith 2030 Energy Mix

Social implementation in markets
inside/outside Japan

Quickly build structure for production of
GW-class equipment aiming FY2030

Start operation of more than one large offshore wind project in standard areas
based on the Act on Promoting the Utilization of Sea Areas for the Developmentof Marine Renewable Energy Power Generation Facilities▲2030: 10 GW
project total
capacity▲2040:
30-45 GW project
total capacity

Appropriate execution of FIT/FIP programs, accelerated GX investment for initiatives led by local communities to introduce renewables (some ¥2 trillion each year) [FY2011: 10.4%, FY2021: 20.3%, FY2030:36-38%]

Cap burden on citizens (leverage auctions, demand-side leading introduction of renewables without depending on FIT/FIP)

Solar PV

[FY2011: 0.4%, FY2021: 8.3%, FY2030: 14-16%] RTD for next-generation solar PV cells, mass-scale demonstration, establish mass production systems

Expand mass
production structure[FY2011: 0.4%, FY2021: 0.9%, FY2030: 5.0%]

GX
investment

Develop cost-reducing technologies

Demonstration projects for floating wind in different sea areas

Auction for floating models

Social implementationof floating models

Wind
Build large and resilient supply chain for wind turbines and their components, floating foundations, and other elements of offshore wind industry>>> Public/private
investment of more thanJapan-style centralized approach for wind data (FY2023-) and submarine geotechnical surveys used as basis for auctions (bidding from FY2025 onwards)
Geothermal
Hydro[FY2011: 7.8%, FY2021: 7.5%, FY2030: 11%] Initial stage business feasibility study, renovation of existing facilities

Bio[FY2011: 1.5%, FY2021: 3.2%, FY2030: 5.0%] Wider and appropriate introduction in compliance with life-cycle GHG and other sustainability standards

Institutional measures
for strengthening
business discipline

Regulation/
structurearound ¥20 trillion overnext 10 years[FY2011: 0.2%, FY2021: 0.3%, FY2030: 1.0%] Geothermal resource surveys, RTD for innovative geothermal power generation

Steady implementation of programs with collaborations between relevant ministries and municipalities, timely and appropriate reviews as required
Steady management of disposal cost reserve program, planned response to mass-scale disposal in the second half of 2030s (appropriate reuse/recycling and/or disposal)

Review rules for replacement/addition/capacity increase
Set targets for different
facility types

Long-term power source

Maximum exploitation of existing renewables (solar PV of almost 60 GW)

Promote introduction of renewables by public sector planning/implementation leading the way, install solar PVs on around 50% of public buildings or more wherever applicable (in FY2030)
Solar PVs installed on 60% of new houses (in FY2030)

Leverage next-generation solar to further increasedemandOffer support for introduction based on the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities, formulation of projects based on the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities, facilitate
introduction based on the Promotion of Global Warming Countermeasures, Building Energy Efficiency, Civil Aeronautics, Airport, Promoting Generation of Electricity from Renewable Energy Sources Harmonized with Sound Development of Agriculture, Forestry and Fisheries, and other Acts, as well as push for using more non-fossil energy
based on the Act on Rationalized Energy Use and Sophisticated Methods Act

International
strategy

Solar PV
Wind

International deployment strategy based on
Asia Zero Emission Community and otherideas

Setting international standards for evaluation methods through partnerships with international research institutions
Promote international standardization of offshore floating wind, with a view to reaching Asia

Independent global
outreach16

<Future milestones> Case 15: Next-generation network (grid and balancing power)◼

In order to maximize the introduction of renewable energy, build a resilient next-generation electricity network by accelerating grid development based on
the Master Plan while promoting DR based on the Act on Rationalized Energy Use over the next 10 years.
2040

2023

2024

2025

2026

2027

Build next-generation network

2028

2029

2030

Bring renewable power generation mix to 36-38%

2030s

Establish Master Plan
(2022)
Outlook for
introducing
stationary batteries
up to 2030

2040s

2030

Mass-scale introduction ofrenewable energy bydeveloping next-generation
network

Grid development
Target andstrategy

2050

Align with the Master Plan to accelerate grid developmenta. Accelerated introduction/utilization of batteries, b. maintain/enhance pumped storage hydro, c. introduce hydrogen/ammonia, d. extend demand

Building balancing power response

Complete existing inter-grid connection projects (-FY2027)
Grid

Grid development in line with the Master Plan

Some ¥6-7 trillion

Install submarine DC transmission cables between Hokkaido and Honshu
GX
investment>>> Public/private investmentof more than aroundAccelerated introduction of stationary battery systems that can be leveraged as balancing power(a. Offer support for introduction and other assistance to establish business model, b. develop environment for smooth grid connection, c. extend profit-making opportunities)

Balancing
power

Leverage hydrogen for balancing power, produce hydrogen inside Japan using water electrolyzers leveraging surplus renewables andothers¥11 trillion over next 10
years

Accelerated introduction of controls systems required for demand response
Establish Master Plan (FY2022)
Grid

Create environment for supplying required funds (multi-trillion yen scale)(Develop a mechanism for smoothly raising funds needed for grid development)
Grid development in line with the Master Plan
Long-term decarbonized power source
Introduce auction system (FY2023)
Drive to ensure decarbonized balancing power using pumped storage hydro, battery, and other methods

Regulation/
structure
Balancing
power

Facilitate DR among large-scale consumers based on the Act on Rationalized Energy Use, build market that home-use batteries and other distributed power sources can enter...

Conceive programs for improving performance ofhome-use batteries
International
strategy

Vehicle, stationary, and other types ofbatteries can be connected to the gridas balancing power

Setting safety and other standards for stationary battery system

Electricity system: using large projects in Japan as basis for reaching out to overseas market

17

<Future milestones> Case 16: Next-generation advanced reactor◼

Ensuring safety as top priority, develop/build next-generation advanced reactor embedded with new safety mechanism.

2040

2023

2024

2025

2026

2027

2028

2029

2030

2050

2030s

2040s

Accelerated development in line with technological stages Note) Target dates for RTD milestones based on interviews with different operators and other parties.
(Actual commissioning dates and other milestones for construction projects will be decided according to plans created by operators, on the condition that approval from host communities can be gained.)innovative
light water
reactor

Production/
construction

Detailed design

Basic design

OperationNote) Commercial
reactor

Small lightwater reactor

Target andstrategy

Detailed
designBasic design

Conceptual design

Production/
construction

OperationNote) Demonstration
reactorFast
reactorConceptual design

Basic design

Detailed
designProduction/
construction

OperationNote) Demonstration
reactorHigh
temperature
gas-cooled
reactor

Detailed
designBasic design

Production/construction

OperationNote) Demonstration
reactor

NuclearfusionConceptual design

Detailed design

Production/constructionNote) Prototype reactor

Establish business environment for next-generation advanced reactor and focus RTD investment
GX
investment

Establish business environment for advanced light water reactor, develop RTD platform for developing/building next-generation advanced reactor
RTD, design, and other activities for facilities
demonstrating high temperature gas-cooled reactor
and fast reactor

Development, construction, operation, and other activities for high temperature gas-cooled reactor and fast reactor >>> invest around¥1 trillion over next 10 years

Facilitate introduction through regulations for energy usage
Regulation/
structure

Introduce long-term
decarbonized power source
auctionFacilitate introduction by building business environment for steady management of long-term decarbonized power source auction and other activities

Facilitate introduction by “mandatory non-fossil power source percentage” provisions in the Sophisticated Methods Act

Facilitate development and win markets outside Japan through international partnerships
International
strategy

Use Japan-UK High Temperature Gas-cooled Reactor Cooperation, Japan-US Fast Reactor Cooperation, Japan-France Fast Reactor Cooperation, and other programs to join demonstration reactor projects outside Japan, win overseas markets
Suppliers with competitive edge reaching out to overseas markets, increasing the number of suppliers with potential to operate outside Japan

Winning markets outside Japan18

Except for maritime/automotive/aircraft<Future milestones> Case 17: Transportation sector Note)
industries already mentioned◼

The transportation sector accounts for almost 20% of Japan’s total CO 2 emissions. In order to transform the demand structure and save energy as well as use more non-fossil fuels forrail and other transportation modes as well as human and goods movements, based on the Act on Rationalizing Energy Use and other provisions, facilitate initiatives for switching toclean energy sources in planned and strategical manners over the next 10 years so as to increase private investment in transportation business and other relevant industries.

2040
2023
Human

2024

2025

2026

2027

2028

2029

2030

2030s

2050
2040s

Promote net-zero GHG emissions in public transportation sector, advocate using public transportation

movement
Goods
movement

Seek decarbonized logistics for net-zero GHG emissions by 2050
Promote 2H3T movement Note) utilizing railway asset and initiatives encouraging railway use Note) Use less energy(Herasu), create(Tsukuru) /carry(Hakobu)/store(Tameru)/use(Tsukau) renewable and other forms of decarbonized energy

Target andstrategy・Set directions for 2H3T and other initiatives (surveys)

Accelerate 2H3T and other initiatives

・Accelerate renewables power generation/transportation utilizing railway assets
・Promote sector coupling with urban planning and community-encompassing mobility projects

・Support programs for 2H3T and other initiative

・Realize railway sector CN before 2050
・Contribute to reduce CO2 in other sectors by leveraging railways

Railway

Facilitate introduction of energy efficient/CO2-saving vehicles andfuel-cell railway vehicles
・Pilot project to introduce energy efficient/CO2-saving cars vehicles (some going to JR
and other operators)

・RTD/demonstration for fuel-cell railway vehicles (establish basic technologies)
・Grants to subsidize vehicles

・Disseminate energy efficient/CO2-saving vehicles and fuel-cell vehicles
more widely・Further RTD/demonstration for fuel-cell vehicles

Social implementation of fuel-cell railway vehicles(Develop commercial models aimed at implementation, create environment...)Accelerate introduction of EV (bus/taxi) to public transportation sector, support community-level energy management systems...
Humanmovement

Goods
movement

Advocate travelling on public transport by improving public transportation network service, facilitate social implementation of MaaS
Decarbonize logistics facilities, improve efficiency and other aspects of logistics
・Introduce energy efficient/CO2-saving cars
・RTD/demonstration for fuel-cell railway vehicles
・Introduce solar PVs, batteries,and other technologies

GX
investment

・Introduce more energy efficient/CO2-saving cars
・Further RTD/demonstration for fuel-cell railway vehicles
・Introduce more solar PVs, batteries, and other technologies

・Social implementation of fuel-cell railway vehicles
・Increase share of GX-ready railway vehicles and otheradvanced models sold outside Japan

RTD/demonstration for the integrated hydrogen stations in key regional cities acting as hydrogen supply centers

Commercialization of the integrated hydrogen stations

RTD/demonstration for hydrogen supply chain inside Japan taking advantage of existing rail freight transport networks and stocks

Social implementation of supply chain

Railway

Advocate travelling on public transport by improving public transportation network service, facilitate modal shift to rail freight transport

Carbon neutral railway project (provisional)
Research
Prepare CN execution plan

Note)

Build new lines based on CN execution planNote) Construction of new lines with net zero CO2 emission leveraging CO2-saving facilities and cars

Sequential operation launch, bringing carbon neutral railway

up to 2024
Human

movement

Goods

Regulation/structure

movement

Target: 1,200 plans

Facilitate the creation of local public transportation plans based on the Act on Revitalization and Rehabilitation of Local Public Transportation Systems

Certify/support initiatives for improving efficiency in logistics based on the Act on Advancement of Integration and Streamlining of Distribution Business

Non-fossil
sourceFacilitate railway operators’ switching to non-fossil energy sources based on the Act on Rationalized Energy Use

usage

Deregulation

International
strategy

Establish/review technical requirements for fuelcell railway vehicle and the integrated hydrogen stations

Seize initiative in creating international standards for fuelcell railway vehicles and the integrated hydrogen stations
Rail
way

Promote railway vehicles and other technologies with GX advantages outside Japan
Establish technological platforms for fuelcell railway vehicles and the integrated hydrogen stations, such as fuel cell packages, also promote them outside Japan19

<Future milestones> Case 18: Infrastructure areas◼

To decarbonize industries and ports while enhancing their competitiveness, development of Carbon Neutral Ports (CNP) and decarbonization of their construction
processes will be promoted. Introduction of renewable energy sources by leveraging airports, roads, dams, sewers, and other components of infrastructure, athorough reduction of energy consumption, and development of cities and communities that will help decarbonization, among other projects, will be facilitated.
2040
2050
2023
CNP

Target andstrategy

2025

2026

2027

2028

2029

Facilitate carbon neutral port (CNP) projects (Create plans for promoting port decarbonization, add advanced and pro-decarbonization functionality to port facilities, build environment for accepting hydrogen, ammonia fuel, and other decarbonized energy sources)
Achieve net-zero GHG emissions throughout the entire life cycle (promote building material that can reduce CO2 in directly managed construction work, innovative construction machines (e.g., electrified, hydrogen, bio), and ICT-controlled work in directly managed and municipality-managed construction projects)

Promote leveraging spaces available at airports, roads, dams, sewers, and other diverse infrastructure that can be utilized to introduce/disseminate solar PVs, hydro, biomass, and other types of renewable energy sources / thorough reductionof energy used by those infrastructure
Use energy more efficiently throughout the entire city by introducing green urban planning, push for introduction of green infrastructure...

Introduce construction materials that can reduce CO2, innovative construction machines (electrified, hydrogen, bio...), and ICT construction machines

Energy conservation andrenewable energy byleveraging infrastructure andother resources

Decarbonize vehicles/equipment used at ports, introduce LED lights to private berths, install solar PV power generation facil ities, decarbonize work vessels...

Construction
work

Save energy used for airport buildings (focus introduction of more efficient equipment, BEMS, and other technologies when replaced, use LED for lighting/lamps), shift airport vehicles to EV/FCVUrban
planning

CNP

Introduce advanced/LED road lights, push for installing EV chargers at roadside rest stop, and public roads in general
Demonstration projects on public roads

Assist research on Dynamic Wireless Power Transfer that supplies electricity to the car while driving (-2023)

・Develop environment for leveraging river boats for public construction work, introducing flap gates and other mechanisms to manage riverine control systems without using power・Hybrid dams and other projects for generating more electricity by hydro (introduce advanced dam control systems, adding dam height to control waterflow and generate more electricity...)treatment facilities)

Further introduction of maximum solar PV and others technically possible to airports, roads, sewer systems, navigation signal s, and other public facilities
Investment for urban structure transformation with Compact Plus Network and other measures , evolution of areal energy systems, advanced and environment-friendly private urban development ventures, and urban green spaces by implementing green infrastructure and other nature-based
solutions
Wider introduction of facilities required for supplying fuel to LNG-/hydrogen-fueled vessels, or other emissions-reducing material, as well as decarbonized cargo operation machinery
Note) Clarification of roles ports and harbors play in the Basic Policies, introduction of mechanism for facilitating CNP construction, addition of port facilities required for supplying fuel to LNG-/hydrogen-fueled vessels, or other emissions-reducing material, less stringent regulations for structure
purposes, single point of contact for licensing and other administrative processes

Revised Port and Harbor Act Note) enacted (2022)

Launch program for certifying innovative construction machines

Revision of standards and other requirements for dissemination of construction materials that can reduce CO 2
Extending the scope of machinery certification (to electrified models), incentivizing the use of certified machinery in directly managed construction work

Energy conservation andrenewable energy byleveraging infrastructure andother resources

Facilitate training ICT implementation workers on both client and consignee sides, visualization of construction site data to drive efficiency improvement, among other actions

Urban
planning

CNP
Construction
work

Energy conservation
and renewableenergy by leveraging
infrastructure andother resources

Maximum implementation at suitable dams and rivers

Install power generation equipment using biomass digestion gas from sewers (technological development through innovative sewer technology demonstration projects, dissemination of sewer treatment technologies by developing carbon neutral community model

Pilot project for using construction materials that can reduce CO2
Construction
work

International
strategy

2040s

Energy conservation
and renewables byleveraging
infrastructure andother resources

CNP

Regulation/
structure

2030s

2030

Construction
work

Urban
planning

GX
investment

2024

Extending the scope of machinery certification (to fuel cells, hydrogen engines...)Note) Also facilitate the development of incentive programs such as the pilot construction project for zerocarbon infrastructure in Hokkaido

Each airport administrator to create decarbonization promotion plans based on the government’s basic policies for promoting aviation decarbonization (revised Civil Aeronautics Act and Airports Acts)
E.g. Discussion on allowing drivers to temporarily leave highways for recharging, installation of EV chargers and hydrogen stations at roadside rest stop, development of technical guidelines for placing solar PV power generation systems on roads
Discussion on promoting ways to leverage river boat traffic, establish standards and requirements for

Building environment for river boat traffic to reduce CO 2, facilitating the application of non-powered technologies to other areas through standardization...

non-powered technologies

Sounding private businesses and other entities, surveys (for hybrid dams)

Program design for increasing hydro power generation and energizing local communities by creating new frameworks for public-private partnership(Advanced operations, fund allocation rule discussions, building mechanism for facilitating programs by engaging local initiatives...)Promote Compact Plus Networks through location optimization plans and other measures under the Act on Special Measures concerning Urban Reconstruction (CO2 reduction by consolidating urban functionalities, promoting the use of public transportation...),
introduce private investment mechanism for green infrastructureInternational cooperation about CNP Initiative (Japan-US CNP Cooperation, Quad Shipping Taskforce, etc…) and establishment/trial/operation of certification program for port terminal decarbonization with an eye for international deployment
Export innovative construction machines to Europe and other environmentally advanced regions to capture demand outside Japan, compliance with international standards for ICT construction work
Align with the Kumamoto Initiative for Water (April 2022) to promote acceptance of high-quality infrastructure leveraging technologies that can balance climate change mitigating actions and countermeasures outside Japan (operation improvement and modernization of existing dams, deploy sewer
biomass power generation systems...)Extending energy efficient infrastructure technologies internationally20

<Future milestones> Case 19: Carbon-recycling fuel (SAF, synthetic fuel, e-methane)◼

In order to promote the usage of SAF, e-fuel, e-methane, and other products that can help decarbonization, work on developing/demonstrating
technologies and capital investment, while developing regulations/structures and coordinating discussions on the establishment of international rules overthe next 10 years.
2040
2023

Target andstrategy

2024

2025

2026

2027

2028

2029

2030s

2030

SAF

・Create demand for SAF by advocating ICAO’s target of achieving net zero emissions by 2050 as well as basic policies based on the revised Civil Aeronautics Act
・Realize stable production/supply of indigenous SAF by developing production technologies, mass-scale demonstration, large investment for production facilities for thistype of fuele-fuel

RTD and upscaling of production facilities for reducing synthetic fuel costs, strategic formation of production sites for carbon recycling fuel intandem with creation of hydrogen/ammonia supply chain, creation of rules for CO 2 emissions when the fuels are used, and other actions to drive
the shift from fossil fuel with a focus on aircraft, automobiles, vessels, and other modes of mobility.

emethane

Leveraging the advantage that new supply infrastructure or demand-side actions are not required, a. quickly establish massproduction technologies and b. CO2 emission rules, while c. realizing mass production/supply by large investment.

Mass-production
demonstration

Increased supply of indigenous SAF

Pilot plant demonstration

Technology verification/demonstration based on existing technologies for synthetic fuel production

2050
CN

2040

・Commercialize synthetic fuel(Maximum acceleration)

2050
Domestic introduction: 90%Note) Same price level with LNG

Domestic introduction: 1%

Increase supply>>> Invest more thanaround ¥3 trillion overnext 10 years

Massive investment for production facilities and other equipment

Develop highly efficient and mass-scale production technologies for synthetic fuelGX
investment

2040s

10% of aviation fuel used by Japan’s air transportation
operator in 2030 switched to SAF

2030
・Introduce synthetic fuelPublic/private SAF investment: production technology development, mass-scale demonstration, production facilities Some ¥600 billion
Develop (biomass-based) SAF
production technologies

2050

Further development to reduce cost

Massive investment for production facilities
and other equipment

Increase
supplyMassive investment for production facilities and other equipment

Public/private synthetic fuel investment: production technology development, production facilities, and more Some ¥400 billion
Begin domestic supply using innovativetechnologies

Public/private e-methane investment: production technology development, production facilities, and more Some ¥2 trillion

Activities including development and introduction of technologies for mass production and cost reduction/introduction of biomethane/demonstration and introduction of methanation production and usage in Japan in littoral areas and manufacturing sites leveraging hydrogen and renewable energy
FS and detailed design for overseas production project (Stage 1)

Invest in overseas production project (Stage 1)

Begin domestic supply
Further investment for overseas production project (Stage 2-)

Regulation/
structure

International
strategy

SAF

・Study specific measures such as frameworks relevant to mandatory CO2 reduction under the 2050 net-zero emissions target (ICAO agreement)・Create decarbonization promotion plans for airlines based on the government’s basic policies for promoting aviation decarbonization (revised Civil Aeronautics Act)e-fuelDiscuss the non-fossil switching targets for gasoline and other provisions under the Sophisticated Methods Acts, study/develop mechanisms for certifications and transferring environmental values

emethane

Study/develop mechanisms forcertifications and transferring
environmental values
・Seek various ways to offer support

Sophisticated Methods Act targets to facilitate supply-side usage
Private businesses building independent supply chain

SAF

・Build collaborative systems with feedstock suppliers and other players outside Japan to ensure stable supply of feedstocks for SAF production inside Japan, and also to win SAF markets in Asia and other areas

e-fuelJoint programs with other countries to start supplying in Japan and increase the volume, coordinate actions to establish CO 2 emission rules

emethane

New goals to facilitate supply-side usage

・Build structure for having indigenous SAF registered and certified by the ICAO (for environmental sustainability, GHG emissions evaluation, and other qualities), initiatives for raising SAF mixture rate under ASTM regulations

Coordinated actions with Project
candidate countries (Stage 1) toestablish CO2 emission rules

In line with the coordinated actions, discuss multilateral rules for CO 2 emissions

Coordinated actions with Project candidate countries (Stage 2-) to establish CO2 emission rules
Capturing demand for switching fuel to natural gas and advanced ways of using natural gas in Asia and other regions

Capture demand for switching from natural
gas to e-methane21

<Future milestones> Case 20: CCS◼

In order to secure the annual CCS capacity required for achieving net-zero GHG emissions by 2050, build advanced CCUS value chain and win
CCUS markets in Asia over the next 10 years, and also develop CCS business acts as quickly as possible to create business environment forlaunching businesses by 2030.
2040

2023

2024

2025

2026

2027

2028

2029

Target andstrategy

GX
investment

Longterm
strategy

Building
value
chain

Compile long-term
roadmap

Develop business environment for launching CCS businesses (injecting pressurized CO 2) by 2030
Create/fine-tune CCS action plans
・Annual storage target
・Target cost・Technology development guidelines
・Candidate site research plan

2030s

2030

2050
2040s

Annual storage volume in 2050: 120-240 million tons (tentative)

Review the progress of other CO2 emission control measures, periodic reviews of storage
targets (volume and cost).
(Note) Tentative target: 120-240 million tons stored - some 10-20% of emission)

Quickly building advanced CCUS value chain
More than around ¥4 trillion
・CO2 separation/capturing business (building capabilities within industries with large emissions)
・Transportation business (building ports, pipelines, and other facilities)
・Storage business (developing suitable sites and storage facilities)
・Build a mechanism for stably supplying CO2 to CCU/carbon-recycling businesses>>> Invest more than around¥4 trillion over next 10 years
Note) Additional investment of double-digit trillion yen will
be needed to clear the tentative goal of storing 120240 million tons in 2050

Invest in sustainable investment for advanced CCUS value chain
JOGMEC supply risk money to support CCS business

Regulations
for advanced
technologies
Regulation/
incentive

Create CCS business acts (assoon as possible)
Incorporate advanced and cost-reduction technologies to CCS business acts
Position thermal power generation with CCS as environment-friendly energy, encourage their usage (Sophisticated Methods Act)

Incentives

Develop programs to give incentives, credits, and other advantages
Promote CCS outside Japan (strategic acquisition of CCS interests from economic security perspectives, integration with global market through credit program)International
strategy“Leveraging Asia CCUS Network to establish CCUS market in Asia”(Pilot project by 2025, market created by 2030)
Facilitate site development and interest acquisition by partnering with QUAD members, Middle Eastern countries, and other nations, drive joint projects for advanced
technologies and safety

Support the creation of international credit program and help harmonization

22

<Future milestones> Case 21: Food, agriculture, forestry, and fisheries industry◼
◼

Based on the Strategy for Sustainable Food Systems, MIDORI (launched in May 2021) and MIDORI Act (established in April 2022 and enforced in July2022), promote initiatives to transform the agriculture, forestry, fisheries and food industries to decarbonize and reduce environmental burden.
Forest, agricultural land, seaweed forest, other places where the agriculture, forestry, and fisheries operate play an indispensable role as greenhouse gas
sink in achieving net-zero GHG emissions by 2050. Their function will be enhanced by stakeholders’ behavioral changes and other methods in order toattract private investment.
2050

2040

2023

2024

2025

2026

2027

2028

2029

2030

2030s

2040s

Build sustainable food systems by the Strategy MIDORI (by achieving zero CO2 emissions in agriculture/forestry/fisheries, and other measures)net-zero GHG emissions
by 2050

Green growth for economy and society realized by forest, forestry, and wood industries
Target andstrategy

GX
investment

・R&D for electrification of agriculture machinery・Conversion to hybrid horticulture facilities
・Renewable power generation leveraging local biomass resources
・Visualization of greenhouse gas reductions, facilitate J-Credit utilization
・Implemention of elite-tree, digital technologies, and other innovations in forestry
・Development/dissemination of modified lignin and other new wood-derived
materials, utilizing them in urban structures

Making・Demonstration / dissemination of new environment control technologies
agriculture/forestry/・Demonstration / introduction of local production for local consumption energy fisheries zero CO
2emissions industries
management system
・More investment for private businesses and other entities to leverage forest resources
・Mass production and usage of new wood-derived material to move away from fossil
resources

Investment for structural transformation(Energy-efficient agriculture machinery, heat pump, local production for local consumption renewable
power generation facilities, airborne laser scanning for advanced forest resource data...)R&D

Zero emissions horticulture facility, VEMS (Village Energy Management System), modified lignin technologies to replacehigh-performance plastics...

Initiatives/innovation to reduce environmental burden based on the Strategy MIDORI and MIDORI Act
Regulation/
structure

Consumers behavioral changes by visualization of decarbonization in agriculture/forestry/fisheries, increase supply of environmentally-friendly agricultural products

Leverage/promote nature-based credits (forest/agricultural land/ blue carbon as carbon sink) to help businesses reduce GHG and carbon neutral
management
International
strategyWork through the Japan-ASEAN Midori Cooperation Plan and other frameworks to promote the Strategy MIDORI as a model for initiatives in Asia monsoon regions. Also
vigorously push for implementing technologies that can help mitigate climate change impacts through joint international research in the Asia monsoon regions and otherplaces23

<Future milestones> Case 22: Community and daily life◼

In order to decarbonize communities and daily life, deploy designate Decarbonization Leading Areas, accelerate implementation of priority measures
proactively for administrative work and projects in municipalities, including businesses owned by them, and spread initiatives of regional decarbonization
throughout Japan, and also encourage behavior change and life style transformation through new national movements and other programs to create
widespread demands for decarbonized products, and facilitate structural transformation of industries and society based on characteristics of each
community.

2030

by around 2025

up to 2030

Create more than 100 Decarbonization Leading Areas
Clear FY2030 reduction targets for greenhouse gas reduction in buildings sector

Target andstrategy

Clear pioneering targets set in line with government action plans

2040

2030s

2050

2040s

Achieve decarbonization in many
communities before 2050, transition to next
period in which local societies, having
surmounted challenges for theircommunities, are resilient and energized

Regional revitalization achieved

・Renewable energy, stationary storage batteries, xEVs, private transmission lines ・Next-generation solar PVs (including perovskite)・Houses/buildings (ZEB/ZEH and insulation-improvement renovation)
・Produce/use green hydrogenNote) New technologies will be applied as they are developed

International
strategy

Decarbonization Leading
Areas

Regulation/
structure

Designate Decarbonization Leading
Areas to encourage competition
between different areas
Accelerate support through grants andspecial provisions for municipality finance

Nationwide deployment of regional decarbonization

GX
investment

Stronger local government action plans as
requirement for grants and other support
Visualize municipality initiatives’ progress

Focus support
Enhance initiatives through local government actionplans program

Accelerate priority measures focus actions through grants andSpecial Grants to Local Governments
・Engage residents and businesses to accelerate region-wide decarbonization
・ Proactive decarbonization of administrative processes
in municipalities, including businesses owned by them

Focus support

PPA model support, assist local businesses in installing CO2-reducing facility, electrification, fuel switching, and other actions

Support offered through the Japan Green Investment Corp. for Carbon Neutrality and local financial institutions
Encourage behavior change, lifestyle transformation, and stimulate demand through new national movements and other programs

Make cities more decarbonized and more resilient through city-to-city collaboration
Facilitate formation of international cooperative programs for regional decarbonization in collaboration
with stakeholders

24

Future steps for renewable energy policy-2025- Spring 2023

2030

2050

[Build next-generation network]●Fully leverage the potentials of sites suited to renewable energy facilities by installing submarine cables for DC transmission from Hokkaido (new 2 GW capacity (FY2030))●Enhancing east-west inter-grid connection by scaling 50-60 Hz conversion capacity (from 2.1 GW to 3 GW (FY2027))●Grid development based on the Master Plan due FY2022 (some ¥6-7 trillion: estimate by the Organization for Cross-regional Coordination of Transmission Operators, JAPAN)●Develop environment for raising funds (several trillion yen) needed for grid investment (extension of period covered by grid development subsidy (allocated from renewable energy tariff revenues
and other sources), loans by public organizations)[Secure balancing power]●Accelerated introduction of stationary battery systems- Establish introduction outlook for 2030, stimulate private investment- Market development and other actions to create more revenue opportunities, develop environment enabling smooth grid connection,
introduction assistance and other measures to help businesses become self-sustainable quickly

a. Grid development and securingbalancing power for mass-scale
introduction of renewable energy●Long-Term Decarbonized Power Resource Auction- Use the long-term decarbonized power source auction to be launched in FY2023 to facilitate investment for rechargeable batteries,
pumped storage hydro, hydrogen, ammonia, and other decarbonized power sources with balancing power●Leverage hydrogen and ammonia- Build large and resilient supply chain, encourage domestic production using surplus renewable energy and other sources
Establish comprehensive structure based on regulation-support package, including support focusing on price gaps from existing
fuels and support for facility development

Volume to be introduced(hydrogen/ammonia)
2030: 3 million tons / 3 million tons
2050: 20 million tons / 30 million tons

[Accelerated innovation]●Indigenous next-generation solar PVs (perovskite, rooftop and wall surface installations)
From user-side demonstration (FY2023-) to demand creation (FY2026-) to early-stage GW-class mass production (FY2030)

Solar
2030: 104-118 GW●Offshore wind
From setting target for introduction of floating types (FY2023) to offshore demonstration of floating types (FY2023-) to bidding for floating types (second half of 2020s)
From centralized wind data and submarine geotechnical surveys (2023-) to auctions based on the results (2025-)[Maximum introduction of indigenous renewable energy]

Total project capacity ofover 1.0 GW every year

Formulate offshore windprojects
2030: 10 GW
2040: 30-45 GW●More stringent regulatory measures for stronger business discipline●Leverage auctions and new programs (FIP) to alleviate burden on citizens (FY2022-)
b. Maximum introduction of●Extended introduction of renewable energy coexisting with local communities
indigenous renewable- Public sector leading by example: install about 50% of applicable structures (6.0 GW)
energy- Facilitate renewable energy that can coexist with local communities using promotional district program under the revised
36-38% in 2030
(Cabinet decision of October 2021)
Act on Promotion of Global Warming Countermeasures and other methods (8.2 GW)●Maximum exploitation of existing renewable energy (solar PV: some 60 GW): facilitate additional investment toincrease output and turning them into long-term power sources●Steady management of disposal cost reserve program, planned response to mass-scale disposal in the second half of
2030s

25

Future steps for nuclear energy policy- Spring 2023

- Spring 2024

[Already restarted] 10 units (western Japan)(by this winter)●Strive to shorten construction period, coordinate regular inspection
schedules...
>>> ensure up to nine units are operational

2030

2050

a. Accelerate restart(20-22% in 2030)>>> ・Voluntary initiatives to improve safety
・Coexisting with host communities
・Better communication with different
population groups[Construction approved] seven units (including eastern Japan) Note) Different
levels of progress in construction●Safe and smooth construction work, steady restart(Next summer/winter-)(Takahama Units 1/2, Onagawa Unit 2, Shimane Unit 2)●Initiatives to secure local communities’ agreement(Kashiwazaki-Kariwa, Tokai Dai-ni)

ー Government at the front line of contact, structural reform ofoperating organization...
[Application for construction approval]
10 units already applied, nine unapplied for(mid-2020s onwards)●Better bilateral communication for fair and just assessment●Initiatives for securing agreement, business environment creation...

b. Achieve net-zero GHG
emissions by 2050,
stable supply[Actions with perspectives for developments after restart]●Ensure alternatives exist: develop/build next-generation advanced reactor,
review operational lifespan, or other options●Ensure predictability: facilitate nuclear fuel-cycle, establish procedure forsteady and efficient decommissioning, complete overhaul ofgovernment-led initiatives to realize final disposal site, and otheractions

26