## 2 Promoting Global Warming Countermeasures (Mitigation Measures)

## (1) Promoting Low-carbon City Development

In urban areas with a considerable concentration of human residents and buildings, low-carbon urban development plans produced by municipalities according to “The Low-Carbon City Act”, which came into force from the standpoint of the desire to advance “low-carbon urban development” in accordance with the consolidation of urban functions, the promotion of the use of public transit in connection with this consolidation, and the promotion of green conservation and greening initiatives, came to be formulated by twenty-two cities by the end of fiscal year 2015. “Low-carbon urban development” will continue to be promoted for initiatives under these plans through statutory special measures, taxation systems, fiscal measures, and other means.

### (2) Promoting the Development, Distribution and Optimal Utilization of Environment-friendly Vehicles a. Improving Mileage of Vehicles

Based on the Law Concerning Rational Use of Energy (Energy Saving Act), we are formulating fuel economy standards and disclosing fuel consumption for automobiles. We established the Automobile Fuel Economy Standards Subcommittee (a subordinate committee operating under the Council of Transport Policy) and have summarized the results of discussions pertaining to the introduction of the Worldwide Harmonized Light vehicles Test Procedures (WLTP).

Furthermore, the average fuel efficiency rate of gasoline passenger vehicles released in FY 2014 was approximately 4% higher compared to FY 2013, and we will continue in the efforts to further improve fuel efficiency.

### b. Framework for promoting improvements in fuel efficiency

A program for evaluating and publicizing performance in terms of the fuel efficiency of automobiles is being run to make it easier for consumers to identify and select vehicles that offer exceptional performance in terms of fuel efficiency. Stickers are affixed to vehicles to enable fuel performance in terms of fuel efficiency to be outwardly discerned by consumers.

### c. Promoting the dissemination of environment-friendly vehicles

After reviewing conditions for receiving eco-car tax reductions (vehicle weight tax and automobile acquisition tax) for an automobile offering excellent environmental performance (eco car) under the FY 2015 taxation system revisions, we implemented measures for obtaining preferential treatment in connection with the tax system by extending these tax reductions by two years and establishing a greening exemption tied to the light motor vehicle tax to go along with an exemption tied to the vehicle tax.

We are promoting urban development based on the use of environmental vehicles by providing subsidies for the acquisition of fuel-cell vehicles, electric vehicles, and micro-mobility vehicles from the standpoint of promoting global warming countermeasures. In addition, subsidies are being granted to truck and bus business operators for the acquisition of CNG automobiles $ ^{Note} $ , hybrid vehicles, and advanced environmental diesel trucks.

### d. Development, application, and creating a usage environment for next generation heavy vehicles

Since FY 2015, we have been pursuing scientific research to promote the development and commercialization of technologies relating to high-efficiency next-generation diesel engines and next-generation large-sized vehicles known as large-sized liquefied natural gas automobiles from the standpoint of reducing carbon footprints and emissions.