Japan Enacts Bill to Promote Green Transformation
11:31 JST, May 13, 2023
Tokyo, May 12 (Jiji Press)—The Diet, Japan’s parliament, on Friday enacted a bill to promote so-called green transformation to drive a transition to a carbon-neutral society.
Under the new law, the government aims to realize over ¥150 trillion in public-private investments. To this end, the government will issue ¥20 trillion in green transformation bonds over the 10 years from fiscal 2023.
The law includes wording added during parliamentary debates that stresses the significance of a “fair transition” for a smooth labor shift for decarbonization.
The bill was approved by the House of Councillors, the upper chamber of the Diet, on April 28 and sent to the House of Representatives, which passed it into law Friday.
Funds to be raised through the bonds will be used to support large-scale investments that would be difficult for the private sector alone.
The securities will be issued as transition bonds, not environmental bonds whose use is limited primarily to the renewable energy field.
Projects eligible to receive the funds include those for thermal power generation through mixed combustion of hydrogen and ammonia, which emit no carbon dioxide when burned, and those to develop and build next-generation nuclear reactors.
The government will redeem green transformation bonds by fiscal 2050 with funds procured through a carbon-pricing scheme requiring businesses to pay for their CO2 emissions. Under the scheme, it will collect fees from fossil fuel importers from fiscal 2028 and make power suppliers buy CO2 emission quotas from fiscal 2033.
"Politics" POPULAR ARTICLE
-
China Firm ‘Developed System to Manipulate Public Opinion’; Leaked Information Describes Hijacking Social Media Accounts (UPDATE 1)
-
Japan, U.S., S. Korea Coast Guards Sign Pledge to Strengthen Cooperation
-
Japan’s Opposition Party CDPJ Sweeps 3 By-Elections in Lower House (UPDATE 1)
-
Japan Considering Bid to Join Australia’s Frigate Project; Boost to Domestic Defense Industry Expected
-
Japan’s LDP Battles to Avoid ‘Total Defeat’ in By-Elections; Opposition Party Guards against Overconfidence
JN ACCESS RANKING
- Weakening Yen Adds Complexity to BOJ’s Rate Hike Decisions; Rising Commodity Prices may Impact ‘Virtuous Cycle’ Efforts
- Japanese Seafood Exports to China Sink 57% in FY23; U.S. Becomes Largest Seafood Export Destination
- 70% of Japan Companies to Raise Pay Scales in FY 2024
- Minutes Show Policymaker Wants BOJ to Consider Further Rate Hikes Further
- ASEAN Plus 3 Share Concerns About Excessive Exchange Rate Fluctuation; Seeking Stability in Exchange Rate