CE Commerce Effects Beyond "Resource Conservation and Longevity" - Strengthening Industrial Competitiveness Through Public-Private "Remanufacturing and Refurbishment Promotion"

Overview

This is an analysis by Yumi Saito and Tetsuya Nomoto of Mitsubishi Research Institute on the multifaceted effects of CE Commerce (Circular Economy Commerce) beyond "resource conservation and longevity" and its potential contribution to strengthening Japan's industrial competitiveness. ## Key Points ### 1. Resource Effective Utilization Promotion Law Amendment and CE Commerce Positioning - **Law Amendment Enactment**: Resource Effective Utilization Promotion Law amendment enacted in May 2025 - **CE Commerce Definition**: - ① Improving product utilization rates - ② Providing services that contribute to product longevity - Business contributing to waste reduction and CE (Circular Economy) realization - **Policy Positioning**: Positioned as an industry that strengthens resource circulation as a means of decarbonization - **Popularization Direction**: Priority on CE commerce business creation and expansion by companies on the service supply side ### 2. CE Commerce Development According to Industry and Product Characteristics - **Products Suitable for Reuse** (Electronic devices, home appliances, etc.): - Rapid technology and design updates - Design not premised on disassembly - Short-cycle consumables - Difficult parts standardization due to frequent model changes - **Products Suitable for Remanufacturing and Refurbishment** (Construction machinery, etc.): - High utilization rates required (rapid performance recovery possible) - Slow technological generation changes allowing long-term use of basic designs - Repairable design (easy disassembly, cleaning, and reassembly) - Resource extraction dump trucks and hydraulic excavators forced to operate year-round ### 3. Business Value Creation Cases Through CE Commerce - **Komatsu's Remanufacturing Business**: - Developing remanufacturing business for approximately 30 years - Owning 11 remanufacturing bases worldwide - 2023 remanufacturing turnover expanded 3.5 times compared to 2010 - **Koei Techno System's Repair and Regeneration Technology**: - Utilizing thermal spraying, welding, and machining technologies - Realizing repair, regeneration, and longevity of industrial machinery and parts - Specializing in products with weak manufacturer after-service - **Business Value**: Resource conservation and cost reduction, economic fluctuation risk avoidance, continuous revenue assurance ### 4. Public-Private Measures for Promoting Arterial Industry-Initiated Remanufacturing and Refurbishment - **Measures Required by Private Companies**: - Product modularization for rapid parts exchange and reassembly - Parts history management using DPP (Digital Product Passport) - IoT collection network construction using RFID technology - Business model transformation to operation guarantee and performance-linked services - **Public Support by Government**: - Establishing certification standard systems guaranteeing new product-equivalent quality - Technical development assistance for product design premised on remanufacturing and refurbishment - Engineer training and succession support - System development such as information disclosure obligations for promoting DPP utilization - **Market Scale**: Expansion to hundreds of billions to 1 trillion yen scale in automotive and aviation industries This analysis shows that CE Commerce is not merely environmental measures but an opportunity for companies to secure new revenue sources and improve technological capabilities, contributing to stock-oriented society formation and strengthening Japan's industrial competitiveness.