Japan’s Circular Economy Vision Under the Action Plan | Chapter 3Advancing the Circular Economy

Overview

Japan is shifting from a linear economy based on mass production, mass consumption, and mass disposal to a circular economy that reuses waste as resources and creates added value. Through building a market for recycled plastics for automobiles, certifying recycling businesses, developing resource-circulation networks, collaborating among local governments, companies, and local residents, and developing human resources, Japan aims to ensure a stable supply of recycled materials and strengthen local foundations.

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Key points

  • The transition to a circular economy is an important challenge for Japan's future.
  • Industry, government, and academia are advancing collaboration to build a market for recycled plastics for automobiles.
  • A stable supply of recycled materials requires integrated development of systems, facilities, regional networks, and human resources.
  • Collaboration among local governments, companies, and startups is supporting the creation of locally driven circular businesses.

Overview

The conventional linear economy, premised on mass production, mass consumption, and mass disposal, is difficult to sustain, and a transition to a circular economy that reuses waste as resources and creates new added value is needed.

The transition to a circular economy is considered inevitable for the sustainable development of the global economy, and Japan must strengthen collaboration between vein industries and arterial industries and accelerate its efforts.

The central challenge is to secure the quality and quantity of recycled materials and strengthen supply chains linking collection, recycling, and supply to manufacturing industries.

Key figures

Launch of the industry-government-academia consortium
November 2024
Roadmap publication
March 2026
Enforcement of the Advanced Recycling Business Act
November 2025
Target period for business certifications
3 years
Target number of business certifications
100 or more cases
Number of resource types covered by the resource-circulation network survey
10 types of resources, including ferrous metals, nonferrous metals, and plastics
Number of regions covered by the resource-circulation network survey
2 regions in Japan
Nationwide forum date
September 2025
Number of forum regions
7 regions nationwide
Number of forum participants
more than 2,000 participants, in person and online

Impact

Once a domestic supply system for recycled materials is established, manufacturing industries will be able to secure recycled materials more easily in line with demand, strengthening resource-supply chains and stabilizing the industrial base.

As the outflow of circular resources overseas and the stagnation of domestic investment have become apparent, promoting domestic circulation, expanding the scale of the resource-circulation industry, and improving business efficiency have become policy priorities.

Support for local governments in assessing their current situation, diagnosing potential, creating visions, and conducting model demonstrations encourages the formation of new local businesses and sustainable collaboration frameworks.

Details

To build a market for recycled plastics for automobiles, the Ministry of the Environment collaborated with the Ministry of Economy, Trade and Industry to launch an industry-government-academia consortium and publish a roadmap that includes specific supply targets and a schedule. Going forward, it will discuss the appropriate form of recycled-plastics aggregation hubs and related measures.

The Act on the Advancement of Recycling Businesses for the Promotion of Resource Circulation aims to create businesses that supply recycled materials in response to demand from manufacturers and others. It establishes criteria for waste-disposal operators, and the national government grants integrated certification to businesses that conduct collection and transportation, recycling, and the stable supply of recycled materials.

Under this system, support will be provided for businesses working to secure the quality and quantity of domestic recycled materials through 100 or more business certifications and related measures over 3 years.

An expert review panel compiled recommendations on forming resource-circulation networks and developing hubs, and surveyed the current situation, challenges, and needs for 10 types of resources and 2 regions in Japan. Based on these recommendations, it will support the introduction of equipment and demonstration projects to consolidate and advance hub development.

In local areas, the Resource Circulation Municipal Forum was used to share leading practices and match local governments, companies, startups, and others. It has been held in 7 regions nationwide and is advancing diagnostics and model demonstrations for local governments, the establishment of implementation frameworks including local residents, ongoing follow-up, and the development of core human resources.

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