Japan’s Circular Economy Vision Under the Action Plan | Chapter 1Japan’s Action Plan to Accelerate the Circular Economy

The circular economy is an approach that minimizes resource consumption, prevents waste generation, and reduces environmental impacts while effectively using waste and other materials as resources to create added value and new growth.

Resource circulation contributes to net zero by reducing greenhouse gas emissions across the entire life cycle, and also supports nature positive outcomes by stopping biodiversity loss and placing nature on a recovery trajectory. Accordingly, cooperation among net zero, the circular economy, and nature positive initiatives is considered important for social transformation spanning the economy, society, politics, and technology.

Japan’s manufacturing industry is strong in advanced operations, skilled workers, and high on-site productivity, while each region possesses circulating and renewable resources. The policy is expected to expand resource circulation tailored to regional characteristics by leveraging the technological capabilities of manufacturing, waste treatment, and recycling industries.

Thorough resource circulation across the entire life cycle through cooperation among businesses, together with expanded use of recycled materials, will help Japan respond to moves by countries establishing quantitative targets for recycled-material use and strengthen Japan’s international industrial competitiveness.

Against a backdrop of rising international tensions and competition for resources, circulating and maximizing the use of resources domestically can increase Japan’s domestic resource supply and potentially reduce the impact of rising import prices. Increasing the supply of critical minerals and other resources will also contribute to strengthening economic security.

Initiatives that use regional circulating and renewable resources can become catalysts for regional revitalization. The circular economy is positioned as contributing to quality of life, environmental conservation, and the securing and stable supply of resources.

In August 2024, the government approved the Fifth Fundamental Plan for Establishing a Sound Material-Cycle Society. To implement related measures, including this plan, strategically and comprehensively across the government, it established the Interministerial Meeting on the Circular Economy in July of the same year and published the Circular Economy Transition Acceleration Package in December of the same year.

The interministerial meeting is chaired by the Chief Cabinet Secretary and vice-chaired by the Minister of the Environment and the Minister of Economy, Trade and Industry, with members from relevant ministries including the Minister of Agriculture, Forestry and Fisheries and the Minister of Land, Infrastructure, Transport and Tourism. In March 2026, the Minister of Internal Affairs and Communications, the Minister for Foreign Affairs, and the Minister of Finance were added as members, and a director-general-level working group was established under the meeting.

The Circular Economy Action Plan published in April 2026 identifies the transition to a circular economy as Japan’s path to success and sets out future measures including strengthening recycled-resource supply chains and building an international resource circulation network centered on Japan. Toward 2030, it incorporates the Metal Recycling Promotion Strategy, which establishes recycled-material supply targets for iron, permanent magnets, and other materials, and sets a target of about 1 trillion yen in public-private investment to develop resource recovery hubs for metals and plastics.