Japan’s Circular Economy Vision Under the Action Plan | Chapter 10Comprehensive Environmental Action and the Shift to Sustainability

Against the backdrop of three crises—climate change, biodiversity loss, and pollution—the Sixth Basic Environment Plan established the well-being and high quality of life of every person today and in the future as its highest-level objective through environmental conservation. It regards natural capital as the foundation of economic and social activities and advocates a circular and symbiotic society that grows while protecting environmental carrying capacity.

The Ministry of the Environment has adopted a precautionary approach that does not delay action even amid scientific uncertainty as a principle of environmental policy. In regions, Regional Circular and Ecological Spheres are being developed as a basis for implementing the Sustainable Development Goals (SDGs) and promoting regional revitalization by integrating economic, social, and environmental considerations. In fiscal 2024, the share of local governments undertaking SDGs initiatives reached 66.5%, against a target of 60%.

The Japanese government compiled environmental conservation expenditures across the government, totaling 3.2835 trillion yen in fiscal 2026. Green procurement, environmentally preferable contracts, environmental labeling, environmental management, environmental reporting, ESG finance, taxation, research and development, monitoring and observation, and international cooperation are being combined to advance environmental policy across institutional, market, technological, and regional levels.

Companies are being directed toward adopting procurement criteria for environmentally considerate products, disclosing carbon footprints and environmental labels, conducting environmental due diligence, and reporting greenhouse gas and nature-related information. The expansion of the environmental business market and employment links environmental conservation with economic revitalization, international competitiveness, and job security.

Local governments are expected to combine renewable energy, the resilience of public facilities, circular use of regional resources, and resident participation in regional management. Regional Circular and Ecological Spheres aim to create self-reliant regions that continuously address regional challenges and a self-reliant, decentralized society in which regions support one another.

Internationally, Japan is expanding its involvement in environmental technologies and institutional development through frameworks including the JCM, environmental infrastructure, technical cooperation, multilateral funds, international environmental treaties, and the G7, G20, and ASEAN. A central pillar of international cooperation is to increase policy synergies by addressing climate change, biodiversity, and pollution together rather than separately.

Residents are provided with access to environmental information, environmental education, health management concerning radiation, compensation and relief for pollution damage, and consultation channels for complaints. Pollution dispute resolution and enforcement against environmental crimes support the resolution of harm and the effectiveness of environmental regulations.

Under the Green Purchasing Act and the Act on Promotion of Contracts Considering Reduction of Emissions of Greenhouse Gases and Others, the national government and independent administrative agencies advanced procurement of environmentally friendly goods and contracts that take emissions reductions into consideration. The basic policy incorporated non-fossil electricity, steel materials, carbon footprints for textile products, and certified plastic-use products, while the environmental labeling guidelines were revised in March 2026. As of March 31, 2026, the Eco Mark covered 78 product categories and 57,704 certified products.

Research and development promoted batteries, hydrogen, bio-based manufacturing, next-generation semiconductors, CCUS, artificial photosynthesis, climate prediction, and satellite observation. In fiscal 2025, 40 technology development and demonstration projects were implemented through regional co-creation and cross-sector programs. GOSAT-GW was launched in June 2025 and moved to regular operations in October of the same year.

In regional decarbonization, 102 leading decarbonization regions and 171 local governments for priority measure acceleration projects had been selected by fiscal 2025. The five years from fiscal 2026 through fiscal 2030 were designated as a new intensive implementation period, with support for renewable energy deployment, ZEBs and ZEHs, EVs, batteries, and self-reliant, decentralized energy facilities at public institutions.

In international cooperation, the JCM established cumulative emissions reduction and removal targets of approximately 100 million t-CO2 through fiscal 2030 and approximately 200 million t-CO2 through fiscal 2040. As of March 2026, 659 organizations participated in the Japan Platform for Redesigning the Sustainable Infrastructure (JPRSI), supporting decarbonized infrastructure and project development. In multilateral finance, the scale of the eighth replenishment period of the GEF was 5.33 billion dollars, and Japan’s contribution totaled 638 million dollars.

The amended Environmental Impact Assessment Act and the amended Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Facilities were enacted and promulgated in June 2025. By the end of March 2026, environmental impact assessment procedures had been conducted for 922 cases; in fiscal 2025, 24 cases began and 19 were completed. In Fukushima, the prefectural health survey, radiation dose measurement, thyroid examinations, consultation support, and information dissemination have continued.

In environmental education and collaboration, eight ESD activity support centers and eight environmental partnership offices were established nationwide, and 26 videos showcasing environmental education and ESD practices were selected in fiscal 2025. The Japan Fund for the Global Environment approved 161 grants totaling approximately 570 million yen in response to 392 grant requests. The Environmental Training Institute conducted 29 courses over 31 sessions, with 1,354 graduates.

In pollution and environmental health, 26 new cases were accepted by the Pollution Coordination Commission in fiscal 2025; 62 cases were pending in total, and 26 were closed. There were 66,931 pollution complaints in fiscal 2024, including 47,622 complaints involving the seven typical forms of pollution. In 2025, 5,290 environmental crime cases and 4,578 waste crime cases were detected, with illegal dumping accounting for 50.4%.