Japan’s Circular Economy Vision Under the Action Plan | Chapter 11FY2026 Global Environmental Measures: Decarbonization and Adaptation
Overview
In FY2026, Japan will advance measures across a wide range of fields, including energy conservation, decarbonized power sources, regional decarbonization, GX, housing and buildings, industry, logistics, and transportation, based on scientific knowledge and observation systems and aimed at achieving greenhouse gas reduction targets for FY2030, FY2035, and FY2040 and net zero by 2050. Investment, technological development, and behavioral change will be promoted through emissions trading, GX Strategic Regions, corporate accounting of value-chain emissions, carbon footprints, and J-Credits. Measures for sinks, including forests, farmland, urban greening, and blue carbon, as well as support for developing countries and international cooperation on emissions reductions, will also be implemented. In addition, adaptation measures for extreme rainfall, heatwaves, and other impacts will promote heatstroke prevention, adaptation technologies in agriculture, forestry, and fisheries, heat-tolerant varieties, and early warning systems. For fluorocarbons and ozone-depleting substances, lifecycle management, production and trade regulations, and the publication of observation results will continue.
Key points
- Scientific observation and emissions verification will serve as the foundation of decarbonization policy.
- Decarbonization will involve regions, businesses, and consumers and will be linked to economic growth.
- Technology demonstration, transportation shifts, and sink measures involving forests and oceans will advance in parallel.
- Mitigation and adaptation measures will be developed through both domestic policies and international cooperation.
Overview
FY2026 measures are structured to address research and monitoring, emissions reductions, sinks, international cooperation, climate change adaptation, and ozone layer protection in an integrated manner, centered on measures against global warming. Scientific knowledge will be accumulated through contributions to the IPCC, domestic research support, and observations from satellites, aircraft, ships, and ground stations. Transparency will be enhanced by comparing estimates based on countries' emissions reports with estimates derived from GOSAT observations.
With the 1.5°C target and net zero by 2050 in view, decarbonization policy will simultaneously advance energy conservation, decarbonized power sources such as renewable energy and nuclear power, decarbonization in the public sector and regions, and shifts in lifestyles. The central policy approach is to pursue emissions reductions, economic growth, and innovation together while increasing institutional continuity and predictability.
GX aims to achieve a stable energy supply, economic growth, and decarbonization simultaneously, advancing regional schemes based on legal revisions and the GX2040 Vision, emissions trading, and sector-specific investment. The measures cover not only energy-related CO2 but also methane, nitrous oxide, substitute fluorocarbons, and sinks in forests, farmland, urban areas, and oceans.
Key figures
- FY2030 greenhouse gas reduction target compared with FY2013
- 46% reduction
- FY2035 greenhouse gas reduction target compared with FY2013
- 60% reduction
- FY2040 greenhouse gas reduction target compared with FY2013
- 73% reduction
- Government-wide FY2030 reduction target compared with FY2013
- 50% reduction
- Government-wide FY2035 reduction target compared with FY2013
- 65% reduction
- Government-wide FY2040 reduction target compared with FY2013
- 79% reduction
- Share of global greenhouse gas emissions attributable to land-use change
- 20%
- Companies participating in the public-private council promoting early warning system adoption as of February 2026
- 60 or more companies
- Full-scale operation of the emissions trading system
- From FY2026
- Cabinet approval timing for the government action plan
- February 2025
Impact
For businesses, calculating and reducing emissions across the entire value chain, not only from their own operations, will affect competitiveness and market evaluations. For mid-sized and small businesses, local governments, financial institutions, and business organizations will provide region-based support and promote phased efforts to know, measure, and reduce emissions.
Consumers will have a wider range of choices, including renewable energy, energy-efficient homes, electric vehicles, public transportation, and low-carbon products. Greater visibility into carbon footprints and emissions reduction contributions will connect environmental performance with procurement and purchasing decisions, while Deco-Katsu will encourage behavioral change encompassing both adaptation and mitigation.
Regions are expected to benefit through local production and consumption of renewable energy, Decarbonization Leading Areas, floating offshore wind power, hydrogen supply, the circular use of forest resources, and blue carbon, generating spillover effects for industry, employment, and local economies. At the same time, renewable energy deployment must take environmental considerations and coexistence with local communities as prerequisites.
In policy implementation, the national government and local public entities will reduce emissions through their respective action plans. Internationally, JCM, REDD+, AP-PLAT, and other mechanisms will support mitigation and adaptation in developing countries, human resource development, and the development of information infrastructure. This framework links preparedness for domestic heatwaves and heavy rainfall with overseas cooperation.
Details
Implementation combines the accumulation and use of observation data, climate change projections, impact assessments, and research support. In addition to satellite observations using GOSAT, GOSAT-2, GOSAT-GW, GCOM-W, and GCOM-C, international standardization of emissions estimation technologies will be advanced. In the decarbonization field, the GX Strategic Region scheme, the emissions trading system that began full-scale operation in FY2026, and sector-specific investment strategies will be operated based on the law revised in May 2025 and the GX2040 Vision.
In regions and buildings, measures will promote Decarbonization Leading Areas, priority measures acceleration projects, Deco-Katsu, renewable energy at public facilities, perovskite solar cells, self-consumption-oriented equipment, and area-wide local energy use. The scope also includes the spread of ZEH and ZEB, revisions to the ZEH definition, energy-saving renovations, HEMS, BEMS, and FEMS, energy-saving audits, lifecycle carbon accounting, low-carbon building materials, and the energy-saving Top Runner Program.
In industry and technology, efforts will include CO2 reduction using DX, equipment deployment, intercompany Scope 3 reductions, GaN and CNF products, catalysts using waste plastics and rice straw, locally produced and consumed hydrogen supply chains, CCUS and carbon recycling, artificial photosynthesis, floating offshore CCS injection, and the development and demonstration of monitoring technologies. In transportation, electric vehicles, battery reuse, charging and hydrogen refueling facilities, zero-emission ships, hydrogen fuel-cell railway vehicles, CNP, SAF, and modal shifts will be promoted.
Sink measures will promote reforestation, designated seedlings, the use of domestically produced timber, the use of wood in building structures and interiors, farmland management, and urban greening. For blue carbon, in addition to the conservation, restoration, and creation of mangrove forests, salt marshes and tidal flats, and seagrass and seaweed beds, the potential for the absorption, storage, and accounting and evaluation of seaweed produced and cultivated offshore will be examined.
Based on the Climate Change Adaptation Act and the adaptation plan, adaptation measures will advance impact assessments, integration into the policies of each ministry and agency, heatstroke prevention, heat-tolerant varieties and technologies in agriculture, forestry, and fisheries, and the provision of information to local public entities and others. Through the public-private council established in June 2023, the adoption of early warning systems will be strengthened across the Asia-Pacific region. Fluorocarbons will be controlled throughout their lifecycle, while production and trade regulations for ozone-depleting substances and substitute fluorocarbons and the annual publication of observation and monitoring results will be implemented.
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