Japan is considering introducing later this decade an emissions trading scheme for automakers to help speed up a switch to zero emission vehicles, as part of the government's stated target of achieving carbon neutrality by 2050.
According to local reports, the Ministry of Economy, Trade & Industry plans to introduce in the late 2020s an upper limit of greenhouse gas emissions for each local vehicle manufacturer. Companies exceeding their limit will be forced to buy credits from other carmakers that have a surplus, providing a strong financial incentive for the industry to switch to zero emission vehicles.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The government last week revealed it was considering banning the sale of conventional internal combustion engine vehicles by 2035 to help cut emissions, with manufacturers only allowed to sell low- and zero emission vehicles such as hybrid, electric and fuel cell powered vehicles.
Since taking office in September 2020, Japan's newly elected prime minister Yoshihide Suga has made reducing the country's greenhouse gas emissions effectively to zero by 2050 one of his first priorities.
The Ministry of Economy, Trade and Industry will soon hold a meeting with experts and representatives of the country's automakers to discuss its planned emissions reduction policies and other industry topics, according to government sources. An action plan with specific emissions targets may be drawn up by the end of the year following this meeting.
