Japan Business Federation proposes circular economy shift for resource safety

Keidanren, the Japan Business Federation, issued a comprehensive proposal on 17 March, calling for the Japanese government to integrate a circular economy transition into its national growth strategy. The proposal advocates for a National Urban Mining Strategy to secure secondary resources, such as rare metals and plastics, as a response to increasing geopolitical risks and global competition for mineral resources.

The federation formulated these recommendations following a mission to Finland and Germany in January, during which it observed how the European Union repositioned the circular economy beyond environmental policy, treating it instead as a pillar of resource security and industrial competitiveness. The federation sees that Japan must similarly strengthen its resource security by treating recycled materials as assets.

The proposal outlines a multi-layered approach to strengthening the domestic supply chain. It emphasises the importance of Design for Environment at the manufacturing stage, urging companies to reduce mineral use and improve the ease of disassembly and recycling. Keidanren suggests that the government should provide policy support for research and development in alternative materials and long-life product designs.

To ensure a stable supply of secondary materials, the federation calls for the enhancement of domestic recycling hubs. This is particularly urgent for lithium-ion batteries and solar panels, where the creation of a cross-industry ecosystem is required. Secondary resources often incur higher costs than primary minerals, and the government should consider economic measures and support for recycling technologies and facilities.

The proposal also addresses the need to prevent the leakage of valuable resources from Japan. This includes strengthening regulations against illegal exports and improving data sharing between local authorities, police, and national agencies. Furthermore, Keidanren aims to establish Japan as an international hub for resource circulation by streamlining import procedures for electronic scrap and supporting waste management legislation in ASEAN countries.

Keidanren also encourages deeper collaboration between manufacturing industries and the recycling sector through long-term purchase agreements and public procurement initiatives. It also highlights the importance of consumer awareness, suggesting that events such as Green Expo 2027 can be leveraged upon as platforms to foster a social shift towards resource circulation.

Keidanren and its member companies intend to work closely with the government to realise these objectives.