Japan proposes 630 billion yen budget to accelerate circular economy

Japan’s Ministry of the Environment has proposed a budget of 630 billion yen for the fiscal year 2025, reflecting the government’s escalating commitment to achieving net-zero greenhouse gas emissions by 2050 and advancing the circular economy. The budget request, presented to the ruling Liberal Democratic Party on August 27, outlines a series of initiatives to reducing environmental impact while fostering economic growth.

A significant portion of the proposed budget, 4.6 billion yen, is earmarked for comprehensive measures to combat the flow of plastic waste into the ocean. The ministry has also allocated 700 million yen to support the use of recycled plastics in the automobile manufacturing industry, intended to reduce the environmental footprint.

In addition to these measures, the budget includes provisions to support private companies in adopting renewable energy solutions. Although details of the Green Transformation (GX) initiative (a key effort to shift towards a greener economy) have not yet been finalized, officials anticipate that the total budget could increase further as these plans take shape.