Japan to invest 1 trillion yen in recycled resource supply chain

The Japanese government formulated a comprehensive Circular Economy Action Plan during a ministerial meeting on 21 April. This policy aims to strengthen the domestic supply system for recycled resources as global competition for raw materials intensifies. Japan currently relies heavily on imports for most of its primary resources, making the establishment of a robust recycling infrastructure a matter of national economic security.

The plan outlines a public-private investment of approximately 1 trillion yen by 2030. These funds will support the development of recycling hubs and the advancement of sophisticated recovery technologies. While the initiative covers general materials such as plastics, it places a specific emphasis on critical resources including iron, aluminium, copper, and rare earth magnets.

Specific targets for 2030 have been established to increase the ratio of recycled materials in manufacturing. The government aims for recycled content to account for approximately 40 per cent of wrought aluminium products. For copper and permanent magnets, the target is set at 30 per cent. Furthermore, the plan seeks to secure an additional 2 million tonnes of high-grade iron scrap annually to serve as raw material for “green steel” production. This will be achieved through improved collection, sorting, and capital investment in processing facilities.

To prevent the loss of valuable materials, the government will introduce stricter regulations on improper scrap trading and revise export management systems. This move addresses concerns regarding the outflow of circular resources to overseas markets. On a domestic level, the plan promotes regional economic revitalisation through the utilisation of unused resources and waste.

The government intends to elevate the circular economy into a national movement by fostering collaboration between businesses, local authorities, and consumers. Existing frameworks such as the Japan Partnership for Circular Economy (J4CE) and Circular Partners (CPs) will be utilised to drive this cooperation. Additionally, resource circulation initiatives will be showcased at the GREEN×EXPO 2027 to raise public awareness.

The details of this action plan are expected to be reflected in the government’s growth strategy and the Basic Policy on Economic and Fiscal Management and Reform later this summer.