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Japan to urge moving ahead with ‘green’ GDP indicator


© Reuters. A pedestrian passes a woman in a shopping area, during the Tokyo coronavirus (COVID-19), pandemic that began August 17, 2020. REUTERS/Kim Kyung-Hoon/Files

By Takaya Yamaguchi

TOKYO, Reuters – Japan will call for a “green” indicator of gross domestic product (GDP), which will show the country’s progress towards reducing its greenhouse gas emissions. A draft of its annual economic strategy outline was seen by Reuters.

According to the draft of long-term strategy outline, the government would mention that it is moving ahead with safe restarting nuclear power plants.

Tokyo pledged to reduce carbon emissions by 46% per year in 2030, compared with 2013 levels. To do this it must make an enormous push for decarbonisation.

It will include a policy that calls for increasing production of electric vehicle batteries as well as building more charging stations and more hydrogen stations.

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According to the draft, the government wants electric cars to account for half of all new vehicle sales by 2035.

Fumio Kirishida will create the government’s policy framework. It will serve as a foundation for economic policy making in future. The document is due to be completed upon approval by the cabinet in early January.

Last week, Kishida presented a plan for issuance of approximately 20 trillion yen ($157billion) in “green transition” bonds. This will finance investments to create a carbon neutral society.

According to the Japanese prime minister, the country needs at least 150 trillion Japanese yen of combined public and private investment in order to become carbon-neutral.

($1 = 127.4600 yen)