The government on Tuesday adopted an action plan aiming to invest a total of ¥1 trillion across the public and private sectors by 2030 to secure recycled resources.
The plan is designed to promote the reuse of discarded plastics and metals amid intensifying international competition for resources as China tightens restrictions on exports of rare earths to Japan.
“It is important to promote public-private investment, accelerate the transition to the circular economy, and link the initiative to the (Prime Minister Sanae) Takaichi administration’s growth strategy aimed at realizing a strong economy,” Chief Cabinet Secretary Minoru Kihara said at a meeting of relevant ministers.
The government plans to reflect the plan in its annual basic economic and fiscal guidelines to be drawn up this summer.
The government hopes to strengthen economic security by establishing a system to ensure a stable domestic supply of critical minerals and metal resources, such as rare earths, for which Japan currently depends on imports.
To promote investment in expanding resource recovery and building a supply base for recycled materials, the government is set to secure a sufficient budget and consider a loan system for businesses.
The action plan, adopted at the day’s ministerial meeting on the circular economy, sets a target for the supply of major metals through 2030.
Japan also plans to secure about 30% of raw materials from recycled resources for permanent magnets used in electric vehicle motor parts and medical devices by 2030 in light of growing demand.
