Green Japan: Industrial Policy and Regulatory Modernization for Sustainable Development

Abstract

Since trade has played a part in climate change and sustainable development, world largest economies, the USA and the European Union, have imposed trade-related climate measures to reduce carbon emission in economic activities. This paper reviews a recent green industrial policy and regulations in Japan as the world’s third largest economy. For instances, Japan’s green growth strategy, Act on promotion of Global warming countermeasures, the GX promotion Act, Labeling scheme for GHG reduction for agriculture products, and the Plastic circulation Act. These policies and regulations correspond to those measures of the USA and the EU. Alternatively, it could be assumed that decarbonization will be the new standard of global business. To stay ahead of competition in a global trade wind, it is essential for Thai business operators to adapt rapidly by implementing supply chain traceability to evaluate and reduce carbon emissions across the activities from sourcing to consumption. Not only implementing these measures will benefit business operators from gaining competitiveness but also enhance a strong brand image. As equally important, a successful decarbonization requires government assistance programs including financial support and tax benefits to mitigate the increasing cost of business transformation as well as regulatory information support such as trade-related climate measures updates. Since continuous trade-related climate measure development from economic-leading countries is to be expected, exporters should pay cautious attention to ongoing policies and regulations to ensure business success.