As part of its green growth strategy to be carbon neutral by 2050, the government of Japan has decided to completely ban combustion engines in cars within 15 years, with financial incentives to boost this transition.
With around 8 million cars manufactured a year, Japan is the world’s second largest producer of cars after China. The new strategy requires a full restructuring of the economy, and for e-cars to be solely sold by 2035, Prime Minister Yoshihide Suga plans on giving tax incentives and financial aid to all his citizens. With these “green investments”, the economy should experience a growth of $850 million by 2030 and $1.8 billion by 2050.
By 2030, the cost of vehicle batteries will be cut in half, and the use of hydrogen in electricity generation and in the transport sector will be expanded. Japan being the the fifth largest CO2 emitter in the world, Prime Minister Suga announced his climate neutrality strategy last October after one month in office. To this end, he wishes to focus on renewable energies, carbon recycling and digitization.