Currently Japan has a carbon tax, called the Global Warming Countermeasures Tax set at 289 yen/t-CO2 (roughly USD 2.00). There have been discussions at various government consultations about raising this tax level or introducing a new tax.
On December 22, 2022 the government unveiled the draft Green Transformation (GX) Basic Policy. Under this strategy the Japanese government aims to raise initial 20 trillion yen (USD 140 billion) through ‘GX Bonds.' They will be repaid through ‘carbon pricing’ revenues that combine a ‘carbon levy’ to be introduced in 2028, and voluntary emissions trading introduced in 2023 and expanded to the power sector with allowance auctions in 2033.
A carbon levy will be gradually introduced from 2028 on power, gas and oil companies. While the government has not disclosed the price, the Renewable Energy Institute estimates that it will amount to a carbon price equivalent of up to 1,500 yen/t-CO2 (Less than USD 12/t-CO2) under current assumptions disclosed by the government.
In a position paper on the fiscal 2023 tax reform, published on its website on September 29th, Japan Iron and Steel Federation (JISF) advocated against the carbon tax, Tax for Climate Change Mitigation, and emissions trading, while stating support for Japan’s 2050 carbon neutrality goal. It also advocated for tax exemptions for coking coal used in steel production and stated that thermal power generation “will continue to be necessary in the future.” Additionally, it requested increased financial support for technological development to decarbonize steel production, as well as “carbon-free electricity and hydrogen,” while supporting hydrogen reduction steelmaking, without specifying a position on its decarbonization.
|Influencemap Performance Band||Organization||Engagement Intensity|
|D-||Nippon Steel Corporation||31||Metals & Mining||Asia|
|E+||Japan Iron and Steel Federation (JISF)||44||Metals & Mining||Asia|
|D+||Japan Business Federation (Keidanren)||50||All Sectors||Asia|
|D||ENEOS Holdings (formerly JX Holdings Inc)||29||Energy||Asia|
|A-||Japan Climate Leaders Partnership (JCLP)||39||All Sectors||Asia|
|D||Japan Chamber of Commerce and Industry (JCCI)||26||All Sectors||Asia|
|D||Petroleum Association of Japan (PAJ)||29||Energy||Asia|
|D||Toray Industries Inc.||14||Chemicals||Asia|
|D||Japan Chemical Industry Association (JCIA)||19||Chemicals||Asia|
|D||Federation of Electric Power Companies of Japan (FEPC)||36||Utilities||Asia|
|B+||Renewable Energy Council (REC)||19||Utilities||Asia|
|B-||Japan Association of Corporate Executives (Keizai Doyukai)||38||All Sectors||Asia|
|D||Japan Gas Association||26||Energy||Asia|
|D+||Central Japan Economic Federation (CJEF)||20||All Sectors||Asia|
|D||Japan Paper Association (JPA)||10||Paper & Forest Products||Asia|
|D||Japan Society of Industrial Machinery Manufacturers (JSIM)||10||Industrials||Asia|
|D||Kansai Economic Federation||12||All Sectors||Asia|
|D+||Japanese Shipowners' Association (JSA)||14||Transportation||Asia|
|D-||Scheduled Airlines Association of Japan||5||Transportation||Asia|