An Analysis of Japan’s Climate Policy Based on the Economic Philosophy of "Sustainable Development"

This chapter explores a decent climate policy in Japan against the background of the unfortunate current situation resulting from Japan’s unwise climate and energy policies to date. Japan experienced serious industrial pollution during its period of rapid economic growth from the 1960s onward, as exemplified by Minamata disease and Yokkaichi air pollution, and was internationally recognized as a seriously pollution-affected country. Later, with the support of the movement by pollution victims and advanced efforts by local governments, the government strengthened pollution control regulations, and with the progress of technological responses by industry, the country came to be regarded as an advanced country in terms of pollution control. After the two oil shocks of the 1970s, Japan established itself as an advanced energy-saving country or an advanced country in environmental technology. However, Japan is now lagging behind in its efforts to combat climate change and transition to a decarbonized economy, particularly in the expansion of renewable energy, which has contributed to the stagnation of the Japanese economy and undermined the international competitiveness of its industries. This chapter reviews the economic thought on “sustainable development” as a prerequisite for the analysis, and then discusses the pros and cons of the “Green Transformation (GX) Strategy” and “Green Transformation (GX) Transition Bonds” that are at the core of Japan’s current decarbonization transition policy.