Weekly Japanese Industry and Policy News (Feb. 10-Feb. 16, 2023)

The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

Basic Policy for the Realization of GX” was approved by the Cabinet
In order to realize a decarbonized society and provide a stable supply of energy, the government has decided the basic policy at the cabinet meeting on Feb. 10, such as maximizing the use of nuclear power generation and introducing carbon pricing, in which companies bear the costs according to the amount of carbon dioxide emitted. First, in order to achieve both a stable supply of energy and the realization of a decarbonized society, it has set out a policy of maximizing the use of nuclear power plants while giving top priority to safety. In addition to promoting the development and construction of next-generation nuclear reactors on the premises of decommissioned nuclear power plants, the operating period of nuclear power plants, which is set to be a maximum of 60 years, is trying to be able to drive over the upper limit. On the other hand, toward the introduction of carbon pricing, the government will start full-scale operation of emissions trading, which will allow companies to trade the amount of emissions that they have reduced in the market, from FY2026. Companies and oil wholesalers will be required to pay a "levy" according to the amount of emissions. Furthermore, in order to support private sector investment toward decarbonization, the government will issue new government bonds called "GX Economic Transition Bonds" over a period of 10 years starting next fiscal year of around JP\ 20 trillion. The government is aiming to enact related bills during the current ordinary session of the Diet. 

METI website (in Japanese): https://www.meti.go.jp/press/2022/02/20230210002/20230210002.html

Relaxation of masks, from March 13, individual judgment regardless of whether indoors or outdoors
On February 10, the government decided to apply new guidelines on wearing masks as a countermeasure against the COVID-19 from March 13, leaving it to individual judgment regardless of whether it is indoors or outdoors. There is no legal basis for requiring people to wear masks, but the government recommended wearing them to prevent the spread of infection. On the other hand, the Infectious Diseases Control Law stipulates that it is the public's responsibility to take the necessary precautions to prevent infectious diseases, even if it does not specifically state masks. The new guidelines will eliminate the need for masks on shinkansen trains and express buses where everyone can be seated, while recommending that they continue to be worn on crowded commuter trains and buses. It is also recommended when visiting medical institutions and facilities for the elderly. New rules have also been established for wearing at school, and will apply from April 1. Students are not required to wear them in classes and other educational activities, and students can attend graduation ceremonies before that day without masks.

Cabinet secretariate website (in Japanese): https://corona.go.jp/news/news_20230210_02.html

Ministry of Economy, Trade and Industry and Tokyo Stock Exchange establish SX brands
On February 10, the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange established a policy that they will designate companies that incorporate social sustainability issues and needs into their own growth and promote corporate value creation as Sustainability Transformation brands to list it on the securities market as a new SX brands. Through the release of the SX brands, METI hopes to (1) encourage corporate management to change their mindset and expects management reform through dialogue and engagement with investors, and (2) inform investors in Japan and overseas of the direction of reform that Japanese companies are heading in, which will lead to a reevaluation of Japanese stocks as a whole and the formation of new expectations for Japanese stocks in the future. The "SX brands Evaluation Committee," which is scheduled to be formed in the near future, will formulate detailed screening criteria for the SX brands, and then begin accepting applications for the "SX brands 2024" around July 2023, with the selection results to be announced in the spring of 2024.

METI website (in Japanese): https://www.meti.go.jp/press/2022/02/20230210001/20230210001.html

Green x Digital Consortium successfully demonstrates CO2 data linkage between different solutions
The Green x Digital Consortium, organized by the Japan Electronics and Information Technology Industries Association (JEITA), announced on February 15 that it has successfully conducted a demonstration test of CO2 emissions data linkage between different solutions to visualize CO2 emissions in the supply chain. This is the first in Japan, and represents a major step forward toward the realization of supply chain CO2 emissions visualization. This time, as "Phase 1," from September 2022 to January 2023, 15 solution providers participated. Specifically, the data format presented in the Pathfinder Network of the WBCSD Partnership for Carbon Transparency (PACT), a leading international framework and API (connection method) were used with an eye toward global data collaboration. It was verified data linkage between multiple solutions in a virtual supply chain and confirmed that data linkage is possible even when each company in the supply chain utilizes a different solution. This will allow user companies to have a wider range of choices when introducing solutions, and will also eliminate the need for companies that provide solutions to coordinate with other companies individually. The consortium aims to complete "Phase 2" by the end of June 2023, which will include verification of CO2 calculation practices.

JEITA website: https://www.jeita.or.jp/english/press/2023/0215.pdf

Nippon Paper Industries builds a production system for LiB materials in Europe　
Nippon Paper Industries announced on February 6 that it has established a manufacturing and sales subsidiary in Budapest, Hungary, to strengthen its supply system for CMC (carboxymethyl cellulose), one of the negative electrode materials for automotive lithium-ion batteries (LiB). The new plant is scheduled to go into operation in December 2024, with sales of approximately EUR 50 million and the creation of approximately 60 jobs. CMC is an anionic water-soluble polymer obtained from high-purity refined pulp of natural cellulose. It has high viscosity, absorbency, and water retention properties, and has been widely used for a long time in daily necessities such as food and toothpaste, and in industrial applications such as paper manufacturing. In 2021, the company strengthened the production system of CMC for LiBs at the Gotsu Plant (Shimane Prefecture), but this time, it will also promote the production system in Hungary. The company will build a system to supply CMC for LiBs from two bases, one in Gotsu factory and another in Hungary.

Nippon Paper Industries website: https://www.nipponpapergroup.com/english/news/year/2023/news230206005401.html