Prime Minister Yoshihide Suga pushed his ideas for using decarbonization and digitalization as the engine for putting the economy on a growth trajectory in a speech at the Yomiuri International Economic Society (YIES) on Tuesday.
Suga is expected to encounter various obstacles in promoting these policies, which will test his abilities to get things done.
-- Policy offensive
"The global trend toward a green society cannot be avoided. We intend to aggressively address the issue," Suga said in his speech, indicating his determination to use all policy means available to achieve his goal of net zero greenhouse gas emissions by 2050.
Global warming is seen as a crisis shared by all humanity. However, it cannot be said that Japan has been aggressive in its actions compared with countries in Europe and elsewhere.
This is partially due to continuous conflict between the Economy, Trade and Industry Ministry, which wants to avoid hampering corporate activities as much as possible, and the Environment Ministry, which wants to pursue reducing greenhouse gases.
"Environment-oriented measures are no longer a constraint on economic activity," Suga said. "They can generate large growth."
Suga has even confronted the automobile industry, a key manufacturing sector in Japan.
While not bringing up a clear timetable, he declared he would "aim for the complete elimination of carbon dioxide emitted by automobiles." This would be done through systems and regulations that promote the spread of electric and fuel cell vehicles.
In the future, it is possible that regulations on hybrid vehicles that use both gas engines and electric motors will be tightened. This would put pressure on domestic automakers that have poured resources into hybrids.
The government also intends to provide financial support.
This month saw the announcement of a 10-year, 2 trillion yen fund to support companies involved in research and development of technologies related to decarbonization.
Such bold support from the government aims to attract environmental investment, which reportedly amounts to 3,000 trillion yen worldwide.
-- Serious about digitalization
In parallel with decarbonization, Suga has positioned digitalization as an important area of reform that directly affects people's lives.
With the digital agency slated to be launched next autumn as the command center, Suga said he wants disparate municipal systems "unified and standardized within five years."
"We will gather about 100 highly specialized professionals from the private sector and create a model that allows them to advance their careers while going back and forth between the public and private sectors. We will create digital professions within the recruitment framework for civil servants," he said in his speech, adding that this would make it clear how serious his administration takes the matter.
-- Finishing 'homework'
Suga described the issues of decarbonization and digitization as "'homework' that has been put off for years," and emphasized, "My Cabinet will be the one that provides the answers."
Initiatives to support the growth of small and medium-sized businesses and address the low birthrate will also be incorporated.
"Unlike previous Cabinets, clear policies with distinct time frames are changing private companies," said Masanori Ikunaga of Sumitomo Mitsui DS Asset Management Co.
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