Japan to Ban New Gas-Powered Vehicles by mid-2030s as Tesla's Mission Spreads

Photo: Parks Canada

Japan has adopted a climate plan that aims to get the country completely carbon-free by 2050, part of which is to ban the sale of new gasoline-powered cars after 15 years, the government said on December 25. The strategy identified 14 industries such as offshore wind, hydrogen, and fuel ammonia as well as autos, rechargeable batteries, and a roadmap for each sector.

Earlier this month, Toyota President Akio Toyoda, who spoke on behalf of Japanese automakers, said that if Japan banned gas-powered cars and hastily switched to electric vehicles, the auto industry's current business model would collapse. In response, government officials said automakers need to rethink their business models.

The Green Growth Strategy, targeting the hydrogen and auto industries, is an action plan to deliver on Prime Minister Yoshihide Suga’s October pledge to completely eliminate carbon emissions by 2050.

As the world faces an environmental challenge, green investment “should be tackled as a strategy for growth, not as a limitation on growth,” Suga said. He has made green investments his top priority to help revitalize the economy hit by the COVID-19 pandemic, and bring Japan in line with other countries' ambitious emission targets.

Under this strategy, the government will also provide tax incentives and other support to encourage investment in green technologies, and predicts annual growth of ¥90 trillion ($870 billion) by 2030 and ¥190 trillion ($1.8 trillion) by 2050. The government will offer companies tax breaks and other financial support, such as a ¥2 trillion ($19 billion) green fund.

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