It’s quickly turning into a global trend
The move would follow Prime Minister Yoshihide Suga’s pledge in October for Japan to slash carbon emissions to zero on a net basis by 2050 and make the country the second G7 nation in a little over two weeks to set a deadline for phasing out gasoline vehicles.
Japan’s industry ministry will map out a plan by the year-end, chief government spokesman Katsunobu Kato told a news conference on Thursday.
The likelihood of state interventions to lower carbon emissions is fueling a technological race among carmakers to build electric cars and hybrid gasoline-electric vehicles that will lure drivers as they switch from gasoline models, particularly in the world’s two biggest auto markets, China and the U.S.
Measures already in place in Japan mean Japanese automakers, particularly big ones such as Toyota with greater research and development resources, could use electric vehicle technology they have already developed at home.
Japan’s industry ministry is considering requiring all new vehicles to be electric or hybrid, NHK reported earlier, adding the ministry would finalize a formal target following expert-panel debates as early as the year-end.
Japanese automakers for now are keeping quiet on what impact those measures could have on their businesses.
In Japan, the share of electric vehicles is expected to increase to 55% in 2030, Boston Consulting Group said in a report on prospects for battery-powered cars.
Globally, “The speed of expansion of the share of electric vehicles will accelerate due to the fact that battery prices are falling more rapidly than previously expected,” Boston Consulting said in the report.
Japan, China and South Korea recently announced firm targets to end net emissions of carbon, which has given momentum for companies and banks to push for cutbacks to keep global warming in check.
Apart from Britain, parts of the United States and Canada, Norway and Germany, have curbed or are planning to curb fossil fuel cars. The wider European Union is expected to decide on future restrictions as early as this month.
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