JP Act on Promoting Contracts Considerate of the Environment for Reducing Greenhouse Gas Emissions
ENFORCEMENT TIMELINE
Continuous enforcement
Overview
This act requires the national government, local governments, and other public entities to factor in environmental impact reduction, not only price, when entering into contracts. It covers a wide range of areas, including electricity supply, building design, and waste treatment, with the aim of having the public sector take the lead in driving the transition to a low-carbon, circular society. Since it took effect in 2007, revisions to the environmental consideration guidelines have progressively required higher energy efficiency performance and greater adoption of renewable energy as contract conditions.
Enforcement Timeline
November 2007: The act takes effect.
2013 and 2018: The environmental consideration guidelines are revised, strengthening consideration of emission factors in electricity supply contracts, among other changes.
June 2023: Consideration begins of a fundamental review of the guidelines, including amendments aimed at achieving carbon neutrality, in response to structural changes in the economy and society.
From 2024 onward: Ongoing monitoring and refinement of guideline implementation continues, aimed at expanding the adoption of renewable electricity procurement and lifecycle cost evaluation among local governments and government agencies.
Business Impact
For businesses participating in public procurement, the ability to offer environmentally friendly products and demonstrate energy efficiency performance is directly tied to contract competitiveness.