In a changing economic, social and international context, Japan has managed to reduce some of the pressures on the environment, notably energy use, air emissions, water abstractions and municipal waste generation. However, greenhouse gas emissions and generation of non-municipal waste have grown, pressures on nature and biodiversity have intensified, and air and water pollution remain of concern in some areas. Japan defined its own model of a sustainable society, based on a low-carbon economy, sound material cycle and biodiversity conservation. These three priority areas are reflected in the environmental plans that were approved at both national and local levels during the review period. Japan has also taken steps to improve inter-institutional co-ordination and the integration of environmental concerns into sectoral planning.

Following a period of modest economic growth, Japan’s economy was severely hit by the 2008-09 global economic downturn. The anti-crisis fiscal stimulus package included several environment-related measures. Reforming the tax system, expanding environmentally related taxes and removing environmentally harmful subsidies could help fiscal consolidation without hampering economic recovery. The long-term strategy to 2020 outlines a green growth path, and sees eco-innovation as the link between environmental improvement, economic growth and social progress. Japan is a leader in environmental and climate-related technologies and is promoting the development of green markets and employment. The declining and ageing population represents a new challenge for both economic and environmental policies.

Japan uses a mix of environmental policy instruments, including regulatory, economic and information-based measures. It is promoting wider participation of the public in environmental decision-making, and greater access to information and justice to support these efforts. This chapter also reviews progress in improving air management, in particular in urban areas, strengthening the management of inland and coastal waters and reducing impacts of chemicals on human health and the environment.

Japan is an active player in international environmental co-operation. In a changing international economic and political context, Japan has given more importance to regional and bilateral co-operation in the Asian region, notably in such areas as transboundary air pollution, fisheries management and marine pollution, which are analysed in this chapter. Environment is a prominent component of Japan’s development assistance. Japan has also taken action, at home and internationally, to tackle environment-trade issues arising from multilateral environmental agreements, such as trade in ozone depleting substances and tropical timber, as well as safety and environmental impacts of shipbreaking.