October 1, 2021

The Transport Ministry reportedly decided to provide subsidies to promote the spread of environmentally-friendly "next-generation cars" in the country.

It is a matter of course for the national government to take steps toward a decarbonized Japan. However, the subsidies will be given also to hybrid gasoline-electric vehicles (HVs).

Automobiles account for nearly 20% of CO2 emissions in Japan. As HVs emit exhaust fumes, the European Union plans to prohibit new HV sales by 2035. On this point, a Transport Ministry official said, "The ministry is fully aware of that move in Europe, but HVs showcase Japanese expertise."

Toyota Motor developed the world's first mass-produced HVs. Still today, the automaker maintains its technology edge. The government apparently exhibits extra consideration to the interests of Toyota, running counter to the global effort in addressing climate change.