Cabinet Decision on the Basic Policy on the Rationalizing Use of Energy and Shifting to Non-fossil Energy

1. Background

The Act on Rationalizing Energy Use has until now required large-scale businesses that use energy to rationalize the use of fossil energy. The Revised Act on Rationalizing Energy Use, which will be put into effect on April 1, 2023, will require them to rationalize the use of all kinds of energy, including non-fossil energy, and shifting to non-fossil energy. It will also change the legal system to encourage the optimization of power demand in light of the need to expand the introduction of non-fossil energy toward achieving carbon neutrality by 2050, while coping with fluctuations in the electricity supply from renewable power sources such as solar power.

In light of the revision of the Act, a Cabinet decision was made today on the Basic Policy on the Rationalizing Use of Energy and Shifting to Non-fossil Energy, with the goal of comprehensively promoting the rational use of energy, the shift to non-fossil energy, and the optimization of power demand.

Businesses that use energy are expected to work on transitions to non-fossil energy, keeping in mind the provisions of the Basic Policy.

2. Outline of the Basic Policy

In the current energy environment, responding to climate change issues has become an important factor affecting each country's industrial competitiveness. In order to achieve carbon neutrality, it is important for all parties to rationalize energy use and shifting to non-fossil energy. Based on this recognition, the Basic Policy sets out the basic items that businesses using energy should keep in mind with the goal of comprehensively promoting transitions to non-fossil energy on the demand side.

Specifically, it requires businesses that use energy to install equipment that contributes to the use of non-fossil electricity (e.g., solar power generation equipment and equipment with excellent energy efficiency), select heat and electricity that were generated by primarily non-fossil energy when procuring them, and install in-house power generation equipment and storage batteries with the goal of optimizing power demand.

In addition, with the goal of encouraging businesses to spread information on their efforts to improve energy efficiency and shifting to non-fossil energy, an optional disclosure system was started in March 2023 for them to disclose information in regular reports under the Act on Rationalizing Energy Use. Businesses are requested to consider disclosing such information under this system.

3. Future schedule

Enforcement: April 1, 2023

Related Material

• Basic Policy on the Rationalizing Use of Energy and Shifting to Non-fossil Energy (in Japanese)(PDF:283KB)

Related Links

• Cabinet Decision on the Bill for the Act of Partial Revision of the Act on the Rationalization etc. of Energy Use and Other Acts in Order to Establish Stable Energy Supply and Demand Structure (March 1, 2022)
• Declaration Form Released for Businesses Agreeing to the Disclosure of Information in the Periodic Report Under the Act Rationalizing Energy Use (March 3, 2023)

Divisions in Charge

Energy Efficiency Division, Energy Efficiency and Renewable Energy Department, Agency for Natural Resources and Energy