By Hiroto Nishihara / Yomiuri Shimbun Staff Writer

The Japanese government intends to conduct a pilot program to develop hubs for advanced recycling next fiscal year, with an objective of accelerating the circulation of resources such as plastics and metals, including rare metals.

The program will be conducted from the standpoint of economic security, as the government aims to build a system for reusing resources that had previously been unutilized because of reasons such as being exported abroad.

According to the Environment Ministry, about 20% of iron scrap generated in Japan -- amounting to about 6.9 million tons -- was exported overseas in 2023 without being reused. About 70% of plastic waste -- about 5.5 million tons -- was incinerated. In addition, about 70% of recycled plastic was exported.

One of the reasons why domestic resource circulation is limited is believed to lie in the structure of waste disposal and recycling industries, which are small-scale companies scattered across the nation. They often lack the technology to extract the materials needed for recycling products made of multiple materials. Even if they have the recycling technology, only a few operators can supply recycled materials that meet the standards of quality and quantity demanded by manufacturers.

To improve this situation, the government will promote the development of facilities equipped with advanced dismantling and sorting technologies to extract recyclable materials from waste, as well as manufacturing facilities capable of producing and supplying recycled materials in mass quantities. The government aims to make such facilities as hubs and establish networks with manufacturers seeking to utilize recycled materials.

In the next fiscal year starting April 2026, the government will conduct the pilot project that provides such support as technological improvements to waste treatment and recycling companies. It will also create connections between such companies and manufacturers. The Environment Ministry is set to include related expenses in the ministry's budgetary request for fiscal 2026.

It has become a global trend for countries to enclose resources, exemplified by China's move to tighten export restrictions on certain rare metals. There have been discussions in the European Union to require new vehicles to contain a minimum of 20% recycled plastic. The need for recycling is growing in Japan as the country relies heavily on imports for securing resources. The government aims to improve domestic resource circulation with the pilot project.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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August 29, 2025 04:00 ET (08:00 GMT)

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