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Japan delays carbon tax to offset burden of inflation on households

Yen weakens as energy prices soar

Japan has put on hold plans to revise carbon taxes as inflation is putting an increasing strain on household budgets according to Bloomberg News 

“The government will postpone the introduction of a new carbon tax that was planned for the fiscal year starting April 2023, the Nikkei said Tuesday without attribution. Policy makers decided it would add to already surging living costs, it said.”

“Japan was the first country in Asia to impose a levy on fossil fuel emitters, in 2012, but it’s set at just 289 yen ($1.97) per ton of CO2-equivalent.” 

Japan had aimed to cut carbon emissions by 46% from 2013 levels aiming to reach ‘net zero’ by 2050. 

This marks the second time the Japanese government has decided to delay the revised carbon taxes as energy costs soar while the Yen is losing value. 

​​”The environment ministry had requested the introduction of a more substantial carbon levy in the previous annual tax revisions, but the government backed away from the proposal amid industry protests.” 

Last August Foreign Policy reported that Japan was ramping up its use of nuclear power in order to deal with energy cost increases. 

“As the global energy crisis deepens, Japan will restart idle plants and potentially increase some reactors’ life spans and build next-generation reactors, Prime Minister Fumio Kishida announced on Wednesday. Japanese officials have been directed to develop policy measures by the end of the year, he added.” 

Nuclear power has been an issue of contention in the country since the 2011 Fukushima reactor meltdown disaster which caused immeasurable environmental damage as well as forcing thousands of Japanese to flee their homes. 

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