Japan advances decarbonization via fuel certification and demand creation

In Japan, efforts to accelerate decarbonization are advancing through new certification and demonstration projects. BIPROGY has been commissioned to conduct a demonstration project aimed at establishing a ‘Clean Fuel Certificate System.’ This system is designed to certify and transfer the environmental value of next-generation fuels, such as synthetic methane and biogas, which can utilize existing city gas infrastructure.

The project seeks to address the high production costs of these fuels by creating a public mechanism to objectively prove and trade their CO2 reduction benefits. The demonstration will verify the entire process—from certification and issuance to the transfer and retirement of certificates—in collaboration with the Institute of Energy Economics, Japan, and the Japan Gas Appliance Inspection Association.

Separately, Japan’s Ministry of the Environment has selected three companies, including Rakuten, for a model demonstration project focused on creating demand for decarbonized products. This initiative aims to establish environments where the decarbonization value of products is clearly displayed to consumers, testing how such transparency influences purchasing behavior and price premiums.