Japan plans to invest around 1 trillion yen by 2030 to develop a circular economy for recycling resources such as metals and plastics, according to an action plan compiled by the government.

The initiative, which would see investment sourced from both the public and private sectors, also aims to reduce Japan’s reliance on overseas resources and contribute to the country’s economic security.

"By concentrating policy resources, we will identify a winning strategy for Japan," Chief Cabinet Secretary Minoru Kihara said as quoted by Kyodo News.

The government will incorporate the action plan, which sets supply targets for each material by 2030, into its key economic policy guideline and growth strategy.

According to the plan, around 30% of the domestic production of permanent magnets using rare earth elements should come from recycled materials. For plastic products such as PET bottles, it calls for mandating a certain percentage of recycled materials by fiscal 2028.