JAPAN Trends and Developments Contributed by: Taro Omoto, Yusuke Nakajima and Makoto Sakai, Mori Hamada & Matsumoto
10,000 tons of CO2, in applying for the necessary licences to operate international air transport services. With the global commitment of IATA to zero emissions by 2050, in June 2022 the Civil Aeronautics Act and the Airport Act were amended to create a new frame - work to promote decarbonisation in the civil aviation sector. Pursuant to the new law, the Ministry of Land, Infrastructure, Transport and Tourism of Japan issued the basic policy for promoting decarbonisation in the civil aviation sector in December 2022. In May 2023, the Ministry of Economy, Trade and Industry of Japan proposed that Japanese fuel suppliers would be required to raise the ratio of sustainable aviation fuel (SAF) to the total aviation fuel supplied to 1:10 (10%) by 2030. In January 2024, pursuant to the new law, Japanese airlines filed decarbonisation plans with the Ministry of Land, Infrastructure, Transport and Tour - ism, including matters such as the use of SAF equiva - lent to 10% or more of the total fuel procured and the introduction of low-carbon aircraft. Airports also prepare their own decarbonisation plans, pursuant to which various initiatives will be undertaken by airlines and airports, including the introduction of low-carbon aircraft, SAF, batteries, LEDs and electric vehicles.
Given these regulatory circumstances and the increas - ing sustainability disclosure requirements applicable to financial institutions and airlines, there will be an increased focus on sustainability and transition financ - ing in aviation finance.
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