https://bio.nikkeibp.co.jp/atcl/column/16/031700078/111600048/

Automobiles account for 85.7% of CO2 emissions in the transportation industry, accounting for 16.5% of Japan’s total CO2 emissions. Efforts to achieve carbon neutrality for passenger cars have focused on the introduction of electric vehicles, but the adoption of electric vehicles in Japan is lagging behind that in Europe and the United States, and the introduction of biofuels is expected to help reduce CO2 emissions.

In light of this situation, the Ministry of Economy, Trade and Industry (METI) is calling on automakers to adapt all new internal combustion engine vehicles to run on a 20% biofuel blend (E20) by the early 2030s. Toward this goal, the ministry formulated an “Action Plan for Expanding the Use of Bioethanol in Gasoline” in June 2025. This plan outlines five challenges for expanding bioethanol use in Japan:

(1) ensuring a stable supply of bioethanol, which is currently almost entirely imported;

(2) overcoming the technical challenges of increasing the gasoline blend ratio;

(3) formulating quality standards for E20;

(4) developing and upgrading infrastructure such as biofuel-fossil fuel blending equipment and fuel tanks; and

(5) formulating standards and introducing E20-compatible gasoline vehicles to the market.

It also provides a roadmap for each of these challenges. To achieve this, the government plans to begin introducing a 10% biofuel blend (E10) in certain regions in fiscal 2028, identify any issues related to full-scale implementation, and aim to quickly expand supply.