Japan will begin supplying fuel with up to 10% biofuels starting in fiscal 2028, targeting refinery-equipped areas to drive early decarbonization in transportation.
![]() |
Japan’s METI advances biofuel rollout to FY2028 in refinery zones, aiming to test fuel blending, safety, and supply for national decarbonization efforts. Image: CH |
Tokyo, Japan — May 19, 2025:
Japan will introduce gasoline blended with up to 10% biofuels beginning in fiscal year 2028, the Ministry of Economy, Trade and Industry (METI) announced. This fuel—sourced from biomass such as corn and sugarcane—will first be available in select areas with existing refinery and fuel storage infrastructure.
The initiative marks an acceleration of the government’s decarbonization agenda, originally planned for fiscal 2030. The new fuel will support Japan's efforts to reduce carbon dioxide emissions from the transport sector, which accounts for roughly 20% of the nation's total emissions.
METI will outline this policy in its upcoming biofuel action plan to be presented at a panel of energy and environmental experts. The limited introduction is designed to test critical aspects of the rollout—including safety standards, fuel quality control, logistics, and infrastructure readiness—before nationwide expansion.
So far, around 40% of new vehicles in Japan are compatible with a 10% biofuel blend, laying the groundwork for the initiative. The government plans to finalize the designated pilot areas by autumn 2025 and will offer financial assistance to upgrade fuel stations and distribution systems. Both oil wholesalers and automobile manufacturers have endorsed the plan.
Looking ahead, the Japanese government aims to introduce 20% biofuel blends in the early 2030s and provide them widely by fiscal 2040. Automakers will be encouraged to make all future vehicle models compatible with higher blend ratios.
Though biofuels release CO₂ when burned, they are regarded as carbon-neutral since the plants used in their production absorb equivalent amounts of CO₂ during growth. This life-cycle balance makes them a viable component of Japan's carbon reduction strategy.
Globally, countries such as Brazil and the United Kingdom have already mandated biofuel-blended fuels. Japan plans to source biofuels primarily from Brazil and the United States, but long-term adoption will require overcoming hurdles such as stable procurement and cost reduction.
By starting early in strategically equipped regions, Japan hopes to establish a viable framework for nationwide deployment, contributing meaningfully to both domestic and global climate goals.