Eco-business / Social Venture

September 13, 2007


'Environmental-Conscious Contract Law' Enacted

Keywords: Eco-business / Social Venture Energy Conservation Government Policy / Systems Transportation / Mobility 

The Environmental-Conscious Contract Law, a bill proposed by an individual Diet member and sponsored by the Liberal Democratic Party, the New Komeito Party and the Democratic Party, was passed into law in the Lower House plenary session on May 17, 2007. This law clarifies the public sector's responsibility to take into account not only economic concerns but also the reduction of greenhouse gas emissions when they sign a contract.

Specifically, contracts concerning the purchase of electricity and official vehicles, as well as service contracts such as those with energy service companies (ESCO) and architects are subject to the law. This law stipulates that the head of each ministry and independent administrative corporation shall make public information about the performance of its environment conscious contracts and submit a notification to the Minister of the Environment after the close of each fiscal year.

The law will go into effect within six months. Led by the Environment Minister, the government will work on establishing basic policy.

Posted: 2007/09/13 08:27:34 AM
Japanese version