Japanese Automotive Industry under Carbon Neutrality: Multi-Pathway Strategy and Green Supply Chain Networks

This study examines Japan’s carbon-neutral policy in the automotive sector. To tackle carbon neutrality, the Japanese government and industry have introduced two manufacturing-related strategies. The first is the Multi-Pathway Strategy, which promotes not only battery electric vehicles but also a variety of powertrain vehicles by using a technology-neutral approach. The second is the establishment of green supply chain networks. These strategies align with the life-cycle assessment concept that calculates the total carbon dioxide (CO2) emissions of the whole automotive supply chain network but are based on the not commonly used Tank-to-Wheel method that calculates CO2 emissions during the driving process only. This study asserts that a technology-neutral approach based on life-cycle assessment can be a more practical policy for greenhouse gas reduction under the uncertainty of the automotive technology and energy policy. Lastly, the article reveals key issues in sustainable global automotive development.