The policy includes plans to innovate in areas such as hydrogen and carbon dioxide (CO2) capture and utilization, but did not give a specific target for phasing out low efficiency coal-fired power plants, or a roadmap for a carbon tax.
Japan has been criticised for its heavy use of coal-fired power generation and plans to build new coal-fired plants.
The strategy aims to establish commercial-sized carbon capture and utilization (CCU) technology by 2023, and to commercialise carbon capture and storage (CCS) used in coal-fired power generation by 2030.
It also includes plans to cut the cost of producing CO2-free hydrogen to less than one-tenth by 2050.
The latest document fleshes out how to reach commitments made under the 2015 Paris Agreement to keep the rise in global temperatures below 1.5 to 2 degrees Celsius.
The goals mostly reflect recommendations made in April by a government-run panel of academic experts and business leaders.
It will be submitted to the United Nations before June 28-29, when Japan hosts a Group of 20 summit in Osaka, a government official said.
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