Law Concerning the Promotion of Contracts Considering Reduction of Emissions of Greenhouse Gases and Others by the State and Other Entities (Environment Consideration Contract Law) (Law No. 56 of 2007)

Act on Promotion of Contracts of the State and Other Entities, Which Show
Consideration for Reduction of Emissions of Greenhouse Gases, etc.
(Tentative translation)
Act No. 56 of May 23, 2007
(Purpose)
Article 1 The purpose of this Act is to clarify the responsibilities of the State, etc.
concerning the promotion of contracts of the State, etc. which show consideration for
reduction of greenhouse gas emissions, etc., while aiming to reduce greenhouse gases,
etc. emitted by the State, etc. by formulating a Basic Policy and otherwise specifying
necessary matters, thereby contributing to establishing a society that can develop
sustainably with reduced environmental loads.
(Definition)
Article 2 (1) The term "Greenhouse Gases, etc." as used in this Act means
greenhouse gases and other substances causing load on the environment (referring to
the environmental load specified in Article 2, paragraph (1) of the Basic Environment
Act (Act No. 91 of 1993); the same applies hereinafter).
(2) The term "the State, etc." as used in this Act means the State, incorporated
administrative agencies, etc., local governments, and local incorporated administrative
agencies.
(3) The term "Incorporated Administrative Agencies, etc." as used in this Act means
incorporated administrative agencies (referring to Incorporated Administrative
Agencies prescribed in Article 2, paragraph (1) of the Act on General Rules for
Incorporated Administrative Agencies (Act No. 103 of 1999)) or special public
corporations (referring to juridical persons directly incorporated by an act or juridical
persons incorporated by a special juristic act for establishment based on a special act,
to which the provision of Article 4, item (xv) of the Act for Establishment of the
Ministry of Internal Affairs and Communications (Act No.91 of 1999) is applicable; the
same applies hereinafter) specified by Cabinet order and whose capital is mainly or
completely funded by the State or whose financial resources for expenses necessary for
operating projects are mainly obtained from the State-issued grants or subsidies.
(4) The term "Local Incorporated Administrative Agencies" as used in this Act means
Local Incorporated Administrative Agencies as prescribed in Article 2, paragraph (1) of
the Local Independent Administrative Agency Act (Act No. 118 of 2003).
(5) The term "Heads of Ministries and Agencies" as used in this Act means the heads of

ministries and agencies as prescribed in Article 20, paragraph (2) of the Public Finance
Act (Act No. 34 of 1947).
(Responsibility of the State and Incorporated Administrative Agencies, etc.)
Article 3 The State and Incorporated Administrative Agencies, etc. must, for the
purpose of reducing emissions of Greenhouse Gases, etc., endeavor to implement
reasonable and appropriate use, etc. of energy, and, while giving consideration to
economic efficiency and various elements other than the price, endeavor to promote
contracts of the State and Incorporated Administrative Agencies, etc. which show
consideration for the reduction of emissions of Greenhouse Gases, etc.
(Responsibility of Local Governments and Local Incorporated Administrative Agencies)
Article 4 Local governments and Local Incorporated Administrative Agencies are to,
for the purpose of reducing emissions of Greenhouse Gases, etc. endeavor to implement
reasonable and appropriate use, etc. of energy, and according to the natural and social
conditions of the areas of local governments or to the administration and undertakings
of Local Incorporated Administrative Agencies, while giving consideration to economic