Impact Policy Tracker Policy

Grand Design and Action Plan for a New Form of Capitalism



Launched in 2024, Japan’s Grand Design and Action Plan for a New Form of Capitalism serves as the government’s overarching strategy to drive the country’s economic transformation under a renewed vision of capitalism, one that aims to achieve economic growth while addressing pressing social challenges. The strategy focuses on several key pillars, including labour market reform and wage increases, industrial innovation, energy and food security, and the promotion of investments in Green Transformation (GX), Digital Transformation (DX), Artificial Intelligence (AI), and other cutting-edge technologies.

The strategy is overseen by the Headquarters for the Realization of a New Form of Capitalism, chaired by the Prime Minister and composed of all Cabinet ministers, with support from a council of external experts contributing to its vision and implementation - Ken Shibusawa, the Chair of GSG Impact JAPAN NP is a member of the council.

Impact investment plays a central role in the Action Plan, which sets out a series of targeted measures to support and scale impact-driven enterprises and financial mechanisms. These include:
a) Promoting impact startups through a national certification framework;
b) Expanding access to finance and public procurement opportunities for certified impact-oriented companies;
c) Strengthening the ecosystem through the creation of the Impact Consortium, a platform for knowledge exchange and collaboration among practitioners; and
d) Scaling up innovative financing tools such as Social Impact Bonds and the “Triple I for Global Health”

Highlights

  • Reimagining Capitalism for People and Planet: Japan’s Grand Design and Action Plan for a New Form of Capitalism redefines the relationship between economic growth and societal wellbeing. Drawing from traditional Japanese business philosophies -such as Sampo-yoshi (“good for the seller, good for the buyer, and good for society”) and Shibusawa Eiichi’s doctrine of ethical capitalism- the strategy recognizes that today’s systemic challenges, from climate change to declining birth rates and aging population, cannot be tackled by markets or governments in isolation. Instead, it calls for a renewed form of capitalism grounded in public-private collaboration, aimed at creating markets that deliver both economic value and social impact, ultimately advancing the sustainable well-being of all.

  • Complemented by a Dedicated and Comprehensive Climate Strategy: Japan’s Action Plan is reinforced by the GX Promotion Strategy, a national framework designed to drive the transition toward a decarbonized, growth-oriented economy. Approved in 2023, the GX Basic Policy lays out key actions, including the introduction of a carbon pricing system, the establishment of a GX Acceleration Agency, and the issuance of GX Economy Transition Bonds. The strategy sets out a national investment roadmap to achieve net zero, aiming to mobilize over 150 trillion yen in public and private capital over the next decade. It also paved the way for the launch of the world’s first sovereign Climate Transition Bonds -the Japan Climate Transition Bonds- which began auctioning in February 2024.

Government’s Role:
Market Facilitator


Country:
Japan

Policy Type:
National Impact Strategies

Year: 2024

Responsible Institution:
Japanese Cabinet

Additional information:
Policy Discussion Paper - Investing for the Economic Transition: Japan (2024)
Current State and Challenges of Impact Investing in Japan (2024)

National Impact Strategies

What are National Impact Strategies?

National Impact Strategies serve as comprehensive roadmaps to advance impact economies, identifying government priorities and actions tailored to a country's specific circumstances, existing policies, and legal framework. These strategies typically: a) Set clear, measurable targets and objectives; b) Align the activities of multiple sectors and levels of government;

c) Define specific responsibilities and coordination mechanisms; and d) Often include legally binding measures, usually supported by legislation to ensure effective implementation. Furthermore, they convene stakeholders around a shared vision, helping to build robust impact ecosystems through sustained coordination and a long-term commitment.

Specific national strategies to foster impact economies or promote social impact investing are still relatively rare around the world, with current examples such as Brazil’s Ten-Year National Impact Economy Strategy (2023–2032) and Portugal’s 2030 Agenda for Impact (AFI30) standing out as the most ambitious and comprehensive. Other national strategies or blueprints tend to have a narrower scope, typically targeting either the demand for impact capital -eg. blueprints for social enterprises or broader frameworks for the social and solidarity economy - or the supply of capital, often via green or sustainable finance strategies aimed at mobilising financial flows towards environmental goals.