The move is aimed at setting out a long-term strategy to encourage investment to accelerate decarbonisation and to bolster the competitiveness of domestic industries.
Discussions to formulate the strategy began on Monday during the "Green Transformation (GX) implementation conference," chaired by Prime Minister Fumio Kishida.
The objective is to deliver a proposal by year-end and finalise the strategy by the end of March, according to Yojiro Hatakeyama, director-general of industrial science, technology and environment policy bureau at the industry ministry.
The world's fifth-largest carbon dioxide (CO2) emitter aims to cut emissions by 46% from 2013 levels by 2030 and achieve net zero by 2050.
Last year, the government passed a law aimed at promoting decarbonisation investments totalling more than 150 trillion yen ($962 billion) in the public and private sectors over 10 years.
The 2040 strategy is expected to refine last year's plan and provide more predictability of long-term investments while enhancing the competitiveness of domestic companies and fostering economic growth, Hatakeyama told reporters.
