NHK has learned that Japan's government plans to map out a strategy by the end of July to speed up the shift to carbon neutrality.

The move comes after Japanese lawmakers enacted a law in the most recent Diet session to promote what they call "green transformation." The legislation calls for the introduction of a carbon pricing scheme, in which businesses emitting carbon dioxide are required to bear a financial burden.

The new strategy is expected to include providing incentives aimed at facilitating the introduction of a market-based mechanism that enables businesses to buy or sell credits earned by cutting CO2 emissions.

The strategy will also likely include drawing up measures to encourage private-sector investment in carbon-neutrality initiatives through the issuance of a new type of government bond.

The government also plans to set up a new entity in fiscal 2024 that would operate a planned trading system for emissions credits.

The government intends to explain these plans at a meeting on Tuesday.