Japan's environmental history and current policies reflect a balance between economic development and environmental protection. In the rapid economic growth after World War II, environmental policies were downplayed by the government and industrial corporations. As an inevitable consequence, some crucial environmental pollution (see Pollution in Japan) occurred in the 1950s and 1960s. In the rising concern over the problem, the government introduced many environmental protection laws in 1970 and established the Ministry of the Environment in 1971. The Oil crisis in 1973 also encouraged the efficient use of energy due to Japan's lack of natural resources. Current priority environmental issues include urban air pollution (NOx, suspended particulate matter, toxics), waste management, water eutrophication, nature conservation, climate change, chemical management and international co-operation for environmental conservation.

Today Japan is one of the world's leaders in the development of new environment-friendly technologies. Honda and Toyota hybrid electric vehicles were named to have the highest fuel economy and lowest emissions. This is due to the advanced technology in hybrid systems, biofuels, use of lighter weight material and better engineering.

Japan also takes issues surrounding climate change and global warming seriously. As a signatory of the Kyoto Protocol, and host of the 1997 conference which created it, Japan is under treaty obligations to reduce its carbon dioxide emissions and to take other steps related to curbing climate change. The Cool Biz campaign introduced under former Prime Minister Junichiro Koizumi was targeted at reducing energy use through the reduction of air conditioning use in government offices. Japan is preparing to force industry to make big cuts in greenhouse gases, taking the lead in a country struggling to meet its Kyoto Protocol obligations.[

Japan is ranked 30th best in the world in the Environmental Sustainability Index