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Japan plans to encourage automakers to make all new passenger cars biofuel-compatible by the early 2030s in an effort to reduce carbon dioxide emissions from gasoline vehicles, local media reported. 

The new goal, unveiled by the industry ministry at a subcommittee meeting, aims to urge oil wholesalers to begin supplying gasoline blended with up to 10 per cent bioethanol by fiscal 2030, with plans to increase the share to 20 per cent by fiscal 2040, reports Xinhua news agency, quoting Jiji Press.

The ministry is also considering making this change mandatory through legislation.

In addition, the ministry is preparing an action plan, which is expected to be finalised by next summer and will support the necessary upgrades to gas stations to accommodate bioethanol-blended fuels, according to the report.

Bioethanol, made from corn and sugar cane, absorbs CO2 during photosynthesis. This natural process is believed to help offset the CO2 emissions generated when bioethanol-blended fuels are burned.