Japan’s response to the economic crisis and new growth strategy have taken up this challenge by identifying the environment, and in particular innovation aimed at addressing environmental concerns, as a source of economic recovery and long-term growth. This is in line with the w'ork underway in the OECD to develop a Green Growth Strategy. The Japanese experience can represent a contribution to the ongoing debate on how to put in practice the “green growth” concept, the instruments that could be used, and the obstacles that are likely to emerge. First, it summarises Japan's achievements and challenges in decoupling environmental pressures from economic performance. Section 2 discusses the environmental dimension of Japan’s response to the economic crisis, also in comparison w'ith the policy reaction to the economic recession in the early 2000s. Section 3 gives an overview of Japan’s New Growth Strategy, with a focus on its environmental pillar.