As alternatives to heavy-duty vehicles, this project seeks to promote the development of Next-Generation EFVs, which will present a solution to the severe air pollution problem particularly in big cities, and drastically improve exhaust gas emissions and reduce carbon dioxide emissions in order to lessen the contribution to global warming. Ministry of Land, Infrastructure, Transport and Tourism (MLIT) started the Next-Generation Environmentally Friendly Vehicles Development and Commercialization Project in 2002. MLIT at that time entrusted this project to National Traffic Safety and Environment Laboratory (NTSEL). NTSEL as a core research organization organized a cooperative system with automobile manufacturers, suppliers, universities, academic experts, that is to say, “industry-academic-government” and launched the development activities. In 1st Stage (2002-2004), several target vehicles were developed such as, Dimethyl Ether (DME) Truck, IPS Hybrid Bus, Super Clean Diesel (SCD) Engine, and Compressed Natural Gas (CNG) Truck.In 2nd Stage (2005-2010), NTSEL applied following approaches; I. Commercialization of developed Next-Generation EFVs (Verification test) and II. Development and Promotion of New Next-Generation EFVs. Activities in NTSEL for the approach I and II are explained below; I. Commercialization of developed Next-Generation EFVs (Verification test) Dimethyl Ether (DME) Truck, IPS Hybrid Bus, Super Clean Diesel Engine, CNG Truck, II. Development and Promotion of New Next-Generation EFVs LNG (Liquefied Natural Gas) truck, FTD (GTL) (Fischer Tropsh Diesel (Gas to Liquid)) truck, Hydrogen engine.In 3rd Stage (2011-2014), this project focused on heavy duty vehicles in the transportation sector due to their high emission of CO2, for achievement of the Japanese mid-term target of 25% GHG emission reduction by 2020. NTSEL has promoted technology development in cooperation with automobile manufactures and has prepared for setting up a required standard in order to achieve the early realization of innovative technologies for low carbon and reduction of exhaust emission. As the Next-Generation environmental technology in heavy duty vehicles, NTSEL planned to deal with Electric/Plug-in Hybrid Truck in response to light/medium duty truck, High-efficient Hybrid Truck and Next-Generation Bio Diesel Engine in response to heavy duty truck, and High-performance Electric Route Bus in response to route bus. Activities of 3rd Stage in this project will be introduced.