This article describes Japan's adoption of the sound material-cycle society (SMC Society) as a key goal in its pursuit of sustainable development. An SMC Society is defined in Japanese law as a society wherein the consumption of natural resources is restrained and the environmental load is reduced as far as possible, through promotion of the 3Rs-reduction, reuse, and recycling-as well as the environmentally sound disposal of solid waste. The Fundamental Law for Establishing an SMC Society, enacted in 2000, requires the government to formulate a plan, two of which have been developed to date. The Fundamental Plans set quantitative targets for three indicators: resource productivity, cyclical use rate, and final disposal amount. Initial results indicate that resource productivity has increased because the increase in real gross domestic product (GDP) has been accompanied by a decrease in direct material input (DMI), the cycle use rate has increased-mainly because of the growth in the recycling rate of industrial waste-and the final disposal amount has been decreasing. These goals have also been pursued on a global scale through the Group of Eight (G8) process known as the 3R Initiative.