JAPAN Trends and Developments Contributed by: Norihiro Sekiguchi, Daisuke Mure, Yuki Kuroda and Ryosuke Sogo, Oh-Ebashi LPC & Partners
ing the continued use of fossil fuels while avoid - ing or reducing increases in atmospheric CO₂ levels. To support this approach, part of the Act on Carbon Dioxide Storage Business (the “CCS Business Act”) was enacted in 2024, with the remaining provisions scheduled to come into force by 2026. This article provides an overview of the Hydro - gen Society Promotion Act and the CCS Busi - ness Act. The Hydrogen Society Promotion Act The Hydrogen Society Promotion Act is a law aimed at the early promotion of the supply and utilisation of low-carbon hydrogen and related resources. Under this law, the competent minis - ter is required to formulate a Basic Policy on the Supply and Utilisation of Low-Carbon Hydrogen and Other Resources. Businesses that supply domestically produced or imported low-carbon hydrogen, as well as businesses that utilise such hydrogen, may prepare business plans and apply for certifica - tion by the competent minister. To obtain certi - fication, the business plans must meet certain prescribed standards. Certified businesses are eligible to receive subsidies from the Japan Organisation for Metals and Energy Security (JOGMEC, formerly known as Japan Oil, Gas and Metals National Corporation). These subsi - dies include price differential support necessary for the continuous supply of low-carbon hydro - gen and base development support required for the development of facilities essential for imple - menting the certified business plans. Additionally, certified businesses are granted special exemptions under related Japanese laws, such as the High Pressure Gas Safety Act,
the Port and Harbor Act, and provisions con - cerning road occupancy. The Hydrogen Society Promotion Act also sets forth behavioural standards for businesses to follow in promoting the supply of low-carbon hydrogen and includes provisions for guidance, advice, recommendations and orders issued by the Minister of Economy, Trade and Industry to ensure compliance. The CCS Business Act The CCS Business Act is designed to avoid or mitigate increases in atmospheric CO₂ lev - els while continuing the use of fossil fuels by separating, capturing, transporting and stor - ing emitted CO₂ in underground or sub-seabed reservoirs. The CCS business consists of three phases: (i) separation and capture, (ii) transpor - tation and (iii) storage. The CCS Business Act primarily regulates the transportation and stor - age phases, while the separation and capture phase is designated for future consideration. In the transportation phase, the law focuses on pipeline transportation businesses (businesses that transport CO₂ via pipelines for the purpose of storing it in reservoirs). It prohibits the unjus - tified refusal of transportation requests, bans discriminatory treatment against specific CO₂- emitting businesses, and establishes a notifi - cation system for pipeline transportation busi - nesses. These regulations aim to ensure fair governance, given that pipeline operators may hold a dominant position over emitting busi - nesses due to the physical connection between emission sources and storage sites. The storage phase involves a wide range of regulations. The CCS Business Act establishes exploration rights and storage rights to define legal entitlements, sets requirements for storage
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