Database / Japan / 2024

Act on Carbon Dioxide Storage Business (2025 Phase-in)

Regulatory Active Verified

The Act on Carbon Dioxide Storage Business (CCS Business Act) established a comprehensive legal framework for the entire CCS value chain in Japan. Passed in May 2024, the Act follows a phased implementation: prospecting rights became effective in Nov 2024, with full enforcement (including storage rights and liability transfer) mandated by May 2026. 2025 serves as the critical window for FEED implementation of JOGMEC-supported projects. The Act creates ‘Quasi-real Rights’ (Mina-shi Bukken) for storage, allowing for registration and mortgage/financing. It provides for the transfer of monitoring responsibilities to JOGMEC after CO2 stabilization, while maintaining a strict liability (no-fault) regime for operators.

National Governance Context

Japan Overview

Aggregate National Maturity Index (Peak Strength)

Governed Policies

Identified Projects

Operational Cap 0.2 Mtpa

Under Construction Cap 0.0 Mtpa

Planned Cap 9.7 Mtpa

Related Policy Network

Peer Frameworks

2024 Regulatory

Act on Carbon Dioxide Storage Business (CCS Business Act)

2024 Incentive

Japan JOGMEC Advanced CCS Projects Support Program

2024 Regulatory

Japan METI Specified Zones & CCS Tender Guidelines (2024)

Directly Linked Assets

Tomakomai area CCS - Hokkaido Electric Tomatouatsuma power station

Capture — 0 Mtpa

Tomakomai area CCS - Idemitsu Kosan Hokkaido Refinery

Capture — 0 Mtpa

East Niigata area CCS - Tohoku Electric Power

Capture — 0 Mtpa

East Niigata area CCS - Mitsubshi gas chemical

Capture — 0 Mtpa

East Niigata area CCS - Hokuetsu pulp plant

Capture — 0 Mtpa

Metropolitan Area CCS - Nippon steel plant

Capture — 0 Mtpa

Offshore Western Kyushu CCS - Eneos refinery

Capture — 0 Mtpa

Idemitsu Biomass Waste to Hydrogen

Capture — 0 Mtpa

Offshore Western Kyushu CCS - J-Power power plant

Capture — 0 Mtpa

Oceania CCS - Nippon steel plant

Capture — 0 Mtpa

Oceania CCS - Mitsubishi chemical plant

Capture — 0 Mtpa

Mikawa Power Plant BECCS Fukuoka Prefecture

Capture — 0.18 Mtpa

East Niigata area CCS (capture sources under evaluation)

T&S — 1.5 Mtpa

Oceania CCS (capture sources under evaluation)

T&S — 2 Mtpa

Tohoku Region West Coast CCS

T&S — 2 Mtpa

Tomakomai area CCS

T&S — 1.5 Mtpa

Nihon Shipyard Mistubishi Shipbuilding JV LCO2 carrier

Transport — 0 Mtpa

Metropolitan Area CCS (capture sources under evaluation)

T&S — 1 Mtpa

Offshore Western Kyushu CCS

T&S — 1.7 Mtpa

Tohoku Region West Coast CCS - Kyushu Works Oita Area

Capture — 0 Mtpa

Tohoku Region West Coast CCS - Kawasaki Plant of DC CO

Capture — 0 Mtpa

Policy Classification

FSRTM 5.0

incentive

Japan's incentive framework for CCUS is driven by the Green Transformation (GX) policy, with JOGMEC providing substantial financial support for exploratory drilling and infrastructure. In 2025, METI launched a working group to design 'Carbon Contracts for Difference' (CCfD) to bridge the cost gap between CCUS and traditional energy. Additionally, the government has selected 9 'Advanced CCS Projects' to receive direct subsidies. While a full carbon market is still developing, the combination of direct grants and the promise of price-gap support has provided enough certainty for major industrial groups to commit to 2030 operational targets.

statutory

Japan achieved high regulatory maturity with the enactment of the CCS Business Act in May 2024, which became partially effective in August 2024 and enters full enforcement by 2025-2026. The Act replaces a fragmented legal landscape with a unified 'Permit System' for CO2 storage and transport. Crucially, it defines 'Storage Rights' as a new form of real right, allowing them to be mortgaged and protected. The Act also clarifies pipeline access and safety standards. This legal certainty, combined with the government's role in designating 'Specified Areas' for storage, provides a robust statutory foundation that is among the most comprehensive in Asia.

market

The Japanese CCUS market is structured around government-led 'Advanced CCS Projects' that create industrial hubs in regions like Tomakomai and Higashi-Niigata. By 2025, these hubs have established initial commercial frameworks for CO2 supply, involving power utilities and steel manufacturers. JOGMEC acts as a market catalyst, funding common-user infrastructure to reduce entry barriers. Japan is also aggressively pursuing an international market, with 4 of its 9 advanced projects located overseas in Malaysia and Oceania. The 2024 CCS Business Act facilitates this by treating storage rights as real property, enabling secondary market transactions and project financing.

strategic

Strategically, CCUS is a core pillar of Japan's 2050 Carbon Neutrality goal and its 'GX Promotion Act.' The national strategy aims to store 120-240 million tonnes of CO2 per year by 2050, with 2025 marking a critical transition to commercial-scale infrastructure. Japan strategically positions CCUS as a tool for regional climate leadership, utilizing the Asia Zero Emission Community (AZEC) framework to export its technology and develop overseas storage hubs. This strategic vision is integrated with the nation's energy security, as CCUS enables the continued use of fossil fuels during the transition to a hydrogen-based economy, ensuring industrial stability while meeting climate targets.

mrv

Clear legal definition of "Stability" for JOGMEC transfer.

Strategic Impact Analysis

Economic Impact

Enables project financing through real-right registration; reduces long-term liability costs via JOGMEC transfer.

Technical Impact

Establishes 'Stable Behavior' as the legal threshold for monitoring transfer, driving 4D seismic adoption.

Environmental Impact

Legal backbone for Japan's 2030 target of 6-12 Mtpa storage capacity.

Technical Metadata

Lead Institution METI

Release Date 2024-05-17

Legal Weight Primary Legislation

Original Document

Last Intelligence Audit 2026-03-19