Database / Japan / 2024

Japan Act on Carbon Dioxide Storage Businesses (CCS Business Act)

Regulatory Active Verified

Japan enacted the CCS Business Act in May 2024 to establish licensing systems for carbon dioxide storage businesses and exploratory drilling, create legally protected storage and exploratory-drilling rights, and regulate storage operations and pipeline transport of carbon dioxide. Exploration-related provisions entered into force in stages on 5 August and 18 November 2024. METI set 22 May 2026 as the full enforcement date and completed the associated Cabinet Orders, including registration rules for storage rights and technical provisions for offshore storage.

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 Incentive

Japan JOGMEC Advanced CCS Projects Support Program

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 - Hokuetsu pulp plant

Capture — 0 Mtpa

East Niigata area CCS - Mitsubshi gas chemical

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

dimensions.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.

dimensions.statutory

The Act establishes storage-business and exploratory-drilling licences, registrable storage and exploratory-drilling rights, and business and safety rules for storage and pipeline CO2 transport.

dimensions.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.

dimensions.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.

dimensions.mrv

The statutory and implementing framework requires regulated site operation, monitoring, closure and post-closure controls; detailed implementing rules were completed for full enforcement on 22 May 2026.

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 Ministry of Economy, Trade and Industry (METI), Japan

Release Date 2024-05-17

Legal Weight Primary Legislation

Original Document

Last Intelligence Audit 2026-07-21