Japan approves enforcement date for CCS Business Act

Japan’s Cabinet has approved the enforcement date for the country’s Act on Carbon Dioxide Storage Businesses, marking a significant step in establishing a legal framework for carbon capture and storage (CCS) activities.

The Cabinet Orders were approved in a joint announcement by the Ministry of Economy, Trade and Industry and the Ministry of the Environment.

Under the decision, the CCS Business Act will officially enter into force on 22 May 2026.

The legislation, originally enacted during the 2024 ordinary session of the Diet, establishes rules governing carbon dioxide storage businesses and related offshore storage activities.

Alongside confirming the enforcement date, the Cabinet also approved additional measures to amend and align related regulations.

One of the key amendments introduces standards for carbon dioxide concentration in offshore storage reservoirs. The revised rules require stored CO₂ concentrations in marine areas to be at least 99%, although lower concentrations may be permitted where impurities are deemed to have minimal environmental impact under standards set by the Ministry of Economy, Trade and Industry and the Ministry of the Environment.

The updated regulations also expand provisions covering the registration of storage rights and exploratory drilling rights. The amended framework establishes procedures for registering storage rights, associated mortgages and related legal arrangements.

Japanese authorities said the changes are intended to support the safe and effective deployment of CCS infrastructure while ensuring environmental protection and regulatory clarity for project developers.

The new legal framework forms part of Japan’s broader decarbonisation strategy, with CCS expected to play a role in reducing emissions from hard-to-abate industrial sectors and supporting the country’s long-term climate targets.