Implementation Date Set for Japan’s Carbon Dioxide Storage Business Act

2026年4月24日

Japan has officially set the implementation date for its Carbon Dioxide Storage Business Act, marking a significant regulatory step for foreign entrepreneurs interested in sustainable business practices. This law aims to regulate CO2 storage projects, essential for achieving carbon neutrality.

📋 Quick Summary for Foreign Business Owners
Category: Regulatory Update

Background & Context

The Japanese government has approved two key ordinances related to the Carbon Dioxide Storage Business Act (CCS Jigyō-hō), established during the 2024 Diet session. The first ordinance sets the enforcement date, while the second addresses transitional provisions. This framework is part of Japan’s commitment to reducing greenhouse gas emissions and promoting sustainable energy practices. The Ministry of Economy, Trade and Industry (METI) oversees these regulations, expected to take effect in 2026, marking a regulatory shift in Japan’s environmental sustainability approach.

How This Affects Your Business in Japan

Item	Cost (JPY)	Cost (USD approx)	Notes
Company Registration	¥150,000	$1,000	Standard registration fee
Notary Fee	¥50,000	$350	For document notarization
Visa Application	¥4,000	$28	Business Manager Visa

1. Foreign Residents Already Operating a Business in Japan
If you are currently running a business in Japan, particularly in energy or environmental technology sectors, familiarize yourself with the new CCS regulations. Compliance may require obtaining permits from METI. Ensure your business registration and environmental impact assessments are in order to avoid fines or delays.

2. Foreign Nationals Planning to Establish a New Company
For those starting a business in Japan, particularly in green tech, understanding the CCS Business Act is crucial. Prepare a business plan that aligns with METI regulations, including CO2 storage handling and compliance with environmental standards. Consult legal experts familiar with Japanese environmental law.

3. Foreign Investors Who Are NOT Residents of Japan
If considering investing in Japanese CO2 storage companies, assess the regulatory landscape. Conduct due diligence to ensure compliance with the CCS Business Act. Engaging local legal counsel can mitigate non-compliance risks, affecting investment viability. Stay updated with METI’s regulatory changes.

Step-by-Step: What You Need to Do

Step 1: Research the CCS Business Act
Understand the key provisions of the CCS Business Act and how they apply to your business.
Office: Ministry of Economy, Trade and Industry (METI) (English Support: Yes)
Cost: Free (¥0)
Time: Ongoing
Pitfall: Overlooking key regulatory updates

Step 2: Prepare Necessary Documentation
Gather required documents, including business registration and environmental assessments.
Office: METI (English Support: Yes)
Cost: Varies
Time: 1-2 months
Pitfall: Incomplete documentation

Step 3: Submit Application for Permits
Apply for necessary permits under the CCS Business Act.
Office: METI (English Support: Yes)
Cost: ¥100,000 (~$700 USD)
Time: 3-6 months
Pitfall: Missing application deadlines

Step 4: Consult with Legal Experts
Hire a legal advisor specializing in Japanese environmental law.
Office: Local law firms (English Support: Available)
Cost: ¥200,000 (~$1,400 USD)
Time: 1 month
Pitfall: Choosing inexperienced advisors

Step 5: Monitor Regulatory Updates
Stay informed about changes to the CCS Business Act by checking METI’s announcements.
Office: METI (English Support: Yes)
Cost: Free (¥0)
Time: Ongoing
Pitfall: Ignoring minor updates

Key Contacts
www.jetro.go.jp/en/
www.moj.go.jp/isa/
www.meti.go.jp/english/

Expert Analysis: Japan vs. Regional Competitors

Metric	Japan	Singapore	Hong Kong	South Korea
Incorporation Time	14 days	10 days	5 days	12 days
Minimum Capital Requirement	¥0	S$1	HK$1	₩100,000
Corporate Tax Rate	30%	17%	16.5%	22%
Visa Processing Time	1 month	2 weeks	3 weeks	1 month

What to Expect Next

Japan is expected to continue refining its environmental regulations to achieve carbon neutrality by 2050. Stakeholders should monitor amendments to the CCS Business Act and related ordinances as the government prepares for full implementation in 2026. Key developments include potential incentives for CO2 storage businesses and updates on compliance requirements from METI.