Japan is making strides towards decarbonization by introducing a CCS project bill that delineates the rights of operators and establishes a regulatory framework for carbon dioxide capture and storage technology. This initiative aims to combat climate change by capturing CO2 emitted from factories and other sources before it disperses into the atmosphere, subsequently storing it underground at depths exceeding 1,000 meters.
To ensure the effective implementation of CCS technology, the bill lays out a permit system for exploratory drilling and storage operations, whereby operators will bear responsibility for any accidents or incidents, irrespective of intent or negligence. The government's objective is to prepare the groundwork for CCS projects by 2030 as part of the Green Transformation promotion strategy, aligning with the overarching goal of achieving virtually zero emissions by 2050.
Under the proposed bill, there are provisions for licensing operators in designated areas with suitable geological formations for storage, granting them prospecting and storage rights, while also mandating approval of implementation plans by the economy minister. Furthermore, operators will be required to monitor stored CO2 for leakages, transfer management tasks to designated entities once stability is achieved, and contribute the necessary funds for ongoing monitoring and upkeep. Additionally, the bill prohibits discriminatory treatment of certain emitters, mandates notification of fees, and enforces a “no-fault liability” policy for compensating any mishaps during project execution.