1. Regulatory Framework and Enforcement
   1.1 What is the environmental framework and the key pieces of environmental legislation in your jurisdiction?
   1.2 Who are the primary environmental regulatory authorities in your jurisdiction? To what extent do they enforce environmental requirements?
2. Permits
   2.1 What is the framework for the environmental permitting regime in your jurisdiction?
   2.2 Can environmental permits be transferred between entities in your jurisdiction? If so, what is the process for transferring?
   2.3 What rights of appeal are there against regulators with regards to decisions to grant environmental permits?
3. Environmental Impact Assessments
4. Contaminated Land and Pollution
   4.1 What is the framework for determining and allocating liability for contamination of soil and groundwater in your jurisdiction, and what are the applicable regulatory regimes?
   4.2 Under what circumstances is there a positive obligation to investigate land for potential soil and groundwater contamination? Is there a positive obligation to provide any investigative reports to regulatory authorities?
   4.3 If land is found to be contaminated, or pollutants are discovered to be migrating to neighbouring land, is there a duty to report this contamination to relevant authorities?
   4.4 Does the owner of land that is affected by historical contamination have a private right of action against a previous owner of the land when that previous owner caused the contamination?
5. Waste
   5.1 What are the key laws and controls governing the regulatory regime for waste in your jurisdiction?
   5.2 Do producers of waste retain any liabilities in respect of the waste after having transferred it to another person for treatment or disposal off-site (e.g. if the other person goes bankrupt or does not properly handle or dispose of the waste)?
   5.3 To what extent do producers of certain products (e.g. packaging/electronic devices) have obligations regarding the take-back of waste?
6. Asbestos and other Deleterious Materials
7. Product Regulation
8. Energy Efficiency
9. Climate Change
   9.1 What are the key policies, principles, targets, and laws relating to the reduction of greenhouse gas emissions (e.g. emissions trading schemes) and the increase of the use of renewable energy (such as wind power) in your jurisdiction?
   9.2 Does your jurisdiction have an overarching “net zero” or low-carbon target and, if so, what legal measures have been implemented in order to achieve this target.
   9.3 Are companies under any obligations in your jurisdiction to have in place and/or publish a climate transition plan? If so, what are the requirements for such plans?
   9.4 To what extent does your jurisdiction regulate the ability for products or companies to be referred to as “green”, “sustainable” or similar terms? Who are the regulators in relation to greenwashing allegations?
   9.5 Are there any specific arrangements in relation to anti-trust matters and climate change issues?
   9.6 Have there been any notable court judgments in relation to climate change litigation over the past three years?
   9.7 In light of the commitments of your jurisdiction that have been made (whether at international treaty meetings or more generally), do you expect there to be substantial legislative change or reform in the relation to climate change in the near future?
10. Liability
    10.1 To what extent can the following persons be held liable for breaches of environmental law and/or pollution caused by a company: (a) the company itself; (b) the shareholders of the company; (c) the directors of the company; (d) a parent company; (e) entities (e.g. banks) that have lent money to the company; and (f) any other entities? Transactions
    10.2 To what extent can: (a) a buyer assume any pre-acquisition environmental liabilities in an asset sale/share sale; and (b) a seller retain any environmental liabilities after an asset sale/share sale in your jurisdiction?
    10.3 What duties to disclose environmental information does a seller have in a transaction? Is environmental due diligence commonplace in your jurisdiction?
11. Insurance
12. Reporting and Auditing
    12.1 To what extent are there public registers of environmental information kept by public authorities in your jurisdiction? If so, what is the process by which parties can access this information?
    12.2 To what extent is there a requirement on public bodies in your jurisdiction to disclose environmental information to parties that request it?
    12.3 Are entities in your jurisdictions subject to mandatory greenhouse gas public reporting requirements?
13. Updates/Reform

We have summarized environmental laws and regulations in Japan and included practical considerations on Legal500 for companies conducting business in Japan or planning on entering the Japanese market.
The information is organized by topic, and includes permits, Environmental Impact Assessments, contaminated land and pollution, waste, asbestos and other deleterious materials, product regulations, energy, climate change, liability, insurance, reporting and auditing, updates, and reforms.

1. REGULATORY FRAMEWORK AND ENFORCEMENT

1.1 What is the environmental framework and the key pieces of environmental legislation in your jurisdiction?

As just one example, Japan’s environmental laws and regulations are subdivided by topic as follows:

• Water: Water Pollution Act, Sewerage Act
• Soil: Soil Contamination Countermeasures Act (“SCCA”)
• Air: Air Pollution Control Act, Act on Dioxins
• Chemical substances：Act on the Regulation of Manufacture and Evaluation of Chemical Substances (“ARMECS”), Act on the Assessment of Releases of Specified Chemical Substances in the Environment and the Promotion of Management Improvement (“PRTR Act”)
• ESG: Act on Promotion of Global Warming Countermeasures (“APGWC”), Act on Rationalizing Energy Use (“AREU”), Act on Rational Use and Appropriate Management of Fluorocarbons
• Waste: Act on Waste Management and Public Cleaning (“AWMPC”), Act on PCB Wastes
• Recycling: For each target product, there are several regulations. For example, plastic resources, the packaging containers, etc.

Furthermore, there are numerous ordinances in Japan, which is complicated because each municipality has their own local rules, not only at the prefectural level, but also at the municipal level. As such, there are numerous ordinances that differ from national laws and regulations, and these ordinances are often more rigorous than national laws and regulations.

1.2 Who are the primary environmental regulatory authorities in your jurisdiction? To what extent do they enforce environmental requirements?

Environmental regulations in Japan can be broadly classified into two categories: those enacted by the national Government based on laws, and those enacted by local governments based on ordinances. Ordinances, depending on the circumstances of the local government, may have a broader regulatory scope or stricter standards than national laws. It is important to note that companies must comply with both sets of regulations.

If a company violates environmental regulations or ordinances, the government may take measures such as rescission of permits and licenses or administrative dispositions. It is common for local governments to take the lead for actions such as rescission of licenses and orders for improvement.

2. PERMITS

2.1 What is the framework for the environmental permitting regime in your jurisdiction?

Japan’s environmental legislation establishes laws for each topic, and each law stipulates a framework of licenses required for each type of business.
The entity that grants licenses is often the prefectural government. For example, there are permits and licenses for industrial waste management businesses based on the AWMPC.

In contrast, there are special exceptions that allow companies to proceed with their business without any permits or licenses, such as the cross-regional management certification system based on the AWMPC, and the certification system based on the Law Concerning the Promotion of Resource Recycling of Plastics. In these cases, the Ministry of the Environment is often the authorizing body for the exception system.

When obtaining a license or permit, it is very important to consider which business scheme will satisfy the requirements for obtaining the license or permit, and to consult with the government in advance.

2.2 Can environmental permits be transferred between entities in your jurisdiction? If so, what is the process for transferring?

Permits and licenses are obtained by each business entity and they are generally non-transferable. However, the transfer of permits and licenses sometimes becomes an issue in the event of an M&A transaction. Whether a license or permit is transferred to the successor company through a merger or company split is determined by the relevant governing laws. In some cases, the license or permit held by the split company is automatically transferred; in other cases, the transfer requires approval from the prefectural governor for the company split (e.g., a license for a waste treatment facility); in certain other cases, the transfer may not be permitted at all.

2.3 What rights of appeal are there against regulators with regards to decisions to grant environmental permits?

In general, there are rights of appeal under administrative laws that can be used. In practice, an appeal against a decision to grant a permit or license may be filed with a court through an administrative lawsuit under the Administrative Case Litigation Act, or through an administrative complaint review under the Administrative Complaint Review Act.

However, since the threshold for an administrative appeal to be upheld is high, and complying with the proper procedures requires a high level of expertise, connections with highly specialized lawyers and experts are important. Furthermore, in practice, it is more important to consult with the administrative authorities in advance to prevent unfavourable environmental permits or approvals, rather than trying to appeal them afterwards.

3. ENVIRONMENTAL IMPACT ASSESSMENTS

Are environmental impact assessments (EIAs) for certain projects required in your jurisdiction? If so, what are the main elements of EIAs (including any considerations in relation to biodiversity or GHG emissions) and to what extent can EIAs be challenged?

In Japan, the EIA system under the Environmental Impact Assessment Act is applied. Thirteen types of projects are subject to the EIA system under the Act, such as roads, rivers, railways, and power plants, whose scale is equal to or above a specified baseline.

The EIA system involves a complex process. There are cases where strong opposition from prefectural governors, municipal mayors, and local residents leads to the project being forced to cease.

The EIA Act itself does not stipulate a specific objection procedure. However, there is a possibility that objections may be raised against specific measures related to the EIA, based on other laws.

4. CONTAMINATED LAND AND POLLUTION

4.1 What is the framework for determining and allocating liability for contamination of soil and groundwater in your jurisdiction, and what are the applicable regulatory regimes?

The Soil Contamination Countermeasure Act applies to protect against soil contamination. Primarily, responsibility for soil contamination lies with the owner of the affected site, who may be required to carry out investigations and take countermeasures. However, in certain cases, the polluter may be held liable for these responsibilities.

The Water Pollution Control Act and other laws apply to groundwater contamination. For groundwater contamination, the operators of factories are subject to certain obligations, including notification at the time of establishing a factory, implementing measures to prevent pollution of groundwater, and conducting regular inspections. In some cases, the concentration of water pollutants in wastewater discharged from the facility must be kept below a certain level.

The allocation of responsibility between the party who caused the spread of contamination, the land or groundwater that was contaminated, and those who suffered health damages is determined within the framework of tort law. Additionally, the Water Pollution Control Act has special provisions regarding damages, under which a business operator may be held liable even if there was no negligence in causing the spread of contamination (i.e. strict liability).

4.2 Under what circumstances is there a positive obligation to investigate land for potential soil and groundwater contamination? Is there a positive obligation to provide any investigative reports to regulatory authorities?

Regarding soil, the Soil Contamination Countermeasure Act stipulates the following cases:

(i) When the use of a designated facility that handles hazardous substances is discontinued.

(ii) When, after submitting a notification for land modification exceeding a certain area, the prefectural governor determines that there is a risk of soil contamination; and

(iii) When the prefectural governor otherwise determines that there is a risk of soil contamination.

Additionally, some local governments implement triggers for soil investigations that differ from points (i) to (iii) and have stricter local regulations, such as lowering the threshold of area requirements in point (ii).

4.3 If land is found to be contaminated, or pollutants are discovered to be migrating to neighbouring land, is there a duty to report this contamination to relevant authorities?

If a business operator conducts a survey under the SCCA, then the operator should report the results to the government. On the other hand, if a business operator conducts a survey on a voluntary basis, it does not owe report obligation in principle. However, some local governments may require the submission of reports on the results of voluntary investigations.

4.4 Does the owner of land that is affected by historical contamination have a private right of action against a previous owner of the land when that previous owner caused the contamination?

If a purchaser acquires land through a sale and later discovers unexpected soil contamination exceeding environmental standards, they may claim damages from the seller for breach of contract. Additionally, the purchaser may seek compensation based on tort liability.

Under the SCCA, a landowner may claim reimbursement from the polluter for the costs incurred in removing contamination. This claim may also include expenses related to the preparation of a contamination remediation plan. However, if the purchase price of the land was initially set lower due to the presence of soil contamination, it is deemed that the polluter has already borne these costs. As a result, the purchaser cannot claim reimbursement for those expenses from the seller.

5. WASTE

5.1 What are the key laws and controls governing the regulatory regime for waste in your jurisdiction?

The principal law is the AWMPC, which establishes rules for the management of industrial waste.
In addition, there are other reporting and publication systems based on local rules. For industrial waste, the regulatory content is diverse.
Furthermore, regulations that apply to recycling waste are complex, as the laws are subdivided according to the items to be recycled.

5.2 Do producers of waste retain any liabilities in respect of the waste after having transferred it to another person for treatment or disposal off-site (e.g. if the other person goes bankrupt or does not properly handle or dispose of the waste)?

Business operators are responsible for the proper management of the waste generated from their business activities. Even if a business entrusts the management of industrial waste to a third party, the business is still responsible for managing industrial waste as they generated the industrial waste. An emitter must take necessary measures to ensure that industrial waste is properly managed throughout the entire management process from generation to final disposal.

In this regard, there is a system to confirm that waste has been handed over to waste collectors, transporters, and disposal operators who have been legally commissioned to dispose of the waste, and that the waste has been disposed of properly.

Furthermore, if a third party entrusted by a business to collect, transport, or dispose of waste is found to be improperly managing industrial waste, the business that generated the industrial waste may also be subject to administrative punishment (such as an action order) under the AWMPC.

5.3 To what extent do producers of certain products (e.g. packaging/electronic devices) have obligations regarding the take-back of waste?

In general, the manufacturer of a product is not obligated to take back the product, even if the product becomes waste. However, depending on the type of waste, a business operator may have an obligation to recycle some types of waste. Depending on the item in question, the following obligations could apply:

• Recycling obligation（items: containers and packaging: law: “Act on the Promotion of Sorted Collection and Recycling of Containers and Packaging Act” ）
• Collection and recycling obligations（items: personal computers and small rechargeable batteries; law: “Law Concerning the Promotion of Effective Utilization of Resources” ）
• Collection, delivery, and recycling obligations（items: Household electrical equipment; law: “Act on Recycling of Specified Kinds of Home Appliances” ）

6. ASBESTOS AND OTHER DELETERIOUS MATERIALS

What are the duties of owners/occupiers of premises in relation to asbestos, or other deleterious materials, found on their land and in their buildings?

Owners of a building containing asbestos and tenants occupying these buildings may be held liable for damages under tort liability for health harm caused to users of the buildings due to asbestos exposure.

In addition, owners of a land or building containing asbestos may be held liable for damages to buyers due to contract non-conformity or breach of duty to disclose at the time of contract. In fact, there is a court case where a court ruled that approximately 6 billion yen in remediation costs must be paid as civil compensation. Furthermore, building owners who lease their properties may be held liable for damages to tenants due to a breach of their duty to disclose or their contractual obligations as lessors.

7. PRODUCT REGULATION

To what extent are product regulations (e.g. REACH, CLP, TSCA and equivalent regimes) applicable in your jurisdiction? Provide a short, high-level summary of the relevant provisions.

The typical product regulation in Japan is the ARMECS. The ARMECS stipulates regulations concerning existing chemical substances (Class I Specified Chemical Substance, Class II Specified Chemical Substance, Monitoring Chemical Substance, Priority Assessment Chemical Substance, and General Chemical Substance) and regulations concerning the manufacture, importation, use, etc. of new chemical substances not listed in the existing chemical substances list.

For example, the manufacture or import of chemical substances designated as Class I Specified Chemical Substances is typically prohibited. In order to manufacture or import a Class I Specified Chemical Substance, it is necessary to obtain a permit, comply with handling and labelling standards, among others.

Under the ARMECS, the classification of chemical substances is subdivided, and the regulatory content is diverse. In addition, the chemical substances to be regulated and the content of the regulations are frequently revised. Therefore, the risk of being notified by the administration for unintentional violations is high. If a violation is notified by the administration, it is important to promptly investigate the cause of the violation, consider measures to prevent recurrences, and negotiate with the administration to avoid an administrative penalty.

8. ENERGY EFFICIENCY

What provisions are there in your jurisdiction concerning energy efficiency (e.g. energy efficiency auditing requirements) in your jurisdiction?

The AREU obliges businesses above a certain size to regularly report on their energy use, etc., review their efforts, and formulate plans for energy conservation and conversion to non-fossil fuels.
This law obliges businesses above a certain size to report to the competent minister on the status of energy use and, if their efforts are insufficient, provides guidance, advice, and instructions on the preparation of a rationalization plan.

Additionally, as an indirect regulation for energy users, it also applies to manufacturers and importers of machinery and equipment (including automobiles, home appliances, and building materials). The law mandates that these businesses achieve energy consumption efficiency targets for machinery and equipment, and if there is no improvement in efficiency, recommendations will be made.

9. CLIMATE CHANGE

9.1 What are the key policies, principles, targets, and laws relating to the reduction of greenhouse gas emissions (e.g. emissions trading schemes) and the increase of the use of renewable energy (such as wind power) in your jurisdiction?

In the “Plan for Global Warming Countermeasures” approved by the Cabinet in October 2021, the government announced that in the fiscal year 2030 it aims to achieve a 46% reduction in greenhouse gas emissions from the FY 2013 level.

In addition, the APGWC imposes on each business operator the obligation to make efforts to use equipment in a manner that reduces greenhouse gas emissions as much as possible in order to reduce the amount of greenhouse gases generated by business activities.

In contrast, the Tokyo Metropolitan Government’s ordinance imposes a legal obligation on each business establishment to reduce specified greenhouse gases and provides for sanctions for violations. There are two ways to implement reduction obligations: by actually reducing the amount of emissions or by purchasing emission allowances from other businesses.

In addition, national laws and regulations are currently being discussed to impose further greenhouse gas reduction obligations on businesses and to introduce emissions quota trading. In October 2023, the Carbon Credit Market was opened on the Tokyo Stock Exchange for the trading of greenhouse gas emission reduction and absorption credits, certified under the emission reduction and absorption certification scheme for global warming countermeasures in Japan.

9.2 Does your jurisdiction have an overarching “net zero” or low-carbon target and, if so, what legal measures have been implemented in order to achieve this target.

The Act on Rationalizing Energy Use and the Conversion to Non-fossil Energy is a law that requires business operators above a certain size to report regularly on the status of energy use. It also promotes the review of efforts and formulation of plans concerning energy conservation and conversion to non-fossil fuels. Failure to submit periodic reports or making false reports may result in a fine.

Additionally, the APGWC aims to curb greenhouse gas emissions by requiring businesses that emit large amounts of greenhouse gases to calculate their annual emissions and report them to the government. If a business fails to submit a report or submits a false report, a fine may be imposed. See Section 9.7 below.

9.3 Are companies under any obligations in your jurisdiction to have in place and/or publish a climate transition plan? If so, what are the requirements for such plans?

There is no obligation for companies to develop climate transition plans. See 9.1 for the climate transition plan developed by the national government.

9.4 To what extent does your jurisdiction regulate the ability for products or companies to be referred to as “green”, “sustainable” or similar terms? Who are the regulators in relation to greenwashing allegations?

Authority Guidelines stipulate how to label environmental items. 

It is necessary to keep this in mind when using expressions that broadly imply environmental friendliness through vague phrases such as “environmentally safe,” “environmentally friendly,” “earth-friendly,” “pollution-free,” or “green”. However, there is no independent regulator for greenwashing.

9.5 Are there any specific arrangements in relation to anti-trust matters and climate change issues?

Efforts by businesses to realize a green society may violate the Antimonopoly Law if they only have the effect of restricting fair and free competition among businesses by limiting the price, volume, customers, sales channels, technology, and equipment of individual businesses. The Japan Fair Trade Commission published the “Guidelines Concerning Activities of Companies and Other Entities to Realize a Green Society Based on the Antimonopoly Law” (“Green Guidelines”), explaining the framework and decisions to be made.

The Green Guidelines identify factors that contribute to antitrust conduct by dividing them into three broad categories: those that are not problematic, those that are problematic, and those that require examination. For example, when a business entity, for the purpose of reducing greenhouse gas emissions, etc., requests its subcontractors in its supply chain, etc., to make efforts to achieve the stated purpose or to improve products and services, etc., but unilaterally requests significantly lower prices without considering the increased costs incurred by the business entity, this may constitute abuse of an advantageous position under the Antimonopoly Law. This may also constitute cutting prices under the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors.

9.6 Have there been any notable court judgments in relation to climate change litigation over the past three years?

In May 2019, 48 residents of Yokosuka City filed an administrative lawsuit demanding the cancellation of the EIA Finalization Notice on the grounds that the EIA for a large stone thermal power plant planned for construction in Yokosuka City was flawed. The first instance and the second instance both concluded that there was no illegality in the EIA, as the conditions of the national guidelines were met. On October 23, 2024, the Supreme Court ultimately dismissed the appeal made by the residents.

9.7 In light of the commitments of your jurisdiction that have been made (whether at international treaty meetings or more generally), do you expect there to be substantial legislative change or reform in the relation to climate change in the near future?

The APGWC and the AREU have established certain regulations on energy use and gas emissions, and it is expected that regulations within that same law will become stricter in the future. In particular, as mentioned in 9.1 above, the APGWC imposes on each business operator an obligation to make efforts to use equipment in a manner that reduces greenhouse gas emissions as much as possible. In the future, there is a possibility that the obligation will be changed from making an effort to an actual obligation.

In addition, there is currently no national legislation on emissions trading, but as described in 9.1 above, local rules may provide for emissions reduction obligations and emissions trading schemes. As described in (iii) of 13 below, the government is also considering the introduction of emissions trading.

In addition, international criticism is mounting, and the government may take steps such as phasing out coal-fired power generation. In that case, various legal and regulatory changes could take place.

10. LIABILITY

10.1 To what extent can the following persons be held liable for breaches of environmental law and/or pollution caused by a company: (a) the company itself; (b) the shareholders of the company; (c) the directors of the company; (d) a parent company; (e) entities (e.g. banks) that have lent money to the company; and (f) any other entities? Transactions

(i) Legal Liability for Violation of Environmental Laws

(a) The company may be liable for suspension of business or revocation of business licenses due to administrative action. On the other hand, with respect to criminal liability, the company is also liable at the same time if the penalties stipulated in the Criminal Code are applied to officers and employees, and if such penalties are stipulated to also be applied to the corporation as well.

(b) In principle, shareholders are not directly liable.

(c) A director may be liable for damages to the company for failure to fulfil their duties as a director (negligence of duty) if they are involved in a violation of environmental laws, or fail to establish an internal system to prevent violations of environmental laws.

(d) In principle, the parent company’s directors are not directly liable. However, the directors of the parent company would be obligated to maintain the value of the parent company’s assets, i.e., the subsidiary’s stock, and to manage the subsidiary to some extent so as not to harm the parent company. In the event of a breach of this obligation, the parent company’s directors may be liable to the parent company for damages.

Note that under the AWMPC, if an officer of a parent company concurrently serves as an officer of the subsidiary, the parent company’s license under the AWMPC may also be revoked if the subsidiary’s license is revoked.

(e) In principle, banks and other creditors are not legally liable.

(ii) Legal Liability for Pollution

See 4.1 above.

10.2 To what extent can: (a) a buyer assume any pre-acquisition environmental liabilities in an asset sale/share sale; and (b) a seller retain any environmental liabilities after an asset sale/share sale in your jurisdiction?

As a general rule, even after selling an asset the seller retains environmental liabilities. However, if the owner of the environmental liabilities agrees, the buyer may assume the environmental liabilities through an arrangement. In contrast, under the SCCA, liabilities are transferred to the buyer upon the transfer of land ownership, as the landowner is obligated to implement contamination remediation measures under the Act. However, as mentioned above, if the seller is the polluter, the purchaser can seek indemnification.

Environmental liabilities are borne by the company itself, and the parent company holding its shares is generally not liable. Therefore, when the shares of a company with environmental liabilities are sold, those environmental liabilities do not transfer to the buyer.

10.3 What duties to disclose environmental information does a seller have in a transaction? Is environmental due diligence commonplace in your jurisdiction?

A seller has no duties to disclose environmental information or conduct environmental due diligence (“DD”) in land and building transactions.

In real estate transactions, if the seller fails to disclose information regarding environmental contamination that they are aware of, or could reasonably have been aware of, the buyer may be able to claim damages from the seller on the grounds of breach of the duty to disclose, among other reasons. Currently, it is being considered in an amendment to the SCCA to impose a requirement on landowners to conduct a history survey when transferring ownership of the land.

In M&A transactions, it is common for due diligence to be conducted on the target company’s compliance with environment-related regulations.

For example, if the target company operates a factory, there may be a possibility of soil contamination, air pollution, or water pollution in the assets they own. Also, such a target company needs to comply with numerous environmental regulations and various procedures pertaining to operation (e.g. manufacturing, management, storage of chemicals) of the factory. Therefore, the buyer needs to verify whether the target company fully complies with relevant laws and regulations including the local ordinances applicable to the factory’s location.

Recently, the practice of identifying ESG matters has become common. Though demands for environmental DD has been increasing, the regulatory requirements and the scope of the investigations are highly specialized, and lawyers who can conduct environmental DD from a legal perspective are limited.

11. INSURANCE

What environmental risks can be covered by insurance in your jurisdiction, and what types of environmental insurance policy are commonly available? Is environmental insurance regularly obtained in practice?

Insurance exists to cover risks specific to damage caused by environmental pollution (i.e., the cost of remediation, damage due to loss of use, and damage caused by environmental pollution that has spread over a long period of time). Some facilities such as factories and research facilities that have a large environmental impact, or that are highly likely to cause environmental pollution, take out insurance coverage, such as environmental pollution liability insurance.

12. REPORTING AND AUDITING

12.1 To what extent are there public registers of environmental information kept by public authorities in your jurisdiction? If so, what is the process by which parties can access this information?

Each law has its own rules regarding the release of environmental information.
For information disclosures other than those required by individual laws (e.g., the APGWC and the SCCA), the disclosure of all government held information is regulated by the “Act on Access to Information Held by Administrative Organs.” Environmental-related information is also disclosed in accordance with these procedures. On the other hand, the Act also provides for cases of nondisclosure. It is therefore essential to check local rules, as similar procedures are generally stipulated by local governments in their ordinances.

12.2 To what extent is there a requirement on public bodies in your jurisdiction to disclose environmental information to parties that request it?

As mentioned in 12.1 above, under the SCCA, information regarding land designated as an “Area which Requires Action” or “Area for which Changes to Form or Nature Require Notification, etc.” is publicly accessible, and anyone can view this information.

Furthermore, under the APGWC, information on greenhouse gas emissions may be requested for disclosure. However, for FY 2021 and beyond, information will be disclosed without disclosure procedures. On the other hand, if the reporting entity believes that its rights and interests may be harmed by the disclosure of the reported emissions information to the public, it may request that the information not be disclosed.

In addition, when there is a request for disclosure based on the “Act on Access to Information Held by Administrative Organs,” information that falls under the definition of “information not suitable for disclosure” is not disclosed, but if it does not fall under this category, then it is disclosed.

12.3 Are entities in your jurisdictions subject to mandatory greenhouse gas public reporting requirements?

See 9.2 above.

13. UPDATES/REFORM

Have there been any significant updates in environmental law in your jurisdiction in the past three years? Are there any material proposals for significant updates or reforms in the near future?

Japan’s environmental Regulations are frequently amended, and it is crucial to regularly check for any revisions. Additionally, ordinances are subject to more frequent enactment and revision than national laws, so it is important to be cautious. The following are illustrative examples.

The Regulations and orders which have been recently revised are followings:

(a) The Act on Promotion of Recycling of Plastic Resources

(b) The PRTR Act
Designated chemical substances in the PRTR system will be expanded and changed from April 2023.

(c) The Ordinance for Enforcement of the ARMECS

(d) Industrial Safety and Health Act
The revised law will take effect in April 2025 or later. After April 2026, the number of chemical substances subject to risk assessment will be expanded to more than approximately 2,900 substances.

Additionally, the Regulations and orders are scheduled for revision are followings:

(i) Revision of the ministerial ordinance related to water quality standards
Currently, they are considering establishing legally binding water quality standards for PFOS and PFOA.

(ii) Revisions of the SCCA

(iii) Introduction of emissions trading
As for the “emissions trading” scheduled to be operational from FY 2027, companies will be obligated to participate in the trading, and about 300 to 400 companies from major electric power, steel, chemical, and automobile sectors are expected to be covered under this program.