Abstract

Japan's legal framework for carbon capture and storage is now centred on the Act on Carbon Capture and Storage Business, commonly referred to as the "CCS Business Act", enacted in May 2024 with staged enforcement through May 2026. The Act creates real rights to prospect for and store carbon dioxide in geological formations, establishes a structured licensing regime administered by the Ministry of Economy, Trade and Industry (METI), prescribes operational obligations from planning through decommissioning, and assigns long term post closure stewardship to the Japan Organization for Metals and Energy Security (JOGMEC). The CCS Business Act has achieved full enforcement on 22 May 2026.

This essay synthesises data published by METI, including discussion papers, white papers, and working group minutes, and traces the statute's origins, map its principal mechanisms, and document the government's detailed rulemaking discussions in late 2025. Together, they depict a coherent and maturing regime that incorporates international standards, integrates environmental safeguards, and readies the market for commercial scale CCS deployment aligned with Japan's 2050 carbon neutrality objective. CCS Business Act draws on established precedents within Japanese natural resources law, most notably the Mining Act, whilst also reflecting the influence of international instruments such as the 1996 London Protocol and the ISO 27914 standard for geological storage of carbon dioxide. By combining these domestic and international reference points, along with newly implemented cabinet orders and ministerial ordinances, Japan now has a comprehensive statutory platform for CCS.