On Friday 17 May, Japan passed a law enabling business operators to implement carbon capture and storage (CCS) technology. The bill received a majority vote in the House of Councilors and supports the Japanese government’s aim to become net zero by 2050.

In terms of the new legislation, the government will identify specific areas suitable for carbon dioxide storage. Permits will be granted to businesses selected through a public process. In addition to being required to monitor for potential CO₂ leaks, permit holders will be fined in the event of accidents occurring, regardless of their cause.

During the same plenary session, and with the aim of promoting hydrogen as a next-generation energy source, decision makers also accepted a proposal to create a subsidy system to offset the cost differences between hydrogen and natural gas.