The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPANJuly 9, 2024

Summary of Remarks by JGA Chair UCHIDA Takashi
1. Introduction
Today, I will explain three points: ①Basic Policy on Economic and Fiscal
Management and Reform, ② The status of consideration of domestic
rules on CO2 counting of e-methane, and ③MOU signed by the city gas
industries of Japan, Korea, and Taiwan.
2. “Basic Policy on Economic and Fiscal Management and Reform”
On June 21, the Cabinet approved the " Basic Policy on Economic andFiscal Management and Reform”.
The Basic Policy clearly states that the government will support theconversion to natural gas, which emits less CO2, and promote the use of
low-carbon hydrogen in the future.
It also stated that the government will promote R&D and capital
investment in carbon recycling, including e-methane, and will work tocreate demand and arrange the surrounding environment.
Regarding environmental arrangement, it was stated that the rules forcounting CO2 emissions during e-methane use will be studied and aconclusion will be reached by the end of FY2024.
In accordance with this policy, we expect that concrete institutionaldesign will be developed in the future.
In addition, in compiling this "Basic Policy on Economic and Fiscal
Management and Reform", the "Diet Members' League for the Promotionof Advanced Utilization of Natural Gas and e-methane in GX（Greentransformation ） " launched by the Liberal Democratic Party maderecommendations to the government regarding the importance of natural
gas during the transition period and the necessity of implementing emethane in society, and we would like to thank everyone involved once
again.
The gas industry also would like to continue to convey the importance ofnatural gas and e-methane in the context of the overall energy policy ofJapan, taking a broad view.
3. Status of consideration of domestic rules on CO2 counts for e-methane
At the Study Group on Calculation Method for Greenhouse Gas
Emissions Accounting, Reporting and Publication System held on June 18,
the rules for CO2 emissions from carbon recycling fuels, including emethane, were discussed, and it was decided that e-methane that meetsthe conditions would be considered to have zero CO2 emissions whenused under the Calculation Method for Greenhouse Gas Emissions
Accounting, Reporting and Publication System.
It is expected that both domestically produced and overseas-produced
e-methane will be treated in the same way, and the specific conditions forsetting e-methane's CO2 emissions to zero will be discussed in the future,
but for now, the fact that the CO2 counting rules for e-methane have been
established in the domestic system in a way that makes the user side zerois seen as a major step forward.

4. MOU signed by the city gas industries of Japan, Korea, and Taiwan
The city gas associations in Japan, Korea, and Taiwan have been
holding regular meetings to exchange information, and at the May 29
meeting, we decided to conclude an Memorandum of Understanding

(MOU) on cooperation for the future carbon neutralization of city gas, as
we share the same mission to achieve carbon neutrality while maintaining
a stable supply, despite the different energy and city gas businesssituations of the three associations.
With regard to the carbon neutrality of city gas, we will hold regular
working-level information exchange meetings, and will also establish a
new forum for exchanging information on the status and initiatives of eachother's carbon neutrality efforts, and share knowledge.