April 2024

Updates on the Hydrogen Society Promotion Billand CCS Business Bill (April 2024)
Last year, A&S reported on recent developments in relation to the use hydrogen for power generation, etc.
in Japan (A&S October 2023 Newsletter 1), and on the carbon capture and storage (“CCS”) business inJapan and involving Japanese companies overseas (A&S November 2023 Newsletter 2). We would now
like to provide a brief update in relation to new developments in these areas.

1. Cabinet Decision on the Hydrogen Society Promotion Act and the CCS
Business BillOn February 13, 2024, the Japanese Government's Cabinet approved the "Hydrogen Society Promotion
Bill" and the "CCS Business Bill". 3
Both bills are currently being debated in the Diet and are expected to be passed into law by around Juneof this year. (A “Cabinet approval” is a decision by the Cabinet to submit a bill to the Diet. In Japan, bills
approved by the Cabinet are often passed directly into law by the Diet.)

2. Further details on the contents of the Hydrogen Society Promotion Bill andthe CCS Business BillHydrogen Society Promotion BillThe Hydrogen Society Promotion Bill is a proposed law that intends to promote the supply and use ofhydrogen, ammonia, synthetic methane, and synthetic fuels whose carbon dioxide emissions during
manufacture are below a certain standard (hereinafter referred to as "low-carbon hydrogen, etc.").
Businesses that supply low-carbon hydrogen, etc. and businesses that use it in their projects in Japan may
jointly formulate a business plan for the utilization of low-carbon hydrogen, etc. and seek approval for itfrom the Minister of Economy, Trade and Industry (“METI”).
Businesses that have their plans approved by METI will receive subsidies from the Government for thecontinuous supply of low-carbon hydrogen, etc. and other materials that are currently more expensive thanexisting fuels, together with subsidies for the maintenance of their facilities.

https://www.aplawjapan.com/application/files/8816/9707/2766/EN_Newsletter_PEN_006.pdf
https://www.aplawjapan.com/application/files/8117/0121/8216/EN_Newsletter_PEN_007.pdf
3 Official names: (1) the Act on the Promotion of Supply and Utilization of Low-Carbon Hydrogen and its Derivatives for
Smooth Transition to a Decarbonized, Growth-Oriented Economic Structure; and (2) the Bill for the Act on Carbon Dioxide
Storage Businesses.
121©Atsumi & Sakai 2024

April 2024

CCS Business BillThe CCS Business Bill is a proposed law which aims to create an environment which encourages private
business operators to commence CCS businesses in Japan by 2030.
The CCS Business Bill will establish a licensing system for:•••storage businesses and exploratory drilling related to CCS businesses;
the creation of storage and exploratory drilling rights; andbusiness and security regulations for storage operators and carbon dioxide pipeline transportation
businesses.

3. Future Outlook
The use of both hydrogen and CCS are expected to be important measures to achieve decarbonization in
Japan. Once the Hydrogen Society Promotion Act and the CCS Business Law are enacted, laws andregulations related to hydrogen-related and CCS-related businesses in Japan are expected to be clarified,with the anticipation that this will stimulate related investments.
We plan to regularly update this information as new developments in the hydrogen and CCS fields emerge.
---------------------------------------------------------------------------------------------------------------------------THIS NEWSLETTER IS PROVIDED FOR INFORMATION PURPOSES ONLY; IT DOES NOTCONSTITUTE AND SHOULD NOT BE RELIED UPON AS LEGAL ADVICE.
----------------------------------------------------------------------------------------------------------------------------Authors/Contacts
Miho Niunoya
Senior Partner
E: miho.niunoya@aplaw.jp

Tomoko WatanabePartner
E: tomoko.watanabe@aplaw.jp
Daniel Jarrett
Partner
Registered Foreign Lawyer (The Laws ofEngland & Wales*)E: daniel.jarrett@aplaw.jp

Kimiharu Masaki
Partner
E: kimiharu.masaki@aplaw.jp* Atsumi & Sakai is not regulated by the Solicitors Regulation Authority for England and Wales.

Please see here for our Energy practice.
Please see the links below for the back issues of our Projects & Energy Practice Team newsletters.
"Generation wheeling charge system" (February, 2024)"Latest CCS Commercialization Trends in Japan" (November, 2023)"Revisions to the Basic Hydrogen Strategy" (October, 2023)"Battery Storage Subsidies in Japan" (February, 2023)"Trends in Offshore Wind Power Generation in Japan" (February, 2023)
Inquiries:
Atsumi & Sakai Projects & Energy Practice Team
Email: cpg_pe_managers@aplaw.jp
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Back issues of our newsletters are available here.

2©Atsumi & Sakai 2024April 2024--------------------------------------------

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will undertake any reserved legal activity as defined in the United Kingdom Legal Services Act 2007. Advice provided in Germany on the laws of Germany will beprovided by a lawyer admitted in Germany, and advice provided in New York on the laws of New York will be provided by a lawyer admitted in New York.

3©Atsumi & Sakai 2024