### 1. Legal Systems

## (1) The Basic Law for Establishing a Sound material - cycle Society

The Basic Law for Establishing the Sound material - cycle Society is a basic legal framework to promote the formation of a SMS. To promote science and technology, it stipulates that the “State shall promote the development of science and technology on the establishment of a SMS, including methods for evaluating the degree of environmental load resulting from the recycling and disposal of recyclable resources, and technologies for restraining products, etc. from becoming wastes, etc. or for appropriate recycling and disposal of recyclable resources.” As specific technologies that should be promoted, the law mentions technologies to improve the efficiency of using raw materials when products are made, technologies for the reuse or regeneration of used products, technologies to remove hazardous substances generated with the incineration of waste, and others.

The same law also stipulates that the "State shall take necessary measures, including improvement of research systems, promotion of research and development activities, dissemination of its results, and training of researchers, to promote the development of science and technology on the establishment of sound material-cycle society."

Furthermore, the Basic Plan for Establishing the Sound material - cycle Society, which was established on the basis of this law, requires the state to promote Sound material - cycle society business. These include, for example: (1) the promotion of a green industry, including improvements in product design and production systems to restrict the generation of waste, etc. in the production process of products or to accelerate the recycling of recovered waste, etc., as well as the development of materials with a low impact on the environment, and (2) the collection, organization and provision of technical information, product information such as lifecycle assessment and other information for the development and dissemination of technology. To achieve this, the plan stipulates that proper measures should be taken with the collaboration of industry, academia and the government. Examples include the establishment of an organization for testing and research, the promotion of R&D in line with the needs of industry and the dissemination of results, the establishment of a system for third-party evaluation of the environmental conservation effect, etc. of environmental technology, the training of researchers and engineers to secure human resources that are highly specialized in environmental technologies on a broad basis, or the provision of technical guidance to enterprises, including small and medium-sized companies. As efforts of the state to realize secure and safe recycling and disposal of waste, etc., the plan also defines research on the impact of recycling and disposal of waste, etc. on the environment, including evaluation of the hazardousness of waste, etc., as well as the development and dissemination of technologies for proper treatment.

In line with the rules of this law and basic plan, various measures have been taken to support the development of technology contributing to the establishment of a SMS as mentioned below.

### (2) Reinforcement, etc. of the responsibility of waste-emitting enterprises

The Waste management and Public Cleansing Law and its related laws and ordinances have been accelerating the development and introduction of technologies related to the proper treatment of waste by defining standards for the installation of treatment facilities for general waste and industrial waste to ensure proper treatment. In light of the various problems occurring with respect to waste, for example, that the quantity of waste emissions is fluctuating at a high level, that final landfill sites are almost full, that waste incineration generates dioxins, or that illegal dumping is on the increase, the law underwent a number of revisions that led to the development and introduction of new technologies.

The following mentions a few concrete examples: the revision in 1991 imposed the restriction of waste emissions as a purpose of this law, and separation and recycling, etc. as ways for waste management. This accelerated the development and introduction of technologies that contribute to these points. Further, the classification of waste that may inflict harm on human health or the living environment due to hazardous characteristics such as explosiveness, toxicity, infectiousness, etc. as special management waste promoted the development and introduction of technologies for the proper treatment of special management waste.

In the revision of 1997, an exemption scheme was created for the regeneration of certain waste that allows the conduct of treatment business and the installation of facilities without requiring permission provided that an accreditation by the (then) Health and Welfare Minister was obtained. This regulation encouraged the development and introduction of recycling technology. As of present, 122 accreditations (65 for general waste, 57 for industrial waste) have been given on the basis of this regulation, promoting the regeneration of waste rubber tires, waste plastics, waste meat and bone powder, etc. in cement kilns and others. The scope of application of the manifest system for industrial waste was further expanded to all industrial waste, and it is now permitted to use