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JAPAN BIZLAW LITE 4 GAIJIN

ENVIRONMENTAL PROTECTION

Considering the absolutely horrendous record of Japan in ecology in the 1960s the 1970s with the Minamata disease, mercury poisoning, etc as Japan sacrificed all for economic growth, its present interest in the ecology is interesting. My first trip to Japan in the 1970s made me wonder about its international commitment in particular. Timber exports to Japan from the US was already becoming a political issue in the US. Yet having seen many mountain areas in the USA where the trees had been harvested to supply Japan's factories, I was most surprised to see Japan's mountains where nary a mountain side had been scalped. I say harvested in the US, to contrast the situation in SE Asia in particular where corrupt elites were more than eager to supply Japan's factories even in the cost in lives of their own peoples as the tens of thousands died from floods caused by denuded moutain forests.

THE LAW

Digression: Anti-Neo-European Imperialsm
Yet Japan does have today a strong interest in ecology. Look at the Kyoto Treaty, otherwise known as the Kyoto Protocol on Climate Change. I, being an opponent of NeoEuropean imperialism, being willing to see European, particularly French, machiavellian manipulations under every rock, am highly suspicious that the Europeans added the name Kyoto to the treaty to obtain Japanese support, just as they bought Russian support, thereby turning the treaty into "law" when in reality they bought off the Russians by promising support for Russian membership in the WTO. What with the Yukos experience we all know Russian compliance with the rule of law, and they should be a welcome member in support of "international law" (code for European imperialism). Having seen the recent tirade at an international environmental conference against America, by  the president of Argentina, the leader of the country of which carried out the biggest bankruptcy, some would call "theft" in the history of the world, he has now became an icon of "international law" by his environmental attack on the US, to the cheers of the Europeans. Yes, "international law" and Neo-European imperialism...whatever serves their view is "law"

Science and Fantasy:

The Discovery Channel has acquired a reputation for credibility on science & history---its educational. Yet in recent months I have seen amazing reports. Within the last 10,000 years there have been vibrant trade routes in western China and verdant fields in Egypt, now both barren desert regions. Tens of millions of years ago the North Pole and vast swaths of Canada were tropical hot-houses. One story even had it that the last Ice Age, which had lasted for thousands of years, ended in a 20 year period. I think that all these could be called examples of "climate change." For the life of me, however, despite my fervent patriotism and great faith in American technological capability, I can not fathom how the Americans did all this. I mean, ask any European, they will tell you with the deepest of candor that present climate change is the fault of the Americans. Considering that despite the most powerful of computers and satellites, weather forecasts of more than 3 days are no more accurate than a flip of the coin, I wonder how Europeans can reach such a conclusion. My simple mind thinks it leans more on a very heavy element of anti-Americanism than scientific evidence. But if they can prove to me how the Americans caused all  the many, many previous examples of climate change I will gladly personally sign the Kyoto Treaty.

And I am a car hater. I am one of the few living American males who has a deep-seated hatred of automobiles. I grew up in Denver, which is rapidly turning into the new LA, but even decades ago you could see the sky turning black from what was clearly the effect of automobile pollution. I will certainly agree with that conclusion. Compounded with the tens of thousands of deaths year in, year out, from automobile accidents, more than killed in American wars, I am a fierce opponent of the automobile. Finally, I am convinced that America's addiction to oil will destroy it just as assuredly opium destroyed China. Imagine, financing the very peoples who are trying to kill you. But addicts are always the last to admit the truth. Still this does not prove the European case, nor disprove NeoEuropean imperialism.  Even the Russians, once they approved the protocal said it was all about the deal on the WTO, as their scientists claimed there was not enough evidence to back European claims.

Back to Japan Law

Of course, the Japanese passed legislation for the implementation of the Kyoto Protocol in June 2002. But even outside of that, modern day Japan has involved environmental law in affecting virtually every part of Japanese life. Japan is a densely populated nation, compounded with a geography that is mostly mountainous. This further pushes people to concentrate into limited areas and heavy population densities. For decades Japan has seen many court cases, in a normally non-litigious society, fighting over even sun light. Thus there is the practical aspect. A bad environment in Japan affects all Japanese, from the top to the bottom. But there is also the matter of face, a very important concept in Japan. Any scandal in Japan has an impact on a company's "face" in Japan, and environmental scandals are having that effect as well. Thus most responsible corporations give consideration to the environment from many aspects, from simple environmental pollution and waste disposal as well as giving consideration to the impact on the environment of procurement of raw materials and commercialization of products. Environmental consciousness is also having a business effect in consideration of the consumers viewpoint. Environmentally sensitive products are increasingly in demand both from ordinary consumers as well as governmental procurement. To the contrary, corporations gaining reputations as polluters may suffer from the distaste of many consumers.

Varieties of Japanese Environmental Law.

The keystone of Japanese environmental law, some even calling it the Constitution of Japanese environmental law is the Environment Basic Law. Although this law itself was enacted in 1993, it was an amalgam of the Environment Measures Basic Law of 1967 and the Natural Environment Protection Law of 1972.  The Environment Basic Law has as its basic theme a society with a sustainable development capability such that a robust environment is enjoyed and secured for the future. This is for a society that can preserve the environment as well as develop the economy. As this law, as well as many other Japanese environmental laws, were enacted at a time of both rapid economic growth and when Japan was becoming a prosperous nation, it will be interesting to watch the future if Japan continues to face economic stagnation as well as an increasingly dangerous world confronting China and North Korea.

Another law is the Law Promoting & Forming the Environmental Society, which handles waste disposal and recycling. This law aims to achieve an efficient usage of resources. The law pushes many "R's" in Reduce pollution, Reuse resources, Recycle waste and Recapture energy.

There are also environmental laws targetted at specific industries, such as the Electric Utility Law and the Gas (as in the gaseous form, natural gas, etc) Utility Law. These laws seek to have the industries use these energies efficiently when they build their systems.

Then there is also the Environmental Impact Evaluation Law which requires environmental impact statements for large projects before they are implemented.

Laws which regulate the pollution of the environment include the Air Pollution Prevention Law, the Water Quality Pollution Prevention Law and the Pollutant Release and Transfer Register (PRTR) Law. The Air Pollution Prevention Law sets standards for air pollutants and regulates them and seeks to prevent major air pollution prevention problems. Likewise the Water Quality Pollution Prevention Law sets standards for water pollutants and regulates them. Dangerous pollutants are to be prevented entering water bodies as well as the ground water. The Pollutant Release and Transfer Register Law requires companies which handle more than certain prescribed amounts of dangerous pollutant chemicals to file reports with the government. Over 300 such dangerous chemicals have been designated under the law.

There is also the Law for the Promotion of Measures Against Global Warming, which is Japan's attempt to regulate waste gases and prevent global warming as part of the Kyoto Pact.

Another issue is environmental standards set out by the government, particularly the Environment Ministry. Some of these  standards are for materials polluting the atmosphere, waters and land while other regulate noise and vibration pollution. Although the standards in and of themselves usually do not have a legal basis, there are some standards specifically set out by statute that are mandatory in effect and penalties often apply.

Local government units as well often have ordinances imposing even stricter environmental controls than national levels, as can be expected in the most densely populated regions where such pollution would have their most adverse impact.

Japan says that following the United Nations Conference for Environment and Development of 1992 (the "Earth Summit") which called for sustainable development it has been striving to makes it legal framework incorporate such sustainable development.

Energy Conservation and Global Warming

Technological innovation advances on almost a daily basis and from the viewpoint of the environment, not to mention the dangers economically and geopolitically from depending on the unstable Middle East for the bulk of increasingly expensive oil resources, energy conservation has become a powerful force in the world. Save the environment! Save expensive energy! Cut off the funding of terrorists! What could be more logical? In this area the world has a big debt of gratitude to the Japanese who have lead the world. Not only have they led the world in energy saving appliances, they also came up with the first commercially available hybrid vehicles. Leave it to the American firms to follow up with hybrid sports utility vehicles. Now you know why dinosaurs go extinct---and civilizations as well.

Japan, primarily due to the energy shocks of the 1970s and early 1980s, implemented a number of energy conservation promotion laws. At least they learned a lesson. Japanese legislation during that period pushed increasingly stringent energy conservation measures in appliances, vehicles, plants and offices. One measure was to put into a place a law requiring appliances to have energy efficiency rating labels. The most important legislation in this area was the Law Concerning the Rationalization of the Usage of Energy, otherwise known as the Energy Conservation Law. That law imposes requirements for energy conservation on products, and the places where they are made, factories or offices. Penalties can be imposed on violators. When setting out the guidelines or standards for the implementation of the law, the Japanese government tends to watch technological trends and push companies to meet the highest of technological capabilities. Thus this law improves the efficiency of Japan's energy usage and conserves energy resources. The law is applied against both Japanese manufacturers and the importers of foreign goods. They are also required to label the product's energy efficiency. The law also requires factories and offices that consume more than certain levels of energy to meet energy conservation standards. Such operations are required to file reports with the government periodically on their energy usage situation. There has even been created a new position of "energy administrator" who must even pass a government licensing exam and who is responsible for filing such reports and prepare energy conservation plans. Of course energy usage levels depends on the type of industry, but violators here as well can be fined. New buildings above a certain size must also implement energy conservation measures.
 
Once the Kyoto Protocal is implemented, early in 2005 in all probability following Russia's bought approval, Japan will also be taking measures to reduce six types of waste gases such as carbon dioxide, and methane, etc. Theoretically by 2012 they are to reduce levels to 6% below those in effect in 1990. Businesses will be required to publicly announce their plans for reducing such gases and make public reports on the progress they are making on implementing such plans. Japan's Law for the Promotion of Measures Against Global Warming, was meant for the implementation of the protocol.

Waste Disposal & Recycling 

Japanese regulation on waste disposal, particularly industrial waste disposal is ramping up the pressure to greater and greater levels. In the 2000 amendment to the Law Concerning the Disposal and Cleaning of Waste Matter, more popularly known as the Waste Matter Disposal Law there was a further crackdown. Where the waste matter of a company is disposed of in an illegal manner, now not only is the party that was entrusted with the illegal disposal punished, but now the waste making company as well is called to account.

The key point of this legislation is the concept of the recycling society, which is a terminology in fact found in legislation, to wit: "the Basic Law Promoting the Formation of a Recycling Society." This concept is defined in the legislation as "a society which conserves on resources, and burdening the environment as little as possible, with the minimal production waste, the recycling of unused products as much as possible, and properly disposing of that which can not be otherwise recycled."

The Basic Law Promoting the Formation of a Recycling Society was enacted in 2000. The law spells out basic principles and the roles of relevant parties. With respect to waste, the law seeks to reduce it, re-use it, recycle it, and recycle waste energy. The law also seeks to place responsibility on producers of waste, not just those handling the waste, and give greater responsibility to manufacturers for disposing of their products after they are no longer in use.

Other laws that deal with waste management and recycling are as follows:
---Green Purchasing Law (purchasing from environmenalist companies)
---Automobile Recycling Law
---Food Products Recycling Law
---Construction Recycling Law
---Household Appliances Recycling Law
---Containers & Packaging Recycling Law
---Waste Matter Disposal Law
---Amended Recycling Law

DISPOSITION OF WASTE MATTER

The Liability of Waste Producers for Illegal Disposal

The 2000 amendment to the Waste Matter Disposal Law made the producers of waste products liable for illegal disposal of waste matter as well as those who illegally disposed of the waste matter. Most companies subcontract out the disposal of their waste to some kind of garbage company. Now, however, if the garbage company disposes of the waste in an illegal manner, the waste producing company can be made responsible for the expenses incurred in returning the damaged area to their original condition.

In the case of industrial waste, Japanese law basically takes the stance that the producer of the waste should dispose of it itself. If it subcontracts out the collection, transport or disposal of such waste, it must make a contract with a duly licensed waste disposal company. In the contract documents should be included the term of validity of the contract, the fee and the scope as well as the licensing details of the waste disposal company. When the company which produces the waste subcontracts the disposal of the waste to another company, not only must it be with a duly licensed waste disposal business, but the producing company must issue a waste disposal administration manifest at the time of handing over the waste and when the disposal is completed, get back the manifest and store it for 5 years.

The Waste Matter Disposal Law seeks to reduce the creation, appropriate classification, storage, collection, transport, reuse and disposal of waste matter. The law defines general waste and industrial waste. Industrial waste is waste product that is produced as a result of business activities and the law, together with pertinent cabinet order sets out nearly 20 types of industrial waste. The law puts the responsibility for the disposal of industrial waste on the shoulders of the producing company, strives to reduce the volume of waste via recycling and provides for businesses making it easy dispose of finished goods and containers.

RECYCLING

The Law Concerning the Promotion of the Effective Usage of Resources, popularly known as the Amended Recycling Law in Japan puts recycling responsibilities on the makers of products that most businesses in other countries can only have nightmares about. The law seeks to reduce the volume of waste products produced at factories or finished products that can no longer be used, as well as promoting effective usage of resources through recycling. Corporations are in many cases given the obligation to recycle their finished products that can no longer be used.  Making classifications based on industry or product,  the law promotes the policy to "reduce" through controlling the production of waste products by such measures as reducing materials used in products or increasing their useful life. or "reuse" through reusing parts, etc. "recycle" through recycling as raw materials.

Industries where "reduce" policies are to be implemented include automobiles, personal computers, household furniture, and gas/oil appliances.

Industries where "re-use" policies are to be implemented include automobiles, personal computers, and copy machines, etc.

Industries where "recycle" policies are to be implemented include personal computers, etc.

The Amended Recycling Law of 2000 followed the old Recycling Law, officially called the Law Concerning the Promotion of the Usage of Reused Resources, enacted in 1991 in response to a society of consumption and increased business activity the amount of waste products increased at the same time that garbage dumps were filling to capacity. But that law was inadequate. Japan still was a society of mass production, mass consumption and mass wastage. Thus the 2000 amendment of the law.

Recycling of Household Appliances

The Household Appliances Recycling Law requires the recycling of television sets, air conditioners, washing machines and refrigerators, basically the larger of most household appliances. Many of the materials in those appliances, such as the metals and glass are to be recycled.

The Role of Manufacturers, Retailers & Consumers

In addition to the Household Appliances Recycling Law other laws requiring recycling include the Automobile Recycling Law, the Food Products Recycling Law, the  Construction Recycling Law and the Containers & Packaging Recycling Law. 

The Household Appliances Recycling Law and the Automobile Recycling Law places different responsibilities on manufacturers, retailers and consumers. The consumer must return the used product to the retailer and pay the expenses for recycling it. The retailer returns the product to the manufacturer. The manufacturer is to recycle the product.

The reason that there are separate laws for recycling containers and packaging, construction waste, food waste and automobiles is due to the major impact on the environment the waste of such products cause. Thus particularly severe controls are imposed on those products and industries.

The Containers & Packaging Recycling Law (officially the "Law Concerning the Promotion, etc. of Separation, Collection of Containers & Packaging and their Re-Commericialization") seeks to require manufacturers to recycle container and packaging wastes. The public is to separate and take out the containers and packaging materials to be collected by local government authorities. It is hoped that third parties will then recycle and commercialize the waste.

The Construction Recycling Law (officially the "Law Concerning the Re-using Construction Materials") The law seeks to promote the appropriate disposal of waste and the efficient usage of resources, construction materials are to be separated and recycled. The law applies to businesses engaged in  the destruction of buildings above a certain size as well as the construction of new buildings above a certain size. The materials targetted by the law include primarily concrete, asphalt and wood.

There is also the Food Products Recycling Law (officially the "Law Concerning the Promotion of the Re-use of Food Product Resources"). The law seeks a reduction in and recycling of raw material byproducts from the manufacture of food products and food product wastes such as unsold food materials. Obligations are imposed on manufacturers and retailers.

"GREEN" PURCHASING

There are now laws in Japan requiring that the government, national or local, as well as government related corporations, give priority in procurements to environmentally friendly products. So corporations are getting the word. Environment friendly means more government business, unfriendly loses business. Popularly known as the Green Purchasing Law, it is formally called the Law Concerning the Procurement of Environmental Products by the Nation, etc." The law strives for the government, national and local, as well as government corporations, direct their massive purchasing power towards giving priority to purchases of products that use recycled materials, products designed for easy recycling and, that are useful in reducing waste as well as the burden on the environment. These government entities must publicly announce plans on procurement giving such priorities as well the results of procurement.

It is also hoped that such massive purchases of environmental friendly products will help to lower their prices as such recycled products are higher in price than ordinary products

POLLUTION PREVENTION

Pollution Dispute Resolution

The most famous pollution case in Japan involved the Minamata Disease. This was certainly an environment induced disease. Factories polluted the local sea waters with mercury products, which were ingested by fish and shell fish. Then the local people ingested those fish and shell fish. Severe neurological disorders followed. People had difficulty speaking, walking, palsy, many, many nasty side effects. Nearly 20,000 people claimed damage for which the government in the end recognized a little over 2000 as being damaged by the disease. The Japanese legal system proved a travesty for this legal problem. The pollution was officially recognized in 1956 but the final court case was not resolved until 1996, forty years to resolve. American lawyers, now demanding legal fees topping half a billion dollars for the Enron case could only salivate on this kind of case in the US. Despite that it would not have taken 40 years in the US.

But Japan did respond with legislation and there has not been such a massive environmental disaster since Minamata, as people's awareness of the environment was heightened. There are now laws covering almost every type of pollution--- air pollution, water pollution, sound pollution, vibration pollution, smell pollution, etc. The most recent of these laws has been aimed at dioxins, most commonly found involved in the incineration of waste, soil pollution, or the assassination of political rivals in some countries.

The Major Pollution Prevention Laws in Japan include the following:

---The Pollution Dispute Resolution Law
---The Law Concerning the Compensation of Pollution Health Victims
---The Dioxins Countermeasures Special Measures Law
---The Air Pollution Prevention Law
---The Water Pollution Prevention Law
---The Noise Regulation Law
---The Bad Smell Prevention Law
---The Vibration Regulation Law.
---The Soil Pollution Countermeasures Law

Most of Japan's environment legislation came out during the early 1970s following Japan's period of extremely rapid economic growth when all was basically sacrificed by both the government and businesses on the alter of economic growth. As the pollution began to affect even people's daily health and prosperity spread, demand for the laws spread and 14 such laws were passed in 1970. In 1971 the Environment Agency, now upgraded to the Environment Ministry, was established. It will be interesting to see future reaction if Japan's economy continues to stagnate and government finances drown in red ink.

Factory Related Air & Water Pollution

Japanese legislation sets out standards for air pollutants from factories. Yet even if these standards are met, companies should work hard with local communities to prevent misunderstandings and convince them of the company's commitment to preventing pollution.

Legislation as well sets out standards for water pollutants from factories. In cases of pollution under this law based on negligence, not only the company, but also the individual employee(s) can be held responsible. Penalties of up to 300,000 yen and imprisonment of up to 3 months can be imposed.

Legislation related to air and water pollution designates polluting matters, and pollution standards for such matters. If these standards are exceeded, fines can be imposed. Compensatory damages may also be awarded for damages from such pollution. The air pollution legislation controls air pollutants from factories and automobiles. The water pollution legislation controls water pollutants going from factories into public water bodies as well as into the ground water. These laws permit compensatory damages for such pollution. Sounds like strict liability. There are even criminal punishments for damaging people's lives or limbs. There also pollution volume restrictions, particularly for densely populated areas.

Ground Pollution

Factory land can often get polluted with a variety of very nasty, even life-threatening chemicals. Thus Japanese legislation now requires testing of such land, particularly when such land is to be used for residential or public use such as for a park. One concern of course is that such chemicals can seep into the ground water and people will end up drinking it. As Japan increasingly moves much of its manufacturing into SE Asia and China, there are increasing examples of factory land being converted into other applications.

The Land Pollution Countermeasures Law strives for measures to prevent damage to health from ground pollution and imposes an obligation on understanding ground pollution conditions. Thus when land owners convert their factory land to other uses such as residential or park use, a test for ground pollution must be carried out. When it is found that such land contains designated dangerous substances at levels exceeding designated standards, the prefectural governor can issue orders designating the area, publicizing it, and when believed dangerous to human health, order the land owner to remove the pollution, plow it up, restrict entry, seal or clean the land, etc. In most cases the land owner is liable in carrying out such orders, however if they can prove that a third party is responsible for such pollution they can collect their expenses from that polluter. At the present time, the law requires only that the ground testing and countermeasures only apply when a factory is closed, not while it is still operating. However, when pollution can be seen to be exceeding levels set out by cabinet orders, the prefectural governor can order testing and reports.

CHEMICALS ADMINISTRATION

The world, being physical, is filled with chemicals, including about 100,000 that are made by man. Since some of those chemicals are dangerous to human health or to the environment, most governments impose some kind of regulations, as of course in the case of Japan.

Pollutant Release and Transfer Register (PRTR) Law imposes obligations on businesses handling more than certain levels of designated dangerous chemicals. The law requires such businesses to report to the government the volume of chemical air or water pollutants expelled, or the volume of products or waste moved.

Japanese legislation related to the administration of chemicals are of two types, one group handling all chemicals, and another group dealing with specific chemicals.

Specifically, Japanese laws related to the administration of chemicals include the following:

---The Chemicals Testing Law
---Pollutant Release and Transfer Register (PRTR) Law
---The Law Concerning the Regulation of the Testing and Manufacturing of Chemicals (the Chemicals Testing Law)
---The Law Concerning the Securing the Enforcement of the Collection and Destruction of chloro-fluorocarbonds (CFCs) (the CFC Collection & Destruction Law)
---The Law Concerning the Protection of the Ozone Layer by Regulation of Designated Substances (the Ozone Protection Law)

The Chemicals Testing Law strives to establish a system where a party seeks to manufacture or import new chemicals to test the characteristics of the chemicals in advance, in order to prevent environmental pollution by chemicals that are difficulties decomposing in the environment and that damage health.

The Ozone Protection Law passed in 1988 is a law which seeks to regulate the manufacture and import of chloro-fluorocarbons (CFCs) and  hydro-chloro-fluorocarbons (HCFCs). Limits are imposed on the production, consumption and destruction of these substances. Manufacturers of these substances are required to obtain licenses from the government. Importers are required to obtain authorization based on the Foreign Exchange and Foreign Trade Control Law. In addition, parties using these substances are required to cooperate in the rationalization of the usage and restriction of their release. The Ozone Protection Law was enacted as Japan's part in joining international controls on such damaging substances such as the Treaty of Vienna Convention for the Protection of the Ozone Layer of 1985 and the Montreal Protocol on Substances that Deplete the Ozone Layer of 1987.

The CFC Collection & Destruction Law, enacted in 2001, sets out the obligations of businesses in the collection and destruction of CFCs. It aims to control the release into the atmosphere of CFCs that are destroying the ozone layer and is one cause for global warming. The law requires the manufacturers of the regulated products, when the products have been used and are to be thrown out, to take measures necessary for the suitable and confirmed collection and destruction of the products. The law targets specifically industrial airconditioners, industrial refrigeration units and automobile air conditioners. The party throwing out the used product hands it over to the party collecting the CFCs and is liable for the expenses for the collection and destruction. Japan has now stopped producing CFCs but as there are still many products around that still contain the stuff, controls are still necessary for their usage and disposal in order to restrict their release into the atmosphere.


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DISCLAIMER
Japan BizLawLite 4 Gaijin is intended purely for introductory, educational purposes. If you plan a transaction in Japan, consult with a licensed Japanese attorney. THIS PUBLICATION IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. THIS PUBLICATION COULD INCLUDE INACCURACIES OR ERRORS IN TYPOGRAPHY OR TRANSLATION .