Below is a brief description of the some of the key issues that have emerged with respect to Energy and Natural Resources in Japan during the year 2025:

• LNG related: Post-inauguration of the Trump administration in January 2025, LNG remains one of the major sources of energy in Japan. The market for LNG is expected to remain constant in the foreseeable future, even as the push for decarbonization continues. Nonetheless, the production of LNG faces its own difficulties, especially in the case of Russia, where projects such as Sakhalin 2 are faced with sanctions imposed by the US and the EU due to the war in Ukraine. Such challenges warrant continued close monitoring.
• CCS: In May 2024, the first comprehensive law regulating CCS businesses in Japan (the "CCS Business Act") was passed. The CCS Business Act will be enforced in its entirety by May 2026, 2 years after its enactment. Part of this Act has, it should be noted, already been enforced, including the sections of the Act that regulate exploration and prospecting. Please refer to our newsletter¹ for more details.
• Geothermal: In addition to conventional geothermal projects, so-called "Next-generation" geothermal projects have been intensively discussed by the Japanese government, including those that rely on geothermal technologies such as "EGS" (Enhanced Geothermal System), "closed-loop", and "supercritical" technologies. Please refer to our newsletter² for more details.
• Mining (Metals): Upon the escalation of the confrontation between the US and China, among other factors, the public’s attention in Japan has been focused on the issue of securing reliable sources for the procurement of rare earths, an essential ingredient for the production of high-technology products such as smartphones, EVs and other high-tech products. In this context, the issue of the development of a rare earths production capacity in Japan’s deep water Exclusive Economic Zone has been very much at the forefront of discussions related to this issue. Please refer to our newsletter³ for more details.

There are some other topics in the area of energy and natural resources, such as PV, wind power and other type of renewables, including hydrogen and biomass. However, we would like to focus on the above topics due to the volume limitation of this report.

¹ https://www.amt-law.com/asset/pdf/bulletins12_pdf/251015.pdf

² https://www.amt-law.com/asset/pdf/bulletins12_pdf/251111.pdf

³ https://www.amt-law.com/asset/pdf/bulletins12_pdf/251209.pdf