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4.129. (...) Ongoing and future technological developments regarding gas include co generation systems, the use of natural gas as a source of hydrogen, and combined cycle thermal power generation using biogases.

4.136. The chart shows a parallel evolution of crude oil prices and electricity prices. This explains why Japan is planning to reduce the share of oil in power generation from 9% to 3%. It also illustrates why the Government wants to restore the share of nuclear energy in the power generation mix by 2030 to 22%-20%. So far, nine reactors have been authorized to restart, and six more are planned to be authorized in the coming months. This restored a 1% share of nuclear energy within Japan's total TPES for FY2017.

4.143. Regarding pricing and support scheme issues, the METI announced, in August 2019, a major reform of the FIT system, adopted in 2012, to promote greater development of renewable energy. Under the 2012 system, solar and wind energy is purchased at predetermined prices. (...) For other power sources used, the basic framework of the FIT system will be maintained for the time being. In addition, the reform is aimed at optimizing the renewable energy sector, by ensuring safety and by disposing of waste solar panels appropriately, and by developing a transmission network suitable for mainstreaming renewable energy.

4.216. The Maritime Bureau in the MLIT is responsible for maritime shipping policy and national legislation. It also represents Japan at the International Maritime Organization, which sets the worldwide standards for safety, security and environmental norms for maritime transport.

4.245. Following standard practice for TPR reports, and for the purpose of this Section, environmental services should be understood as covering sewage services, refuse disposal services, sanitation services, cleaning services of exhaust gases, noise-abatement services, nature and landscape protection services, and other environmental protection services. Fresh water distribution services/water utilities are also covered in this Section, as this type of service is technically bundled with sewage services, and uses, at least partly, the same infrastructure as sewage services.

4.246. This list covers basically three types of services. The first group is constituted by services linked to the provision of basic public services, with natural monopoly characteristics (water utilities/distribution, sewage, consumer waste disposal and sanitation services, such as snow- and ice-clearing services). These services are regulated by various acts, described below, which entrust municipalities, or grouping of municipalities, with the provision of these services to the general public. However, they were modified in recent years, to allow the creation of PPPs, whereby municipalities can delegate the management of those services to the private sector. A second group is composed of services that are delivered mainly by private companies (industrial waste management, cleaning services of exhaust gases, and noise-abatement services). These sectors are regulated at both national and local levels, essentially on questions of safety and norms. Finally, nature landscape and protection services constitute the third group, which is regulated at both national and local levels; the bulk of the regulation consists of environmental norms. The Ministry of the Environment is the main regulator of the environmental services sector. The MLIT is the main regulator of the sewage sector.

4.255. Waste water treatment/sewage services are regulated by the Sewage Water Act No. 79 of 1958, which attributes the competence of providing sewage services to municipalities. Municipalities can, in turn, delegate part or all of the management of sewage systems and facilities to the private sector under various forms of contractual arrangements; no less than 90% of sewage treatment facilities operation are delegated to the private sector.

4.258. The main policy objective of waste management services is to limit the volume of waste disposal, reduce the consumption of natural resources, and promote the sustainable use of resources (Box 4.8).

Box 4.8 Market overview of waste management services
Market size of waste management services (2017): JPY 14,296 billion [a]
(...)
Customers: Public sector and waste-generating private enterprises;
Assets and annual sales of the top Japan-based waste management firms: Dowa Eco-System Co., Ltd, annual sales: JPY 99 billion;
Exports and imports: Export of waste management and recycling services: JPY 603 billion; Import of waste management and recycling services: JPY 418 billion;
Main private companies: Solid waste: Dowa Eco-system Co., Ltd, Daiseki Co., Ltd and JFE Kankyo Corporation; Hazardous waste: Ebara Corp., Kubota;
Level of regulation: National law;
Main regulations: Basic Environmental Law; Basic Law for Establishing the Recycling-based Society; Waste Management and Public Cleansing Act; Act on the Promotion of Effective Utilization of Resources; Law Concerning Special Measure Against Polychlorinated biphenyl (PCB) Waste;
Main objectives of the regulations: Achieving a circular economy by limiting the volume of waste disposal; reducing the consumption of natural resources; and promoting sustainable use of resources.

[a] JPY 14,296 billion is the total amount of the three categories in the report "Estimation of the Market Size of the Environmental Industry on a Commission Basis in Fiscal 2017", published in 2019. The three categories are facilities for waste management and recycling, services for waste management and recycling, and production of recycled materials.

4.259. Waste management is regulated by the Waste Management and Public Cleansing Act (Act No. 137 of 1970), which attributes the collection, treatment and recycling of "general waste" to municipalities, and the treatment of industrial waste to the industry that produced it. In both instances, municipalities and industries have recourse to private companies. Hazardous waste is subject to a specific legal regime, the Special Management Waste Regulations, involving recourse to licensed services providers abiding by strict qualification norms. In addition, companies using polychlorinated biphenyl must use one of five chemical disposal sites managed by the public Japan Energy Service Corporation (JESCO).