Search

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).

4.261. Private providers entering into such arrangements must obtain a licence from the prefectural government. There are no legal provisions barring foreign firms to enter the waste and recycling market. Japan has full commitments for the relevant mode of delivery (mode 3) for waste management services under the GATS and in all its FTAs so far, be they positively or negatively listed.

4.262. Japan is one of Asia's largest producers and consumers of goods and services related to air and noise pollution abatement. The domestic market is characterized by intense competition among indigenous firms. Large Japanese suppliers account for about 80% of the air pollution abatement market.

Box 4.9 Noise pollution abatement services
(...)
Main Regulations: Air Pollution Control Law; Law Concerning Special Measures Against Dioxins; Pollution Release and Transfer Registry Law; Basic Environment Law; Noise Control and Vibration Control Law; Aircraft Noise Prevention Law;
Main objectives of the regulations: Protection of citizens.

4.264. The national Government and prefectures provide environmental investment incentives through tax support, low interest loans, subsidies, and grants.

4.265. Japan has a full commitment under mode 3 for air and noise pollution abatement services under the GATS and under all its FTAs so far, be they positively or negatively listed.

4.267. The main policy objective of remediation, and nature and land protection services is to protect the health of citizens by preventing pollution and by purifying the pollution that has already occurred (Box 4.10).

Box 4.10 Regulatory overview of remediation, and nature and landscape protection services
(...)
Main regulations: Soil Contamination Countermeasure Law; Basic Environmental Law; Ambient Environmental Quality Standards; Environmental Quality Standards for Soil;
Main objectives of the regulations: Protection of health of citizens by preventing pollution and the purification of pollution that has already occurred.

4.274. (...) Establishment of large-scale stores remain regulated by the 2000 "Act on the Measures by large-scale retail stores for the preservation of the living environment", which does not include an economic needs test but foresees procedures to establish and operate large-scale stores so as to protect the living environment (e.g. noise impact assessment - notably for parking - traffic impact assessment, etc). (...)