1. What is the current legal landscape for Environment Law in your jurisdiction?

Japan has developed a comprehensive and proactive approach to environmental protection, balancing strong legal frameworks with growing social and corporate responsibility. The Japanese Government continues to strengthen environmental standards and expand regulations in areas such as carbon emissions, waste management, renewable energy, and corporate sustainability.

In recent years, there has been a clear shift from simple compliance toward sustainability and accountability. Regulators, investors, and the public now expect companies to not only meet legal requirements but also demonstrate genuine commitment to environmental stewardship. This means businesses are increasingly integrating ESG (Environmental, Social, and Governance) principles into their operations and reporting practices.

At the same time, Japan’s laws are quickly becoming more aligned with global environmental goals, including those under the Paris Agreement and the United Nations Sustainable Development Goals. This has led to new initiatives around carbon neutrality, circular economy practices, and green innovation.

Overall, the environmental law landscape in Japan is evolving quickly — with a strong focus on compliance, technology, transparency, and corporate responsibility. Companies operating in Japan are expected to stay informed, adopt best environmental practices, and engage proactively with regulators and local communities.

2. What three essential pieces of advice would you give to clients involved in Environment Law matters?

Know the law both globally and in the relevant jurisdictions: Environmental law is one area where environmental regulations can vary significantly across jurisdictions. In addition, there is supranational legislation (for example, originating from the European Union) on environmental law which can still have an impact on projects or companies in Japan.

Work with local companies: As a company, it can be challenging to break into a new jurisdiction or market by yourself. Where necessary or possible, it can be rewarding to partner with a local company that know the local regulatory landscape. Typically, they will have contacts within local authorities and relevant bodies, facilitating access to information and coordination meetings. Finally, they will be able to assist with advising on cultural and language points.

Ensure the client remains in compliance with its environmental obligations: Disputes are messy, and fines and other penalties can seriously harm a company’s reputation, especially where they are involved in environmental law matters. Ensure you have a team knowledgeable about the law, and that companies carry out regular training for their employees on environmental responsibilities of the company.

3. What are the greatest threats and opportunities in Environment Law in the next 12 months?

The primary threats and challenges come from upcoming changes in legislation. Various legislative acts and regulations are imposing increased disclosure requirements in relation to environmental sustainability and ESG. For example, depending on the market capitalization of the company, there will be disclosure requirements under Japan’s Financial Instruments and Exchange Act as supplemented by the Sustainability Standards Board of Japan (SSBJ) issued sustainability disclosure standards. These standards will apply to different sized companies over the next few years (up to 2029), and so it is important in the next 12 months for companies to start to plan how they will comply with these standards.

At the same time, to counter “greenwashing” and related concerns, companies are facing greater scrutiny with regards to product representations, with legislation requiring them to ensure environmental claims are accurate and verifiable, or face higher levels of penalties.

For companies involved with environmental law, there will be opportunities to benefit from rapid advances in environmental technology. There will be new opportunities created by the development of ESG data systems, technology tools and other services.

Customers and companies are also generally expected to benefit from improvements in the reliability of data in capital markets and other sectors, as well as data comparability. This in turn should lead to increased trust in data as well as access to more sustainable capital in Japan’s markets.

4. How do you ensure high client satisfaction levels are maintained by your practice?

There is not one way to ensure high client satisfaction levels, it requires a multi-faceted approach. Some key points are as follows:

• Be responsive: More than ever, client demands are increasing, and they expect the same level of responsiveness as digital technologies such as AI. It may not be possible for lawyers to provide the answer right away, but keeping the client updated on status and other points will lead to higher satisfaction levels.

• Do not be afraid to tell the client no: Clients need the right answer, even where that is when a proposed course of action is not legally or commercially viable. Of course, it is better to provide an alternative solution if what they are proposing is not feasible, but the client will not thank you down the line if the solution a lawyer presents is not practical.

• Ensure the right team: Make sure the right team and experts are working on a matter, so that the client can receive not only accurate and practical advice; while also receiving added value from the team providing additional points for consideration outside of the original questions.

5. What technological advancements are reshaping Environment Law and how can clients benefit from them?

Artificial intelligence (AI) is beginning to have a significant impact on this area, both from a data modelling perspective, and from a monitoring perspective. (This includes the use of satellite imagery and remote sensing, but AI will start to be used to assist with this.)

Data centres are increasing access to analytics, storage and high-power IT infrastructure, but bring with them more immediate demands for water, meaning potential environmental impact. Such infrastructure also puts a strain on the electricity grid capacity which will need to be better managed by countries including Japan going forward.

Blockchain, used as a decentralised system for securely recording transactions across various computers and networks, is also being used as a ledger for the sale and purchase of carbon credits. In Japan, a structured market for carbon credits is being established, first on a voluntary basis, but moving towards a compliance-based model in the future.

Together with the technological advancements, financial institutions are seeking to support projects which involve or benefit environmental law. Where companies can align their projects with banks offering transition finance products (such as transition or green bonds), then they may be able to access lower-cost financing and capital through these Japan’s Green Transformation (GX) policy instruments. There may be ongoing disclosure and other requirements related to any loans provided, so clients must ensure ongoing compliance and transparent reporting.