Smart Regulations & Laws
- REGULATORY SANDBOX
- NATIONAL STRATEGIC SPECIAL ZONES
- RULES FOR DIGITAL MARKET
- DECARBONIZED SOCIETY
As markets evolve to reflect changing social needs, we should move quickly, and with an open mind, to help create new businesses and new demand.
Cutting-edge technologies or businesses sometimes seem unrealistic to implement. It takes support and flexibility to nurture them.
Japan provides a sandbox approach, which allows new ideas to be tested and improved in real-life situations without existing restrictions.
Early stage business models or technologies are proposed to the government and evaluated on their merit
Rules are relaxed to test these innovations within a certain contained “sandbox” (e.g. within an approved company or project). Businesses are able to conduct demonstration tests and pilot projects that are not envisaged under existing regulations inside of their “sandbox”
The testing environment allows businesses to conduct pilot projects quickly, building up data that can lead to change in regulations
If pilot demonstrations of new technologies/business models are successful, the government aims to further implement the regulatory reforms with data obtained from such field trials and experiments
A dedicated office for this is set up to ease the application process
Law took effect in June 2018
- 13 projects/125 applications in the field of IoT, online medical consultation, fintech and mobility have been approved (as of November 2019)
NATIONAL STRATEGIC SPECIAL ZONES
Selected regions have the privilege of carrying out advanced structural reform in the hope of turning successful test cases into touchstones for nationwide implementation.
- 1st automated bus driving test conducted on a public road in Semboku City (November 2016)
- Accept non-Japanese workers who have certain skills to help turn agriculture into a growth industry in Kyoto Pref., Niigata City, Okinawa Pref. and Aichi Pref.
Law took effect in April 2018
RULES FOR DIGITAL MARKET
- Given the importance of data handling and security, Japan plans to create a task force to both regulate and stimulate best practices in the digital market arena
- Rules will be prepared to ensure transparency and fairness in transactions between digital platform companies and users
- In order to promote digital market competition, data portability and API disclosure policies are being considered and reviewed
- Free flow of data across borders is vital to ensure privacy, the integrity of IP, and even national security
- This is the basis of the “Data Free Flow with Trust (DFFT)” concept
- Japan is determined to promote and lead the international discussion on DFFT to find global consensus on rules for data exchange with a view to harnessing the full potential of data and the digital economy
- Japan will lead international policy discussion on these issues, inter alia, international rule-making on trade-related aspects of electronic commerce at the WTO, under the umbrella of the “Osaka Track,” launched at the sideline of the G20 Osaka Summit
- Take measures towards the reduction of GHG emissions by 80% by 2050 to realize a decarbonized society
Achieve a business-led virtuous cycle of protecting the environment while stimulating economic growth by accelerating innovations in environmentally friendly technologies
The Long-term Strategy under the Paris Agreement
(Cabinet decision, June 11, 2019)
- Promote zero-carbon mobility knowing that by 2030 more than half of new autos will use electric, fuel cell or other non-gasoline engines
- Promote a hydrogen society that ushers in carbon-free technology
Establish 160 operating hydrogen stations by 2020 and double that number by 2025
Set a target of reducing hydrogen production costs to one-tenth of current levels by 2050
- Stimulate green finance by promoting disclosure and transparency to drive ESG funds, which are increasing worldwide
- Utilize AI and IoT for energy use management with the commercialization of VPP (Virtual Power Plant) systems by 2021 that offer more efficient resource distribution
- Increase competitiveness in the power and gas market through a comprehensive overhaul of the industry, spurring development of new energy sources and more focus on environmental impact