Key Takeaways:

1. IEEJ’s Role in Supporting Japan’s CCUS Deployment:

• IEEJ acts as a nonprofit think tank providing strategic research, economic modeling, and policy recommendations to the Japanese government and industry stakeholders. While not directly involved in project implementation, IEEJ contributes by bridging data, global best practices, and regulatory insights to support CCUS commercialization.

​

2. High Costs Remain a Critical Barrier:

• Mr. Kobayashi underscored that the high incremental cost of CCUS is the most significant challenge. Without clear regulations or financial incentives, private companies have little motivation to engage in CCUS activities. Sustained government support is essential to make these business models viable.

​

3. Public-Private Partnerships are Vital:

• Cost reduction must be achieved through industry-led innovation and government-backed incentives. Collaboration between public and private sectors — both domestically and internationally — is critical to unlocking economies of scale and reducing financial burdens.

​

4. Cross-Border Cooperation is Key for Long-Term Success:

• Japan’s partnerships with Indonesia, Australia, and other Asia-Pacific nations are progressing well at the technical and industrial levels. However, Mr. Kobayashi emphasized the need for shared policy and financial frameworks between CO₂ capture countries and receiving/storage countries, citing examples like U.S.–Japan cooperation on ammonia and hydrogen.

​

5. Future of Policy and IEEJ’s Contribution:

• IEEJ will continue to shape the national discourse through research on cost structures, regulatory benchmarking, and strategic roadmaps. Mr. Kobayashi stressed the importance of building frameworks that encourage international CCUS supply chains, and fostering industry–academia–government collaboration to make CCUS a sustainable pillar in Japan’s 2050 net-zero pathway.