1. AECEN Regional Forum: Public Participation in Environmental Compliance and Enforcement in Asia December 13-15, 2007 Challenges and Successes in Compliance and Enforcement Programs in Asia – Case of Japan Hidefumi IMURA Graduate School of Environmental Studies Nagoya University

2. Institutional Arrangements (1) Historical Development Before 1960: No effective institutional arrangements both on the national and local levels in terms of legislation and organization In the 1960s (Japan ’ s rapid economic growth period): Revision of existing laws and enactment of new laws, but not effective enough  Exploding health damages of residents, e.g., Yokkaichi Asthma, Minamata Disease, Etc. 1971: Drastic change and start of systematic environmental policy Anti-pollution movements developed to anti-government movements which might have led to a political turmoil Court adopted “ no fault liability ” principle: Companies which caused health damages were sentenced to be guilty of illegal actions even though they asserted that they were not able to expect the health impacts  Companies had to pay huge monetary compensation to victims Decision of the elites (LDP politicians, bureaucrats and business leaders) faced with the risk Amendment of Pollution Control Law (Deletion of “ Harmonization ” Clause) Establishment of Environment Agency

3. Institutional Arrangements (2) Japanese Environmental Institutions Mix of centralized and decentralized approaches Enforcement of environmental laws, including monitoring and inspection, is largely delegated to 47 prefectures and large municipalities Prefectures were the pioneer in environmental regulation: they enacted ordinances before national laws were legislated. National Framework Law Pollution Control Law (1967, Amended in 71)  Basic Environmental Law (1994) National Specific Laws Air Pollution Control Law Water Pollution Control Law Health Damage Compensation Law Local Ordinances Prefectures and municipalities can set more stringent standards than national ones Ambient Air / Water Standards and Emission/Effluent Standards Standards desired to be achieved and “ obligatory ” standards

4. Planning, Performance and Evaluation Basic Environmental Plan Set national environmental goals and targets Prefectures and municipalities also prepare similar plans Total Pollutant Load Control Plans Special Law for Environmental Preservation of Seto Inland Sea Law of Special Measures for Lake Water Quality Air Pollution (SO2) Regional Pollution Control Plans Plans to provide special financial assistance to environmental projects in the designated areas (e.g., national subsidies for sewerage treatment plants) Environmental Reports The annual report on the state of environment is prepared and submitted to the National Parliament (Similar reports in prefectures and municipalities). Environmental performance is evaluated in terms of the number of monitoring stations which comply with the standards Monitoring data from all air and water monitoring stations are collected and evaluated by local governments and sent to the center (Ministry of the Environment). Detailed monitoring results are published in book form  They are necessary and useful for environmental assessment

5. Compliance Monitoring and Inspection Compliance of Emission/Effluent Standards Prior consultation before new installation or modification of facilities Periodic and sudden inspection by local government officers Improvement order and penalties Specified Facilities Environmental Office Of Prefectures and Municipalities On-site Inspection Effluent Public Waters Environmental Monitoring Non-Compliance Improvement Order Penalty Case of Water

6. National Compliance Monitoring of Water Data 2002 300,000 specified facilities 40 issues of improvement order 8,434 issues of administrative guidance 55,332 visits for on-site inspection (daytime 54,672, nighttime 660) Number of Persons in Charge of Environmental Management National (MoE) 1,000 Local (Prefectures and Large Cities) 6,400 * Including Air, Water, and Others Submit a plan prior to new installation or modification of specified facility Check of submitted document Issue of orders to change the plan or take prior measures Compliance 300,000 Specified facilities / Many, small sources Environmental Offices of Prefectures and Municipalities Decentralized Approach

7. Compliance of EQS Water Air SO2 NO2 1970 2004 Automobile station General station

8. The number of arrests for violating water pollution control law which was more than 1000 in the 70s decreased to almost “ 0 ” in the 90s, while the violation of solid waste disposal law (illegal dumping, improper treatment of hazardous wastes, etc.) is sharply increasing in the 2000s after the enforcement of stricter regulations. Air, Soil, Noise, etcWild Life Protection, etc. Violation of Environmental Laws

9. Enforcement Response Designation of “specified facilities” Case of Water: 300, 000 factories and other commercial facilities (hotels, stock raising, cleaning, night soil treatment, etc.) Large facilities (more than 50 m 3 /day) 13% Small facilities (less than 50 m 3 /day) 87% Role of prefectures and designated cities Request reports from specified facilities On-site inspections to monitor compliance Take administrative action such as “ improvement order ” Response: Large Factories Specified facilities (with a volume of effluent more than 10,000 m 3 /day in the case of water) must have pollution control managers who are qualified by the relevant law Use of Bank Loans and Policy-Based Financing (Japan Development Bank) Response: SMEs Reporting and guidance by local environmental authorities Subject to monitoring and inspection by prefectures and municipalities Financial assistance by JEC (Japan Environmental Corporation) and local governments Relocation to industrial parks with collective treatment systems

10. Compliance Promotion and Incentives Cooperative Enforcement Using Administrative Guidance Japanese industrial policy in the catching-up period (until 1970s), “Embedded Broker-State” (Jeffrey Broadbent) Cooperative enforcement based on networking and close information exchange between government and industries lowered the cost of compliance Clean government (free from corruption and bribes) Networking of companies (“Kyogikai”) also facilitated the dissemination of information Voluntary Approach: Negotiated Agreements Pollution Control Agreements （ PCAs ） between local governments and companies (More than 40,000 agreements have been concluded). More stringent compliance is required to companies in terms of effluent levels and items (e.g., specific chemicals, etc.). Companies are required to make periodic reporting, receive inspections, etc. Companies can enjoy some benefits (reduction of transaction cost and “time cost”) in getting licensing and permission by government, and obtaining consent of local residents who do not want to have factories in their neighborhood. Financial Incentives Low interest rate loans Preferential tax incentives

11. Public Participation Role of Citizens in System Making Citizens were victims of industrial pollution in the 60s. They backed up the critical anti-pollution campaign against industrial activities. Role of Citizens as Polluters In the 90s, citizens identify themselves as polluters: they pollute the environment through their affluent lifestyles, mass consumption and one- way use of resources. There are gaps between awareness and behaviors: increased environmental awareness does not necessarily mean environmentally sound behaviors as consumers. Greater availability of environmental information by TV, books, etc Greater opportunities for citizens to participate in environmental actions Role of NGOs Weak role of Japanese environmental NGOs in terms of number of organizations, number of members and financial capability. New law enacted to promote the activities of NPOs (non-profit organizations) in 1998. Traditional Japanese ideas on the role of government: “ NGOs are not necessary because government must / will do the job. ” Lack of systems to financially support NGOs

12. Optimization According to Japanese Experience Local, decentralized system proved effective and efficient Inventories of sources including a large number of small sources Reporting prior to new construction and modification of existing facilities Document inspection and guidance and advice by local environmental authorities Combination of on-site inspection and monitoring by government and self-monitoring by facilities Networking and information exchange between government and companies ensured compliance Administrative guidance based on on-site inspection and monitoring ensured improvement measures by companies The use of negotiated agreements (PCAs) lowered the transaction cost. Financial measures by Government facilitated compliance Financial assistance to SMEs for technical measures Tax reduction for pollution control investment Need of public investment (in urban sewerage systems)