JP Amended Fluorocarbon Emission Control Act — Direct Penalties for Recovery Failures and Strengthened Building Demolition Rules (2020)
ENFORCEMENT TIMELINE
Effective April 1, 2020
Overview
The 2020 amendment to the Fluorocarbon Emission Control Act substantially strengthens regulation at the point of equipment disposal and building demolition, aimed at overcoming a long-standing recovery rate for fluorocarbons from commercial air conditioning and refrigeration equipment that had stagnated at around 40%. Its central feature is the introduction of a direct penalty, a fine of up to 500,000 yen, imposed immediately for failing to recover fluorocarbons at disposal, without any prior administrative guidance. The amendment also requires prior confirmation of whether equipment contains fluorocarbons, and the issuance of a written notice, whenever a building demolition project is ordered or undertaken.
Enforcement Timeline
April 2015: The Fluorocarbon Emission Control Act takes effect, beginning the requirement for managers (owners) to conduct simple and periodic inspections and report leaks.
April 1, 2020: The amended act takes effect, introducing the direct fine of up to 500,000 yen for disposal violations and mandatory prior confirmation and written notice for demolition projects.
April 2024: Target years for transitioning to alternative refrigerants (low-GWP or fluorocarbon-free) under the Designated Products System are reached for some categories.
Business Impact
Businesses that dispose of or sell commercial air conditioning or refrigeration equipment operating at a factory, store, or warehouse face a fine of up to 500,000 yen if they fail to properly recover the fluorocarbons or hand off the equipment to a scrap dealer without obtaining a certificate of recovery. When undertaking a renovation or demolition project at a head office or factory, businesses have a legal obligation to receive a written prior explanation from the contractor and retain it for three years; failing to do so can result in administrative guidance or public disclosure of the company's name. Businesses should recognize that they are the manager of a Class I designated product and thoroughly maintain records of simple inspections (at least once every three months), periodic inspections for equipment above a certain size, and inspection and maintenance logs, retained for three years after disposal.