Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:30 to 9:42 a.m.
Friday, February 21, 2025
Press Conference Room, METI Main Building

Opening Remarks

Visit to Osaka (observing the Yumeshima site for Expo 2025 Osaka, Kansai)

To begin, I would like to mention four points.

First, if circumstances permit, I am scheduled to visit Osaka Prefecture tomorrow, February 22. I will observe the Yumeshima site, the venue of Expo 2025 Osaka, Kansai, Japan, which will open in 50 days from tomorrow, and confirm the progress made in construction and the preparations for the opening of the exposition.

Designation of specified areas under the CCS Business Act

Second, today, I designated some sea areas offshore Tomakomai City, Hokkaido Prefecture, as specified areas under the Act on Carbon Dioxide Storage Business (CCS Business Act), which is the first case designated under the Act. As a result, businesses will be able to submit an application for a license for exploratory drilling in the specified areas for the CCS business. Going forward, the Ministry of Economy, Trade and Industry (METI) will advance discussions on a support system to encourage investment in the CCS business and will work to achieve the goal of starting the CCS business from 2030.

For details, the administrative staff will make a briefing today.

Start of the Declaration of 10 Billion Yen in Sales program

Third, we will start a program called the Declaration of 10 billion Yen in Sales. Starting today, this program aims to create growth companies with regional ripple effects. Companies that reach 10 billion yen in sales often have higher direct export values, intra-regional purchase values, and wage levels than other typical SMEs, and they are regional role-model businesses having a significant impact on other business operators. That is why we have focused on the level of 10 billion yen in sales. We found that around 4,500 SMEs have already achieved over 10 billion yen in sales, and around 90,000 companies have already achieved between one billion yen and 10 billion yen in sales.

Many business operators have been working hard to promote wage hikes and investments despite facing high prices and other challenges. Some of them have achieved 10 billion yen in sales by sharpening their skills and expanding their business scale by M&As. The purpose of this program is to ensure that more and more companies like these ones are created one after another in various regions.

For the companies that have declared to participate in the program, we will develop a network of diverse business operators and provide a support menu, including a subsidy for accelerating SMEs’ growth. We hope to expand this program nationwide by encouraging more and more business operators to agree with and participate in this program. For details, the administrative staff will explain this, too.

Opinion exchange meetings with steel, aluminum, and automobile industries

Finally, I would like to talk about opinion exchanges with steel, aluminum, and automobile industries. As you all know, President Trump stated additional tariffs against the import of steel, aluminum, and automobiles. When discussing Japan's responses to this, I believe that it is important to listen carefully to the opinions of Japanese industries. Accordingly, to directly hear the ideas myself, I decided to provide occasions for opinion exchanges with each of the steel, aluminum, and automobile industries, which are the industries expected to be affected by such tariffs. The schedule is being decided, but I would like to hold such meetings early next week.

I will end my remarks here.

Question-and-Answer Session

Press coverage on Minister Muto’s visit to the U.S.

Q: I would like to ask you about the U.S. tariffs that you mentioned now. Some media coverage reports that you will visit the United States for negotiation to seek Japan’s exemption from the application of U.S. tariffs. Could you comment on whether or not this is true and also on your approach to this negotiation?

A: I am aware of the press coverage that you pointed out. Still, at this point my visit to the United States is not decided. However, I believe that I should visit the United States at the earliest possible time and exchange opinions with my counterparts.

Based on this, on February 11, local time, the Government of Japan requested the United States to exempt Japan from the application of the additional tariffs on steel and aluminum. In light of this, I recognize that, on February 15, Foreign Minister Iwaya raised some issues with Secretary of State Rubio, including the issue of the tariffs on automobiles, which President Trump mentioned.

As I stated at the beginning, concerning the impact of the U.S. tariff measures on Japan, we would first like to listen carefully to the opinions of Japanese industries and appropriately address the issue.

Designation of specified areas under the CCS Business Act

Q: I would like to ask you something related to the specified areas that you mentioned earlier. I understand that the government has been advancing CCS demonstration projects in a variety of areas across Japan. Please tell me why METI chose the sea areas offshore Tomakomai as the first specified area.

A: A study group of experts in geological features held discussions concerning this case. The study group‘s evaluation shows that the target sea areas offshore Tomakomai City, which were designated this time, satisfy the requirements for the specified areas since a structure of carbon dioxide reservoirs may potentially exist underground in the areas. In addition, we recognize that the local understanding of the CCS business is increasing in Tomakomai City, as seen in collaboration with a council that local stakeholders participate in and the implementation of large-scale CCS demonstration tests.

Based on these facts, we designated these areas as specified areas.

Promotion of the CCS business

Q: I would like to ask you something related to CCS, which you talked about just now. The GX2040 Vision and the Strategic Energy Plan, on which the government made Cabinet Decisions on February 18, clearly state the importance of CCS and set out a policy for the commercialization of CCS from 2030.

Some show a sense of expectation for CCS as a means to achieve decarbonization, while others point out the cost. Could you comment on this sense of challenge?

A: CCS is a technology allowing the achievement of decarbonization in fields in which achieving decarbonization is difficult in transitioning to non-fossil energy by using electrification and hydrogen. For this reason, CCS is hailed as an indispensable means to achieve carbon neutrality by 2050.

Concerning the areas offshore Tomakomai, which I mentioned at the beginning, along with the designation of the areas, we will advance discussions on ways to reduce CCS cost through the technological development for separating and capturing carbon dioxide and for larger transport vessels as well as developing standardized specifications for transport vessels. Based on this, we will hold discussions on a support system to encourage investment in the CCS business, aiming to start this business from 2030.

As the big challenge is the extent to which such cost can be reduced, we would like to consider this challenge carefully to move this effort forward.