Climate, chemicals, and worker regulations in APAC: End of year trends

The regulatory landscape in the Asia Pacific region is transforming rapidly, with carbon emission controls, chemical restrictions, and workplace exposure limits soaring across APAC countries. In our end of year forecaster webinar, Regional Expert Yangyang Geng outlined the latest legislation on climate change, chemicals management, and worker protection affecting companies in the Asia Pacific region.  

In this article, we summarize the key proposals and adoptions shaping the APAC region from 2024 and beyond.

Climate change

Yangyang Geng noted that APAC countries are taking significant strides in combating climate change. She shared the key regulatory developments in three APAC countries.

China — Work Plan for Accelerating the Establishment of a Dual Carbon Emission Control System 

In August 2024, the State Council published the work plan for accelerating the establishment of a dual carbon emission control system. This plan outlines China’s national strategy to reach carbon peak and carbon neutrality by managing both carbon emissions and carbon intensity.  

By 2025, the government aims to implement a number of industry specific carbon emission accounting standards and product carbon footprint accounting standards. These will establish the foundation for the implementation of the dual carbon control system during the 2026 — 2030 period.  

During those years, the primary focus of the dual carbon control system will be placed on carbon intensity control, ensuring China hits its carbon peak by 2030. After 2030, the focus will shift to total emissions control, paving the way for carbon neutrality by 2060.
 

Proposal for carbon emissions 

Following the work plan, relevant ministries published a proposal to amend the current regulation on energy conservation review. If adopted, this amendment would require project owners to submit carbon information as part of the energy conservation review application prior to the project’s construction.
 

Proposal for cement, iron and steel, and electrolytic aluminum industries 

There’s also a proposal to include cement, iron and steel, and electrolytic aluminum industries in the national carbon emission trading market. If adopted, this would subject key emission entities in these industries to carbon emission reporting and allowance control.
 

Japan — Carbon Dioxide Capture and Storage Business Act 

The Carbon Dioxide Capture and Storage Business Act was introduced in May. The Act is set to be implemented in stages, with exact dates yet to be announced at the time of writing.  

The Act establishes permit requirements for carbon dioxide capture, storage, and exploratory drilling businesses. It continues to set operational requirements for companies carrying out such activities, including submitting an implementation plan for approval and monitoring the temperature and pressure of the reservoir to check for leakage of stored carbon dioxide.
 

Australia — Net zero sector plans 

In June, the Department of Industry, Science and Resources released the net zero sector plans for three areas: industry, resources, and built environment. The three emission reduction plans support the national goal to achieve a zero economy by 2050. 

• Industrial sector plan — focuses on the decarbonization of the most impacted subsectors, including aluminum, chemicals and plastics, iron and steel, and manufacturing 

• Resources sector plan — focuses on identifying opportunities to reduce emissions and support Australia’s economic growth and its trading partners on their own path to net zero 

• Built environment sector plan — focuses on providing a pathway to transition to net zero with emissions reduction associated with operating buildings and embodied emissions in construction materials 

As evidenced by the aforementioned, APAC countries are taking a variety of measures to tackle climate change, including assessing, accounting, reducing, and removing carbon emissions. Concerned companies can expect stricter emissions measures in the future.

Chemicals management

Chemical regulations are rapidly evolving across Asia Pacific, with key changes developing in Japan, Vietnam, and China.

Japan — PFAS restrictions 

In August 2024, Japan published a proposal to ban the manufacture, import, and use of PFHxS related compounds, unless permitted or for essential uses. This marks a step forward for the Japanese government to phase out PFAS in its industries and products, following the existing restrictions on PFHxS and its isomers and salts that companies are already subject to as of 1 February 2024. 

Additionally, as of 10 September 2024, companies are prohibited from manufacturing, importing, or using PFOA isomers and their salts, unless permitted or for research purposes. And from 10 January 2025, companies will be banned from manufacturing, importing, or using PFOA related compounds unless permitted or for research or essential uses, and from importing designated products containing these chemicals.
 

Vietnam — Draft Law on Chemicals 

In September 2024, the Vietnam Chemicals Agency released a notification on the submission of the Draft Law on Chemicals to the standing committee of the national assembly for discussion. Under this law, EHS obligations related to chemical lifecycle management and hazardous chemicals in products would be clarified.  

If the law is adopted in its current form, companies manufacturing and importing chemicals or chemical products would have to register hazardous chemicals, new chemicals, and chemicals imported into Vietnam for the first time through a system governed under the Ministry of Industry and Trade.

Companies manufacturing, trading, storing, transporting, using, or handling chemicals should expect additional specifications, such as: 

• Additional contents and durations for chemical safety training to be provided 

• Preparing a plan with prevention methods and responses to hazardous chemical incidents during transport 

• Complying with the local government’s plan for prevention and response to toxic chemical incidents
   

China — HFCs production freeze 

As of 1 August 2024, companies in China are forbidden to establish or expand manufacturing projects of 13 types of HFCs used for controlled purposes, such as refrigerants or foaming agents. This aims to freeze HFC production in 2024, which is a legal obligation of China under the Kigali Agreement to the Montreal Protocol.  

This announcement follows the issuance of the second bath of controlled HFCs, on top of the first batch issued in 2021 which contained five types of HFCs. For companies that already manufacture any of the 18 types of controlled HFCs, they’re prohibited from increasing the original production capacity or adding any new types of HFCs to the existing projects.
 

Yangyang noted that regulations are being developed progressively in the APAC region to phase out chemicals of concerns. Companies should be increasingly careful with the selection and use of chemicals in their operations and products.

Protection of workers

Yangyang noted that the protection of workers in the APAC region remains a priority in the adoption and proposal of new legislation. Currently, China, Japan, and New Zealand are making notable headway in regulating workers’ wellbeing.

China — Standard on occupational radioactive contamination monitoring   

The Standard of Individual Monitoring of Occupational Radioactive Contamination of the Skin (GBZ 166-2024) was issued by the National Health Commission in July 2024, to replace the current 2005 version. It will come into effect on 1 June 2025.  

The standard applies to companies engaged in operations involving unsealed radioactive substances, as well as companies having a sealed radioactive source that is leaking or suspected of leaking. It will impose additional and more stringent requirements for employers to conduct skin radioactive contamination monitoring of their employees, for example, by specifying the frequency of the monitoring at the end of each operation and introducing additional record keeping requirements. The records will have to include monitoring instrument verification or calibration, monitoring results, and quality assurance. 
 

Japan — Additional chemical exposure limits 

Effective from 1 October 2025, companies in Japan that manufacture or handle any of the 112 chemical substances listed under the Ordinance on Industrial Safety and Health in the indoor workplace (except for handling products used mainly for the daily lives of general consumers) will have to comply with additional exposure limits.  

Technical guidelines have also been amended for the implementation of the new exposure requirements, such as adding sampling and analysis methods for measuring exposure concentrations.
 

New Zealand — Proposed chemical exposure limits 

In July 2024, WorkSafe New Zealand launched a significant initiative aimed at updating and improving occupational health standards to protect workers, by proposing stricter exposure limits for 58 chemical substances and biological agents, including carcinogens, asbestos, and lead. 

Although the concerned exposure limits are guidance values and thus not mandatory even when adopted, all workplaces are strongly encouraged and expected to comply with such exposure limits to minimize health risks.
 

Yangyang recommended that companies operating in the APAC region stay on top of these regulatory trends and take proactive steps to manage risk and ensure compliance in their workplaces.