1. Introduction

Geothermal energy is an important renewable energy resource in Japan because of the country's volcanic geography and abundant underground heat resources. Geothermal power plants use heat from beneath the Earth's surface to generate electricity. However, geothermal development can create conflicts between energy companies, local communities, hot-spring operators, environmental organisations, and government authorities.

Community consultation is particularly important in Japan because onsen (hot springs) are closely connected with local culture, tourism, employment, and regional economies. Residents and hot-spring business owners may fear that geothermal drilling and fluid extraction could reduce spring water levels, change water temperatures, or affect the chemical composition of existing hot springs.

Japanese energy law therefore operates alongside environmental protection legislation, hot-spring regulation, nature conservation law, and local government ordinances. These frameworks provide mechanisms for environmental assessment, consultation, permits, and administrative oversight.

Japan's approach seeks to balance three objectives: expanding renewable energy, protecting local livelihoods and natural resources, and ensuring that geothermal projects are developed through transparent decision-making.

2. Legal Framework Governing Community Consultation

A. Hot Springs Act, 1948

The Hot Springs Act (Onsen Law) is one of the most important laws affecting geothermal development in Japan.

Its primary purpose is to protect hot springs, prevent disasters associated with combustible natural gases released during hot-spring extraction, and ensure the appropriate use of hot-spring resources. e-Gov Law Search

Section 3: Permission for drilling

Article 3 generally requires permission from the prefectural governor before land is drilled for the purpose of bringing a hot spring to the surface.

This requirement is relevant where proposed geothermal activities fall within the statutory provisions governing hot-spring drilling.

Protection of existing hot springs

Geothermal development may affect underground fluid movement and pressure. Consequently, authorities must consider whether proposed activities could adversely affect existing hot springs.

The Act provides a legal framework for regulating drilling and hot-spring extraction, although the precise permits required depend on the nature of the proposed operation.

Community consultation

The Hot Springs Act does not establish a universal requirement for every geothermal project to obtain the formal consent of every local resident or hot-spring operator.

Nevertheless, consultation is important because local concerns may be relevant to the assessment of resource protection, the administrative decision-making process, and the design of appropriate safeguards.

The Ministry of the Environment has developed guidance specifically addressing hot-spring resource protection in geothermal power development. This guidance promotes consideration of the relationship between geothermal projects and existing hot-spring uses. 環境省

B. Environmental Impact Assessment Act, 1997

The Environmental Impact Assessment Act establishes procedures for assessing the environmental consequences of certain development projects.

Geothermal power plants may be subject to environmental impact assessment depending on their capacity and the applicable statutory requirements.

Under the Japanese framework, geothermal power projects with an output of at least 10,000 kW generally fall within the first-category project classification for environmental assessment.

The assessment process can address matters such as:

• Effects on hot springs and groundwater.
• Impacts on ecosystems and biodiversity.
• Noise and vibration during drilling and construction.
• Landscape impacts.
• Effects on national parks and surrounding natural environments.
• Potential cumulative effects from existing and proposed developments.

Importance of consultation

Environmental assessment provides opportunities for environmental information to be disclosed and for opinions to be submitted by relevant stakeholders.

The process can help residents understand the proposed project, identify potential risks, and communicate concerns before important development decisions are finalised.

However, environmental assessment is not equivalent to a general community veto. The legal effect of comments depends on the applicable statutory procedure and the authority responsible for the decision.

C. Nature Conservation and National Park Regulation

Japan's Natural Parks Act regulates activities within national and quasi-national parks.

Many geothermal resources are located in or near protected natural areas. Geothermal development in such locations may require permission or compliance with specific restrictions, depending on the protected area's classification and the nature of the proposed activity.

The legal framework seeks to reconcile renewable energy development with landscape protection, biodiversity conservation, and the preservation of natural features.

The Ministry of the Environment has specifically examined how the Natural Parks Act and Hot Springs Act should be applied to geothermal projects that coexist with local communities. 環境省

Community consultation is particularly important where a project could affect tourism, scenic landscapes, traditional hot-spring uses, or the local economy.

D. Electricity Business Act

The Electricity Business Act regulates electricity businesses and the safety of electrical installations.

Geothermal power plants must comply with applicable electricity-sector requirements, including relevant technical safety standards and regulatory procedures.

However, compliance with electricity-sector safety requirements does not automatically resolve disputes about hot-spring resources, land use, or community acceptance.

A geothermal project may therefore need to satisfy several separate legal regimes before construction and operation can proceed.

3. Why Community Consultation Is Important in Japan

Community consultation is not merely a procedural formality. It is a significant factor in the practical and legal feasibility of geothermal development.

A. Protection of hot-spring businesses

Hot-spring resorts are important economic institutions in many Japanese regions. Their income may depend on the continued availability, temperature, and quality of local spring water.

Operators may be concerned that geothermal drilling could affect the underground systems supplying their facilities.

Consultation allows developers to explain their geological investigations, monitoring systems, and proposed safeguards while enabling hot-spring operators to communicate their concerns.

B. Environmental protection

Geothermal projects may affect groundwater, local ecosystems, and protected landscapes.

Residents and environmental organisations can provide information about local environmental conditions that may not be fully reflected in initial project assessments.

C. Distribution of economic benefits

A geothermal project may generate electricity and employment without necessarily providing substantial benefits to the surrounding community.

Consultation can help identify opportunities for local employment, infrastructure improvements, energy supply, and regional economic development.

D. Procedural fairness and public trust

Research on Japanese geothermal development has identified inadequate opportunities for participation, concerns about unequal distribution of benefits, and distrust of developers as factors contributing to community opposition. J-STAGE

Meaningful consultation can improve procedural fairness by allowing affected people to participate before major decisions become difficult to reverse.

4. Local Government Ordinances and Consultation Councils

Local governments play an important role in managing the relationship between geothermal development and community interests.

Some municipalities have introduced ordinances and consultation councils to facilitate communication between developers, residents, hot-spring operators, and public authorities.

These arrangements can supplement national legislation by establishing locally appropriate procedures for discussing geothermal projects.

A. Local consultation councils

A consultation council may bring together representatives of:

• Municipal government.
• Geothermal developers.
• Hot-spring associations.
• Local residents.
• Environmental organisations.
• Technical experts.

Such councils can provide a forum for discussing drilling plans, monitoring results, environmental impacts, and proposed mitigation measures.

B. Local ordinances

Depending on their wording and legal basis, local ordinances may establish development procedures, consultation requirements, designated areas, reporting obligations, or other restrictions.

Their legal effect varies between municipalities. It is therefore incorrect to assume that every Japanese municipality applies the same geothermal consultation procedure.

C. Legal significance

Local consultation mechanisms are particularly important because national legislation cannot always resolve the detailed social and environmental issues associated with individual geothermal projects.

A municipality may be better placed to identify local concerns involving hot-spring businesses, tourism, land use, and regional economic priorities.

5. Important Case Studies and Legal Principles

Legal clarification: Japan has relatively limited reported judicial authority specifically addressing community consultation in geothermal development. The following examples therefore distinguish judicial decisions from documented development cases and academic case studies. The latter are useful for understanding community consultation but should not be presented as court judgments.

Case Study 1: Oguni Town, Kumamoto Prefecture — Geothermal Consensus Building

Nature of the case: Local governance and consultation case study, rather than a reported court judgment.

Background: Oguni Town in Kumamoto Prefecture is associated with geothermal resources and has been examined in research concerning local consensus-building arrangements.

Legal and policy issue: The central issue is how local ordinances and consultation councils can help reconcile geothermal development with the interests of residents and hot-spring operators.

Approach: Research has examined the role of municipal rules and local councils in facilitating dialogue among stakeholders and managing disagreements about geothermal development.

Significance: The case demonstrates that consultation can be institutionalised through local governance arrangements rather than being left entirely to informal negotiations between developers and residents.

The research also highlights the importance of involving affected stakeholders in discussions concerning project planning and the management of geothermal resources. J-STAGE

Legal principle: Local consultation mechanisms can complement national environmental and energy legislation by addressing community-specific concerns.

However, the precise legal obligations in any particular project depend on the applicable ordinance and statutory framework.

Case Study 2: Beppu City, Oita Prefecture — Local Ordinances and Geothermal Development

Nature of the case: Local regulatory case study, not a reported judicial decision.

Background: Beppu is one of Japan's best-known hot-spring cities. Its economy and regional identity are closely connected with onsen tourism.

Legal issue: The challenge is to regulate geothermal energy development while protecting the hot-spring resources on which local businesses and tourism depend.

Regulatory approach: Research published in 2025 examines how local ordinances and zoning-related approaches can contribute to the appropriate development of geothermal energy in Beppu.

The study considers the role of municipal regulation in reconciling renewable energy development with local environmental and economic interests. J-STAGE

Significance: The Beppu example demonstrates why geothermal development cannot be treated solely as a technical electricity-generation project.

The underground resource may also sustain existing businesses, cultural practices, and tourism activities.

Legal principle: Local planning and consultation can help identify incompatible land uses, clarify expectations, and improve the integration of energy projects into established communities.

The study should not, however, be interpreted as establishing a universal legal requirement for community consent across Japan.

Case Study 3: Japanese Geothermal Development Conflicts Involving Hot-Spring Operators

Nature of the case: Empirical research examining geothermal development conflicts, rather than one specific court judgment.

Background: Research published in 2016 examined five geothermal development conflicts in Japan.

The research identified concerns about inadequate participation, perceived unfairness in the distribution of benefits, and the handling of unexpected changes affecting hot springs. J-STAGE

Legal and policy issue: The central question was why some local stakeholders opposed geothermal development even where the projects were intended to increase renewable energy production.

Findings: The research found that residents in several cases had not been given sufficient opportunities to participate in discussions. It also identified problems relating to trust in developers and perceptions of procedural and distributive fairness.

Significance: The findings show that providing technical information alone may be insufficient to secure community acceptance.

Residents may also expect developers to explain how risks will be managed, how monitoring will be conducted, and how local interests will be protected.

Legal principle: Although the research is not a judicial precedent, it supports the policy argument that early, transparent, and continuous consultation can reduce disputes and improve geothermal governance.

Case Study 4: Environmental Assessment of the Shiramizukoshi Geothermal Development Plan, 2026

Nature of the case: Administrative environmental assessment, not a court judgment.

Background: On 9 June 2026, Japan's Ministry of the Environment issued an opinion concerning the preliminary environmental consideration document for the proposed Shiramizukoshi geothermal power project.

The project area is located in the ordinary zone of Kirishima-Kinkowan National Park.

Issues considered: The ministry highlighted the need to assess cumulative impacts on hot springs and fumarolic activity, investigate the habitats of rare birds, and evaluate potential effects on scenic landscapes.

It also emphasised that the project should take account of the views of national park administrators, local governments, and local residents as the project plan is developed. 環境省

Legal significance: The example demonstrates how environmental assessment can bring community interests into administrative decision-making before a project reaches the construction stage.

It also illustrates the importance of cumulative-impact assessment where geothermal facilities already operate in the surrounding area.

Legal principle: Environmental assessment should consider not only the effects of a proposed project in isolation but also relevant cumulative impacts and the views of affected stakeholders.

This is an administrative example of consultation in practice, not a court ruling establishing a general legal right to veto geothermal projects.

6. Judicial Decisions and General Environmental-Law Principles

Because geothermal-specific community consultation litigation is limited, it is useful to distinguish directly relevant regulatory materials from broader judicial principles.

A. Judicial review of administrative decisions

Where a geothermal project requires administrative permission, affected parties may seek legal remedies if the relevant authority's decision violates applicable law and the claimant satisfies the necessary procedural and substantive requirements.

The availability of a challenge depends on the particular permit, the statutory framework, the claimant's legal interest, and the alleged illegality.

Community opposition alone does not automatically invalidate a permit.

B. Environmental harm and civil liability

If geothermal operations cause legally actionable damage, affected parties may potentially pursue civil remedies under applicable Japanese law.

For example, a dispute involving damage to a hot-spring business would require evidence concerning the alleged harm, causation, and the relevant legal basis for liability.

Whether a claim succeeds depends on the specific facts and applicable legal requirements.

C. State responsibility

If an administrative authority allegedly fails to exercise a statutory power lawfully, a claim against the state may be possible under the applicable legal framework.

However, government liability is not automatic merely because a project causes harm or attracts community opposition.

Important distinction: The Oguni and Beppu examples are documented local-governance studies, while the Shiramizukoshi example concerns administrative environmental assessment. None should be cited as a judicial judgment. For academic work, it is better to identify these examples accurately than to attribute nonexistent holdings to Japanese courts.

7. Practical Steps for Effective Community Consultation

A legally sound consultation process for geothermal development should include several stages.

First, early disclosure: Developers should explain the proposed location, drilling methods, anticipated environmental effects, and expected development schedule before key decisions are finalised.

Second, stakeholder identification: Consultation should include residents, hot-spring operators, local authorities, relevant businesses, and other affected groups.

Third, independent technical assessment: Geological, hydrological, and environmental assessments can help clarify the potential effects of drilling and geothermal fluid extraction.

Fourth, continuing monitoring: Where appropriate, monitoring should cover relevant hot-spring characteristics, groundwater conditions, and other environmental indicators.

Fifth, transparent communication: Developers should explain monitoring results and provide clear procedures for receiving and responding to complaints.

Sixth, mitigation and compensation: Where legally appropriate, developers should consider measures to prevent or reduce harm and address legally recognised losses.

Seventh, documented consultation: Meeting records, submitted opinions, and explanations of how significant concerns were addressed can improve transparency and accountability.

These measures should be distinguished from statutory requirements: the exact obligations depend on the applicable laws, regulations, permit conditions, and local ordinances.

8. Challenges in Community Consultation

Japan faces several continuing challenges in geothermal consultation.

1. Conflicting economic interests: Renewable energy developers may prioritise electricity production, while hot-spring operators may prioritise the protection of existing spring resources.
2. Scientific uncertainty: The underground movement of geothermal fluids can be difficult to predict with complete certainty.
3. Unequal access to information: Developers may possess technical information that residents cannot easily evaluate.
4. Distribution of benefits: Communities may bear perceived environmental risks without receiving equivalent economic benefits.
5. Fragmented regulation: Different permits and authorities may govern drilling, electricity generation, environmental protection, and land use.
6. Trust and accountability: Consultation may fail if residents believe that decisions have already been made before discussions begin.

Addressing these problems requires sustained engagement rather than a single public meeting.

9. Conclusion

Community consultation is a significant element of geothermal energy governance in Japan because geothermal development can affect hot springs, tourism, local livelihoods, protected landscapes, and the environment.

The Hot Springs Act regulates relevant drilling and resource-protection activities. The Environmental Impact Assessment Act provides procedures for assessing environmental effects and receiving stakeholder opinions. The Natural Parks Act and Electricity Business Act add further requirements where applicable.

Local ordinances and consultation councils in places such as Oguni and Beppu illustrate how municipal institutions can support cooperation between developers and affected communities. The 2026 environmental assessment of the proposed Shiramizukoshi project further demonstrates the importance of considering cumulative environmental effects and local views during project planning.

The central legal distinction is that community consultation does not necessarily mean that every resident has a legal veto over a geothermal project. Instead, the legal position depends on the applicable statutory procedures, administrative decisions, local ordinances, and any relevant rights or remedies available to affected parties.

Ultimately, effective consultation helps reconcile Japan's renewable energy objectives with the protection of hot-spring resources, local economic interests, environmental conservation, and public confidence in energy development.