TOKYO—Japan’s government on Tuesday mapped out a plan for releasing contaminated water from the crippled Fukushima nuclear plant into the sea, including compensation standards for local industry and the compilation of a safety assessment report. Japan said in April it would discharge more than 1 million tonnes of contaminated water in stages after treatment and dilution, starting around spring 2023. The announcement provoked concerns from local fishermen and objections from neighboring China and South Korea. Earlier this month, the plant’s operator Tokyo Electric Power (Tepco) outlined detailed plans for the disposal, including building an underwater tunnel to release the water. Under the government scheme, Japan aims to set standards for compensation for damage caused by what it described as harmful rumors on local industries such as fishing, tourism, and agriculture, while reinforcing monitoring capability and transparency to avoid reputational damage. Japan also expects the International Atomic Energy Agency (IAEA) to …