Japan: GX-ETS and “Green Transformation” carbon pricing
Japan's Green Transformation strategy introduces an emissions trading scheme (GX-ETS), launched on a voluntary basis with the GX League and made mandatory for large emitters, a levy on fossil fuels for importers and, later, allowance auctions for the power sector. It is the reference framework for Japanese companies when dealing with the European CBAM.
At a glance
- Legal reference
- GX Promotion Act (2023) and subsequent amendments
- Jurisdiction
- European Union
- Area
- EU–Japan: trade and sustainability
- Status
- Phased application
- Last reviewed
Every date for Japan: GX-ETS
- Launch of the voluntary phase with the GX League
- Adoption of the GX Promotion Act
- Mandatory participation in the GX-ETS for large emitters
- Expected launch of the fossil fuel levy in 524 days
- Expected launch of allowance auctions for the power sector in 2350 days
Large Japanese emitters (over 100,000 tonnes of CO₂ a year), fossil fuel importers, power generators; indirectly, their European partners.
How we helpSustainability & Environmental Transition →- 01Align emissions monitoring with the standards required in Japan and by CBAM
- 02Assess the impact of carbon pricing on supplies and contracts with Japan
Frequently asked questions on Japan: GX-ETS
Japan's Green Transformation strategy introduces an emissions trading scheme (GX-ETS), launched on a voluntary basis with the GX League and made mandatory for large emitters, a levy on fossil fuels for importers and, later, allowance auctions for the power sector. It is the reference framework for Japanese companies when dealing with the European CBAM.
Large Japanese emitters (over 100,000 tonnes of CO₂ a year), fossil fuel importers, power generators; indirectly, their European partners.
Apr 2023: Launch of the voluntary phase with the GX League; May 2023: Adoption of the GX Promotion Act; Apr 2026: Mandatory participation in the GX-ETS for large emitters; 2028: Expected launch of the fossil fuel levy; 2033: Expected launch of allowance auctions for the power sector.
The next milestone is 2028: Expected launch of the fossil fuel levy.
Align emissions monitoring with the standards required in Japan and by CBAM; Assess the impact of carbon pricing on supplies and contracts with Japan.
Other rules in the same area
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