Japan started advancing “Green Transformation(GX)” branded initiatives in 2022.
In May 2023, the Diet passed the GX Promotion Act and GX Decarbonization Electricity Act (a bundle of amendments to several acts), and it subsequently adopted the GX Promotion Strategy. By the end of 2023, the government had finalized the framework for GX Economy Transition Bonds as a source of funding to promote GX and details of investment strategies.
This report summarizes the background and details of GX-related legislation and strategies that have been promoted as made-in-Japan concepts. It also sheds light on issues about consistency with the Paris Agreement and 1.5°C target, and other issues going forward.
Contents
Ⅰ. What is GX？
(1) Background
(2) GX Promotion Act
・GX Promotion Strategy
・GX Economy Transition Bonds
・Growth-oriented Carbon Pricing
(3) Sector-specific Investment Strategies
(4) Tax Credits in Strategic Sectors
Ⅱ. Key Issues about GX
Ⅲ. Looking ahead