Seina Kanyama

With the inauguration of the Trump administration in the United States in January 2025, the ideas of prioritizing carbon net-zero (carbon neutrality) and emphasizing fossil fuels have once again become intertwined. However, if we view carbon net-zero (carbon neutrality) and green transformation (GX) not as narrow climate change measures, but as a medium- to long-term shift in industrial structures, the trend toward carbon net-zero is likely unstoppable, particularly in the EU and Japan.

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The Japanese Government has announced its nationally-determined contribution ("NDC") to achieve 46% reduction of greenhouse gasses ("GHG") by 2030 compared to 2013 and carbon netzero by 2050. In order to achieve its NDC, the Japanese government has been implementing various policies, including establishment of the GX League, Japan's version of an emissions trading system ("Japanese ETS"). Phase 1 of the GX League began in 2023, and discussions are accelerating to launch Phase 2 around 2026.