GX Promotion Strategy (Strategy to Promote the Transition to a Decarbonized Growth-Oriented Economic Structure)

The GX Strategy is based on the aspects of resolving the energy security challenges that Japan faces and the pursuit of efforts to limit the average global temperature increase to 1.5°C following the Paris Agreement. The Strategy was release following the enactment of the GX Promotion Act and the GX Decarbonization Power Supply Act. The GX Promotion Strategy approved by the Cabinet in July 2023 classified the main government initiatives into the following two categories: (1) GX initiatives based on the basic premise of securing a stable energy supply and energy self-sufficiency including using renewable energy and nuclear power; and (2) the realisation and implementation of the "Growth-Oriented Carbon Pricing Concept", including bold upfront investment support through "GX Economic Transition Bonds" and other means, upfront GX investment incentives through carbon pricing, and the use of new financial instruments.