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Laws and Policies

CCLW

CCLW national policies

Amended GX (Green Transformation) Promotion Act (Law No. 52 of 2025)

GX Promotion Act (Act Concerning the Promotion of a Smooth Transition to a Decarbonized Economic Structure) (Law No. 32 of 2023)

Date passed

Entry into force of Amended GX (Green Transformation) Promotion Act 

Daate amended

This Act is designed to implement part of the necessary legal measures based on the Green Transformation (GX) Basic Policy which was approved by the Cabinet on 10 February 2023. Under the GX Promotion Act, the Government is required to formulate a strategy for promoting structural transition based on decarbonisation (the "GX Promotion Strategy") in order to comprehensively and systematically promote measures for GX. Matters to be determined in the GX Promotion Strategy include the goals of GX, basic direction, matters concerning business areas that are expected to have a high impact on GX policy and support measures, matters concerning each measure stipulated in the GX Promotion Act, and matters concerning the evaluation of the achievement status of the GX Promotion Strategy.
In May 2025, Japan enacted the Amended GX (Green Transformation) Promotion Act. Amendment provisions obligate businesses which have carbon emissions above a designated amount to notify the Minister of Economy, Trade and Industry of their emission targets every fiscal year from fiscal year 2026, following which the Minister shall allocate a business emissions allowance. The GX Acceleration Agency shall establish and operate an emission allowance trading market for conducting emission allowance trading. Other amendment provisions operationalise the fossil fuel surcharge to be collected from fossil fuel extracts from fiscal year 2028.

GX Promotion Act (Act Concerning the Promotion of a Smooth Transition to a Decarbonized Economic Structure)

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

This sector involves the wholesale and retail selling of goods.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

This sector provides communication services, software development, and IT solutions.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

This sector involves activities to move goods and people, alongside the storage of products.

Amended GX (Green Transformation) Promotion Act (Law No. 52 of 2025)

Policy instrument

Risk

Fossil fuel

Greenhouse gas

Economic sector

Finance