This year will see a number of structural changes in Japanese energy markets. In addition to the rollout of a mandatory Emissions Trading System (ETS), officials are laying the foundation for a fossil fuel levy (due in 2028), more comprehensive electricity trading platforms, GX-compliant products, and a synchronization between new clean energy and digital infrastructure development (i.e. the Watt-Bit collaboration).

Taking the lead on most of these issues is a new government entity – the GX Acceleration Agency (GXA) – and a network that it’s creating called GX Future Consortium. GXA will be in charge of:

• Administering the nationwide ETS program and carbon pricing
• Accelerating private capital deployment by offering credit guarantees and equity investments
• Acting as a GX Hub to promote research, stakeholder collaboration, policy discussions, and international communication around GX and sustainability.

Japan NRG sat down with Takada Hideki, a director at GXA to discuss the changes and how they fit in the broader government decarbonization agenda.