Japan: Industrial Structure Council Publishes Draft Interim Summary on the Emissions Trading Scheme (GX-ETS)

On December 9, 2025, in Japan, the Subcommittee on the Emissions Trading Scheme under the Industrial Structure Council—an advisory body supervised by the Ministry of Economy, Trade and Industry—published a draft interim summary concerning matters related to the implementation guidelines for allocating emissions allowances under the Emissions Trading Scheme (GX-ETS). The draft summarizes the calculation of verified emissions for entities that will become subject to the scheme beginning in fiscal year 2026—specifically, businesses with annual direct CO₂ emissions of 100,000 tons or more (based on the average of the most recent three fiscal years). It also outlines the treatment of credits within the scheme and the system for registration and verification periods.