Legal obstacles may delay Japan’s plans to achieve carbon neutrality

As nations worldwide race to meet the 2050 carbon neutrality target, Japan has emerged as a key player in implementing “green transformation” (GX)—a comprehensive shift from fossil fuel dependency to renewable energy as a primary power source. Unlike other countries, the Japanese government views this shift not only as an environmental imperative but also as an opportunity for economic growth. Central to this vision is the establishment of a growth-oriented carbon pricing system, enacted in recent groundbreaking legislation such as the GX Promotion Act in 2023.

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