Japan's Power Market News 2024/W33

Japan’s GX League Forms Working Groups for “Market Rule-Making” Initiative

Japan’s “Green Transformation” initiative, “the GX League” has announced the formation of three key Working Groups as part of its 2024 Market Rule Formation Forum:

• GX Product Social Implementation Promotion WG: This group, led by the Ministry for Economy, Trade and Industry (METI), will develop a framework to better evaluate companies that are actively procuring GX products. By increasing the visibility of such companies, the group aims to stimulate market growth and enhance corporate reputation through the establishment of voluntary declarations.
• FY2024 GX Management Promotion WG: This working group will focus on leveraging the GX Dashboard as a platform for companies to disclose their contributions to reducing #carbon emissions. Additionally, it will continue to engage with stakeholders to disseminate the findings from previous studies, ensuring that best practices are widely adopted. The group has a variety of member companies, ranging from banks to insurance companies. The GX Management Promotion WG has already collected international case studies that it will use to steer internal discourse on the use of avoided emissions by financial institutions.?
• GX Human Resources Market Creation WG: Building on the GX Skill Standards established in FY2023, this group will explore ways to expand these standards. The discussions will center on how to use these standards to overcome challenges in advancing the GX agenda, such as addressing the increasing volume of GX-related jobs in light of a stagnating workforce.

Strategic Implications and Corporate Engagement

The GX League is made up of companies that claim to be committed to the challenge of transitioning to carbon neutrality. As of the end of March 2024, 747 companies were actively enrolled in the GX League, accounting for over 50% of Japan’s emissions.?

Whilst the GX League continues to gradually establish the foundation of a platform whereby participants can more clearly navigate and define their individual contributions to broader? #decarbonization objectives, incentives for companies to participate are still unclear and participation is still voluntary.

However, by enhancing corporate reputation, providing access to strategic insights, building critical green skills, and offering opportunities to influence policy and market development, these working groups could make participation a strategic choice for companies looking to navigate their own decarbonization requirements.

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