Japan is accelerating its green transformation through the GX 2040 Vision, aiming for renewables to provide 40 to 50 percent of its power generation by 2040. The strategy includes a phased rollout of a mandated emissions trading system in 2026 and a carbon levy starting in 2028 to make fossil fuels less competitive. These policy shifts are designed to address energy security vulnerabilities exposed by geopolitical tensions in the Middle East and Eastern Europe. While offshore wind faces rising development costs, the government is prioritizing grid stability and storage battery opportunities to support the transition.
