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 focuses on shifting the energy mix to reduce reliance on volatile fossil fuel markets and improve energy security. Key policy drivers include a new emissions trading system starting in 2026 and a carbon levy beginning in 2028. These mechanisms are designed to increase the cost of fossil fuel power, making renewable energy and battery storage more economically viable for developers and utilities.
