Energy

Japan’s mandatory GX-ETS applies from FY2026 to large direct CO₂ emitters. We outline the 100,000 tCO₂ threshold, the 30 September 2026 filing deadline and the main compliance steps for companies operating in Japan.

Japan’s battery storage market is entering a new phase. METI’s June 2026 strategy revision highlights a broader policy focus on integrated power systems, grid control, stationary storage, resilience infrastructure and future energy demand linked to AI data centers.

Japan’s BESS market is attracting foreign investors as renewable energy targets, grid flexibility needs and electricity market mechanisms create new opportunities. This article outlines key revenue models, legal due diligence points, investment structures and FEFTA considerations for foreign investors.