GX League
Ministry of Economy, Trade and Industry

0Objectives⚫ GX League aims for economic and social reform to achieve 2050 carbon neutrality. We will do so through our three initiative andleadership from each of our members.

Actions

GX Promotion through Members’ Leadership➌ Carbon credit
exchange scheme••

Widespread of “The Future Society”
for future business opportunity
GX League will create and continually
update “The Future Society” vision to help
private sector realize their business
opportunity in achieving 2050 carbon
neutrality.
We will develop a “GX Company LeadershipCode of Conduct” for the short term toachieve the desirable future.
Collaboration(output exchange)❷ Market creation and rulemaking••

Co-creation of a new market
We will strategically select areas of a)pansectoral, b) international contribution andc)investment facilitation and establish aworking group of a related theme with theinitiative of GX League members.
These new rules will be labeled as “GXStandard (tentative)” and will aim totransform them into policies and expand
these ideas internationally.

Appropriate rule making and future vision forinvestment and emission reduction❶ Creation of “The Future Society”

GX investment, Action
and Disclosure• Members will actively set
a voluntary andambitious emission
reduction target anddisclose their results
annually and evaluate
mid-term progress.
• When their targets are
not met for their directemission, carbon credit
will be purchased
through voluntary ETS.
• Each members‘ targets
and progress will bedisclosed by the GX
League office.

FY2022

GX League Supporters⚫ Supporters will participate in demonstrationand discussions for full scale deployment fromFY2023 (Examples below)• participate in creating “The Future Vision” , “GX
Company Leadership Code of Conduct” (related to❶) and market creation and rule making during
FY2022（related to ❷）• Rule making for voluntary carbon credit exchange
scheme and participation in demonstration

FY2023
ONWARDSGX League Members⚫ Companies will be a member of the GX League
by agreeing to the code of conduct andparticipate in initiatives listed below.
• Emission reduction target setting, disclosure ofactions and investment related to its targets andvoluntary ETS• GX promotion in the real economy and supporting
other companies in the supply chain⚫ We will create GX business opportunity• Participation in all three actions

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Functions and Outcome of the 3 Platforms⚫ Platforms will be created to put all the 3 actions forward. Through each of the 3 platforms, we will create and provide different
outcomes and values by unique methods.
❷❶
Function

Function

Create “The Future Society”
vision for 2050 and a transitional
step through a dialogue.

Public-private partnershipchallenge for the co-creation ofrules.

❶ Platform for”The Future Vision”

Methodology“DIALOGUE”

FY2022• Create and identify a)businessopportunity in 2050 carbon naturalsociety and b) create leadershipcode of conduct, through a pansectoral open dialogue.
FY2023• Expand the dialogue to the society
and continually update the vison
discussed in FY2022.

Pan-sectoral dialogue forbusiness opportunity incarbon neutrality

OutcomeShare these dialogues to theconsume/society and announce thevision GX League aims.

➌Function
Implementationof actions bycompanies with
ambitious 2030
reduction target❷ Platform forMarket Creation andrulemaking“CO-CREATION”

Public-private partnershipfor a healthy future market➌ Platform for CarbonCredit Exchange“IMPLEMENTATION”
Public disclosure of GX
investment and emission
reduction

Methodology
FY2022• Create and identify a)business
opportunity in 2050 carbon naturalsociety and b) create leadershipcode of conduct, through a pansectoral open dialogue.
FY2023• Expand the dialogue to the society
and continually update the vison
discussed in FY2022.

OutcomeShare these dialogues to theconsume/society and announce thevision GX League aims.

Methodology

Outcome

FY2022• Create fundamental rules for Voluntary ETS.
FY2023 onwards• Based on the rules created in FY 2022, platform for data
(emission reduction targets, progress and investment) disclosure.

Establish an environment forcompanies taking initiative on
GX to be appropriately
evaluated by capital, labourand consumer markets.

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Relationship of 3 Platforms(“New Market Establishment” and “Emission Reduction and Investment”)⚫ “The Future Society” creation dialogue and co-creation of market and rulemaking will be conducted as a collaborative effort toestablish a new market by share each platforms’ thoughts and ideas.
⚫ Voluntary emission reduction will be implemented as part of the practical activities in response to the discussions on newmarket establishment. It will disclose investments and reduction results of the companies working of GX (“GX companies”) to
gain external recognition necessary for the creation of new markets.

2050 New Market Establishment❶ Platform for”The Future Vision”

ideas“DIALOGUE”
Pan-sectoral dialogue forbusiness opportunity incarbon neutrality❷ Platform forMarket Creation andrulemaking“CO-CREATION”

Demandsfor new rules

Public-private partnershipfor a healthy
future market

Voluntary emission reduction is not anobligation but rather an effort todisclose one’s practice on emission
reduction（“premise for New MarketEstablishment”)

Investment and Emission Reduction➌ Platform for
Carbon Credit
Exchange“IMPLEMENTATION”
Proposal of Business
Opportunities
in 2050

Public-private
partnership forrulemaking

Public disclosure of GX
investment and emission
reduction3

2022 Schedule⚫ Launching the platform for ”The Future Scoiety” dialogue in June, other platforms will follow form July onwards.
FY2022APRIL

FY2023

MAY

JUNE

JULY

AUG

SEP

OCT

NOV

DECJAN

FEB

MARCH

APRIL

Gx League Operational Demonstration
Participants
recruitment
for each activityPreparation forlaunch

Preparation for 2023 full scale operation(code of conduct etc)

FULL-SCALE OPERATION

01.04.2022 DISCOLSED SUPPORTERS

2022 Preparation Period❶Dialogue for the Creation of “The Future Society”
Supporters will join the workshop to identify business opportunities, develop a code of conductand create and continually “The Future Society” vision to help to achieve 2050 carbon neutrality.4
application

input

TODO’s during preparation
present a detailed action
plan of 2022 by• Facilitate communication
between GX League officeand supporters• Collect ideas opinions ofsupporters

Creation of “the future society”

Visualization and refinement❷Preparation of Rulemaking Mechanism for New Market Creation
Establish 2 to 3 working groups with ideas and proposals fromsupporters and start a discussion and demonstration for rulemaking
application

Discussion and demonstration➌Preparation of voluntary ETS
Rulemaking for full-scale voluntary ETS from 2023 onwards
4❶ Creation of “The Future Society”⚫ GX League will identify business opportunities by portraying the dynamics of society and economy of 2050. The created vision of“The Future Society” will be compiled to be utilized in rulemaking by private-public partnership and mid- and long-term strategy,
R&D plans etc. of a company.

STEP 1

Step 2

STEP 3RESEARCH & INPUTCREATION OF BUSINESSOPORTUNITIESVISUALIZATION &REFINEMENT

Creation of “The FutureSociety”(businessopportunities) by Future
Insight Workshop

Visualization and refinementof the business opportunities
created in STEP 2

Research and input material(by the office)• fact base predictions• signs of changes in lifestyle withmore uncertainty*discussed in STEP 2*workshop participants fromvarious sectors*planning to compile as a “GX
opportunity finding map”, books etc.

*3 workshops to be held during
June and July
Components of the opportunities• Changes in lifestyle in 2050
• Common Products and services
in 2050• Dominant market player andtheir role
• Assumed transition of related
technologies and systems
5❷ Market Creation and Rulemaking⚫ Recognizing the business opportunities identified, this platform aims to make rules for new markets through public-private
partnership. Working groups established by each theme will participate in various activities including designing rules,
demonstration to dispatching information.
⚫ FY 2022 will be dedicated to create a mechanism for rulemaking. The office will establish 2 to 3 working groups based on
supporters’ demand and participants will engage in activities listed below. Participants are expected to take initiative in rulemaking.
Theme selection

PROCESS(FY2022)•

Select a theme anddiscuss the ideas forrulemaking•

Ideas to discussed inconsideration of theoutput

Issue Identification•

Understand thecurrent practices andproblems on thetheme and identify
the issue to be
discussed

Brainstorm ideas(public-privatepartnership)

Discussion••Establish a working
group for each themeand discuss the issue.
External experts arecalled if necessary.
Review themes andissues if applicable.

Establish Working Groups(public-private partnership)

Demonstration

Evaluation•

Demonstration basedon the discussion.

••

Assuming draft
development for rules
or demonstrations ondecided rules.

Evaluate thedemonstration andrevise the output.

•Criteria (contributionon decarbonization,impact on social
securities and freeeconomy etc.) will beshared beforehand

Demonstration and Improvement(Public-lead)

EXAMPLESOUTPUTSelfregulation

Standardization

Initiative

GuidelineAwardingSystemCertification
SystemIndexInternational
Collaboration
etc.

Create a new market through publication and implementation of the outputs

LEGALIZATION

Government officials with join as observers to those related to policies and proceed to discussions forlegalization when applicable. (not all outputs are aimed for legalization)

6➌ Carbon Credit Exchange Scheme⚫ Considering economic rationality, fairness among sectors and companies, international trends and other trends, GX League sets thebasic concepts of GX-ETS. Further details will be discussed.

PLEDGE Participants set their own ambitious reduction targets.
As the targets they set are disclosed to capital markets, GX League participants are expected to raise their ambitions.
• METI will openly publish their targets in a database (the GX Dashboard) to help financial sectors to validate them.
• When participants set and achieve targets over the NDCs, they can sell the excess amounts through the carbon credit market. This rulealso motivates companies to set more ambitious targets.

REVIEW If they fail to reach the target, they need to explain the reasons (Comply or Explain).
The disclosure of their status incentivizes firms to make the best effort for their targets.
• The database (the GX Dashboard) grants everyone’s access to the status of the GX-ETS including each firms’ emissions and progress
toward their targets. METI is discussing supportive policy measures for the participants depending on the status of the GX-ETS.

OPENING MARKET METI is planning to open a Carbon Credit Market, in collaboration with the JPX• Any firms, not limited to members of the GX League, can trade carbon credits through the market. The market will announce carbon
prices reflecting the status of trade, to send a strong signal to motivate the whole society to move forward toward a decarbonized society.
• In addition to the excess reduction amounts of GX League participants, the market will treat J-credits which come from domestic SMEs
and forestry industries and JCMs which come from foreign projects under the strong engagement of both Japan and foreign governments.

PRICE STABILIZATION METI is planning to introduce measures for long-term price signals by
setting a carbon price corridor• MEIT will set a carbon price corridor which consists of minimum and maximum carbon prices in each year and raise both prices graduallyin order to send a strong price signal for GX investments.
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