JQA Registered as Verification Body for GX-ETS (Emissions Trading Scheme) Phase 2
The Japan Quality Assurance Organization (JQA) has been registered as a verification body for Phase 2 of the GX-ETS (Emissions Trading Scheme), which will become legally binding from fiscal year 2026. JQA will support companies in fulfilling their obligations related to emissions trading and third-party verification.
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- 📰 Published: April 1, 2026 at 20:00
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The Japan Quality Assurance Organization (Headquarters: Chiyoda-ku, Tokyo; President: Hiroaki Ishii), a general incorporated foundation, has been registered as a verification body for Phase 2 of the GX-ETS (Emissions Trading Scheme), which will commence in fiscal year 2026, following its continuous registration from Phase 1.
## What is GX-ETS?
GX-ETS is an emissions trading scheme introduced by the Japanese government within the GX League, a public-private partnership framework where businesses, government, academia, and finance collaborate to achieve decarbonization while simultaneously fostering economic growth, aiming for carbon neutrality by 2050. This system, which began as voluntary emissions trading in fiscal year 2023, will be updated to a legally binding form with the transition to Phase 2 in fiscal year 2026.
*Excerpt, partially processed, from the presentation materials by the Ministry of Economy, Trade and Industry at the 22nd Global Environment Seminar "Latest Trends in the GX League"
## Key Points of Phase 2
- From Phase 2, companies with average direct CO2 emissions of 100,000 tons or more over the most recent three fiscal years will be obligated to participate in "emissions trading" and "third-party verification." The scope of target GHG (greenhouse gases) will be narrowed to only direct CO2 emissions (Scope 1).
- To fulfill this obligation, it is possible to respond not only individually but also jointly with closely related parties (subsidiaries, affiliates, and sister companies). For example, if a parent company is not subject to the system, its subsidiaries and affiliates (sister companies) under the same parent company can collectively comply.
## What is GX-ETS?
GX-ETS is an emissions trading scheme introduced by the Japanese government within the GX League, a public-private partnership framework where businesses, government, academia, and finance collaborate to achieve decarbonization while simultaneously fostering economic growth, aiming for carbon neutrality by 2050. This system, which began as voluntary emissions trading in fiscal year 2023, will be updated to a legally binding form with the transition to Phase 2 in fiscal year 2026.
*Excerpt, partially processed, from the presentation materials by the Ministry of Economy, Trade and Industry at the 22nd Global Environment Seminar "Latest Trends in the GX League"
## Key Points of Phase 2
- From Phase 2, companies with average direct CO2 emissions of 100,000 tons or more over the most recent three fiscal years will be obligated to participate in "emissions trading" and "third-party verification." The scope of target GHG (greenhouse gases) will be narrowed to only direct CO2 emissions (Scope 1).
- To fulfill this obligation, it is possible to respond not only individually but also jointly with closely related parties (subsidiaries, affiliates, and sister companies). For example, if a parent company is not subject to the system, its subsidiaries and affiliates (sister companies) under the same parent company can collectively comply.