SOCOTEC Officially Registered as a Verification Body for Phase 2 of GX-ETS
Supporting Japan's transition to a decarbonized growth economy through third-party assurance.
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- 📰 Published: March 31, 2026 at 19:32
- 🔍 Collected: April 1, 2026 at 13:39 (18h 7m after Published)
- 🤖 AI Analyzed: April 16, 2026 at 00:59 (347h 20m after Collected)
SOCOTEC is pleased to announce that it was officially registered by the Ministry of Economy, Trade and Industry (METI) on March 27, 2026, as a registered verification body for Phase 2 of the GX-ETS (Emissions Trading System).
[Background]
METI is implementing the "Growth-Oriented Carbon Pricing Concept," which combines support for upfront investment using "GX Economy Transition Bonds" with "carbon pricing" to encourage such investment, in order to promote a smooth transition to a decarbonized growth-oriented economic structure.
As a concrete measure of carbon pricing, the "Emissions Trading System" will be fully operational from fiscal year 2026 (Phase 2), targeting businesses whose direct CO2 emissions exceed an average of 100,000 tons over the previous three fiscal years.
Phase 1: Since FY2023, a voluntary emissions trading system has been piloted for companies participating in the GX League. The GX League is a framework for corporate collaboration actively engaged in decarbonization, with participating companies accounting for over 50% of Japan's GHG emissions.
Phase 2: The system will be fully operational from FY2026, making emissions trading mandatory for businesses with direct CO2 emissions exceeding an average of 100,000 tons over the previous three fiscal years. The government will allocate emissions allowances to target businesses under certain criteria, and they will be required to hold allowances equal to their actual emissions by the statutory deadline each year. Businesses can trade allowances among themselves based on their surplus or deficit.
*Mandatory Third-Party Verification: In Phase 2, target businesses are required to undergo verification by a government-registered verification body before reporting their emissions targets and actual emissions.
[Role]
Under the Act on Promotion of a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure (GX Promotion Act), SOCOTEC will perform verification tasks (third-party assurance) for emissions and other data as a government-registered verification body. Through this, we will participate in the execution of the Japanese government's "Growth-Oriented Carbon Pricing Concept" and contribute to the realization of a carbon-neutral society.
[Background]
METI is implementing the "Growth-Oriented Carbon Pricing Concept," which combines support for upfront investment using "GX Economy Transition Bonds" with "carbon pricing" to encourage such investment, in order to promote a smooth transition to a decarbonized growth-oriented economic structure.
As a concrete measure of carbon pricing, the "Emissions Trading System" will be fully operational from fiscal year 2026 (Phase 2), targeting businesses whose direct CO2 emissions exceed an average of 100,000 tons over the previous three fiscal years.
Phase 1: Since FY2023, a voluntary emissions trading system has been piloted for companies participating in the GX League. The GX League is a framework for corporate collaboration actively engaged in decarbonization, with participating companies accounting for over 50% of Japan's GHG emissions.
Phase 2: The system will be fully operational from FY2026, making emissions trading mandatory for businesses with direct CO2 emissions exceeding an average of 100,000 tons over the previous three fiscal years. The government will allocate emissions allowances to target businesses under certain criteria, and they will be required to hold allowances equal to their actual emissions by the statutory deadline each year. Businesses can trade allowances among themselves based on their surplus or deficit.
*Mandatory Third-Party Verification: In Phase 2, target businesses are required to undergo verification by a government-registered verification body before reporting their emissions targets and actual emissions.
[Role]
Under the Act on Promotion of a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure (GX Promotion Act), SOCOTEC will perform verification tasks (third-party assurance) for emissions and other data as a government-registered verification body. Through this, we will participate in the execution of the Japanese government's "Growth-Oriented Carbon Pricing Concept" and contribute to the realization of a carbon-neutral society.
FAQ
What is GX-ETS?
It is an emissions trading system promoted by the Ministry of Economy, Trade and Industry. In Phase 2, it mandates emissions allowance holding and trading for large-scale emitters.
What is the role of a registered verification body?
It acts as a third party to verify and guarantee the accuracy of the emissions targets and actual data reported by companies.
What are SOCOTEC's strengths?
Leveraging its expertise as an international certification body, it provides reliable verification services aligned with Japan's GX policy.