Sustainability
Decarbonization, circular economy, and supply chain due diligence
CBAM (Carbon Border Adjustment Mechanism) Explained — Covered Products, Certificate System, and Impact on Japanese Companies
A systematic overview of the CBAM (Carbon Border Adjustment Mechanism) that entered full application in January 2026, covering its regulatory design, six targeted sectors, certificate mechanism, Omnibus simplification amendments, and direct and indirect impacts on Japanese companies.
EU Approves Germany's Industrial Decarbonization Plan — €5 Billion CCfD to Support Transition in Steel, Chemicals, and Cement
In spring 2026, the European Commission formally approved €5 billion in state aid for Germany's industrial decarbonization program 'Klimaschutzverträge (Climate Protection Contracts).' Targeting three sectors where European carbon costs weigh most heavily — steel, chemicals, and cement — the scheme's core mechanism addresses the barriers that prevent companies from committing to decarbonization investments.
GX-ETS Emissions Calculation and Reporting in Practice — A Preparation Guide for the First Year of Mandatory Compliance (FY2026)
Japan's GX Emissions Trading System (GX-ETS) launches as a mandatory scheme in April 2026, targeting GX League member companies with annual CO₂ emissions exceeding 100,000 tonnes (approximately 300–400 companies). This guide covers the end-to-end operational workflow for the first year of compliance, from inventorying emission sources and selecting calculation methods to third-party verification and integrated design with SSBJ disclosure.
Green Hydrogen Cost Trends 2026: Where Manufacturing Costs Stand and Procurement Implications
Green hydrogen production costs are trending downward driven by falling renewable energy prices and electrolyzer scale-up, but as of 2026 a 3-to-4x cost gap versus grey hydrogen remains. This article maps the challenges across production, transport, and demand, and outlines scenarios where Japanese manufacturers have direct exposure.
Internal Carbon Pricing: How Manufacturers Can Embed Carbon Costs in Business Decisions
ICP (Internal Carbon Price) is a mechanism by which companies set their own price on emissions ahead of external regulations such as carbon taxes and ETS, and factor it into investment decisions. Applying the ICP concept to equipment upgrades, supplier evaluation, and product design structurally embeds carbon risk into business decision-making. This article outlines implementation approaches and practical options.