{"id":4850,"date":"2026-07-14T12:56:41","date_gmt":"2026-07-14T03:56:41","guid":{"rendered":"https:\/\/smilesoftware.org\/?p=4850"},"modified":"2026-07-14T12:56:43","modified_gmt":"2026-07-14T03:56:43","slug":"gx%e6%8e%a8%e9%80%b2%e6%b3%95%e3%81%a8%e3%81%af%ef%bc%9f%e4%bc%81%e6%a5%ad%e3%81%ab%e3%81%a9%e3%81%86%e9%96%a2%e4%bf%82%e3%81%99%e3%82%8b%e3%81%ae%e3%81%8b%e3%82%92%e3%82%8f%e3%81%8b%e3%82%8a%e3%82%84","status":"publish","type":"post","link":"https:\/\/smilesoftware.org\/en\/gx%E6%8E%A8%E9%80%B2%E6%B3%95%E3%81%A8%E3%81%AF%E4%BC%81%E6%A5%AD%E3%81%AB%E3%81%A9%E3%81%86%E9%96%A2%E4%BF%82%E3%81%99%E3%82%8B%E3%81%AE%E3%81%8B%E3%82%92%E3%82%8F%E3%81%8B%E3%82%8A%E3%82%84\/","title":{"rendered":"What Is the GX Promotion Act? A Clear Explanation of How It Relates to Businesses"},"content":{"rendered":"<div class=\"wp-block-group smile-post-content\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><header class=\"smile-article-header\"><div><span class=\"smile-category-pill\">Blog<\/span><span class=\"smile-date\"><\/span><\/div><h1 class=\"smile-article-title\">What Is the GX Promotion Act? A Clear Explanation of How It Relates to Businesses<\/h1><p class=\"smile-excerpt\">Although the term decarbonization is being heard more often, many companies on the ground still feel that it is hard to see how it relates to their own business, or that it seems like an issue only for large corporations.<br>\nMeanwhile, with fluctuating energy prices, growing environmental requirements from business partners, and evolving procurement standards, GX is already becoming part of everyday business management and operations. This makes it important for organizations to understand the GX Promotion Act.<\/p><\/header>\n\n<section class=\"smile-intro-box\"><div class=\"smile-lead-definition\"><div class=\"smile-lead-definition__mark\">GX Promotion Act<\/div><div class=\"smile-lead-definition__label\">Overview<\/div><p>The GX Promotion Act is more than just a law to reduce greenhouse gas emissions. It establishes a framework for gradually transforming Japan's industrial structure while balancing three key objectives: decarbonization, economic growth, and a stable energy supply.<\/p><\/div><\/section>\n\n<nav class=\"smile-toc\" aria-label=\"Table of Contents\"><h2 class=\"smile-toc__title\">Table of Contents<\/h2><div class=\"smile-toc__grid\"><a class=\"smile-toc__item\" href=\"#section-1\"><b class=\"smile-toc__number\">01<\/b><span class=\"smile-toc__label\">What Is the GX Promotion Act?<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-2\"><b class=\"smile-toc__number\">02<\/b><span class=\"smile-toc__label\">Why the GX Promotion Act Matters Now<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-3\"><b class=\"smile-toc__number\">03<\/b><span class=\"smile-toc__label\">Core Mechanisms of the Law<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-4\"><b class=\"smile-toc__number\">04<\/b><span class=\"smile-toc__label\">How will this affect companies?<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-5\"><b class=\"smile-toc__number\">05<\/b><span class=\"smile-toc__label\">Key Points to Watch in Practice<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-6\"><b class=\"smile-toc__number\">06<\/b><span class=\"smile-toc__label\">Where should small and medium-sized enterprises begin?<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-7\"><b class=\"smile-toc__number\">07<\/b><span class=\"smile-toc__label\">How SMILE Can Help<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-8\"><b class=\"smile-toc__number\">08<\/b><span class=\"smile-toc__label\">Summary<\/span><\/a><a class=\"smile-toc__item\" href=\"#section-9\"><b class=\"smile-toc__number\">09<\/b><span class=\"smile-toc__label\">FAQ<\/span><\/a><\/div><\/nav>\n\n\n<div id=\"section-1\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">01<\/div><h2 class=\"smile-section__title\">What Is the GX Promotion Act?<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1.png\" alt=\"GX\u63a8\u9032\u6cd5\u3068\u306f\u4f55\u304b - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4841\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-1-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n\n<p>The GX Promotion Act is formally known as the Act on Promotion of a Smooth Transition to a Decarbonized, Growth-Oriented Economic Structure. Enacted in 2023, it has become one of Japan\u2019s key policy frameworks for achieving carbon neutrality by 2050.<\/p>\n\n\n\n<p>The Cabinet Secretariat\u2019s GX Implementation Council defines GX as an initiative to shift fossil fuel-centered economic, social, and industrial structures toward clean energy. In other words, the GX Promotion Act is not only an environmental policy measure but also a law closely connected to industrial, investment, and energy policy.<\/p>\n\n\n\n<p>This is driven by the emissions reduction targets set by the Japanese government. According to information published by the Ministry of Foreign Affairs, Japan aims to reduce emissions by 46% from fiscal 2013 levels by fiscal 2030, while continuing its efforts toward the higher goal of 50%. In addition, in February 2025, the Cabinet approved an NDC targeting a 60% reduction by fiscal 2035 and a 73% reduction by fiscal 2040.<\/p>\n<\/div><\/div>\n\n\n\n<div id=\"section-2\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">02<\/div><h2 class=\"smile-section__title\">Why the GX Promotion Act Matters Now<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1.png\" alt=\"\u306a\u305c\u4ecaGX\u63a8\u9032\u6cd5\u304c\u91cd\u8981\u306a\u306e\u304b - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4842\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-2-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<p>There are three main reasons why the GX Promotion Act is considered important.<\/p><div class=\"smile-insight-cards\"><div class=\"smile-insight-card\"><div class=\"smile-insight-card__head\"><span class=\"smile-insight-card__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--policy\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M18 8h20l10 10v38H18z\"\/><path d=\"M38 8v12h10\"\/><path d=\"M24 32h18\"\/><path d=\"M24 42h14\"\/><path d=\"m24 22 4 4 8-8\"\/><\/svg><\/span><h3 class=\"smile-insight-card__title\">Decarbonization is becoming a fundamental requirement for business activities<\/h3><\/div><p>In the past, many companies treated environmental initiatives as part of CSR. Today, however, decarbonization has become closely tied to business continuity across procurement, investment, financing, exports, and supply chain management.<\/p><\/div><div class=\"smile-insight-card\"><div class=\"smile-insight-card__head\"><span class=\"smile-insight-card__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--energy\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M30 6 14 36h15l-5 22 20-34H29z\"\/><\/svg><\/span><h3 class=\"smile-insight-card__title\">Stable energy supply is a key management issue<\/h3><\/div><p>GX is not only about introducing renewable energy. It is also important to consider how to secure a stable supply while reducing the risks of fluctuating energy prices and dependence on overseas resources. In February 2025, the Agency for Natural Resources and Energy approved the Seventh Strategic Energy Plan by Cabinet decision, showing that GX and energy policy are moving forward together.<\/p><\/div><div class=\"smile-insight-card\"><div class=\"smile-insight-card__head\"><span class=\"smile-insight-card__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--market\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M10 50h44\"\/><path d=\"M16 42 28 30l8 8 16-20\"\/><path d=\"M40 18h12v12\"\/><\/svg><\/span><h3 class=\"smile-insight-card__title\">The impact on companies is expected to expand going forward<\/h3><\/div><p>Even if only certain businesses are directly covered by the regulations, the practical impact will extend across the entire supply chain. As large companies strengthen emissions management and renewable energy procurement, their business partners may increasingly be asked to submit data and make improvements.<\/p><\/div><\/div><\/div><\/div>\n\n\n\n<div id=\"section-3\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">03<\/div><h2 class=\"smile-section__title\">Core Mechanisms of the Law<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1.png\" alt=\"\u6cd5\u5f8b\u306e\u4e2d\u5fc3\u3068\u306a\u308b\u4ed5\u7d44\u307f - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4843\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-3-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<p>The GX Promotion Act establishes several mechanisms to support both decarbonization and growth.<\/p><div class=\"smile-evidence-panels\"><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--policy\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M18 8h20l10 10v38H18z\"\/><path d=\"M38 8v12h10\"\/><path d=\"M24 32h18\"\/><path d=\"M24 42h14\"\/><path d=\"m24 22 4 4 8-8\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Developing and Reviewing a GX Promotion Strategy<\/h3><p>To advance GX in a comprehensive and planned manner, the government formulates the GX Promotion Strategy and revises it as circumstances require. In addition to the 2023 GX Promotion Strategy discussed by the Cabinet Secretariat\u2019s GX Implementation Council, the GX2040 Vision was approved by the Cabinet in February 2025.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--investment\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Support for upfront investment through GX Economy Transition Bonds<\/h3><p>To encourage investment in GX, support mechanisms for upfront investment have been established. Under the commonly referenced framework of the GX Promotion Act, the policy direction calls for realizing more than 150 trillion yen in public- and private-sector GX investment over 10 years.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--cost\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"20\"\/><path d=\"M32 18v28\"\/><path d=\"M40 24c-2-4-14-5-16 1-3 8 17 5 14 14-2 6-14 5-17 0\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Growth-oriented carbon pricing<\/h3><p>One aspect of the GX Promotion Act that often attracts attention is growth-oriented carbon pricing. This approach gives carbon emissions a price signal and helps encourage investment in decarbonization.<\/p><p>Two major issues are the fossil fuel levy and the emissions trading system. Publicly available government-related materials indicate that the fossil fuel levy is scheduled to begin in fiscal 2028, while the full-scale emissions trading system for power generation companies is scheduled to start in fiscal 2033.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--data\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M12 18c0-5 9-9 20-9s20 4 20 9-9 9-20 9-20-4-20-9z\"\/><path d=\"M12 18v14c0 5 9 9 20 9s20-4 20-9V18\"\/><path d=\"M12 32v14c0 5 9 9 20 9s20-4 20-9V32\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">The Role of the GX Promotion Organization<\/h3><p>The GX Acceleration Agency is responsible for administering the system and supporting investment. Going forward, it will play an important role not only in investment support but also in system operations, so companies in related industries should continue to monitor developments closely.<\/p><\/div><\/article><\/div><\/div><\/div>\n\n\n\n<div id=\"section-4\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">04<\/div><h2 class=\"smile-section__title\">How will this affect companies?<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1.png\" alt=\"\u4f01\u696d\u306b\u3069\u3093\u306a\u5f71\u97ff\u304c\u3042\u308b\u306e\u304b - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4844\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-4-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<p>So, what impact does the GX Promotion Act have on day-to-day business operations?<\/p><div class=\"smile-insight-cards\"><div class=\"smile-insight-card\"><div class=\"smile-insight-card__head\"><span class=\"smile-insight-card__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--enterprise\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><h3 class=\"smile-insight-card__title\">Large companies<\/h3><\/div><p>Companies with high emissions or energy-intensive operations are likely to be among those most directly affected by the framework. They will often need to strengthen emissions management, reduction planning, capital investment decisions, electricity procurement policies, and information disclosure practices.<\/p><\/div><div class=\"smile-insight-card\"><div class=\"smile-insight-card__head\"><span class=\"smile-insight-card__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--supply-chain\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><h3 class=\"smile-insight-card__title\">Small and medium-sized enterprises and mid-sized companies<\/h3><\/div><p>Even if direct legal obligations do not apply immediately, companies should not assume they are unaffected. Impacts may arise in ways such as the following.<\/p><ul class=\"smile-bullet-list\"><li>Being asked by business partners to disclose CO2 emissions<\/li><li>Checks on the use of recycled materials and energy-saving measures may be required.<\/li><li>Environmental considerations become a factor when comparing quotations and proposals.<\/li><li>Whether a company makes use of subsidies and support programs can affect its competitiveness.<\/li><\/ul><p>Manufacturing, logistics, construction, energy-related businesses, and equipment maintenance are among the sectors especially likely to be affected.<\/p><\/div><\/div><\/div><\/div>\n\n\n\n<div id=\"section-5\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">05<\/div><h2 class=\"smile-section__title\">Key Points to Watch in Practice<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1.png\" alt=\"\u5b9f\u52d9\u3067\u6ce8\u610f\u3057\u305f\u3044\u30dd\u30a4\u30f3\u30c8 - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4845\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-5-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<p>There are also several points that companies should keep in mind when seeking to understand the GX Promotion Act.<\/p><div class=\"smile-evidence-panels\"><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--policy\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M18 8h20l10 10v38H18z\"\/><path d=\"M38 8v12h10\"\/><path d=\"M24 32h18\"\/><path d=\"M24 42h14\"\/><path d=\"m24 22 4 4 8-8\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Legal revisions and operational details need to be monitored continuously<\/h3><p>GX is an area where the overall regulatory framework is being developed in stages. Simply knowing the names of the laws is often not enough for practical business operations. Because the scope, timing, cost-sharing concepts, and support programs may be updated, companies need to review official government publications regularly.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--supply-chain\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Companies may be affected through business transactions even if they are not directly subject to the rules<\/h3><p>Even if your company is outside the scope of regulation, customers or prime contractors may move ahead first, effectively requiring you to respond as well. Early preparation is especially valuable when large corporations sit upstream in your supply chain.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--workflow\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Do not treat decarbonization as a standalone issue<\/h3><p>GX initiatives tend to stall when they are left solely to the environmental department. They are easier to put into practice when driven across purchasing, manufacturing, facilities, logistics, accounting, sales, and information systems.<\/p><\/div><\/article><\/div><\/div><\/div>\n\n\n\n<div id=\"section-6\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">06<\/div><h2 class=\"smile-section__title\">Where should small and medium-sized enterprises begin?<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1.png\" alt=\"\u4e2d\u5c0f\u4f01\u696d\u306f\u4f55\u304b\u3089\u59cb\u3081\u308b\u3079\u304d\u304b - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4846\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-6-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<p>Before rushing into major investments, it is more practical to start by understanding the current situation.<\/p><div class=\"smile-step-roadmap\"><article class=\"smile-step-roadmap__item\"><span class=\"smile-step-roadmap__index\">01<\/span><div><h4 class=\"smile-step-roadmap__title\">Step 1: Visualize your energy usage<\/h4><p class=\"smile-step-roadmap__detail\">Start by identifying where energy is used, such as electricity, fuel, and transportation. Simply organizing invoices, contract information, and equipment lists is a good first step.<\/p><\/div><\/article><article class=\"smile-step-roadmap__item\"><span class=\"smile-step-roadmap__index\">02<\/span><div><h4 class=\"smile-step-roadmap__title\">Step 2: Identify the information your business partners are likely to request<\/h4><p class=\"smile-step-roadmap__detail\">Check whether major customers are already moving forward with CO2 calculations or procurement policies. Understanding their needs early can help reduce unnecessary measures.<\/p><\/div><\/article><article class=\"smile-step-roadmap__item\"><span class=\"smile-step-roadmap__index\">03<\/span><div><h4 class=\"smile-step-roadmap__title\">Step 3: Set small, practical improvement goals<\/h4><p class=\"smile-step-roadmap__detail\">For example, it is effective to start with actions that can be taken immediately, such as improving air conditioning and lighting, upgrading equipment, improving operations, and reducing paper use and business travel.<\/p><\/div><\/article><article class=\"smile-step-roadmap__item\"><span class=\"smile-step-roadmap__index\">04<\/span><div><h4 class=\"smile-step-roadmap__title\">Step 4: Establish a system for managing data<\/h4><p class=\"smile-step-roadmap__detail\">For GX compliance, it is important to manage numerical data on an ongoing basis. Companies can start with Excel-based management, but as sites and equipment increase, the process can easily become dependent on specific individuals. Over time, it is worth considering systems that support data collection and report preparation.<\/p><\/div><\/article><\/div><\/div><\/div>\n\n\n\n<div id=\"section-7\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">07<\/div><h2 class=\"smile-section__title\">How SMILE Can Help<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1.png\" alt=\"SMILE\u304c\u652f\u63f4\u3067\u304d\u308b\u3053\u3068 - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4847\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-7-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n\n<p>GX initiatives do not end with understanding the relevant systems and regulations. In practice, companies need to collect on-site data, share information, organize the materials required for applications and reporting, and design operations that minimize the impact on existing workflows.<\/p>\n\n\n\n<p>SMILE supports phased implementation, from organizing business challenges and evaluating systemization to development and operation.<\/p>\n\n\n\n<p>Companies considering DX or the use of AI should start with small operational improvements.<\/p>\n<\/div><\/div>\n\n\n\n<div id=\"section-8\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">08<\/div><h2 class=\"smile-section__title\">Summary<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1.png\" alt=\"\u307e\u3068\u3081 - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4848\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-8-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<div class=\"smile-summary-flow\"><article class=\"smile-summary-flow__item\"><span class=\"smile-summary-flow__index\">01<\/span><p class=\"smile-summary-flow__body\">The GX Promotion Act is not only a law designed to advance decarbonization, but also a framework for reshaping Japan\u2019s industrial structure, investment priorities, and approach to energy.<\/p><\/article><article class=\"smile-summary-flow__item\"><span class=\"smile-summary-flow__index\">02<\/span><p class=\"smile-summary-flow__body\">Even if your company is not directly subject to regulation at this stage, the impact may extend to areas such as customer and supplier requirements, energy costs, procurement standards, and information disclosure. That is why it is important to understand the direction of these systems now and organize the information and business processes your company will need.<\/p><\/article><article class=\"smile-summary-flow__item\"><span class=\"smile-summary-flow__index\">03<\/span><p class=\"smile-summary-flow__body\">A good first step is to start with manageable initiatives, such as visualizing energy consumption and confirming requests from business partners.<\/p><\/article><\/div><\/div><\/div>\n\n\n\n<div id=\"section-9\" class=\"wp-block-group smile-section\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><div class=\"smile-section__head\"><div class=\"smile-section__number\">09<\/div><h2 class=\"smile-section__title\">FAQ<\/h2><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1.png\" alt=\"FAQ - GX\u63a8\u9032\u6cd5 blog section visual\" class=\"wp-image-4849\" srcset=\"https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1.png 1672w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1-300x169.png 300w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1-1024x576.png 1024w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1-768x432.png 768w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1-1536x864.png 1536w, https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/section-9-1-18x10.png 18w\" sizes=\"auto, (max-width: 1672px) 100vw, 1672px\" \/><\/figure>\n\n\n<div class=\"smile-evidence-panels\"><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--faq\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"22\"\/><path d=\"M24 25c1-6 15-7 16 0 1 5-5 7-8 10v4\"\/><path d=\"M32 47h.1\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Q1. Does the GX Promotion Act impose direct obligations on all companies?<\/h3><p>The same obligations will not immediately apply to every company. However, companies may well be affected through supply chains and transaction requirements.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--policy\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><path d=\"M18 8h20l10 10v38H18z\"\/><path d=\"M38 8v12h10\"\/><path d=\"M24 32h18\"\/><path d=\"M24 42h14\"\/><path d=\"m24 22 4 4 8-8\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Q2. Are GX and energy conservation the same thing?<\/h3><p>They are not exactly the same. Energy conservation is part of GX, but GX is a broader initiative that also includes investment, procurement, energy transition, and regulatory compliance.<\/p><\/div><\/article><article class=\"smile-evidence-panel\"><div class=\"smile-evidence-panel__mark\"><span class=\"smile-evidence-panel__icon\" aria-hidden=\"true\"><svg class=\"smile-ui-icon smile-ui-icon--workflow\" viewbox=\"0 0 64 64\" aria-hidden=\"true\" focusable=\"false\" stroke=\"currentColor\"><circle cx=\"32\" cy=\"32\" r=\"9\"\/><path d=\"M32 8v8\"\/><path d=\"M32 48v8\"\/><path d=\"m15 15 6 6\"\/><path d=\"m43 43 6 6\"\/><path d=\"M8 32h8\"\/><path d=\"M48 32h8\"\/><path d=\"m15 49 6-6\"\/><path d=\"m43 21 6-6\"\/><\/svg><\/span><\/div><div class=\"smile-evidence-panel__body\"><h3 class=\"smile-evidence-panel__title\">Q3. Where should companies start?<\/h3><p>It is easier to move forward by first understanding electricity and fuel usage, confirming the requirements of key business partners, and identifying potential areas for improvement.<\/p><\/div><\/article><\/div><\/div><\/div>\n\n\n<section class=\"smile-article-cta\"><div class=\"smile-article-cta__label\">SMILE Support<\/div><h2>Start a Consultation on Advancing GX and DX<\/h2><p>We work with you to design an approach tailored to your company\u2019s situation, from assessing the current state to implementing systems and improving operations.<\/p><ul class=\"smile-list\"><li>You can clarify current operational and data-related challenges.<\/li><li>You can design implementation steps that fit your company's structure.<\/li><li>You can also build a framework that remains easy to operate after implementation.<\/li><li>You can use data to verify results and make improvements.<\/li><li>You can start exploring AI and IoT applications in the areas where they are most needed.<\/li><\/ul><a class=\"smile-article-cta__button\" href=\"\/en\/contact\/\">Contact Us<\/a><\/section><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>The GX Promotion Act, officially titled the \"Act on the Smooth Transition to a...&nbsp;<a href=\"https:\/\/smilesoftware.org\/en\/gx%E6%8E%A8%E9%80%B2%E6%B3%95%E3%81%A8%E3%81%AF%E4%BC%81%E6%A5%AD%E3%81%AB%E3%81%A9%E3%81%86%E9%96%A2%E4%BF%82%E3%81%99%E3%82%8B%E3%81%AE%E3%81%8B%E3%82%92%E3%82%8F%E3%81%8B%E3%82%8A%E3%82%84\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">What Is the GX Promotion Act? A Clear Explanation of How It Relates to Businesses<\/span><\/a><\/p>","protected":false},"author":2,"featured_media":4840,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"_themeisle_gutenberg_block_has_review":false,"_ti_tpc_template_sync":false,"_ti_tpc_template_id":"","footnotes":""},"categories":[32],"tags":[],"class_list":["post-4850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"rttpg_featured_image_url":{"full":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1.png",1672,941,false],"landscape":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1.png",1672,941,false],"portraits":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1.png",1672,941,false],"thumbnail":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-150x150.png",150,150,true],"medium":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-300x169.png",300,169,true],"large":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-1024x576.png",1024,576,true],"1536x1536":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-1536x864.png",1536,864,true],"2048x2048":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1.png",1672,941,false],"trp-custom-language-flag":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-18x10.png",18,10,true],"neve-blog":["https:\/\/smilesoftware.org\/wp-content\/uploads\/2026\/07\/featured-1-930x620.png",930,620,true]},"rttpg_author":{"display_name":"\u7b20\u539f \u840c","author_link":"https:\/\/smilesoftware.org\/en\/author\/chinh-man\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/smilesoftware.org\/en\/category\/blog\/\" rel=\"category tag\">\u30d6\u30ed\u30b0<\/a>","rttpg_excerpt":"GX\u63a8\u9032\u6cd5\u306f\u3001\u6b63\u5f0f\u306b\u306f\u300c\u8131\u70ad\u7d20\u6210\u9577\u578b\u7d4c\u6e08\u69cb\u9020\u3078\u306e\u5186\u6ed1\u306a\u79fb\u884c\u306e&hellip;&nbsp;Read More &&hellip;","_links":{"self":[{"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/posts\/4850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/comments?post=4850"}],"version-history":[{"count":5,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/posts\/4850\/revisions"}],"predecessor-version":[{"id":5047,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/posts\/4850\/revisions\/5047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/media\/4840"}],"wp:attachment":[{"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/media?parent=4850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/categories?post=4850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smilesoftware.org\/en\/wp-json\/wp\/v2\/tags?post=4850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}