Learn in the textbookCorporate Governance and Administrative / Environmental Laws
DefinitionThe GX Promotion Act (GX推進法) uses national strategy and investment mechanisms to drive GX (green transformation), which pairs decarbonization, meaning cuts in greenhouse gas emissions, with economic growth.
ExplanationGX refers to efforts to shift industrial and social structures that rely on fossil fuels toward clean energy. The law passed in 2023, formally the Act on Promotion of a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure, provides for, among other things, a government GX promotion strategy, government bonds (GX economy transition bonds) issued to support decarbonization investment up front, and the phased introduction of carbon pricing, which puts a price on carbon dioxide emissions.
Memory hookThe X in GX stands for the 'trans' (meaning 'across', read as 'cross') in transformation, the same convention as in DX.