JP — GHG Emissions Calculation, Reporting, and Publication System (SHK System) under the Act on Promotion of Global Warming Countermeasures
ENFORCEMENT TIMELINE
Expanded Scope 3 category application beginning with FY2026 reporting
Overview
Under the Act on Promotion of Global Warming Countermeasures ("Ondaihou"), business operators exceeding certain emission thresholds must calculate, report, and publicly disclose their greenhouse gas emissions (the SHK system). This covers not only energy-origin CO2 but also non-energy-origin GHGs, promoting visibility and voluntary reduction of emissions nationwide. Reporting has increasingly moved online through the government's Electronic Emissions and Energy Reporting System (EEGS), with electronic submission set to become mandatory, and reporting streamlined into a one-stop process alongside Energy Conservation Act filings.
Enforcement Timeline
1998 — Ondaihou enacted, establishing the basic framework for GHG emission reduction. 2005 — Amendment introduces the SHK calculation-reporting-publication system for large emitters. 2021 — Amendment enshrines the 2050 carbon neutrality goal as a basic principle. 2022 (Apr–May) — Full enforcement of the amended Act, advancing digitalization of reporting via the EEGS system and laying groundwork for mandatory electronic filing. 2024 (Apr) — Mandatory electronic reporting via EEGS begins, one-stop with Energy Conservation Act reporting. FY2025 — Review of expanded reporting scope and stronger supply-chain-wide (Scope 3) disclosure requirements.
Business Impact
Specified business operators emitting greenhouse gases above statutory thresholds (including manufacturers, chemical and materials producers, energy-intensive industries, and operators of large-scale facilities) must manage emission calculations across Scope 1 and Scope 2, adapt to periodic filings via the EEGS electronic reporting system, and align reporting with corporate decarbonization plans. In addition, even non-regulated entities increasingly face requests from customers, investors, and financial institutions to disclose supply chain (Scope 3) emissions, necessitating greenhouse gas data collection and supplier engagement across Scope 3 categories.
