The shock of GX-ETS

Starting in 2026, the transition to a legally binding emissions trading system is imminent!

Our company supports the transition to GX-ETS Phase 2, which will begin in 2026. The revised GX Promotion Act was enacted in May 2025, transitioning from voluntary initiatives to a legally binding "cap-and-trade" emissions trading system. The target includes approximately 300 to 400 companies, covering about 60% of domestic emissions. If emissions cannot be offset by the deadline, there will be an obligation to pay 1.1 times the market ceiling price for the shortfall. 【GX Pressure Also Affecting Small and Medium Enterprises】 ■ Scope 3 Issues: Large companies are required to set CO2 reduction targets for their entire supply chain, demanding strict CO2 data provision and reduction efforts from their small and medium-sized enterprise suppliers. ■ Continuity of Transactions Risk: GX compliance is being incorporated into corporate procurement standards, increasing the likelihood that companies not engaged in CO2 reduction will be excluded from the supply chain. ■ Competitive Disparity: Companies compliant with GX can receive various preferential measures such as subsidies, low-interest loans, and additional points in bidding, creating a significant gap in fundraising capability and order competitiveness compared to non-compliant companies. *For more details, please download the PDF or feel free to contact us.

Water treatment equipment and technology