Japan is making significant strides towards achieving its goal of carbon neutrality by 2050 by launching a major initiative to decarbonize 120 GW of its fossil fuel energy capacity. In line with this objective, OCCTO organized a series of auctions, awarding 9.766 GW of decarbonated energy capacity, including innovative sources like ammonia-hydrogen co-combustion and battery/hydro storage. The country is experiencing a rise in electricity demand, driven by new semiconductor plants and data centers, necessitating substantial investments in decarbonized energy sources. To address this, the Ministry of Economy, Trade and Industry (METI) is exploring ways to secure more long-term gas capacity and expedite the decarbonization of energy sources. Japan has taken a proactive approach by passing a law that introduces a subsidy framework to support low-carbon hydrogen and ammonia production, aiming to offset additional costs compared to traditional fuel imports. This subsidy initiative is expected to boost domestic energy projects, enhance energy security, and bolster industrial competitiveness as part of the Green Transformation (GX). By prioritizing investments in green energy technologies and infrastructure, Japan is solidifying its position as a global leader in the transition towards sustainable energy and combating climate change.