TSE Launches Carbon Credit Market
17:46 JST, October 11, 2023
TOKYO (Jiji Press) — The Tokyo Stock Exchange on Wednesday launched a carbon credit market for carbon dioxide emissions trading to promote decarbonization efforts by companies and others.
CO2 emissions reduced and absorbed through measures such as the use of renewable energy and forest management are certified by the Japanese government as J-Credit carbon credits, which can be traded among firms and local governments in the new market.
By making transaction prices transparent, the new market is expected to help boost the number of participants in the carbon credit system and provide economic incentives for companies and others to promote decarbonization.
At a ceremony marking the launch of the carbon credit market, Economy, Trade and Industry Minister Yasutoshi Nishimura said the new market will be “the core of the country’s emissions trading system.”
The system is “growth-oriented, with those who reduce emissions earlier having smaller burdens,” Nishimura explained. He voiced the expectation that related investments by firms will become more active.
The new market is expected to allow companies that can cut more CO2 emissions to receive more carbon credits and sell them to make a profit.
Meanwhile, firms emitting a large amount of CO2 can buy carbon credits to meet their emission reduction targets if they find it difficult to achieve the targets on their own.
For the time being, carbon credit trading on the TSE will be limited to J-Credits. Two auctions are held each trading day, one in the morning and one in the afternoon, and the results are announced online.
The carbon credit market initially has 188 registered participants, including power companies, financial institutions, trading houses and local governments.
Providing sufficient carbon credits and building trust in the new market are seen as key to promoting transactions.
"Business" POPULAR ARTICLE
-
Prices of over 10,000 Food and Beverage Items to Rise This Year; Figure is down from over 30,000 Last Year
-
Sony Group to End Production of Blu-ray Discs; Market Has Shrunk Due To Growth Of Hard Disk Drives, Streaming
-
AI-Equipped Energy Efficient Air Conditioners Grow In Popularity; Some Can Guess Users’ Moods, Automatically Adjust Temperature
-
Toyota to Introduce 4-Day Workweek for Some Employees; Company Hopes More Flexible Schedules Will Boost Worker Motivation
-
Japan Fair Trade Commission to Strengthen Monitoring;3rd Party to Report on Companies Ordered to Improve
JN ACCESS RANKING
- Prices of over 10,000 Food and Beverage Items to Rise This Year; Figure is down from over 30,000 Last Year
- Sony Group to End Production of Blu-ray Discs; Market Has Shrunk Due To Growth Of Hard Disk Drives, Streaming
- Japan Ministry Concerned Over Same-Sex Couple Receiving City-Issued Resident Certificates Referring to ‘Common-Law Husband’
- Japan Court OKs Sex Change without Surgery
- Pacific Islands Leaders Not Totally in Tune on China Approach as Meeting Ends in Tokyo; Positions Differ on Treated Water, Joint Drills