Japan to Launch First Exchange-based Carbon Market 

The Tokyo Stock Exchange (TSE) is set to launch its new carbon credit market on 11 October. The new carbon credit market will allow trading in ‘J-Credits’, which are certified by the government and have already been circulating on a voluntary basis in Japan since 2013. The J-Credit scheme is designed to certify holders’ emissions reductions or removal of greenhouse gases through energy-saving devices, forest management and other methods. To date, J-Credits have primarily been traded bilaterally between companies and other organisations, making it challenging to find buyers or sellers independently. The new carbon market will make it easier for companies to buy and sell carbon credits while providing transparency in carbon pricing, a TSE official said. The TSE has published a list of 188 participants in the carbon credit market, including from industry, finance, and local government. The TSE conducted a carbon credit market technical feasibility pilot from September 2022 until January 2023. From April this year, Japan began introducing a carbon pricing scheme in stages to encourage companies to curb emissions and help achieve the national carbon neutrality goal by 2050.

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