Japan starts carbon credit trading trial at TSE
22/09/2022 03:49
TOKYO, Sept 22 (Reuters) - Japan started trial trading of
carbon credits on Thursday at the Tokyo Stock Exchange (TSE) as
the world's fifth-largest carbon emitter aims to create a
nationwide market mechanism to help achieve carbon neutrality by
2050.
The TSE, a unit of Japan Exchange Group Inc 8697.T , has
been commissioned by the Ministry of Economy, Trade and Industry
to conduct the pilot project as the ministry prepares to set up
the first exchange-based market for trading carbon credits, to
help participants offset their emissions or monetise reduced
emissions.
Under the trial, registered members, numbering 145 as of
Thursday, can trade existing carbon credits, known as J-Credits,
certified by the government. They have been traded
over-the-counter on a voluntary basis since 2013.
The J-Credit scheme is designed to certify as credits the
holder's emissions reductions of greenhouse gases such as carbon
dioxide, as well as emissions prevention or removal through
energy-saving devices, forest management and other methods.
At the TSE, trading hours are 9:00-11:29 a.m. and 12:30-2:59
p.m. (0000-0229 and 0330-0559 GMT). Transaction prices are set
twice a day and published after trading hours.
The trial will continue through the end of January, followed
by a government review and possible improvements to the system
before it is formally launched.
"We want to go into full-scale operation as early as next
April if all goes well," an official at the industry ministry
said.
(Reporting by Yuka Obayashi; Editing by Edmund Klamann)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))