Tokyo Stock Exchange to start carbon credit trading on Oct. 11
22/09/2023 12:23
TOKYO, Sept 22 (Reuters) - The Tokyo Stock Exchange
(TSE) will start trading carbon credits on Oct. 11, it said on
Friday, launching Japan's first exchange-based carbon market as
the world's fifth-largest carbon dioxide (CO2) emitter moves to
tackle climate change.
Japan began introducing a carbon pricing scheme in stages
from April this year to encourage companies and cities to curb
emissions and achieve its goal of carbon neutrality by 2050.
The government's plan is aimed at speeding up
decarbonisation to tackle climate change. Japan lags other major
economies that have already implemented similar policies.
Via the new market, registered members can trade the
existing carbon credit, known as J-Credit, on the TSE, a unit of
Japan Exchange Group Inc 8697.T .
Under the J-Credit system, the government certifies as
"credit" the amount of greenhouse gas emissions, such as CO2,
reduced or removed through efforts to introduce energy-saving
devices and manage forests.
The credit has been traded individually between companies
and other organisations, but it was difficult for them to find
buyers or sellers on their own.
The new TSE market will make it easier for companies to buy
and sell credits and provide transparency in carbon pricing, a
TSE official said.
The exchange began accepting application for registration
from July, and a total of 188 entities had registered as
participants as of Sept. 19.
Trading hours are 9:00-11:29 a.m. (0000-0229 GMT) and
12:30-2:59 p.m. (0330-0559 GMT). Transaction prices are set
twice a day and published after trading hours.
(Reporting by Yuka Obayashi; Editing by Jan Harvey)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))