Tokyo Stock Exchange kicks off carbon credit trading
11/10/2023 02:41
TOKYO, Oct 11 (Reuters) - The Tokyo Stock Exchange (TSE)
started trading carbon credits on Wednesday, a key element in
the world's fifth-largest carbon dioxide (CO2) emitter Japan's
strategy to tackle climate change.
Following similar steps in other major economies, 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.
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 a
"credit" the amount of greenhouse gas emissions, such as CO2,
reduced or removed through efforts to introduce renewable energy
or energy-saving equipment or managing forests.
The credit had 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,
according to a TSE official.
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 Katya Golubkova and Michael Perry)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))