Tokyo Stock Exchange kicks off carbon credit trading to accelerate decarbonization


The Tokyo Stock Exchange (TSE) began trading carbon credits on October 11, a key element in the world's fifth-largest CO2 emitter Japan's strategy to address climate change.

Following similar measures in other major economies, Japan started introducing a carbon pricing scheme in stages from April this year to encourage cities and companies to reduce emissions and achieve its target of carbon neutrality by 2050.

Through the new market, registered members now can trade the existing carbon credit, known as J-Credit, on the TSE, a unit of Japan Exchange Group Inc .

Under the J-Credit system, the authority certifies as a "credit" the amount of greenhouse gas emissions, such as CO2, reduced or removed through projects to introduce renewable energy or energy-saving equipment or forests management.

The carbon credit had been traded individually between companies and other organizations, but it was difficult to find buyers or sellers on their own. The new carbon market will make it easier for firms to buy and sell credits and provide transparency in carbon pricing, said a TSE official.

A total of 188 entities had registered as participants as of September 19, including oil companies and regional banks, and the TSE expects credits worth 500,000 tons of CO2 to be traded annually.

The trading hours are from 9:00 to 11:29 a.m. local time (0000-0229 GMT) and from 12:30 to 2:59 p.m. (0330-0559 GMT). Transaction prices are set twice a day and published after trading hours.

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Tokyo Stock Exchange to launch carbon credit trading on October 11

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