Japan Starts Trial of Trading Carbon Credits on TSE

Japan started trial of trading of carbon credits on Thursday on the Tokyo Stock Exchange (TSE) as the world’s fifth largest emitter of carbon credits aiming to create a national market mechanism to help achieve neutrality carbon by 2050.

TSE, a unit of Japan Exchange Group Inc, has been commissioned by the Ministry of Economy, Trade and Industry to undertake a pilot project as the ministry prepares to establish the first exchange-based marketplace for trading carbon credits, to help participants offset their emissions or cash in on reduced emissions.

Under the trial, registered members, totaling 145 as of Thursday, can trade existing carbon credits, known as J-Credits, which are certified by the government. They have been traded over-the-counter voluntarily since 2013.

The J-Credit scheme is designed to certify as credits for reducing emissions of greenhouse gases such as carbon dioxide, as well as preventing or eliminating emissions through energy-efficient tools, forest management and other methods.

On the TSE, trading hours are 9:00-11:29 and 12:30-14:59. (0000-0229 and 0330-0559 GMT). Trading prices are set twice a day and published after trading hours.

The trial will continue until the end of January, followed by a government review and possible improvements to the system before it is officially launched.

“We want to carry out full-scale operations in early April if all goes well,” said an official at the industry ministry.

Source: EGINDO.Co