Today is Tuesday, 23 July 2024.
The challenges of accelerating the functioning of carbon credit markets are not limited to developing countries. Developed countries are also facing difficulties and bottlenecks.
Among other issues, such as integrity enhancement efforts and Article 6, Governments are asking for more protagonist by the private sector, specifically related to the voluntary carbon credits. United States (U.S.) was clear about that a few weeks ago.
Linked to the role of the private sector, in developing countries the difficulties seem to be more related with reaching consensus on regulations, aligning interests, while in developed countries the current issue appears the limited market size, pace of interest.
On the other hand, besides an unquestionable sustainability appeal, this situation may also represent new cross-border business opportunities. For the time being involving developed countries (and the nascent article 6).
A recent press release by Xpansiv, a U.S. San Francisco headquartered carbon credit exchange operator, estimates the Japanese markets size for carbon credits of approximately 1.5 million tons per year. And adds that the current supply of carbon credits in the Asian nation falls short of the growing demand for carbon-offsets.
Let’s remind that the so-called J-Credits were launched in Japan last October 2023. The 6 categories of J-Credits are: Energy saving; Renewable energy for electricity; Renewable energy for heating; Renewable energy for a mix of electricity and heating; Forest sink; and Other.
In fact the press release announces a partnership between Xpansiv and Enechain Corp.’s Japan Climate Exchange (JCEX), which trades J-Credits and non-fossil certificates.
According to the press release, the integration of JCEX with Xpansiv Connect will enable Japanese companies to buy and sell hundreds of project-specific high-quality voluntary carbon credits and standardized contracts through JCEX, including those aligned with the ICVCM Core Carbon Principles, International Renewable Energy Certificates (I-RECs) and CORSIA (aviation).
This is not the first time that Xpansiv has been mentioned in our posts.
Last October 12 it was South Africa that launched its voluntary carbon market (VCM) through the Johannesburg Stock Exchange (JSE) in collaboration with Xpansiv.
More recently, in April 2024, it was Saudi Arabia’s Regional Voluntary Carbon Market Company (RVCMC) that announced the selection of Xpansiv to provide tech infrastructure for RVCMC’s carbon credit exchange.
Among others, Xpansiv runs a spot exchange for environmental commodities, including carbon credits and renewable energy certificates. It also operates an independent platform for managing and selling solar renewable energy credits in U.S.
Click at the image below for the press release by JCEX.
