Today is Thursday, October 5, 2023.
In a press release last September 22, Tokyo Stock Exchange ( T.S.E. ) announced the start of trading in its carbon credit market on October 11, 2023.
The initiative represents the opening of a place to trade and publicly announce the price of carbon credits in Japan, taking advantage of the knowledge gained from the market operation experience from T.S.E. and the "Carbon Credit Market Technical Demonstration Project" implemented in 2022.
Click here for a 15-pages "Overview of the Carbon Credit Market" in Japan.
Items eligible for trading are called "J-Credits", in 6 categories:
(1) Energy saving;
(2) Renewable energy for electricity;
(3) Renewable energy for heating;
(4) Renewable energy for a mix of electricity and heating;
(5) Forest sink;
and (6) Other.
Trading method will be a call auction and settlement as a transfer of cash and credits between buyer and seller.
Among the requirements, the J-Credits Scheme Registry account must be in the applicant's own name. Click here to see other three key documents related to how Japan established its Carbon Credit Market, among them the "Outline of Specifications for the Carbon Credit Market".
All fee types stipulated by T.S.E., registration, participant security money, basic fee, transaction fee and settlement fee, are initially set as zero, as its "desirable to activate the market and improve its convenience by having as many people as possible participate and trade from an early stage".
T.S.E. also cherishes the initial number of Carbon Credit Market participants expected at the opening date: 188. The list of participants is here. As it is in Japanese, we quickly scanned for our readers: basically municipalities and companies related to reforestation, energy, engineering, finance and banks. Based on the names, in terms of international participantes we noted Mitsubishi UFJ Morgan Stanley Securities and China Petroleum International.
Click at the image below for the press release.
At the end of the document, you have links to the following additional information:
(1) Website for Carbon Credit Market in Japan;
(2) Overview of Specifications;
(3) Carbon Credit Market Rules (in Japanese);
and (4) Participants (requirements).
Japan is the world's fifth-largest CO2 emitter.
