FILE PHOTO: TV camera men wait for the opening of market in front of a large screen showing stock prices at the Tokyo Stock Exchange in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon/File photoTOKYO : The Tokyo Stock Exchange started trading carbon credits on Wednesday, a key element in Japan's strategy to tackle climate change.
Europe and the United States have developed state support tools to help the private sector meet risks and costs associated with green investments. As a first step, the TSE launched a new carbon credit market on Oct. 11, 2023 to trade the existing carbon credits, known as J-Credits. Companies that beat their targets and the country's target, will be able to sell emissions allowances, while those that do not meet their targets would need to buy allowances.
A carbon levy will be introduced from around 2028/29 on fossil fuel importers such as refiners, trading houses and electricity utilities. The initial tax will be set low but will gradually rise.A total of 188 entities had registered as participants of TSE carbon credits trading as of Sept. 19. Trading hours are 9:00-11:29 a.m. and 12:30-2:59 p.m. .