Ministry of Economy, Trade and Industry accelerates the study for establishing the “Carbon Credit Market”
The Ministry of Economy, Trade and Industry(METI) will accelerate the consideration for establishing the “Carbon Credit Market” to trade the reduction value of greenhouse gas emissions after February. METI will clarify the issues for market revitalization through the interview with trade participating enterprises, the Financial Services Agency, and so on from February, after the demonstration conducted with the Tokyo Stock Exchange ended on Jan. 31.
METI will summarize the report on demonstration in this spring, designing the details of the market and emission trading scheme based on its content. The caron credit market is scheduled to be opened within FY2023.
The carbon credit market is the core of the emission trading scheme designed to sell and purchase greenhouse gas emission allowances. In the market, business operators reducing more emissions than expected sell excess emission reduction, and those emitting more than expected purchase emission allowances. Demonstration at the Tokyo Stock Exchange has dealt with only J-credits to confirm the trading status.
After February when demonstration ends, there will be discussions about starting the market and emission trading scheme. The agenda will include the methods for expanding a trade volume and stabilizing a price. In order to increase a future burden for carbon emission, the national government aims to gradually raise the trade price.The participant members of “GX League”, where environmentally-conscious enterprises gather, also join in discussions about designing the emission trading scheme. Much knowledge is collected to revitalize trading of emission allowances and credits.