Why is the carbon market of interest to power and gas futuers?

Skipping Stone

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December 21, 2022 3 min read
  • The JPX umbrella covers power futures, gas futures, oil futuers, and now in demonstration mode, the carbon market.
  • Carbon market is targeted to start sometime after April 1, 2023, with J Credits.
  • The JPX carbon market has the potential to provide participants a relationship with the GX League.
  • The GX league has almost 600 of Japan’s biggest energy users  who have commited to reducing their carbon footprint.


  • Why is this of interest to power and gas futures?
  1. Now that Japan power suppliers have have shifted to market-based pricing, this will lead to more heading activity via JPX TOCOM.
  2. For large end users connecting power and gas use to carbon calculations and reduction is obvious.
  3. Providing headgin and trading opportunities for power, gas and carbon in one place just make sence.