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