Opening of the Carbon Credit Market and Start of Trading Today


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October 16, 2023 3 min read
Opening of the Carbon Credit Market and Start of Trading Today

We are pleased to announce the opening of the carbon credit market and the start of trading on Tokyo Stock Exchange today, October 11.
To commemorate the opening of the market, a ceremony was held on the same day, which was attended by Mr. Nishimura Yasutoshi, Minister of Economy, Trade, and Industry, as well as other members of ministries and organizations involved in carbon credits. We received the following comments from Mr. Nishimura.

Comments by Nishimura Yasutoshi, Minister of Economy, Trade, and Industry

The Ministry of Economy, Trade and Industry (METI) has launched the Pro-Growth Carbon Pricing Concept, aiming for carbon neutrality by2050 and a 46% GHG reduction by FY2030, and aims to establish a system that benefits companies that are proactive and ambitious in reducing emissions.

The use of carbon credits is a very effective approach to encourage GX investment from the private sector while achieving efficient emission reductions for society as a whole. It can be expected that, by putting a price on carbon reductions through the trading of credits, it will increase the predictability of investments in decarbonization and accelerate companies' GX efforts.

With the opening of this market, we will introduce a new market maker scheme with the cooperation of Tokyo Stock Exchange as an effort to further stimulate trading. By having market makers place a certain amount of buy and sell orders at the same time, it will be possible to publicly announce fair trading prices and ensure the liquidity of the market.

With the trading of various environmental values, starting with the currently available J-credits, we expect that the carbon credit market will develop significantly in the future as an important infrastructure to encourage companies to make GX investments.

Comments from Yamaji Hiromi, Director & Representative Executive Officer, Group CEO

The carbon credit market was established in response to the "GX League Basic Concept" announced by METI in February 2022 and the "Basic Policy for the Realization of GX" approved in February 2023, which included the establishment of a carbon credit market to enable emissions trading for the GX League. We are very pleased that we are able to start trading today.

Recognizing that the establishment of this market is a unique contribution that only an exchange could make toward the global goal of achieving carbon neutrality, we wish to utilize our experience in operating financial instruments exchange markets and our knowledge from last year's Technical Demonstration Project for Carbon Credit Market, while cooperating with market participants and related parties to promote the carbon credit market in line with the progress being made in emissions trading by the government.

In addition, this fiscal year we have been selected by METI to participate in the "Carbon Credit Market Trading Stimulation Project," and we will continue to work closely with METI to design a system to stimulate trading in the carbon credit market, and contribute to efforts toward "carbon pricing that contributes to growth."