<p>The Tokyo Stock Exchange (TSE) started trading carbon credits on Wednesday, a key element in Japan's strategy to tackle climate change.</p>.<p>The world's fifth-largest carbon dioxide (CO2) emitter is the latest among Asian nations to formulate plans for a carbon pricing mechanism and emissions trading system, aiming to cut emissions by 46% from 2013 levels by 2030 and achieve net zero by 2050.</p>.<p><strong>What is Japan aiming to accomplish with the scheme?</strong></p>.<p>The carbon pricing scheme, which Japan launched in April in a staged rollout, is aimed at speeding up decarbonisation to help limit global warming in a country that has lagged other major economies in implementing policies to curb emissions.</p>.<p>Japan believes the scheme, which combines emissions trading and a carbon levy, will help make the world's third-largest economy greener while maintaining the global competitiveness of its industries, including heavy emitters like steelmakers.</p>.Japan issues tsunami advisory for islands in eastern Japan.<p>Europe and the United States have developed state support tools to help the private sector meet risks and costs associated with green investments.</p>.<p>The Japanese government estimates the public and private sectors will need to invest more than 150 trillion yen ($1 trillion) in decarbonisation measures over the next 10 years.</p>.<p>It will contribute 20 trillion yen of the total by issuing bonds, with the revenue from the carbon levy and emission allowances to be used to finance the redemption.</p>.<p><strong>How is the emission trading scheme being rolled out?</strong></p>.<p>The scheme, based on proposals mainly by Japan's ministry of economy, trade and industry and approved by the cabinet this year, consists of emissions trading and a carbon levy.</p>.<p>As a first step, the TSE launched a new carbon credit market on October 11, 2023 to trade the existing carbon credits, known as J-Credits.</p>.<p>In the next step, Japan's version of an emissions trading system (ETS) will start in 2024 involving a forum for "green transformation" called the "GX League".</p>.<p>Participants - about 680 companies as of the end of January accounting for more than 40 per cent of Japan's emissions - will be given emissions allowances and required to set emissions-cutting targets that will help the country meet its 2030 and 2050 goals.</p>.<p>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.</p>.<p>Details have yet to be finalised on GX League emissions trading, due to begin on the TSE next October.</p>.<p>By the 2026/27 fiscal year, Japan aims to set guidelines for the ETS and introduce a mechanism for third-party certification of companies' targets to make the system fair and effective.</p>.<p>Official supervision may also be introduced for those abusing the system.</p>.<p>From around 2033/34, auctions for emission allowances for power producers will begin.</p>.<p>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.</p>.<p><strong>How will TSE's carbon trading work?</strong></p>.<p>A total of 188 entities had registered as participants of TSE carbon credits trading as of September 19. Trading hours are 9:00-11:29 am(0000-0229 GMT) and 12:30-2:59 pm (0330-0559 GMT).</p>.Japan's top talent agency to dissolve after sex abuse scandal; over 300 seek damages.<p>Via the new market, registered members can trade J-Credits on the TSE, a unit of Japan Exchange Group Inc. Transaction prices are set twice a day and published after trading hours.</p>.<p>Under the J-Credit system, the government certifies as a "credit" the amount of greenhouse gas emissions, such as CO2, reduced or removed through efforts to introduce renewable energy, energy-saving equipment or forest management. ($1 = 148.6400 yen)</p>
<p>The Tokyo Stock Exchange (TSE) started trading carbon credits on Wednesday, a key element in Japan's strategy to tackle climate change.</p>.<p>The world's fifth-largest carbon dioxide (CO2) emitter is the latest among Asian nations to formulate plans for a carbon pricing mechanism and emissions trading system, aiming to cut emissions by 46% from 2013 levels by 2030 and achieve net zero by 2050.</p>.<p><strong>What is Japan aiming to accomplish with the scheme?</strong></p>.<p>The carbon pricing scheme, which Japan launched in April in a staged rollout, is aimed at speeding up decarbonisation to help limit global warming in a country that has lagged other major economies in implementing policies to curb emissions.</p>.<p>Japan believes the scheme, which combines emissions trading and a carbon levy, will help make the world's third-largest economy greener while maintaining the global competitiveness of its industries, including heavy emitters like steelmakers.</p>.Japan issues tsunami advisory for islands in eastern Japan.<p>Europe and the United States have developed state support tools to help the private sector meet risks and costs associated with green investments.</p>.<p>The Japanese government estimates the public and private sectors will need to invest more than 150 trillion yen ($1 trillion) in decarbonisation measures over the next 10 years.</p>.<p>It will contribute 20 trillion yen of the total by issuing bonds, with the revenue from the carbon levy and emission allowances to be used to finance the redemption.</p>.<p><strong>How is the emission trading scheme being rolled out?</strong></p>.<p>The scheme, based on proposals mainly by Japan's ministry of economy, trade and industry and approved by the cabinet this year, consists of emissions trading and a carbon levy.</p>.<p>As a first step, the TSE launched a new carbon credit market on October 11, 2023 to trade the existing carbon credits, known as J-Credits.</p>.<p>In the next step, Japan's version of an emissions trading system (ETS) will start in 2024 involving a forum for "green transformation" called the "GX League".</p>.<p>Participants - about 680 companies as of the end of January accounting for more than 40 per cent of Japan's emissions - will be given emissions allowances and required to set emissions-cutting targets that will help the country meet its 2030 and 2050 goals.</p>.<p>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.</p>.<p>Details have yet to be finalised on GX League emissions trading, due to begin on the TSE next October.</p>.<p>By the 2026/27 fiscal year, Japan aims to set guidelines for the ETS and introduce a mechanism for third-party certification of companies' targets to make the system fair and effective.</p>.<p>Official supervision may also be introduced for those abusing the system.</p>.<p>From around 2033/34, auctions for emission allowances for power producers will begin.</p>.<p>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.</p>.<p><strong>How will TSE's carbon trading work?</strong></p>.<p>A total of 188 entities had registered as participants of TSE carbon credits trading as of September 19. Trading hours are 9:00-11:29 am(0000-0229 GMT) and 12:30-2:59 pm (0330-0559 GMT).</p>.Japan's top talent agency to dissolve after sex abuse scandal; over 300 seek damages.<p>Via the new market, registered members can trade J-Credits on the TSE, a unit of Japan Exchange Group Inc. Transaction prices are set twice a day and published after trading hours.</p>.<p>Under the J-Credit system, the government certifies as a "credit" the amount of greenhouse gas emissions, such as CO2, reduced or removed through efforts to introduce renewable energy, energy-saving equipment or forest management. ($1 = 148.6400 yen)</p>