Japan: First exchange-based carbon market launched on 11 October 2023

In brief

The Tokyo Stock Exchange (TSE) launched Japan's first exchange-based carbon credit market ("Market") on 11 October 2023. Registered participants in the Market now have a more efficient platform for carbon credit trading in Japan and improved carbon pricing transparency.

As of October 2023, a total of 188 applicants — including many GX League Members — had registered as participants in the Market, enabling them to trade J-Credits — the only eligible carbon credit on the Market for the time being.

The launch of the Market encourages Japanese companies to curb greenhouse gas (GHG) emissions in Japan, the world's fifth largest CO2 emitter. It also supports GX (Green Transformation) in Japan and bolsters the global supply of carbon credits to help the world meet its ambitious GHG emission reduction goals.


Key takeaways

Solvent legal entities, including foreign corporations, can register and trade eligible carbon credits on the Market by meeting specific requirements and establishing the necessary accounts.

If you have any questions or would like further information about this topic, please do not hesitate to contact us.

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Contact Information
Fei Zhou
Associate at BakerMcKenzie
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