A commemorative ceremony

Tokyo Stock Exchange (TSE), a subsidiary of Japan Exchange Group (JPX), opened its carbon credit market and started trading on October 11. On the same day, a commemorative ceremony was held to mark the opening of the market. The related ministries including Yasutoshi Nishimura, the Minister of Economy, Trade and Industry (METI), and related organizations were invited, and a tape cutting, etc. were held.
The main comments made at the ceremony are as follows:

Yasutoshi Nishimura, the Minister of METI－4th person from the right in the photo

METI has launched a growth-oriented carbon pricing initiative toward carbon neutrality in 2050 and 46 percent reduction in greenhouse gases in FY 2030, and aims to build a system with benefits for companies that are proactive and ambitious to reduce emissions.
Utilization of carbon credits realizes efficient emission reductions for society as a whole and becomes a very effective approach in attracting investment for green transformation (GX) from private companies. Through trading of carbon credits, by putting a price on the value of carbon reduction, predictability of investments for decarbonization will be enhanced and it is expected that companies will accelerate their efforts toward GX.
Regarding the opening of this market, as an initiative to further revitalize trade, in cooperation with Tokyo Stock Exchange (TSE), we will introduce a market maker system newly.
Having market makers place a certain amount of buy and sell orders at the same time, appropriate transaction price will be published and market liquidity will be ensured. From now on, starting with J-credit, the target of this transaction, as the values of various environments are traded, we expect that carbon credit market will develop significantly in the future as an important infrastructure for promoting companies’ investment in GX.

Hiromi Yamaji, the director and the chief executive officer of JPX－5th from the right in the photo

Our carbon credit market was started in response to the inclusion of its creation in “ The GX league basic concept ”presented by METI in February 2022, and furthermore, in “The basic policy toward realization of GX ”by the Cabinet decision in February 2023 to make emission trading work in the GX league, and we are very happy to start trading today.
Recognizing that opening of the market is contribution measures at exchanges toward realization of carbon neutrality that is a global issue, we utilize our experience in financial market operations and our knowledge from the carbon credit market demonstration projects conducted last year, and think that we would like to grow the carbon credit market in collaboration with market participants and stakeholders and in line with the progress in government emissions trading.
Also, we were selected as a contractor of “Trade activation business, etc. of carbon credit market” as the consignment business by METI this year too. We will continue to work closely with METI to proceed with system design for revitalize trade and contribute to efforts toward “A growth-oriented carbon pricing ”.

（Futures Tribune・issued October 17, 2023 ・no.3245）