TOKYO, Oct. 11 (Xinhua) -- Japan on Wednesday launched its first market for trading carbon dioxide emissions in the Tokyo Stock Exchange (TSE) as the country, amid many challenges, seeks to achieve its carbon-neutral goals.
The new carbon credit market allows companies to trade the existing carbon credit, or J-Credit, on the TSE.
The J-Credit is an asset certified by the Japanese government and allocated to organizations that have reduced carbon dioxide (CO2) emissions through renewable energy use, tree planting, and other energy-saving measures.
While allowing companies to buy and sell such credits, the new TSE market will also provide transparency in carbon pricing, according to the exchange.
A total of 188 organizations registered have decided to participate in the platform, and the TSE expects credits worth 500,000 tons of CO2 to be traded annually, according to local media outlets.
Trading hours of the new market are from 9 a.m. to 11:29 a.m. and from 12:30 p.m. to 2:59 p.m. local time, with executions taking place at 11:30 a.m. and 3 p.m., respectively.
Transaction prices are set twice a day and published after trading hours.
Analysts here pointed out that Japan, the world's fifth-largest CO2 emitter, has been a slow runner in formulating plans to create a carbon pricing mechanism and emissions trading system.
In April this year, Japan began introducing a carbon pricing scheme to encourage companies and cities to curb emissions and achieve its goal of carbon neutrality by 2050. ■
