Overview of Specifications
Backgraound
In order to achieve its goal of carbon neutrality by 2050, in February 2023, the Japanese government announced the introduction of an "emissions trading system" as part of the carbon pricing system design in its "Basic Policy for the Realization of GX." Trial trading is scheduled to begin in FY2023 and full-scale operation in FY2026, so as part of this, there are expectations for a Carbon Credit Market to be created in FY2023.
Based on the knowledge and market operation experience gained from the "Technical Demonstration Project for Carbon Credit Market" commissioned by the Ministry of Economy, Trade and Industry (METI) in FY2022, Tokyo Stock Exchange, Inc. (TSE) has established a Carbon Credit Market.
As part of METI's green transformation project for FY2024 (operation of the GX League secretariat and development of frameworks to support voluntary emissions trading by companies participating in the GX League), TSE introduced a market-maker scheme from May 30, 2024 and plans to add "GX Credits" to the items eligible for trading on the Market from November 1, 2024.
Note: Carbon Credit Market is different from Tokyo Stock Exchange's financial instruments markets such as cash equity market, etc.
Overview
| Overview | Overview (from November 1, 2024) | |
| Items Eligible for Trading | J-Credits | GX Credits |
| Trading Method | Call auction 11:30 a.m. and 15:00 p.m. (based on price priority) |
Call auction 15:00 p.m. (based on price priority) |
| Settlement Date | Fifth business day from day of execution (T+5) |
9th business day from day of execution (T+9) |
| Type of Orders | Limit orders (market orders will not be accepted) |
Limit orders (market orders will not be accepted) |
| Trading Categories | 7 categories sorted by project type （for J-Credits） |
1 category |
| Order Acceptance Hours | 8:00 – 11:29 / 12:30 – 14:59 | 8:00 – 14:59 ※Trading Days are Every Fridays (from November 2024 through February 2025) |
| Tick Size | JPY 1 | JPY 1 |
| Trading Unit | 1t-CO2 | 1t-CO2 |
| Price Limits | ±90% of the reference price | ±90% of the reference price |
| Base Prices | 1. Final execution price of last auction 2. Base price of last auction |
1. Final execution price of last auction 2. Base price of last auction |
| Settlement | Transfer of cash and credits between buyer and seller | 1. Final execution price of last auction 2. Base price of last auction |
| Outline of Specifications for the Carbon Credit Market (October 11, 2023) |  |
|---|---|
| Outline of Specifications for the Addition of GX Credits to Trading on the Carbon Credit Market | |
| Overview of Carbon Credit Market | |