Market News

Dec. 26, 2025 JPXTSE TSE to Introduce OTC Trade Settlement Service for Carbon Credits

In designing the trading system for the Carbon Credit Market, Tokyo Stock Exchange (TSE) aims to consolidate liquidity and enhance price discovery by classifying carbon credits into trading categories by project type, rather than individual credits, and employing a trading method which is standardized to a certain extent for each type. For this reason, if a Carbon Credit Market participant wishes to buy or sell a specific carbon credit, they must negotiate and settle the trade over the counter (OTC), outside the market. However, as OTC transactions require new contracts and delivery procedures for each trade, this process can become complicated in practice.

Given this, in order to improve convenience in carbon credit trading for market participants and contribute to Japan’s decarbonization efforts (known as “green transformation” or GX), TSE has decided to introduce the “Carbon Credit OTC Trade Settlement Service.” This will utilize the functions of the Carbon Credit Market’s trading and settlement systems to match, settle funds, and transfer credits for transactions executed outside the market. TSE has today published the service outline and other details.