The Tokyo Stock Exchange (TSE) will introduce a dedicated trading category for carbon credits generated from biochar and rice cultivation projects, starting 6 January 2025. This marks an expansion of its J-Credit market, launched in October 2023, which facilitates the trading of government-certified emissions reductions and absorptions.
Close-up of a man working in a rice cultivation project in Fukushima Prefecture. AI generated picture.
The new category, announced by Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF), is aimed at enhancing market liquidity and convenience. Currently, credits from biochar and rice cultivation projects are grouped under the broader ‘other’ projects category. This update will streamline trading and potentially boost participation in the carbon credit market. Other agriculture-related methodologies will continue to be listed under the "other" category, maintaining clarity for traders and project developers.
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The TSE, part of the Japan Exchange Group, is one of several platforms in the country working to improve price discovery in carbon trading. Japan's carbon market efforts align with its broader sustainability goals and commitments to reducing greenhouse gas emissions.
In a related development, Japanese technology firm Nihon Denkei is collaborating with Carbon Ex, a consultancy, on a rice cultivation project in Fukushima Prefecture. The initiative aims to cut 1,000 tonnes of CO2 emissions over eight years, showcasing the potential of agricultural innovations in environmental action.
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