The Tokyo Metropolitan Government (TMG) has rolled out a new digital platform for trading carbon credits, aiming to boost environmental action among smaller businesses and drive progress toward its 2030 emissions reduction targets.
View of the landscape of Shinjuku Gyoen Park, Tokyo. AI generated picture.
Developed by Japanese tech firm E-Dash, the platform enables trading in both domestic and international carbon offsets, including those issued under Japan’s J-Credit system and voluntary carbon credits from leading global registries. Among the listed sources are Switzerland-based Gold Standard, and US registries ACR and Climate Action Reserve, alongside credits labeled under the Integrity Council’s Core Carbon Principles. The platform also provides third-party credit evaluations by rating agencies such as BeZero and Sylvera.
This move complements Tokyo’s existing cap-and-trade programme, which currently covers about 20% of regional emissions, targeting high-energy sectors like large-scale buildings, manufacturing plants, and energy suppliers. With the new marketplace, Tokyo is expanding its efforts to engage small and medium-sized enterprises (SMEs), which often face barriers in participating in emissions reduction schemes.
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E-Dash, a Tokyo-based startup supported by trading giant Mitsui & Co, has opted for an open-access model. The company confirmed that users won’t be charged for registering or using the platform. Notably, carbon credits purchased through the system are automatically tokenised into NFTs using blockchain technology, a feature designed to enhance transparency and prevent fraud.
‘It also eliminates the need for the account opening procedures normally required for each credit certification agency, eliminating the hassle required for traditional credit purchasing’, E-Dash said in a statement.
These NFTs can be used to retire credits against a company’s emissions or resold on the platform. The eligible credit-generating projects range from reforestation and forest preservation to renewable energy deployment and energy efficiency improvements.
With a population of nearly 40 million, Tokyo is the world’s largest metropolitan area. Local governments beyond the capital—including Yamanashi, Kochi, and Kanagawa prefectures, as well as Tsubame city—have already partnered with E-Dash to help local SMEs track and cut their carbon footprints using similar digital solutions.
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