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ARTICLE · 08 NOVEMBER 2023

Energy Practice Legal Update - Recent Developments In Carbon Offset Markets In Japan For Achieving Green Transformation And Carbon Net-Zero

Anderson Mori & Tomotsune
Anderson Mori & Tomotsune
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Anderson Mori & Tomotsune

Japan Tokyo Anderson Mori & Tomotsune Otemachi Park Building 1-1-1 Otemachi, Chiyoda-ku Tokyo...

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In April 2023, GX League Phase 1 (pilot phase), a Japanese emissions trading system was launched, and in October 2023...

JapanEnvironment

In April 2023, GX League Phase 1 (pilot phase), a Japanese emissions trading system was launched, and in October 2023, the Tokyo Stock Exchange started trading J Credits. The use of carbon credits, etc. is important for achieving decarbonization of Japan, but there are also some issues.

In this newsletter, we will explain recent developments in Japanese and overseas carbon credit markets and examine how to deal with carbon credit trading.

1. Recent developments in Japan

(1) Green Transformation League ("GX League")

GX League was preliminarily launched in September 2022 and was officially launched in April 2023 based on "Carbon Credit Report"1 published by Ministry of Economy, Industry and Trade ("METI") in June 20222. Compared to other emission trading schemes (e.g., EUETS), GX League has unique aspects as set out below:

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