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TSE and Tocom agree to form carbon exchange
13 May 2010
The Tokyo Stock Exchange and the Tokyo Commodity Exchange have finalised their agreement to introduce a Japanese carbon trading exchange. When live, the new Japanese carbon exchange will be the first dedicated carbon bourse in Asia.
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TSE
Tocom
carbon
environment
carbon market
The joint venture will be known as the Emissions
Trading Exchange Preparatory Corporation. It will be based in Chuo-ku in the
centre of Tokyo. Each Japanese exchange will own 50%.
The exchanges gave no indication of which
contracts would be offered but said: “TSE Group and Tocom shall continue
deliberations based on international and domestic policy trends and discussions
regarding climate change.”
Mitsuhiro Onosato, Tocom’s executive officer for
business planning, said in March that that the new bourse was considering a
variety of products.
“Development of this initiative would very much
depend on the policy the Japanese government will decide to form,” Onosato
said. “At the same time, the joint venture will consider providing services to
promote trades of the secondary Certified Emissions Reductions, which are
executed on the OTC market.”
CERs are internationally awarded and traded
credits for sponsoring projects in the developing world that are deemed
low-carbon. Asia leads the way in the volume of these projects.
A Tocom spokesperson said the new carbon bourse
had yet to finalise its timetable for beginning to trade CERs.