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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.

Read more: 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. 


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