Japan plans to introduce greenhouse gas emissions trading in fiscal 2026

NHK has learned that the Japanese government plans to start a carbon pricing system for trading greenhouse gas emissions in fiscal 2026 as part of its efforts to achieve carbon neutrality.

Under the system, companies will be able to trade credits they have earned by reducing emissions.

A timetable drawn up by the industry ministry says power companies will be asked to pay emission fees starting in fiscal 2033 in an attempt to reduce the use of fossil fuels.

The ministry also plans to introduce a scheme for oil wholesalers and trading companies that import fossil fuels to shoulder some costs starting in fiscal 2028. It says the burden will be gradually raised.

The government plans to issue bonds worth 20 trillion yen, or about 145 billion dollars, to promote investments in carbon neutrality. It aims to repay the bonds by fiscal 2050 using revenue from the carbon pricing system.

The ministry plans to present the plan at a government meeting for a carbon-free society to be held within the year.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20221213_36/