The Tokyo Stock Exchange is opening up trading for a new type of asset: carbon credits.

‍What’s happening:‍

• The Tokyo Stock Exchange is set to launch its new carbon credits market next week
  
• The concept is to enable transparency in carbon credit pricing and provide a purpose built platform for trading carbon credits within Japan
  

Why it matters:‍

• The Tokyo Stock Exchange is the third largest stock exchange in the world
  
• Carbon credits are gaining enormous momentum as more and more large companies seek to reduce their environmental impact
  
• Merging carbon credits and traditional public markets together is a major sign of adoption for emission reductions globally
  

How it works:‍

• The new carbon credit market will allow for trading of ‘J-Credits’ which are carbon credits already certified by the Japanese government
  
• Due to relatively low liquidity the new market will trade by auction to begin, with one session in the morning and one session in the afternoon
  

By the numbers:‍

• The Tokyo Stock Exchange has over 3500 publicly listed companies with a combined value of more than $6T
  
• There will be 188 registered entities in the new carbon credit market upon launch

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