Japan enacts law obliging firms to join carbon emissions trading scheme
Japan has passed a law requiring major firms to join a carbon emissions trading scheme from April 2026, aiming to cut emissions by capping output and enabling trade in carbon credits.
- Asia
- Anadolu Agency
- Published Date: 09:55 | 28 May 2025
Japan's parliament on Wednesday enacted a law obliging hundreds of firms to join a carbon emissions trading scheme starting April 2026, Kyodo news agency reported.
Under the revised law, companies producing 100,000 tons of carbon dioxide or more a year are to join the Green Transformation-Emissions Trading System.
The government estimates that companies account for nearly 60% of domestic greenhouse gas emissions.
Under the new law, some 300 to 400 major firms would be obliged to participate in the scheme aimed at lowering emissions.
Under the trading system, companies will be allotted a maximum emission allowance, and carbon credits will have to be purchased on market for any emissions above the threshold.
The ability to sell surplus credits will create an incentive for companies to reduce emissions.
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