JP J-Credit Scheme
ENFORCEMENT TIMELINE
Operational since 2013 (Continuous methodology updates and GX League integration)
Overview
The J-Credit Scheme is a system under which the national government certifies greenhouse gas emission reductions and removals achieved through measures such as installing energy-efficient equipment, using renewable energy, and proper forest management, issuing them as tradable credits. Credits generated under the scheme can be used for reporting under the SHK system and the Energy Conservation Act, for corporate carbon offsetting, and for reporting to international initiatives such as CDP and the Science Based Targets initiative.
Enforcement Timeline
April 2013: The domestic credit scheme and the J-VER scheme are merged and developed into the J-Credit Scheme.
October 2023: A carbon credit market opens on the Tokyo Stock Exchange, improving trading liquidity and price transparency.
From 2024 onward: Methodologies for forest-derived credits are expanded, project registration is promoted among small and medium-sized enterprises and in the agricultural sector, and coordination with GX-ETS is strengthened.
Business Impact
Businesses can generate credits, and the associated sale proceeds, by investing in renewable energy and energy efficiency, and can also purchase and use credits as a means of meeting their own emissions reduction targets.