Carbon emissions trading to start in Tokyo

Japan’s Tokyo Commodity Exchange (TOCOM) and Tokyo Stock Exchange have agreed to jointly set up a carbon emissions contract exchange in Japan, aiming to bring transparency and liquidity in carbon trade, the exchanges said. The two exchanges have agreed to establish a joint venture by the end of March 2010 that will set contract specifications, trading rules and platform for the “Japanese ETS [emissions trading scheme].” A timetable for the launch of the new exchange or actual trading has not been set yet as the Japanese government is still in the process of drawing elaborate blueprints to realize greenhouse gas emission reduction goals. (October 29, 2009)