Japan to test CO2 emissions trading

The Japanese government will begin testing the trade of credits on carbon-dioxide emissions.

The trial is intended to be an early step toward the implementation of a carbon-pricing system.

Japan's Economy, Trade and Industry Ministry will launch the initiative at the Tokyo Stock Exchange on September 22nd.

About 120 companies will take part. Most will be Japanese.

They will be able to trade their CO2 output credits. These represent the amount of emissions the firms reduced through renewable-energy use or tree-planting.

Trading prices will be disclosed to invigorate trading activity.

The ministry plans to continue the test until the end of the current fiscal year in March. Full-fledged efforts are slated to be launched in the next fiscal year.

The Japanese government aims to have a carbon neutral society by 2050. It believes carbon pricing will be necessary to achieve that.

Companies and households would need to purchase the credits under the system.