Japan's carbon pricing scheme kicks off at Tokyo Stock Exchange

TOKYO, Oct 11 (Reuters): The Tokyo Stock Exchange (TSE) started trading carbon credits on Wednesday, a key element in Japan's strategy to tackle climate change.
The world's fifth-largest carbon dioxide (CO2) emitter is the latest among Asian nations to formulate plans for a carbon pricing mechanism and emissions trading system, aiming to cut emissions by 46 per cent from 2013 levels by 2030 and achieve net zero by 2050.
The carbon pricing scheme, which Japan launched in April in a staged rollout, is aimed at speeding up decarbonisation to help limit global warming in a country that has lagged other major economies in implementing policies to curb emissions.
Japan believes the scheme, which combines emissions trading and a carbon levy, will help make the world's third-largest economy greener while maintaining the global competitiveness of its industries, including heavy emitters like steelmakers.
Europe and the United States have developed state support tools to help the private sector meet risks and costs associated with green investments.
The Japanese government estimates the public and private sectors will need to invest more than 150 trillion yen ($1 trillion) in decarbonisation measures over the next 10 years.
It will contribute 20 trillion yen of the total by issuing bonds, with the revenue from the carbon levy and emission allowances to be used to finance the redemption.
The scheme, based on proposals mainly by Japan's ministry of economy, trade and industry and approved by the cabinet this year, consists of emissions trading and a carbon levy.