Japan Mandates Firms to Enter Carbon Trading Market
(MENAFN) Japan’s national legislature approved a new regulation on Wednesday, compelling several hundred businesses to participate in a carbon emissions exchange program starting in April 2026, according to a report by a news agency.
As stated in the amended legislation, enterprises that emit 100,000 tons or more of carbon dioxide annually must enroll in the Green Transformation-Emissions Trading System.
This initiative aims to enhance environmental sustainability by controlling industrial pollution.
The Japanese administration has projected that corporate activities are responsible for close to 60 percent of the country's overall greenhouse gas output.
With this in mind, the law will require around 300 to 400 prominent corporations to take part in the initiative, which is designed to curb harmful emissions.
Within this emissions trading framework, organizations will receive a cap on their allowable emissions. If a company exceeds this set limit, it must acquire carbon credits through the market.
Conversely, firms that emit less than their allowance can profit by selling their surplus credits, creating a financial motivation to decrease emissions.
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