#Japan #Carbon Credits #Minato #exroad #Tokyo Stock Exchange

Comprehensive Study on the Carbon Credit Market in Japan for 2025

In a significant step towards understanding the dynamics of the carbon credit market, Exroad Inc. has collaborated with the Tokyo Stock Exchange's Carbon Credit Market Development Office to conduct an extensive analysis of the industry. This study, carried out between March 10 and April 11, 2025, included responses from 283 businesses and organizations, yielding a total of 362 responses. The results have been compiled into the "Carbon Credit Market Research Report," which is now publicly available in both a free summary version and a detailed paid version.

Purpose of the Study

The primary aim of this research is to analyze the trends in supply and demand, the realities of price formation, and the challenges facing the carbon credit market from multiple angles. By clarifying the needs and issues of consumers and stakeholders in carbon credit generation, the report seeks to enhance market predictability and provide insights for more active trading and development of regulations.

Target Respondents

Respondents included a diverse range of participants in the carbon credit market, such as buyers, credit generation stakeholders, intermediary firms, consulting companies, MRV and VVB bodies, research organizations, NGOs, municipalities, and other entities involved in this sector.

Key Findings

The findings from the study reveal crucial information regarding the state's current carbon credit market in Japan:

• - J-Credits are Leading: The report indicates that J-Credits are the most commonly purchased or considered credits, with 84% of respondents showing interest. Following closely is JCM at 36%, while attention towards credits under Article 6, paragraph 4 of the Paris Agreement also appears to be growing, with 13% of respondents expressing interest.
• - Future Carbon Credit Needs: It is anticipated that the demand for external carbon credits or emission allowances during Phase 2 of the GX-ETS will exceed 2.87 million tons annually, underlining the pressing need for a robust market framework.
• - Price Predictions: Predictions for transaction prices under the GX-ETS reveal that by 2027, 23% of respondents expect prices to be between 4,001 and 6,000 yen per ton of CO2, while by 2030, a significant 36% anticipate exceeding 6,001 yen per ton, indicating a general expectation of rising prices in the future.

Importance for the Industry

This report is invaluable for organizations and individuals involved in the carbon credit market as it not only offers insights into current trends but also acts as a guide for future strategies based on empirical data. The inclusion of detailed cross-tabulations aimed specifically at the participants obligated under GX-ETS Phase 2 further provides tailored insights that can assist in forming effective strategies.

Accessibility of the Report

Both the free summary report and the comprehensive 84-page paid report can be accessed through Exroad's dedicated platform, catering to the needs of all interested parties aiming to utilize the findings in their operational strategies.

For those already clients under Exroad's premium services, access to the complete version of the report is granted at no additional cost.

Company Overview

Exroad Inc., headquartered in Minato, Tokyo, was established in March 2022 and specializes in providing comprehensive carbon credit and emissions trading system information services. Under the leadership of CEO Keisuke Kimura, Exroad plans to continue developing tools and resources that support both regulatory compliance and strategic planning for participants in the carbon market.

More information can be found on their official website here. You can also reach Exroad via email at info@exroad.jp for inquiries about services or the report.

The increasing focus on carbon credits underscores the importance of such research in guiding industry participants and policymakers towards effective climate action and sustainable development.

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