Japan Non-Raphitizable Carbon Market was valued at USD 0.9 Billion in 2022 and is projected to reach USD 1.8 Billion by 2030, growing at a CAGR of 8.7% from 2024 to 2030.
Japan's commitment to achieving carbon neutrality by 2050 has led to the development of various carbon trading markets, each with unique characteristics and requirements for industrial participants. Understanding these markets is crucial for industries aiming to align with national sustainability goals and leverage economic opportunities.
National Carbon Pricing Initiatives
In fiscal year 2023, Japan introduced the Green Transformation (GX) Emission Trading System (GX-ETS) as a voluntary framework. This system encourages companies to publicly commit to emission reduction targets, fostering transparency and accountability. The GX-ETS operates on a "pledge and review" basis, where participants disclose their goals, and their progress is implicitly governed by financial and capital market dynamics. This approach differs from traditional compliance-based systems, emphasizing proactive engagement and market-driven incentives. citeturn0search8
Looking ahead, the Japanese government plans to expand the GX-ETS. Starting in fiscal 2026, participation will become mandatory for companies emitting over 100,000 tons of CO₂ annually. These companies will receive emission quotas, with penalties for exceeding limits. This transition aims to enhance the effectiveness of carbon pricing and accelerate emission reductions across key industries, including steel, electricity, aviation, logistics, and food manufacturing. citeturn0search6
Regional Carbon Trading Schemes
Beyond national initiatives, regional programs like Tokyo's cap-and-trade system and Saitama Prefecture's emissions trading scheme play significant roles. Tokyo's program, initiated in 2010, targets the top 1,400 emitters, requiring reductions of 6% to 8% from baseline emissions. Non-compliant entities face fines and are mandated to purchase allowances or invest in renewable energy certificates. By its fourth year, the program achieved a 23% reduction compared to base-year emissions, demonstrating its impact. citeturn0search12
Emerging Carbon Credit Markets
In October 2023, the Tokyo Stock Exchange (TSE) launched a carbon credit market, building on insights from a 2022 demonstration project by the Ministry of Economy, Trade, and Industry (METI). This platform allows trading of carbon credits, including J-Credits, facilitating corporate efforts to offset emissions and meet reduction targets. The market provides price signals, enhancing transparency and efficiency in carbon trading. citeturn0search0
Requirements for Industrial Participants
Industries engaging in Japan's carbon markets must adhere to specific criteria to ensure the credibility and effectiveness of their emission reduction efforts. Key requirements include:
Additionality: Demonstrating that emission reductions are beyond business-as-usual scenarios, ensuring that projects lead to genuine environmental benefits. citeturn0search3
Measurability: Providing quantifiable data on emission reductions, utilizing recognized measurement tools and methodologies to ensure transparency and accuracy. citeturn0search3
Verification: Undergoing independent third-party verification to confirm that claimed emission reductions are real and have occurred as reported. citeturn0search3
These standards align with international best practices, such as the ICROA Code of Best Practice, aiming to maintain the integrity and effectiveness of carbon markets. citeturn0search3
By actively participating in these evolving carbon markets and meeting established requirements, industries in Japan can contribute to national sustainability objectives while potentially benefiting from economic incentives associated with emission reductions.
Get an In-Depth Research Analysis of the Japan Non-Raphitizable Carbon Market Size And Forecast [2025-2032]
Kuraray
JFE Chemical
Stora Enso
Kureha
Sumitomo
Xiamen Tob New Energy
ANR Technologies
Shanshan Technology
BTR
PUTAILAI
Shengquan Group
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Japan Non-Raphitizable Carbon Market
Voluntary Carbon Credits
Regulatory Carbon Credits
Certified Emission Reductions (CERs)
Emissions Reduction Units (ERUs)
Removal Units (RMUs)
Energy Sector
Renewable Energy Providers
Fossil Fuel Industry
Reforestation and Afforestation
Soil Carbon Sequestration
Energy Efficiency Programs
Waste Management and Landfill Projects
Industrial Process Improvements
Net-Zero Commitments
Science-Based Targets Initiatives (SBTi)
Corporate Social Responsibility (CSR) Programs
Philanthropic Carbon Offset Initiatives
Private Sector Organizations
Large Corporations
Small and Medium Enterprises (SMEs)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
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1. Introduction of the Japan Non-Raphitizable Carbon Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Japan Non-Raphitizable Carbon Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Japan Non-Raphitizable Carbon Market, By Type
6. Japan Non-Raphitizable Carbon Market, By Application
7. Japan Non-Raphitizable Carbon Market, By Geography
Asia-Pacific
China
Japan
Korea
India
Australia
Indonesia
Thailand
Philippines
Malaysia and Vietnam
8. Japan Non-Raphitizable Carbon Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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