NIPPON


 

The Japanese government adopted a bill Tuesday to oblige companies that emit at least 100,000 tons of carbon dioxide a year to participate in the country's carbon emissions trading system.

According to the bill to revise the law on promoting green transformation, which the government abbreviates as GX, the obligation is expected to apply to 300 to 400 companies, particularly those in high-emitting industries including steelmaking.

Under the emissions trading system, to be introduced in fiscal 2026, the government will allocate CO2 emission quotas to participating companies every fiscal year.

Companies with emissions exceeding their quotas will be required to buy quotas on the trading market operated by the public-private GX Acceleration Agency.

Those that fail to procure additional quotas for their excess emissions will be required to pay a surcharge of 10 pct on top of the maximum trading price.