Report of the Study Group on Financial Infrastructure for Carbon Credit Trading

Carbon credits are expected to play an important role in achieving carbon neutrality by 2050, including providing incentives for decarbonization efforts. With the full-scale operation of the emissions trading system starting from fiscal year 2026, further expansion and diversification of trading is anticipated. Under these circumstances, similar to other financial assets, ensuring investor protection through improved transparency and financial integrity is crucial for the sound development of carbon credit trading.

From this perspective, the Study Group on Financial Infrastructure for Carbon Credit Trading (chaired by Professor Naoko Nemoto of Waseda University Graduate School of Business Administration) began in June 2024 and conducted a total of seven meetings. Through hearings with stakeholders primarily from the financial sector, the group worked to understand the actual situation of carbon credit trading while discussing initial issues and other topics.

Based on these discussions, the Study Group has compiled and now has published the "Report of the Study Group on Financial Infrastructure for Carbon Credit Trading".