Oct. 24 (Bloomberg) — The will start trading United Nations-emission credits and carbon- free electricity next month, a bourse official said.
The exchange plans to charge a 2,000 yen ($20.61) commission on each transaction of 10,000 tons of the , known as CERs, the official said under condition of anonymity because the details haven’t been announced yet.
Tokyo Electric Power Co., Marubeni Corp. and Merrill Lynch & Co. are among exchange members expected to start trading the credits. The trade ministry early this year directed the 40- member bourse to design the trading mechanism as part of efforts to reduce output of gases blamed for global warming.
“This is one of the government’s drives to boost trading of carbon credits in Japan,” said Kuniyuki Nishimura, research director of the global warming division of Mitsubishi Research Institute Inc. in Tokyo. “Liquidity, which helps give the credits the right market price, will be a focal point.”
The members will be allowed to place the bids and offers on the exchange’s bulletin board on an anonymous basis. The power exchange then helps match a buyer and seller, the official said. The exchange won’t have a clearing function for the trades.
Carbon-dioxide-free electricity, including power generated from nuclear, hydroelectric and solar power plants, will also be traded on the bourse’s platform, the official said. The exchange will charge a 0.03 yen per 1 kilowatt-hour for each transaction.
Under the UN’s Clean Development Mechanism, polluters can invest in projects that reduce carbon in poorer countries to offset their own emissions. The UN Framework Convention on Climate Change gives approval, or CER, to a CDM applicant following the project’s endorsement by local governments.
By Michio Nakayama and Shigeru Sato
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