Sojitz Corporation Subsidiary CoalinQ and Smart Energy Set to Establish Domestic Emission Rights Trading Market
- Activation of emission rights trading through the establishment of Japan’s first trading market -
Mar. 30, 2010
Smart Energy Co., Ltd.
CoalinQ Corporation, a wholly-owned subsidiary of Sojitz Corporation, and Smart Energy Co., Ltd., have reached agreement for the joint establishment of a private CO2 emission rights trading market in Japan. In April 2010, the two companies will launch Japan Climate Exchange Corporation (“JCX”) as the operating company that will be in charge of emission rights trading. This will be Japan’s first emission rights trading market to handle all types of emission rights.
The Tokyo Cap-and-Trade Program, JDCM and Tradable Green Certificates represent some of the domestic emission rights trading systems. However, due to the lack of a common trading market, difficulties have occurred in mutual utilization, comparisons, interchanges and so forth between the various schemes. The JCDM anticipates the cumulative reduction over the next decade to be about 8 million tons, while The Tokyo Cap-and-Trade Program expects a reduction of some 5 million tons in the first term (FY2010-14). Meanwhile, through its exclusive Website, JCX will provide a fair and transparent trading market for emission rights trading centered in domestic emission rights with the aim of activating emission rights trading.
The services to be provided by JCX will include trading market management and the provision of environmental information. In its trading market operations, it will provide an online venue for the domestic emission rights for Tokyo Credit, Tradable Green Certificates, JCDM, J-VER and others as well as emissions rights trading originating in the Kyoto Mechanism and will provide means for the seamless matching of buyers and sellers and completion of trade settlements. Furthermore, in the provision of environmental information, in addition of general environmental and market condition information, it will also provide trading information (trade volumes and prices) centered in domestic emission rights required for the formation of an equitable market.
Once JCX is established, the two companies intend to begin providing service starting May 1, 2010.
Summary of the new company (Japan Climate Exchange Corporation)
|Company Name||Japan Climate Exchange Corporation|
|Address||6-1-20, Akasaka, Minato-ku, Tokyo|
|Purposes||① Emission rights trading market management
② Provision of environmental information
③ Advertising operations for environmental enterprises
④ All operations incidental or related to the above
|Shareholders||CoalinQ Corporation (60%) Smart Energy Co., Ltd. (40%)|
Summary of shareholder companies
|Company Name||CoalinQ Corporation|
|Address||1-20, Akasaka 6-chome, Minato-ku, Tokyo 107-8655|
|TEL/FAX||03-3586-4122 / 03-3586-4125|
|Established||January 31, 2001|
|Management||Tetsuo Furuta President
Masanori Eto Director
Yutaka Takemura Director
Yuji Ogino Auditor
|Capital||299.85 million yen|
|Shareholder||Sojitz Corporation (100%)|
|Member companies||230 (as of February 28, 2010)|
|Company Name||Smart Energy Co., Ltd.|
|Address||1-4-9, Nishi-Shinbashi, Minato-ku, Tokyo 105-0003|
|TEL/FAX||03-3581-9060 / 03-3581-9062|
|Established||April 24, 2007|
|Management||Takuya Ogushi CEO
Ken’ichi Mukai Executive Managing Director
Hirotaka Negishi Director
Mayumi Yoshida Director
|Business activities||Advisory operations relating to GHG management
|Capital||84 million yen|