TOKYO, May 28 (Bernama-Kyodo) — Japan’s parliament on Wednesday enacted a revised law requiring 300 to 400 major firms to participate in a carbon emissions trading system set to launch in the fiscal year beginning April 2026, Kyodo news agency reported.
The legislation forms part of the country’s broader green transformation and decarbonisation efforts.
It targets companies emitting 100,000 tonnes or more of carbon dioxide annually, including those in key industries such as steel and automobile manufacturing.
The government estimates these firms are responsible for nearly 60 per cent of Japan’s domestic greenhouse gas emissions.
Under the scheme, each company will be granted a maximum emissions allowance.
Firms exceeding their limit must purchase carbon credits on the market, while those emitting below their cap can sell surplus credits.
This mechanism is designed to encourage emission reductions across various sectors.
However, authorities have warned that companies may pass on the cost of decarbonisation to consumers, potentially leading to price increases.
— BERNAMA-KYODO