carbon credits and renewable energy certificates, etc.

carbon credits and renewable energy certificates, etc.

In this research and analysis, environmental values are defined as the volume of CO2 reduced/eliminated/absorbed by the company through its business activities. The domestic market where carbon credits and renewable energy certificates (including non-fossil fuel energy) are traded (purchased and sold) refer to the credit/certificate trading market. In addition to market-based trading, credits and certificates are also traded on a relative basis. The credit and certificate trading market and relative trading are collectively referred to as the environmental value market.
This report surveys and analyzes domestic trends in the environmental value market, where carbon pricing (CP) is used for efficient reduction of CO2 emissions and where carbon offsetting is performed through trading of environmental value, looking to achieve carbon neutrality by FY2030 (interim target) and FY2050 (final target). It provides future Market size transition forecast (By 2050: CO2 basis/value basis) and outlook.

I   Current Status of Environmental Values and Carbon Pricing

1. Definition and Meanings of "Environmental Value"
   1) Definition of "Environmental Value"
   2) Meaning and Purpose of "Environmental Value"
   3) Methods to Apply or Appeal "Environmental Value"
   4) Creation and Challenges of "Environmental Value"
2. Types and Characteristics of Major Environmental Values
   1) Carbon Credits
   2) Renewable Energy Certificates
   3) Comparison between J-Credit and Renewable Energy
       Certificates
   4) Emission Trading Scheme (ETS)
   5) Other Explicit Carbon Pricing
   - the Global Warming Countermeasure Tax, Carbon Tax
   - Heavy oil and coal tax
   - Fossil Fuel Levy, etc.
   6) Implicit Carbon Pricing
   - Act on Promotion of Global Warming
     Countermeasures/Energy Saving Law
   - Sophisticated Methods of Energy Supply Structures
   - Other Regulations
   - Subsidies, etc.

II    Environmental Value Procurement/Trading Methods

1. Method to Procure Electricity from Renewable Energy/Decarbonized Energy by Demanders
   1) Procurement types
   2) Purchasing electricity from electricity retailers (green
       energy menu)
   3) Purchasing electricity via PPA scheme
   4) Purchasing/Procurement of renewable energy certificates
2. Environmental Value Procurement Method in Credit/Certificate Market
   1) Domestic credit/certificate market
   2) Carbon Credit Market (-> GX- ETS)
   3) GX League (-> GX- ETS)
   4) Non-Fossil Fuel Value Trading Market
   5) Other Carbon Credit Markets
   - Japan Climate Exchange
   - Carbon EX
   - Japan Carbon Credit Exchange

III    Forecast and Perspectives of Environmental Value Market

1. Growth-Oriented Carbon Pricing Scheme
   1) Green Transformation (GX) Policy Promotion
   2) Outline of Growth-Oriented Carbon Pricing Scheme
   3) Full Commencement of GX-ETS
   4) Incentives for GX Prior Investment
   5) Application of New Financial Methods
2. Seventh Strategic Energy Plan and Visions toward GX2040
3. Positioning of Credits/Certificates in Carbon Neutrality Projects
4. Future Challenges and Directions of Credits/Certificates
5. Environmental Value Market Trends
   1) Carbon Credits
   2) Renewable Energy Certificates
6. Trend of Carbon Pricing
7. Estimated Forecast and Future Perspectives of Environmental Value Market