JBIC and Nikkei Start Announcing the Indicative Price of Carbon Trading

The Japan Bank for International Cooperation (JBIC) and Nikkei (Nihon Keizai Shimbun) Digital Media have started to calculate and announce the "Nikkei-JBIC Carbon Quotation Index" since April 2008. The purpose of this index is to support Japanese firms' efforts to reduce GHG emissions by using carbon credits.

The Carbon Credit Trading Platform, which was co-established by JBIC and Japan Institute for Overseas Investment (JOI) in November 2007, provided information about carbon emissions projects issued by U.N. and received inquiries. But actual domestic emissions trading has been limited in volume and executed via cross trade transactions, with prices remaining undisclosed. Since quite a few inquiries about prices came to the Platform, JBIC and JOI decided to make the indicative price available to the public in Japan.

Since April 21, EcoSecurities Japan, JP Morgan Securities Japan, Natsource Japan, Fortis Bank and Marubeni Corporation have been cooperating to compute the indicative price, all of which are the major participants of the both domestic and international carbon markets. On November 10, three new companies of Barclays Capital Japan, Orbeo/Rhodia Japan, and Sumitomo Corporation joined as the cooperating companies. Every Monday, both average and median prices are announced for ask and bid quotations.

- Japan Bank for International Corporation official website
http://www.jbic.go.jp/en/
- Nikkei-JBIC Carbon Quotation Index
http://www.joi.or.jp/carbon/h_index.html

Posted: 2008/11/25 06:56:31 AM