Japan is preparing to adopt carbon pricing from FY2026 in pursuit of net-zero emissions by 2050. Developing an equilibrium price of carbon would offer several key advantages in terms of achieving the Japanese government’s decarbonization targets via energy transition and leveraging market mechanisms to drive sustained economic growth. One such advantage is maintaining accountability to the Japanese public and international community. Others include that an equilibrium price that balances carbon emissions market demand with supply would encourage constructive behavioral change among stakeholders.

Download (624KB)

About the Author

• 

  Junko Ishikawa

  Expert Researcher

  Financial Market & Digital Business Research Department