Japan has become the world’s first country to accept durable carbon dioxide removals in its national emissions trading system, the Green Transformation ETS (GX-ETS). This move is part of a growing trend in Asia to create space for high-quality voluntary credits for compliance obligations. The first phase of Japan’s ETS, launched in 2023, will last until the end of March 2026 and involve voluntary participation from domestic companies. It will transition into a compulsory ETS after 2026. The accepted carbon removal methodologies include carbon capture and utilisation (CCU), bioenergy with carbon capture and storage (BECCS), coastal blue carbon, and direct air carbon capture and storage (DACCS).

Source: Carbon Herald