Xpansiv, a market infrastructure provider for the global energy transition, and enechain Corporation, Japan’s energy marketplace operator, have signed a Memorandum of Understanding (MOU) to enable Japanese companies to access high-quality voluntary credits.
The partnership would connect enechain’s Japan Climate Exchange (JCEX) with Xpansiv Connect, the open-access integration hub for environmental commodity markets. The integration will grant Japanese companies access to high-quality voluntary credits, including those aligned with the ICVCM Core Carbon Principles and CORSIA, as well as International Renewable Energy Certificates (I-RECs). This will allow Japanese firms to trade numerous project-specific carbon credits and standardised contracts via JCEX, supported by Xpansiv’s market infrastructure and CBL exchange.
Japan’s government aims for carbon neutrality by 2050, necessitating substantial greenhouse gas (GHG) emissions reductions by companies. Companies with robust environmental initiatives are increasingly attracting consumer and investor support, gaining a competitive edge. However, many Japanese companies struggle to achieve carbon neutrality independently due to technical limitations and other factors. The use of carbon credits, like J-Credits, is crucial, but Japan’s current supply of around 1.5 million tonnes per year is insufficient to meet the growing demand for carbon offsets.
This partnership will enable enechain to facilitate carbon credit transactions for Japanese companies and provide access to Xpansiv’s market data solutions, promoting price transparency and awareness of the broader environmental commodities market to enechain clients. Additionally, this collaboration will create future opportunities for Xpansiv participants to access enechain products and pricing.
The two companies are also exploring the potential to make Japanese J-credits tradable on Xpansiv’s CBL platform, the largest carbon credits spot marketplace.
Ryo Nozawa, enechain’s founder and CEO, stated, “Through this partnership, Japanese companies aiming for carbon neutrality will be able to procure carbon credits on a previously-unattainable scale, quickly and hassle-free. We are proud to contribute to the decarbonisation of Japanese society by promoting the development of carbon-neutral products and services in Japan.”