Tokyo's carbon credit programme enters a new phase in the fiscal year 2026 (FY2026), with the Tokyo Metropolitan Government (TMG) opening applications for its Carbon Credit Utilisation Promotion Project. The scheme, first introduced in FY2025, provides financial support to businesses seeking to calculate their emissions and promote carbon credit projects under Japan's domestic J-Credit scheme.
Employees in a modern Tokyo office work on developing new carbon-neutral strategies, reflecting Japan’s expanding corporate engagement in carbon credit projects. AI generated picture.
Applications are open now and will be accepted through 31 March 2027, subject to budget availability. Projects must submit completion reports by 24 December 2027 to qualify for funding.
The grant structure differs based on company size. Small and medium-sized enterprises (SMEs) can access up to JPY2 million ($12,614) to cover the cost of calculating their emissions footprint, as well as branding and promotional activities linked to their carbon projects. Larger businesses are eligible for up to JPY1 million ($6,307) towards carbon project promotion.
SMEs accepted into the programme in FY2026 will also benefit from a dedicated loan scheme and subsidies covering two-thirds of the credit guarantee fee, a set of measures that reduce the financial barrier to entry for smaller operators.
Read more: Energy majors post record carbon credit retirements as nature-based solutions lead the way
The J-Credit scheme is a domestic framework for generating and trading carbon credits. TMG's initiative sits within its broader Zero Emission Tokyo Strategy, which targets net-zero CO₂ emissions across the city by 2050.
On the infrastructure side, TMG is working with trading platform Carbon Ex to connect its system with Tokyo's carbon credit market, launched in March 2025. Once complete, a portion of the carbon credits managed by Carbon Ex will become accessible through an application programming interface (API) linked to the city's market, thus broadening the pool of credits available for trading, which includes both J-Credit units and overseas voluntary carbon credits.
These developments coincide with the launch of the second phase of Japan's GX (Green Transformation) emissions trading scheme, signalling continued momentum in the country's carbon market infrastructure.
Read more: Emissions accounting without an ESG team: achieving the best of both worlds for SMEs
As carbon markets expand and more cities and governments create frameworks to support corporate participation, businesses that act early position themselves ahead of the curve. At Green Earth, we develop and manage nature-based carbon credit projects across Africa and Asia—giving businesses direct access to verified carbon units that are rigorously monitored and independently certified. Whether you are taking your first steps in the carbon market or looking to strengthen an existing strategy, our portfolio offers transparent, high-integrity options.
