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Climate Change

Japan moves to mandate carbon trading for automakers

Sales quotas seen as crucial to boost shares of EVs and plug-in hybrids

Automobiles account for nearly 20% of carbon emissions in Japan. (Photo by Tomoki Mera)

TOKYO -- Japan begins talks next week on establishing a carbon offset market for the automobile industry as part of Prime Minister Yoshihide Suga's push for the country to achieve net-zero emissions by mid-century to combat climate change.

Automakers would be required to sell certain percentages of electrified vehicles within their product mix. Companies failing to meet the thresholds must buy greenhouse gas emissions credits from compliant industry peers. The market would be introduced in the late 2020s.

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