ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Climate Change

Tougher EU emissions targets send carbon prices skyrocketing

Cap-and-trade system could cost Japan $24bn annually, analyst says

An oil refinery burns off natural gas.   © Reuters

TOKYO -- Prices for greenhouse gas emissions allowances have swelled this year as governments set increasingly ambitious goals to tackle climate change.

The cost of a permit to emit 1 ton of carbon dioxide under the European Union's cap-and-trade system has surged roughly 30% since the end of last year, fueling concerns about a financial burden on companies that risks reducing competitiveness. A similar program in Japan could cost businesses an estimated $24 billion a year.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more