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JCM participants see potential with GX-ETS launch

  • Sebastien Cross
    Chief Innovation Officer & Co-founder
  • Markets and Policy

Here are some key takeaways from the report

  • Market participants expect JCM demand to grow slowly over the next few years

  • This is due to the high initial number of free allowances in the GX-ETS and the price corridor being set lower than expected (1700-4300 Yen, c. $11-30)

  • On the supply side, there is a focus on project types for which the cost is lower than the floor price of GX-ETS allowance.

  • Sign-off by the joint committee is seen as a key barrier to supply coming to market, with significant uncertainty around the process for host country authorisation

  • Some developers are looking to other markets now, like CORSIA, as a source of more near-term demand

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