Empowering Tokyo's SMEs with transparent carbon market access through integrated quality ratings

Partner: Tokyo Metropolitan Government

Industry: Government & Public Administration

Region: Japan 

Use Case: Platform integration for SME carbon market access 

Sylvera Products Used: Ratings platform integration, Market data

Impact: Enhanced market transparency, SME participation, and accelerated decarbonization initiatives

The Challenge

Building trusted carbon market infrastructure for SMEs

Tokyo Metropolitan Government (TMG), aiming for net-zero emissions by 2050, has been promoting various initiatives to help small and medium enterprises (SMEs) in Tokyo achieve decarbonization. 

As part of this effort, TMG sought to democratize access to quality carbon credits while maintaining the highest integrity standards, in order to ensure SMEs could participate in carbon markets. 

The challenge was to enable thousands of Tokyo-based SMEs to participate meaningfully in carbon markets - without the resources for extensive due diligence. Previously, the complexity of carbon credit quality assessment was a significant barrier in preventing SME participation.

The challenge was multifaceted. Access to quality carbon credits is one effective option for SMEs to achieve sustainability goals and enhance their own branding. However, many SMEs lacked the expertise to evaluate project integrity independently. Without trusted quality standards, the risk was either limited SME participation, or investment in low-quality credits that could undermine Tokyo's climate objectives.

"We needed to create a pathway for our SMEs to engage confidently with carbon markets while maintaining the highest quality standards. Quality assurance couldn't be an afterthought—it had to be built into the infrastructure itself," explains Takuya Fujii, Director for Industrial Policy Collaboration and Promotion, Industry Energy Policy Division, Bureau of Industrial and Labor Affairs at Tokyo Metropolitan Government.

Rather than leaving SMEs to navigate complex carbon markets independently, TMG partnered with Sylvera to integrate independent quality ratings directly into their platform, creating Japan's first local government-led carbon credit marketplace with embedded quality assurance.

Why Sylvera

Independent expertise integrated at the infrastructure level

TMG chose Sylvera for platform integration based on their established reputation for independent, science-based carbon credit ratings and their ability to deliver ratings at scale through technology integration. The partnership allows TMG to offer SMEs direct access to quality-assured carbon credits without requiring individual due diligence capabilities.

Sylvera's platform integration provides users of TMG’s carbon credit marketplace with real-time access to comprehensive carbon project ratings. The collaboration includes two core components:

Ratings Integration: Independent quality ratings embedded directly into TMG's platform, providing immediate project assessment visibility

Collaborative Framework: Joint workshops, webinars, and market development initiatives as outlined in a formal MOU

"Sylvera's independent ratings give us the confidence to offer SMEs a curated marketplace where quality is assured from the start. We're not just facilitating transactions, we're building market integrity for our users," says Takuya Fujii, Director for Industrial Policy Collaboration and Promotion, Industry Energy Policy Division, Bureau of Industrial and Labor Affairs at Tokyo Metropolitan Government.

Transforming Market Access

Platform integration enabling SME participation

The partnership created Japan's first local government-led carbon marketplace with integrated quality ratings. TMG's platform now displays Sylvera's independent assessments alongside project information, enabling SMEs to make informed decisions without requiring specialized carbon market expertise.

On TMG’s platform, users can browse and compare various projects, while also accessing quality filtering options, and educational resources that help SMEs understand carbon credit fundamentals.

"This partnership demonstrates how local government leadership can accelerate market development by removing barriers and ensuring quality standards from the ground up," explains Allister Furey, CEO, Sylvera.

The Results

Enhanced market participation and quality standards

Through this partnership, the following measurable outcomes across TMG's decarbonization objectives are expected: 

1. Increased SME participation in carbon markets 

Platform integration will enable a large number of Tokyo-based SMEs to access quality-assured carbon credits, expanding participation in the city's carbon trading system beyond large corporations.

2. Quality-first market development 

By embedding independent ratings at the infrastructure level, TMG created market incentives for high-quality projects while protecting SME participants from investment risks associated with lower-quality credits.

3. Collaborative market education 

Joint workshops and webinars will reach a large number of business participants, building carbon market literacy and confidence among Tokyo's SME community.

4. Strategic positioning in Japan's carbon markets 

The partnership will position Tokyo as a leader in transparent, quality-driven carbon market infrastructure, potentially serving as a model for other climate-focused cities and regions.

"By integrating quality assurance directly into our platform infrastructure, we aim to establish a foundation of market integrity and broad-based business participation, accelerating Tokyo’s transition toward net-zero." — Takuya Fujii, Director for Industrial Policy Collaboration and Promotion, Industry Energy Policy Division, Bureau of Industrial and Labor Affairs at Tokyo Metropolitan Government.

Through the comprehensive approach - combining immediate platform access with systematic education - TMG is providing both the technical infrastructure and knowledge base needed for sustained SME engagement.

"Our collaboration with TMG represents a shared commitment to building lasting carbon market capabilities across Tokyo's business community. Beyond providing ratings intelligence, we're investing in education that will serve these companies for years to come," said Allister Furey, CEO, Sylvera.