STORY

What are the imminent threats to the energy industry?

The energy industry faces two major threats: geopolitical risks and climate change.

Unlike resource-rich countries like the US, Japan has limited natural resources. When geopolitical tensions arise, such as Russia’s invasion of Ukraine or conflicts in the Middle East, the prices of crude oil and natural gas spike, and in turn, the cost of electricity increases. Japan’s dependency on imported energy makes it vulnerable to these price fluctuations, which can destabilize the economy.

Climate change presents an even greater challenge. Extreme weather events, rising sea levels, melting glaciers, and changing ecosystems are increasingly evident in many parts of the world. In response, Japan committed in October 2020 to reducing its overall greenhouse gas emissions to zero by 2050.

Since its founding in 2019, enechain has been a transformative force in the energy industry, striving to address these threats through the formation of markets. 

Potential Impact of Two Global Threats

Evidence Behind the Two Global Threats

Eliminating the two threats with market power

Our approach leverages the power of markets to mitigate geopolitical risks and combat climate change.

In the resource sector, we developed “eSquare Live,” an online marketplace for trading energy commodities like electricity and natural gas. This platform helps companies hedge and stabilize their prices, reducing their vulnerability against market fluctuations. Today, over 300 companies participate in our marketplace, making it Japan’s largest energy market in terms of trade volume with an annual turnover exceeding 1 trillion JPY.

To address environmental concerns, we launched “JCEX”, a marketplace for trading environmental commodities, which we term “green currency”. Green currency is a financial incentive given to activities that benefit the global environment and advance decarbonization. By enabling the trade of green currency, JCEX accelerates decarbonization throughout supply chains, driving a faster transition to a carbon-neutral society. This initiative also promotes monetization and development of renewable energy sources. 

enechain’s Solutions

Solving Various Challenges Through a Broad Range of Products

Coloring our society through the energy markets

In Japan, reliable access to energy is often taken for granted, with power outages being rare events except during major disasters. Stable energy flow and a healthy global environment are essential for our daily lives. Thus, the energy and environmental commodity markets we provide form the “foundation of society” that supports each and every one of us.

We believe in the power of markets, enriching Japan’s economy and making society sustainable. Through our support of the everyday infrastructure—the energy marketplace, enechain is committed to bring colors to society as a whole.