Environment Ministry Panel Proposes Voluntary Domestic Emissions Trading

An expert panel of Japan's Ministry of the Environment recently released a report that tentatively proposes direct-trading of greenhouse gas emissions rights among companies in Japan. In the report on a domestic greenhouse gas emissions trading system, companies are encouraged to set their own emission quotas voluntarily on six types of greenhouse gases and transfer or acquire part of the quotas. The ministry aims to introduce a voluntary emission rights trading system on a trial basis during 2003 and 04, as part of an effort to meet Japan's carbon dioxide emissions reduction commitments under the Kyoto Protocol. The scale of such a voluntary emissions trading scheme remains uncertain, however, as companies lack incentives to participate, since they are not obliged to reduce emissions of greenhouse gases at present. Thus, the ministry is considering giving support or incentives to companies, and planning to include such expenses in the budget request for fiscal 2003.





Posted: 2002/08/22 06:34:44 AM
Japanese version