Two Municipal Governments Decide on Metropolitan Cap-and-Trade Cooperation Details

Tokyo Metropolis and Saitama Prefecture, a prefecture adjacent to Tokyo, decided in May 2011 the details of their cooperation in "The Pact for Cooperation between Tokyo and Saitama towards Spreading the Cap-and-Trade Scheme to the Metropolitan Region," which was signed in September 2010. The decision allows trading of credits (emission allowance) between the two areas under a carbon emissions trading system.

With the decision in May, the businesses in the two areas can trade two types of credits beyond their borders; excess reduction credits from large facilities that reduce their emissions beyond requirements; and the credits generated by the energy-saving efforts of small and mid-size establishments, for which reduction targets is not mandatory. The both parties have also agreed on the following: to jointly organize training sessions for verifying personnel of verification agencies who are in charge of actual verification processes; and to simplify the procedures to register forepersons with both governments. The verification by a verification agency, an independent organization, is necessary to determine the standard emission levels and the amount of credits.

Cooperation between Tokyo and Saitama in the cap-and-trade scheme will improve the effectiveness of the system in the two areas, and may spread the idea of cap-and-trade scheme throughout the Greater Tokyo area. In addition, it is expected to create green businesses. Credit of small and mid-size facilities will be tradable between the two systems in April 2012.

Tokyo Metropolitan Government Leads Japan, Launches Own GHG Emissions Cap-and-Trade Program
http://www.japanfs.org/en/mailmagazine/newsletter/pages/030080.html

Posted: 2011/10/25 06:00:15 AM