Energy / Climate Change
September 27, 2003
Matsushita Starts In-house Emissions Trading System
Keywords: Climate Change Energy Conservation Manufacturing industry Policy / Systems
Japan's Matsushita Electric Industrial Co. announced that in July this year (2003) the Matsushita Group has started an in-house emissions trading system on a trial basis. The system will trade carbon dioxide (CO2) emission credits among its 125 domestic factories. All these factories will carry out the trading virtually, without actually buying or selling, in accordance with each factory's energy-saving policy posted on the group's intra-net.
Matsushita set a target of cutting CO2 emissions by 7 percent from FY 1990 levels by FY 2010. Based on the group's environmental action plan established in 2001, all divisions and affiliated companies have set their own three-year plans for saving energy and have been making efforts to achieve these targets. In spite of their efforts, however, the group's emissions are expected to increase significantly in the near future, especially in its electronic device sectors. To cope with this, starting in 2002 the group began studying how to set up an in-house emissions trading system, aiming to increase its employees' cost awareness for CO2 emissions as well as to further promote energy-saving measures.
This trading system is unique in that CO2 reduction targets are calculated based on an energy-saving rate* that is one of the group's indicators for environmental performance evaluation. Each factory does not place a cap on the absolute amount of CO2 emitted, but sets a reduction target calculated at a certain rate, so the target will not hamper the expansion of its business. Moreover, a factory can trade its own energy-saving plans with other factories through the intra-net. Through this system, CO2 reduction can be implemented through energy-saving schemes, while reduction by other means, such as overseas transfer, is not accepted.
Inefficient factories can obtain CO2 emissions credits in return for bearing the costs of energy reduction measures implemented at efficient factories. Thus introduction of an in-house emissions trading system enables the group to reduce CO2 emissions at low cost and to accelerate energy-saving activities. The group aims to implement the system on a full scale, while observing legislative developments.
*Energy-saving rate = energy saved (reduction of CO2 emissions) in the reference year / total energy use (total CO2 emissions) in the previous year
Posted: 2003/09/27 11:51:50 AM
Japanese version
Matsushita set a target of cutting CO2 emissions by 7 percent from FY 1990 levels by FY 2010. Based on the group's environmental action plan established in 2001, all divisions and affiliated companies have set their own three-year plans for saving energy and have been making efforts to achieve these targets. In spite of their efforts, however, the group's emissions are expected to increase significantly in the near future, especially in its electronic device sectors. To cope with this, starting in 2002 the group began studying how to set up an in-house emissions trading system, aiming to increase its employees' cost awareness for CO2 emissions as well as to further promote energy-saving measures.
This trading system is unique in that CO2 reduction targets are calculated based on an energy-saving rate* that is one of the group's indicators for environmental performance evaluation. Each factory does not place a cap on the absolute amount of CO2 emitted, but sets a reduction target calculated at a certain rate, so the target will not hamper the expansion of its business. Moreover, a factory can trade its own energy-saving plans with other factories through the intra-net. Through this system, CO2 reduction can be implemented through energy-saving schemes, while reduction by other means, such as overseas transfer, is not accepted.
Inefficient factories can obtain CO2 emissions credits in return for bearing the costs of energy reduction measures implemented at efficient factories. Thus introduction of an in-house emissions trading system enables the group to reduce CO2 emissions at low cost and to accelerate energy-saving activities. The group aims to implement the system on a full scale, while observing legislative developments.
*Energy-saving rate = energy saved (reduction of CO2 emissions) in the reference year / total energy use (total CO2 emissions) in the previous year
Posted: 2003/09/27 11:51:50 AM
Japanese version
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