Japan's Hyogo Prefecture Adopts the Kyoto Protocol's CDM to Reduce GHG Emissions

Hyogo Prefecture announced, in July 2008, that it plans to introduce use of a system like the Clean Development Mechanism (CDM) across the prefecture in fiscal 2009, on a trial basis, in order to reduce greenhouse gas (GHG) emissions. Through the system being set up, large businesses will support small- and mid-sized businesses technically and financially to cut their carbon dioxide (CO2) emissions in return for emissions credits. The system's finer details will be determined by the end of March 2009 by a study group focused on measures to cut CO2 emissions.

The CDM is one of the flexibility mechanisms that can be used to achieve the goals set under the Kyoto Protocol, basically part of an international emissions trading regime including financial and technical support programs between developed and developing countries. The prefecture-based CDM program is an area-limited domestic version in Japan. About 630 large businesses, each of which uses over 1,500 liters of fuel annually (crude oil equivalent) are required to set emissions targets. If a company fails to achieve its target, despite its reduction efforts, it must obtain emissions credits from local small- and mid-sized businesses by supporting them with installation of energy saving equipment.

In fiscal 2009, the prefecture will start the project on a trial basis between the largest 200 emitters and smaller businesses in their groups. The prefecture expects more companies to join the project from 2010 onwards, and it plans full implementation of the project in 2011 to accelerate the reduction of GHG emissions in the prefecture.

- Hyogo Prefecture official website
http://web.pref.hyogo.jp/FL/index.html

Posted: 2009/02/07 06:00:15 AM