Japan's Ministry of Economy, Trade and Industry (METI) has established a financial system that allows contributions from government financial institutions to support the launch a "Carbon Fund" designed to encourage private companies to embark on overseas programs to cut greenhouse gas (GHG) emissions.

The Carbon Fund is expected to fund overseas GHG emissions reduction projects and distribute the reduced quantity as "emission credits" among companies investing in the fund.The Ministry is promoting investments by private companies as the main source for the Fund. The newly established lending system will allow governmental financial institutions, such as the Development Bank of Japan and the Japan Bank for International Cooperation, to make investments as well.

The Kyoto Protocol approved Joint Implementation (JI) and the Clean Development Mechanism (CDM) as supplementary measures (the Kyoto Mechanisms) to allow developed countries to trade as emission credits quantities of GHG emissions reduced as a result of GHG reduction projects undertaken in developing countries. These supplementary measures are drawing increasing attention because they offer possibilities for low-cost GHG emission reductions. The Ministry has received many inquiries and requests for consultation as interest rises among private companies. The Carbon Fund has been conceived as a means to help private companies undertake such measures.

According to the government's Guideline of Measures to Prevent Global Warming, out of a total goal of 6 percent reduction in Japan's GHG emissions from 1990 levels by 2008-2010, 1.6 percent is to be attained through Kyoto Mechanism programs.




Posted: 2003/06/05 10:46:58 AM
Japanese version

TAG Global warming , Government , Manufacturing industry , Non-manufacturing industry , System/Law