About 30 Companies in Mie Prefecture To Join Emissions Trading Simulation

Japan's Ministry of the Environment (MOE) will implement a greenhouse gas emissions trading simulation jointly with Mie Prefecture. Through voluntary participation of companies this simulation aims to help the business sector better understand emissions trading and gain further experience in the field.

Toward cost-effective reduction of greenhouse gas emissions and as a preparation for the implementation of the Kyoto Mechanisms based on the Kyoto Protocol, the domestic emissions trading system allows business entities in Japan to set emissions quotas and trade some of them. The UK introduced its own domestic emissions trading system in April 2002 and the EU is examining the launch of an EU-wide emissions trading system in 2005.

However, as Japan has no domestic emissions trading experience, the MOE will start the project together with Mie Prefecture in order to build the system. Mie Prefecture has embarked on its forest improvement projects and the construction of refuse-derived fuel (RDF) power generation facilities and will also study the possibility of giving credits for carbon dioxide absorption and emission reductions through these environmental measures.

Specifically, Mie Prefecture and about 30 companies located within the prefecture that approve the project will work in close coordination to implement the simulation. Credits will be given to the participating companies according to the amount of greenhouse gas emissions reduced through their measures and of absorbed carbon dioxide or increased forest sinks through improvement of forests. The participating companies will sell or buy own credits at an on-line virtual market while taking their emissions reduction costs into consideration.




Posted: 2002/11/29 06:14:21 AM
Japanese version