Companies, Ministry Succeed in GHG Emissions Trading Trial

The Ministry of the Environment of Japan announced on June 7, 2004 the results of a trial of domestic greenhouse gas (GHG) emissions trading. The MOE set up a "virtual" market four times between December 2003 and June 2004, in which 42 companies participated. The project resulted in the conclusion of a total of 255 contracts, and transfers of 2,417,886 tons of carbon dioxide (CO2) emissions quotas.

This trial project did not involve actual monetary transactions. The CO2 emission quotas and other conditions were valid in this project only. Participating companies worked to reduce emissions throughout fiscal 2003 and traded emission quotas in order to achieve their own voluntary emissions reduction targets and plans.

In April 2004, the companies calculated actual emissions, which were then checked by third-party verifiers. Following a procedure in June in which participating businesses "retired" their emission quotas, they compared the amounts retired with actual emissions, and determined whether or not they had met their targets.

The ministry considers the results as an indication that such emissions quota trading can actually work in Japan. It plans to continue gathering technical knowledge relating to the calculation and verification of emissions, trading and transfer of emission credits, etc., and apply it in the future.




Posted: 2004/10/12 02:33:51 PM
Japanese version