Japan Purchases Largest Share of Emissions Credits

According to an announcement by the World Bank on May 10, 2006, Japan purchased the greatest amount of emissions credits in the global market for greenhouse gas emissions during the period January 2005 to March 2006. Japan purchased 38 percent, the largest share of the buyer's market, followed by the United Kingdom (15 percent), Italy (11 percent), the Netherlands (8 percent), and Spain (5 percent). Japan made the biggest purchase in 2004 as well.

As for the seller's market during the same period, China's was the largest share, accounting for 66 percent of the global volume, followed by Brazil (10 percent). In 2004, India was the leading seller, accounting for 43 percent, while Brazil sold 8 percent and China 5 percent.

The Japanese government has been certifying projects related to the Clean Development Mechanism and Joint Implementation since December 2002, in an effort to effectively utilize the Kyoto Mechanisms. The number of certified projects reached 56, as of July 10, 2006. These projects have been implemented in 22 countries: seven projects respectively in Brazil, Malaysia and China, five in Chile and four each in South Korea, Viet Nam and India.

Through emissions trading, Japan is expected to reduce its annual emissions by about 39 million tons of carbon dioxide equivalent (tCO2e), roughly 2.9 percent of its total greenhouse gas emissions for fiscal 2004, 1.355 billion tCO2e. Meanwhile, Japan's total emissions in fiscal 2004 were 8.0 percent higher than its level in 1990, the benchmark year of the Kyoto Protocol. To achieve a 6 percent reduction, its commitment under the Protocol, Japan will have to reduce its emissions 14 percent by 2010.

http://carbonfinance.org/docs/StateoftheCarbonMarket2006.pdf
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20916434~menuPK:34463~pagePK:34370~piPK:34424~theSitePK:4607,00.html

Posted: 2006/09/10 10:23:58 PM
Japanese version