Osaka Launches Own Carbon Offset System to Promote Energy Conservation in Smaller Firms

Osaka Prefecture in western Japan has established its own intermediation system for carbon offsets in 2009. It is intended to help small- and medium-size companies in the prefecture to sell their reductions in carbon dioxide (CO2) emissions or carbon credits produced by their efforts to large companies, and thus promote energy conservation in smaller firms. Osaka announced on June 29, 2010, that the first application for carbon credits under the Japan Verified Emission Reduction (J-VER) credit scheme was submitted to the Ministry of the Environment from a company using the system.

Osaka set its target for greenhouse gas emission reductions in fiscal 2010 at 9 percent from 1990 levels. To achieve the target, it is essential to reduce CO2 emissions from small- and medium-size companies, which account for a quarter of the total CO2 emissions in the prefecture.

Under the national scheme, companies who produced carbon credits through their energy conservation efforts must find buyers by themselves. Since it is not always easy for smaller firms to find buyers, Osaka established and is operating its own intermediation agency to match the needs of sellers (smaller firms) and needs of buyers (large firms) in cooperation with the Osaka Center for Climate Change Actions.

Since the national credit scheme has been dealing with forest- and biomass-related projects, the application using the Osaka system is the first one that relates to energy conservation efforts in Japan. Osaka plans to find a buyer of the credits, which are scheduled to be issued within fiscal 2010.

MOE Adopts Eight Model Carbon Offset Projects (Related JFS article)
http://www.japanfs.org/en/pages/029908.html

Posted: 2010/09/29 06:00:15 AM