Japanese policy review
The Government of Japan is undertaking a review of climate change policy, according to the FT.
“Japan’s trade and industry ministry will discuss imposing caps on greenhouse gas emissions as part of a review of measures to combat global warming after the Kyoto protocol expires in 2012.
The review, to be completed by June, has led to speculation that the trade ministry (Meti) may be preparing to reverse its objection to a cap-and-trade system. Until now it has backed big business’ insistence on a voluntary scheme.
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Japan is looking at ways to help its electric power producers meet voluntary caps agreed under the Kyoto framework. A separate Meti commission is examining whether to allow the utilities, responsible for about 30 per cent of Japanese CO2 emissions, to buy and sell credits through Tokyo’s wholesale power exchange.
The country’s overall emissions are running at 6.4 per cent above 1990 levels, although Tokyo has pledged to cut that to 6 per cent below the 1990 baseline.
Power companies have committed to a 20 per cent reduction by 2010 but shutdowns at nuclear plants have forced them to rely more on coal, and most “are not going to hit that target”, Meti said. “The idea is that if a company over-achieved it could sell offsets to a company that was behind.” “