The Ministry of Economy, Trade and Industry (METI) will add hydrogen to the scope of application for the system that allows companies to buy and sell reduced greenhouse gas emissions. While discussions are still underway on a new system for pricing emissions and buying and selling emissions worldwide, METI will prop up the existing system for the domestic market to expand the scope of transactions.
METI, the Ministry of the Environment, and the Ministry of Agriculture, Forestry and Fisheries will review the ”J-Credit Scheme, ” the domestic trading system launched in 2013. Under this system, the government certifies the amount of greenhouse gas emissions that a company reduced through such actions as introducing energy-saving equipment. The company then sells its reduction to another company that wants to reduce emissions. Unlike “emissions trading,” which allocates emission allowances to companies, the J-Credit Scheme is based on user autonomy.
METI will consider adding to the scope of application power generation using hydrogen or ammonia that does not emit carbon dioxide (CO2) during combustion, and technology for collecting and storing carbon dioxide (CO2). In addition to energy reductions, CO2 absorption through forest management and reductions through the introduction of renewable energy can currently be bought and sold. Areas in which future technological innovation are expected were excluded. (Abridged)