Tokyo, Aug. 5 (Jiji Press)–An expert panel of Japan’s industry ministry proposed Thursday creating a carbon dioxide emissions trading market in which companies with voluntary emissions reduction goals would participate.
The proposal was included in an interim summary of discussions at the panel, which has been studying carbon pricing mechanisms since February.
The ministry plans to draw some conclusion on a carbon pricing system by the year-end.
But coordination will be needed within the government, with the Environment Ministry discussing forcible mechanisms to promote emissions reductions, such as a carbon tax, to be imposed according to the amounts of emissions, and an emissions trading system joined by all related companies.
The industry ministry panel’s proposal calls for creating a carbon-neutral top league consisting of companies that have set voluntary goals of CO2 emissions cuts.
The participating companies would work to reduce CO2 emissions generated from their business operations, by such efforts as using energy from renewable sources and adopting new technologies.
The emissions reductions in excess of their goals would be certified by the government as emissions credits, which could be traded in a carbon credit market.
In the envisaged market, multiple kinds of credit would be traded, also including a carbon offset credit that companies could obtain by supporting reforestation projects.
Companies failing to meet their reduction goals could buy credits in the market to make up the shortfalls.
The ministry aims to start a demonstration test of the emissions trading market in fiscal 2022.