FACTBOX-Eight Japan power firms fall short of CO2 targets

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Aug 12 (Reuters) - Eight of Japan's 10 power firms failed to
meet their self-imposed CO2 emission-cut targets last year,
paving the way for the sector to buy more carbon rights from
abroad in a bid to improve its "green" credentials.

Power companies may offset part of their CO2 emissions with
carbon credits they buy either from abroad under the Kyoto
Protocol's market mechanisms or from other Japanese companies
via newly established domestic trading schemes.

All but Kyushu Electric Power Co (9508.T) and Shikoku
Electric Power Co (9507.T) failed to meet their own targets in
the first year of the Kyoto period mainly due to lower than
planned utilisation of carbon-free nuclear power plants.

Japan, the world's fifth-biggest emitter, aims to reduce
greenhouse gas emissions by 6 percent below 1990 levels over
2008-2012, the period covered by Kyoto.

Power companies have voluntarily set a carbon intensity
goal, which allows for higher emissions if efficiency improves.
Each power firm is to emit 20 percent less CO2 per kilowatt hour
than the 1990 levels. Those targets, although not legally
binding, have become a core part of the government commitment
under Kyoto.

TEPCO, for example, produced 4.6 percent less CO2 emissions
in the year to March 2009 than a year earlier as its electricity
sales fell 2.8 percent to 289 billion kilowatt hours.

In addition, it offset 20 percent of the emissions with 24.8
million tonnes of Kyoto-backed carbon credits it bought from
abroad. Given adjusted emissions of 95.9 million tonnes, TEPCO
produced 0.332 kg of CO2 per kilowatt hour last year.

But it still fell short of its goal for the five years to
March 2013 of 0.304 kg.

TEPCO is set to restart its Kashiwazaki Kariwa nuclear
plant, the world's biggest, after a halt of more than two years.

But it is not yet known when all seven of the plant's
reactors will resume running and contribute to TEPCO's goal of
lowering its annual CO2 intensity rate by about 0.07 kg of CO2
per kilowatt hour.

Earlier this year Japan launched a domestic carbon trading
scheme, in which big companies with self-imposed goals invest in
energy saving projects in smaller companies, and in exchange
receive carbon credits to offset their emissions.

But such credits are small and their cost is relatively
high.

Analysts say it would be premature for the sector to use
another government scheme, being floated on a trial basis, which
enables over-the-counter trade of carbon rights among big
companies.

Below are details of carbon intensity rates, based on CO2
emissions partly offset by carbon credits, provided by the 10
power companies, with the worst performer at the top (CO2
emissions in millions of tonnes, 2008/2009 electricity sales in
billions of kilowatt hours and CO2 intensity rate in kg per
kilowatt hour);

07/08 08/09 08/09 target

CO2 emissions elec sales per-unit CO2

in mln tonnes in bln kwh in kg/kwh
Hokuriku actual 18.51 15.47 28.2
(9505.T) adjusted 13.60 0.483 0.32
Hokkaido actual 16.78 18.72 31.8
(9509.T) adjusted 18.72* 0.588 0.42
Okinawa actual 7.0 7.1 7.5
(9511.T) adjusted 7.1* 0.946 0.69
Chubu actual 64.67 59.05 129.7
(9502.T) adjusted 55.06 0.424 0.371
Tokyo actual 126.5 120.7 289.0
(9501.T) adjusted 95.9 0.332 0.304
Kansai actual 54.99 51.73 145.9
(9503.T) adjusted 43.60 0.299 0.282
Tohoku actual 39.79 38.02 81.1
(9506.T) adjusted 27.60 0.340 0.322
Chugoku actual 43.07 41.29 61.2
(9504.T) adjusted 30.68 0.501 0.491
Shikoku actual 11.46 10.85 28.7
(9507.T) adjusted 9.37 0.326 0.326
Kyushu actual 34.1 32.1 85.9
(9508.T) adjusted 29.9 0.348 0.348
TOTAL actual 416.87 395.03
CO2 adjusted 331.53**
*Hokkaido and Okinawa did not redeem any carbon credits to
calculate their carbon intensity ratios for 2008/2009.
**Companies declined to comment on whether the value each
accounted as CO2 credit costs in its earnings report for fiscal
2008/2009 represents the volume of carbon credits it redeemed
this time.
(Reporting by Risa Maeda; Editing by Michael Watson)