Japan's first domestic CO2 credits total 990 tonnes
TOKYO, June 19 (Reuters) - The Japanese government on Friday approved the first set of domestic carbon credits generated from energy-saving projects at small businesses to help contain the country's greenhouse gas emissions under the Kyoto Protocol.
Japan, the world's fifth-biggest greenhouse gas emitter, has a plan to cut energy-origin CO2 by 1.8 million tonnes a year on average over the 2008-2012 period through such project-based credits, a supplementary way to buying Kyoto credits from abroad.
But whether the target under a nationwide scheme a part of which is subsidised is achievable is yet to be seen since the first credits from three projects at a university, a tinned food processor and a public spa totalled only 990 tonnes.
Since the scheme was launched in October big companies together with small businesses have requested approval for emission cuts from a total 118 projects.
Once approved by the government, big companies, which are usually fund suppliers to their partners, are able to buy credits to either offset their emissions or sell for profits.
"The carbon credits are now approved and become tradable. It is the first step forward," said Yutaka Fujiwara, a director at the Ministry of Economy, Trade and Industry's environment and economy policy.
"From the economic policy point of view... this scheme is important given the fact that it deals with how to utilise funds within a country," Fujiwara said.
The Japanese government as well as steel and power companies have plans to buy a total 350 million tonnes of Kyoto credits from abroad over the five-year period, taking advantage of investment into much higher-polluting developing countries. (For related factbox, click [ID:nT261487]) (Reporting by Risa Maeda)
