FACTBOX-Japan considers new steps to cut emissions
Nov 5 (Reuters) - Japan's greenhouse gas emissions fell 1.3 percent in the year ended in March partly on a warm winter, reversing an increase the previous year, keeping pressure on the government to come up with aggressive steps.
Japan, the only Asian country with a Kyoto reduction target, is now considering a new policy, to be drafted by December and finalised by next March, on how to further cut emissions.
Preliminary data showed on Monday that emissions in 2006/07 totalled 1.341 billion tonnes in carbon dioxide (CO2) equivalent, exceeding the promised goal by Kyoto's biggest contributor, to be met by 2008-2012, by some 155 million tonnes a year.
The 2006/07 volume also surpassed the government's latest greenhouse gas emissions forecast for 2010 of 1.273 billion to 1.287 billion tonnes in CO2 equivalent, depending on economic growth.
In attempting to meet that aim, Tokyo has resisted any moves toward a carbon tax or a mandatory cap-and-trade system, such as the European Union's, to penalise polluters. It is instead relying on voluntary measures and overseas investments.
Here are the main measures:
VOLUNTARY TARGETS
The trade ministry has renewed its effort in recent months to convince the biggest industries to take on board voluntary cuts, winning promises from 21 industries -- from chemical makers to electronics to paper manufacturers -- to reduce a total of about 20 million tonnes more CO2 equivalent than previously planned.
But companies such as Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) and Tokyo Electric Power Co (9501.T: Quote, Profile, Research, Stock Buzz) have held off upgrading their targets.
The steel federation has said it plan to buy a total of 44 million tonnes of CO2 emissions credits in the five business years starting April 2008.
The Federation of Electric Power Companies of Japan has said it would buy 120 million tonnes of CO2 credits in the five-year period to help reduce CO2 emissions per kilowatt hour of electricity by 20 percent from 1990 levels.
FUND CLEAN PROJECTS
Japan currently aims to reduce some 20 million tonnes a year of emissions in CO2 equivalent by funding overseas clean energy investments via Kyoto's Clean Development Mechanism (CDM), which gives an investor credit for helping reduce emissions.
The government began investing directly in CDM projects in fiscal 2006/07, when it set aside 5 billion yen ($43.54 million) and entered forward contracts to buy 6.3 million credits, or 6.3 million tonnes of CO2 equivalent, during the 2008-2012 period.
Japan has secured 12 billion yen in its 2007/08 budget to fund CDM projects, and is seeking to more than double it to 32 billion yen in 2008/09, about enough to buy some 11 million credits based on current CER (certified emissions reduction) prices traded in London.
The CDM projects Japan has bought so far include those by Japanese trading firm Marubeni Corp (8002.T: Quote, Profile, Research, Stock Buzz), a Japanese unit of Rhodia (RHA.PA: Quote, Profile, Research, Stock Buzz) and Britain's Carbon Resource Management.
FOREST CONSERVATION
Japan hopes that its domestic forests will absorb some 48 million tonnes a year of emissions in CO2 equivalent during 2008-2012, and is seeking to spend 224 billion yen in a 2008/09 budget to conserve forest.
The amount accounts for the biggest chunk of a total 596 billion yen it requested to spend as immediate measures to reduce emissions. In fiscal 2007/08, the budget was 509 billion yen.
ZERO-EMISSIONS SECTOR
In 2008/09 Japan is seeking to spend 10 billion yen to promote new energy, such as solar, wind and biomass, and 12 billion yen for subsidies to support the nuclear sector.
But the indefinite closure of the world's biggest nuclear power plant, Tokyo Electric Power Co's (9501.T: Quote, Profile, Research, Stock Buzz) Kashiwazaki-Kariwa plant, after an earthquake in July is driving up fossil fuel use, raising carbon emissions.
A push toward using a cleaner auto fuel -- gasoline directly blended with 3 percent biomass ethanol -- has foundered on resistance from the powerful oil industry.
Japan, the only Asian country with a Kyoto reduction target, is now considering a new policy, to be drafted by December and finalised by next March, on how to further cut emissions.
Preliminary data showed on Monday that emissions in 2006/07 totalled 1.341 billion tonnes in carbon dioxide (CO2) equivalent, exceeding the promised goal by Kyoto's biggest contributor, to be met by 2008-2012, by some 155 million tonnes a year.
The 2006/07 volume also surpassed the government's latest greenhouse gas emissions forecast for 2010 of 1.273 billion to 1.287 billion tonnes in CO2 equivalent, depending on economic growth.
In attempting to meet that aim, Tokyo has resisted any moves toward a carbon tax or a mandatory cap-and-trade system, such as the European Union's, to penalise polluters. It is instead relying on voluntary measures and overseas investments.
Here are the main measures:
VOLUNTARY TARGETS
The trade ministry has renewed its effort in recent months to convince the biggest industries to take on board voluntary cuts, winning promises from 21 industries -- from chemical makers to electronics to paper manufacturers -- to reduce a total of about 20 million tonnes more CO2 equivalent than previously planned.
But companies such as Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) and Tokyo Electric Power Co (9501.T: Quote, Profile, Research, Stock Buzz) have held off upgrading their targets.
The steel federation has said it plan to buy a total of 44 million tonnes of CO2 emissions credits in the five business years starting April 2008.
The Federation of Electric Power Companies of Japan has said it would buy 120 million tonnes of CO2 credits in the five-year period to help reduce CO2 emissions per kilowatt hour of electricity by 20 percent from 1990 levels.
FUND CLEAN PROJECTS
Japan currently aims to reduce some 20 million tonnes a year of emissions in CO2 equivalent by funding overseas clean energy investments via Kyoto's Clean Development Mechanism (CDM), which gives an investor credit for helping reduce emissions.
The government began investing directly in CDM projects in fiscal 2006/07, when it set aside 5 billion yen ($43.54 million) and entered forward contracts to buy 6.3 million credits, or 6.3 million tonnes of CO2 equivalent, during the 2008-2012 period.
Japan has secured 12 billion yen in its 2007/08 budget to fund CDM projects, and is seeking to more than double it to 32 billion yen in 2008/09, about enough to buy some 11 million credits based on current CER (certified emissions reduction) prices traded in London.
The CDM projects Japan has bought so far include those by Japanese trading firm Marubeni Corp (8002.T: Quote, Profile, Research, Stock Buzz), a Japanese unit of Rhodia (RHA.PA: Quote, Profile, Research, Stock Buzz) and Britain's Carbon Resource Management.
FOREST CONSERVATION
Japan hopes that its domestic forests will absorb some 48 million tonnes a year of emissions in CO2 equivalent during 2008-2012, and is seeking to spend 224 billion yen in a 2008/09 budget to conserve forest.
The amount accounts for the biggest chunk of a total 596 billion yen it requested to spend as immediate measures to reduce emissions. In fiscal 2007/08, the budget was 509 billion yen.
ZERO-EMISSIONS SECTOR
In 2008/09 Japan is seeking to spend 10 billion yen to promote new energy, such as solar, wind and biomass, and 12 billion yen for subsidies to support the nuclear sector.
But the indefinite closure of the world's biggest nuclear power plant, Tokyo Electric Power Co's (9501.T: Quote, Profile, Research, Stock Buzz) Kashiwazaki-Kariwa plant, after an earthquake in July is driving up fossil fuel use, raising carbon emissions.
A push toward using a cleaner auto fuel -- gasoline directly blended with 3 percent biomass ethanol -- has foundered on resistance from the powerful oil industry.
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