According to a draft document obtained by Reuters, Japan is planning to institute a mandatory carbon trading program which would cover the country’s largest emitting companies.
Japan is the world’s fifth-largest emitter of carbon dioxide. In an effort to reduce emissions and become a leader in the clean energy industry, Japan has increased its focus on clean energy technologies and climate change mitigation measures.
A plan to implement a nation-wide carbon trading program was scrapped by Parliament earlier this year. In this new proposal, heavy emitting Japanese firms would be held to carbon emissions quotas, and any emissions above the set levels would require purchases of carbon credits from either domestic or overseas reductions projects.
Japan will hold an extraordinary Parliament session on Septmeber 14th, where a party leadership challenge is expected; the outcome of which could influence the passing of this legislation. It is in the interest of the Environment Ministry to “have it passed smoothly” so we will be “ready and accountable in international climate talks,” remarked one government official.