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Politics : The Exxon Free Environmental Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (5132)	4/12/2010 10:59:30 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 48974

Tokyo carbon scheme: blueprint for Asia? Author: Katie Holliday Source: Energy Risk \| 12 Apr 2010 Tokyo’s recently launched carbon trading scheme could provide a blueprint for similar schemes across Asia, say carbon experts. Under the scheme, which is the first of its kind in Asia, 1,400 of Tokyo's most carbon-intensive industrials, including commercial buildings and factories, will be required to meet legally binding emission reduction targets. The first phase of the scheme will finish in 2014 and requires participants to cut carbon emissions by 6% of 2000 levels. Overall, the scheme aims to cut the metropolis's overall emissions by 25% of 2000 levels by 2020. According to Kristen Tangen, carbon analyst at Point Carbon, the Japanese government could view the scheme as a blueprint for the long-awaited national carbon trading scheme. "The design of this scheme could influence the design of a national trading scheme, which when implemented, could then be viewed by other Asian countries as a blueprint for their own domestic trading schemes," he says. The Japanese government has shown commitment to implementing a cap-and-trade scheme, but it is yet to decide on which sectors will be covered or finalise how targets will be imposed. However, the ruling party's large majority in the Lower House increases the likelihood of plans being pushed through quickly, avoiding a lengthy political debate over the technicalities of the scheme, as seen in Australia, for example. But Alessandro Vitelli from carbon ratings and research firm IdeaCarbon, says the scheme is not large enough to provide a blueprint for other Asian countries. "It's basically a version of the UK's Carbon Reduction Commitment Scheme and only affects a small number of commercial organisations," he says. "It is specifically designed for cities. If it was adopted on a wider, national level, there would be the risk of creating a monster. I don't think this will be viewed as a blueprint by the rest of Asia," he says. Under plans for the Tokyo scheme, companies that fail to meet their targets can buy extra emission allowances, invest in renewable energy certificates or offset credits from smaller business or branch offices to meet their compliance target. Firms that fail to comply will be named and shamed, subjected to fines and ordered to cut their emissions by 1.3 times the amount they failed to reduce them by in the first phase of the scheme. Experts believe there is a risk a national carbon trading scheme will distract Japanese companies from investing time and resources in international carbon market mechanisms, such as Joint Implementation projects. "Japanese firms will be putting a lot of resources into monitoring the debate over how a domestic scheme will take shape," notes Tangen. "They will see the political risk as too high to ignore and this might distract them from other schemes and projects." Joint Implementation is a mechanism devised under the Kyoto Protocol, which allows Annex I (industrialised) countries to work together on a carbon reduction project and generate Emission Reduction Units to trade on the European Emissions Trading Scheme. risk.net