Economic Instruments - Tradeable Permits
Tokyo Emissions Trading Scheme (Japan)
In April 2010, a Tokyo Emissions Trading Scheme was launched. 1,400 businesses and public entities (responsible for 20% of emissions) will be involved in the scheme which aims to cut emissions by 25% by 2020 (forumforthefuture.org, 2010). Interim targets require businesses to make 6% cuts by 2014.
The first phase of the scheme runs up to 2014 and participating organisations will have to cut their carbon emissions by six per cent. Failure to acheive these caps from 2011 will require purchasing emission allowances to cover andy excess, or investing in renewable energy certificates. Credits outside Tokyo cannot exceed one third of the emission cuts required (Guardian, 2010).
Fines and naming-and-shaming are the penalties of non-compliance. The scheme aims to cut Tokyo carbon emissions by 25% on 2000 levels by 2020.
Guardian, 2010. Tokyo kicks of carbon trading scheme. http://www.guardian.co.uk/environment/2010/apr/08/tokyo-carbon-trading-scheme