KANSAI Close-up

Simulation project for emissions trading in Mie

The Ministry of the Environment and the Mie Prefectural Government will carry out a simulation project in January next year to create a 'domestic emissions trading system' under which business enterprises trade the volume of emissions of greenhouse gases, such as carbon dioxide, by fixing emissions limits.
The Kyoto Protocol, which fixes the target of each country to reduce greenhouse gas emissions, stipulates the introduction of 'Kyoto mechanism' using market mechanism, such as the international emissions trading scheme. Britain introduced this scheme in April, and domestic enterprises are showing keen interest in a domestic system. The ministry has decided to conduct a simulation project with the prefectural government that is actively tackling measures to curb greenhouse gas emissions.
The project will be carried out with cooperation from about 30 enterprises in Mie Prefecture. The volume of greenhouse gas emissions through reduction measures by participating companies and the volume of CO2 absorbed by afforestation are regarded as 'credits,' and an imaginary computer market to trade them will be created.
Participating companies will trade the credits on the market by giving consideration to their own costs needed for gas emissions control. A credit about CO2 which can be absorbed by prefectural afforestation and environment-creation undertakings and reduced by power generating facilities using refuse derived fuel (RDF) is also to be studied. The ministry will compile a report about the simulation project and try to promote understanding about the emissions trading system among industries.