Emission Trade and CDM (Clean Development Mechanism)
2007 Volume 32 Issue 4 Pages 46-50
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2007 Volume 32 Issue 4 Pages 46-50
Kyoto Protocol, which is fired in 2005 introduced emission trade as one option of the Kyoto Mechanism. Although Japan has been struggling to reduce its GHG emissions, it seems so hard to meet the Kyoto Target, namely 6% reduction from 1990 level. Therefore Kyoto Mechanism is much attractive option for Japan and many companies are trying to arrange the CDM projects or purchasing the credits directly. In Japan, concerning the GHG emission, no mandate regulation has been introduced. On the contrary, EU-ETS defined an aggressive emission cap for each business institution. As a result, EU-ETS has occupied the position of the de-fact standard about emission trade. Moreover, EU may lead the fundamental discussion of the future framework of climate change.
