Bureau of Industry, Technology and Environment
This lecture explained the concept of “Pro-growth Carbon pricing (CP)”,while touching on topics such as domestic/international trends regarding climate change and policies by the Ministry of Economy, Trade and Industry (METI).
CP is an economic instrument to move towards carbon neutrality (CN),and various methods such as carbon tax, emissions trading systems, and credit trading exists, depending on the entity which implements CP and the explicitness of carbon prices. The Government of Japan’s policy to date has been to promote CP on a voluntary and market basis as “Pro-growth CP”, which will enhance the competitiveness of industries, innovation, and investment.
In response to the government policy, METI has established the GX League, in which participating companies voluntarily set ambitious emissions reduction targets and conduct emissions trading to achieve those targets. The GX League also serves as a platform for discussing and creating future visions towards CN, market creation, and rulemaking. Since the announcement of the GX League’s basic concept in February of this year, 440 companies have endorsed it, covering over 40% of Japan’s emissions.
Simultaneously, to publicize and visualize the price of carbon credits circulating domestically such as J-Credits and JCM, and stimulate transactions, a Carbon Credit Market will be established.
The GX League and Carbon Credit Market are to undergo demonstration tests in FY2022 and to be fully operational in FY 2023, as explicitly stated in the latest government policy documents such as the Clean Energy Strategy and the New Capitalism “Action Plan”. METI will continue to promote initiatives regarding Pro-growth CP.
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