Japan Launches Carbon Market

Japan will soon begin a trial voluntary carbon market that the government hopes will eventually become a mandatory cap-and-trade system for the world’s fifth-largest greenhouse-gas emitting nation. Environment Minister Tetsuo Saito said the plan is designed to encourage emissions cuts in the private sector through better technology, noting that it is based on a voluntary cap in order to encourage as many companies as possible to participate initially. “But we’re aiming to make it a cap-and-trade scheme eventually,” he said. When the plan is put into effect next year, companies will be able to establish their own emissions targets, but will not be subject to fines if they exceed them. An existing plan that offers smaller companies subsidies for energy efficiency is ending due to funding cuts. Critics of the voluntary market said it would not guarantee a reduction in carbon emissions.