Japan may set up domestic emissions trading system, March 18

http://asia.news.yahoo.com/050318/kyodo/d88t59n80.html

(Kyodo) _ The government is expected to consider establishing a domestic emissions trading system as one way to reach its target for cutting greenhouse gas emissions under the Kyoto protocol on climate change, officials said Friday.
One approach under consideration is imposing emission caps on companies and letting those that have achieved reductions beyond the caps sell allowances on the market, they said.

Companies have voiced strong opposition to this method, given the caps they would have to comply with. But some trading houses view it as a new business opportunity.

The government will spend roughly two years studying the system before deciding whether to introduce it when it reviews the reduction target plan in fiscal 2007, which starts April 2007.

If emissions are not reduced as foreseen, the method is likely to draw attention as a possible tool for achieving the targeted emissions cut.

The European Union introduced the approach and sees it as a centerpiece for reaching its emissions target, while Canada is currently considering employing a similar system.