Case of the month - Tokyo

JULY 2013
GREEN BUILDING POLICIES - INTERNATIONAL CASES






Policy  

Tokyo Cap-and-Trade Program: 
Japan’s first mandatory emissions trading scheme

City
Tokyo
Promotor
Tokyo Metropolitan Government (TMG)
Establishment   

Launched in April 2010

Territorial scope
Tokyo metropolitan area



Target buildings  



Owner

 Type

 Function

Public buildings

 New buildings    
 Residential

Private buildings
 Existing buildings
 Industrial, services, etc.

Main targets




 
  • Reduce GHG emissions in Tokyo to 25% below the 2000 levels by 2020, comprising two compliance periods. The cap for the first compliance period has been set at a level of 6% below base year (2000) emission, and a level of approximately 17% below base year emission for the second compliance;
  • Achieve stricter reductions of CO2 emissions and energy consumption in 1.400 installations (including 1.100 business facilities and 300 factories) covered by the program.
Summary
 
   

Tokyo cape-and-trade program is the first mandatory emissions trading scheme to be implemented in Japan and Asia.

Compared to other cap-and-trade programs, the TMG cap-and-trade scheme is unique in its scope by focusing on 40% of CO2 emitted from commercial sector coming from large office buildings concentrated in city centre.

The program is intended to have the effect of reducing CO2 emissions and energy consumption in the industrial business sector within Tokyo and acquire an expression that covers the whole national territory, but also to promote the installation of renewable energy in the power generation sector.
 

State of GHG emissions in Tokyo

GHG emissions in Tokyo increased approximately 3% from the period between 1990 to 2006 corresponding to approximately 59.6 million tons of greenhouse gas (GHG) emitted in the entire Tokyo metropolitan area in 2006. The related CO2 accounted for 2006 attained a growth rate of about 6% over that period.

Regarding the same reference period (1990-2006) CO2 emissions in metropolitan Tokyo area are characterized by a low rate in the industrial sector (9%) and high rates in the residential (26%), commercial (37%) and transportation sectors (26%). Based on these characteristics, efforts on the commercial sector along with further reductions in the industrial sector will be the major initiatives particularly evident in Tokyo. Their total emissions account for approximately 40% of the CO2 emitted by industrial and commercial facilities in Tokyo (and approximately 20% of total CO2 emissions in Tokyo).
 

Coverage and Cap setting

The cap applies to large-scale facilities (buildings / factories) that have total consumption of fuels, heating and electricity of at least 1,500 kiloliters or larger per year (crude oil equivalent).

The coverage of the program targeted the application of 1.400 installations (including 1.100 business facilities and 300 factories) to be monitored under the program requirements.

Reduction target stipulated in the program was studied and set from the viewpoint of achieving the overall reduction target for Tokyo to 25% below the 2000 levels by 2020, and comprising two compliance periods.

The cap for the first compliance period (2010-2014) has been set at a level of 6% below base year (2000) emission as a turning point reduction. During this period additional measures could be implemented, such as the establishment of reduction organization that are involved in management process or completed energy conservation investments, representing acceptable measures covered by the programme. The 6% target is only applied to buildings that received energy from district heating and cooling plants during the first period covered, punishing the remaining buildings covered by the program that do not have such features with a compliance factor of 8%.

Stricter and ambitious will be the second compliance period (2015-2019) comprising a reduction target level of approximately 17% below the base year emission (2000).
 

Program offsets

In addition to emissions trading, facilities that obtained allowance allocations can use several credits assumed as project offsets:

  • Small and Medium-sized installation credits within the Tokyo area, including emissions reduction in energy-related CO2 could achieve reductions of targets that will be verified by third parties;
  • Emission reductions outside the Tokyo area, including emissions reduction in energy-related CO2 could achieve reductions of targets that will be verified by Tokyo Metropolitan Government (TMG);
  • Renewable energy certificates can be used as offset credits derived from the use solar, wind, geothermal, hydropower or biomass energy.
     

Monitoring, reporting and validation

In the course of each compliance period, the participant installations are required to report their Greenhouse Gas Inventory to TMG annually based on TMG Guidelines for Calculating Greenhouse Gases, Monitoring and Reporting. These reports will be monitored and reported by one of the 30 verification agencies certified by TMG.
 

Next steps

According with the effective program development, the future ambitions will encourage a nationwide cap-and-trade program outlining two levels of territorial performance: National Level Cap-and-Trade Program (NLCTP) and Regional Level Cap-and-Trade Program (RLCTP).

Each territorial approach will set distinctive cap coverage’s and will operate the carbon market rules at different scales.

 

The national main target applications will be super large scale energy and resource suppliers such as power plants and steel plants, in comparison with the regional level that covers the large scale installations such as factories, office buildings and public facilities.




Link

http://www.kankyo.metro.tokyo.jp/