Japan to begin trading of CO2-free electricity

TOKYO, Nov. 10 Kyodo - Japan will begin trading of carbon dioxide-free electricity among power utilities and other power producers as part of its efforts to fight global warming, government sources said Monday.
The trading of so-called ''green electricity,'' such as that generated by water
power and solar power, will take place on the Japan Electric Power Exchange,
the sources said.
Economy, Trade, Industry Minister Toshihiro Nikai is expected to announce the
plan Tuesday.
To help the power industry meet its goal of cutting CO2 emissions under the
Kyoto Protocol, the ministry said earlier this year that it would explore the
feasibility of setting up a framework to trade carbon credits at the Tokyo
exchange.
The trading of green power is expected to be part of the new framework.
The electric power exchange was set up in 2003 by Japanese power companies so
that they can better make use of their surplus power.
Currently, about 40 energy-related companies are part of the exchange.
The power industry has a voluntary target of reducing greenhouse gas emissions
by 20 percent from the 1990 level on average between 2008 and 2012.
But they are finding it difficult to meet the target due partly to a series of
shutdowns at nuclear power plants which have led them to increase output
capacity at fossil-fuel plants.