Fukuda vows to launch trial emissions trading scheme in fall

Tokyo, June 10, Kyodo - Prime Minister Yasuo Fukuda vowed Monday to launch emissions trading on a trial basis in Japan in the fall and attain a 60-80 percent domestic greenhouse gas emissions reduction target by 2050 from current levels as he unveiled a new initiative to curb climate change. In a policy aimed at showing Japan's active stance on tackling global warming as the host of July's Group of Eight summit, Fukuda also said Japan will announce a medium-term reduction target at ''an appropriate time next year,'' while citing an estimate that it can slash emissions by 14 percent by 2020 below the 2005 level. Japan will also provide up to $1.2 billion in two proposed Climate Investment Funds for developing countries in partnership with the United States, Britain and other donor countries, Fukuda said. ''We must see the transition to a low-carbon society as an opportunity for new economic growth,'' Fukuda said at the Japan National Press Club where he announced the initiative, called the ''Fukuda Vision.'' ''I would like to have our future descendants proudly recall our efforts as a 'low-carbon revolution,''' Fukuda said, referring to the beneficial achievements of the industrial revolution. The initiative underscores Japan's hope of playing the leading role at this year's summit, where climate change will top the agenda, and also in negotiations to create a new carbon-capping framework beyond the 2012 expiration of the Kyoto Protocol. But some environmental groups expressed disappointment, with Yurika Ayukawa, vice leader of the 2008 Japan G8 Summit NGO Forum, calling the policy ''extremely insufficient in that it did not show a medium-term target.'' At the summit, Japan is hoping the G-8 leaders agree to its advocated long-term target of halving global emissions by 2050 from current levels -- a target which leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States agreed to ''consider seriously'' at last year's summit in Heiligendamm, Germany. ''I would like to seek to share this goal with the G-8 and other major emitters,'' Fukuda said, while announcing a deeper long-term reduction goal of 60-80 percent for Japan because ''it goes without saying that developed countries should make greater contributions than developing countries.'' On emissions trading, which Japanese industries have been cautious about out of concern that their international competitiveness may be weakened, Fukuda said, ''It's my idea that, rather than continuing to spend time and labor digging up the problematic points of the system, we should switch to a proactive attitude like proposing more effective rules'' than the system the European Union started in 2005. ''To that end, this fall we would like to have as many types of businesses and companies participate in starting a trial implementation of a domestic integrated market of emissions trading,'' he said. But asked by a reporter when he is actually considering a full-fledged start to the system, Fukuda did not announce a specific time frame and said, ''We want to think carefully about the details of the rules.'' In emissions trading, countries place caps on emissions and issue credits for carbon emissions to large companies in a move aimed at putting a price on carbon to be emitted. Any company wishing to emit above its allotted level is required to buy carbon credits from companies generating emissions below their given levels. In relation to a medium-term reduction target, Fukuda said the estimate of a 14 percent reduction by 2020 was worked out partly by applying Japan's proposal to calculate greenhouse gas reduction targets based on a ''sectoral'' approach. ''This is not a half-baked figure,'' Fukuda stressed. The European Union has committed itself to cuts of 20-30 percent below 1990 levels by 2020. According to Fukuda, a 20 percent reduction below the 1990 levels means a 14 percent reduction below the 2005 levels. Fukuda also expressed eagerness to promote understanding in other countries about Japan's proposed bottom-up, sector-by-sector approach to slashing emissions. Using energy efficiency in each sector as a yardstick, the approach involves determining potential reduction volumes on an industry-by-industry, area-by-area basis that would then be tallied for a quantified national target. Areas include offices, households and transportation. While noting that there are continuing discussions about whether the base year should be maintained at 1990, Fukuda said, ''Considering other countries' assessments of the bottom-up, sectoral approach, we'd like to establish a common method and announce our country's quantified national target at an appropriate time next year -- this is the medium-term target.'' A key U.N. climate change meeting in Copenhagen in December 2009 is the deadline for some 190 countries to reach an agreement on a post-Kyoto framework. Meanwhile, Fukuda also said he would like to propose at the G-8 summit creating what he calls the ''International Partnership for Green Energy'' to accelerate moves to develop innovative technology. Under the concept, countries would share a road map for technological development, such as in the area of innovative solar batteries, and the results would be disseminated to developing countries. Japan has invited several emerging economies including China, Brazil and India to the July 7-9 summit at a resort area near Lake Toya in Hokkaido to discuss climate change issues with the G-8 leaders. The European Union also participates in the G-8 process. As part of efforts to raise awareness among the Japanese people to tackle climate change, Fukuda expressed his willingness to introduce ''carbon footprint'' labels for food and other products on an experimental basis from next fiscal year. Under the system, the labels will display the total amount of carbon dioxide emitted during the production, marketing and distribution of the items to consumers.Fukuda also said he would like to designate July 7, which would be the first day of this year's summit, as ''Cool Earth Day.''=Kyodo.