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Cabinet Decision on the Bill for the Act for Partial Revision of the NEDO Act

On January 26, 2016, the Cabinet decided to approve the Bill for the Act for Partial Revision of the Act on the New Energy and Industrial Technology Development Organization (NEDO Act). The Bill will be submitted to the 190th ordinary session of the Diet.
The bill was formulated for removal of a credit acquisition program based on the Kyoto Protocol from the responsibilities of the New Energy and Industrial Technology Development Organization (NEDO).

1. Purpose of the revision

Under the Kyoto Protocol, the Kyoto Mechanism for making use of greenhouse gas emissions reductions achieved in one country in order for another country to achieve its commitments was approved and regarded as a measure for achieving the targets for the first commitment period (from 2008 to 2012) (a decrease of 6 percent compared to the base year) prescribed by the Kyoto Protocol.

The Kyoto Protocol Target Achievement Plan, which was approved by the Cabinet on April 28, 2005 and partially revised on July 11, 2006, stipulates that every level of society shall make its best efforts through domestic measures to achieve the targets in principle. However, Japan’s emissions target still fell 1.6% short (about 100 million tons), and the Japanese Government decided to commission NEDO in order to manage the difference by utilizing the Kyoto Mechanism. In addition, the government revised the NEDO Act to add the credit acquisition program to the responsibilities of NEDO.

In light of the aforementioned matters, NEDO secured about 100 million tons worth of Kyoto credits using the Kyoto Mechanism, and Japan achieved its target for the first commitment period prescribed by the Kyoto Protocol. Therefore, the Bill will remove the relevant provisions for the program from the NEDO Act.

2. Outline of the revision

In light of the statutory deadline for the elimination of the provisions, the Bill will remove the relevant provisions concerning the credit acquisition program under NEDO from the NEDO Act and the Act on Special Accounts.

The specific plan is to remove [i] the purpose of the organization in acquiring Kyoto credits, [ii] the scope of the program, [iii] the liability burden of Japan, [iv] the provisions regarding competent ministers, and other relevant provisions, regarding the credit acquisition program from the NEDO Act. In addition, the provisions that define the program as subject to the Energy Resources Special Account and other relevant provisions are to be removed from the Act on Special Accounts.

3. Date of entry into force

March 31, 2016

Release date

January 26, 2016

Division in charge

Global Environmental Collaboration Office, Industrial Science and Technology Policy and Environment Bureau

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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