Press Conference by Minister Saito (Excerpt)

*Note: This is a provisional translation for reference purposes only.

10:44 to 10:57 a.m.
Tuesday, September 3, 2024
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Emission trading system

Q: I would like to ask you about a media report that appeared today. Regarding the emission trading system which the government aims to introduce in FY2026, a media report said that the government is considering imposing a fine when companies that have failed to reach the target have not purchased emissions credits from other companies. I would like you to clarify facts on that point. Also, the first meeting of the panel of experts started earlier today. Could you offer your thoughts, if any, on the direction of discussion?

A: First, under the Green Transformation (GX) Promotion Strategy that was approved at a Cabinet meeting during fiscal year 2023, the emission trading system, which is now being operated on a trial basis in the GX League, is scheduled to start full-scale operation in FY2026 with increased levels of fairness and effectiveness.
As for the specific design of the emission trading system after the start of full-scale operation, the discussion started today at the carbon pricing working group of experts to determine the points of debate as you just mentioned.
Specifically, in addition to discussing points of debate, such as the scope of participants in the system and the fairness and effectiveness of the level of reduction, this working group is also meant to conduct a study on the tightening of regulation based on the opinions of members, comprised of professionals in the fields of economy, energy and the environment, and interviews with experts and industry officials.
As for the fine that you mentioned, of course, nothing has been decided. That said, under foreign emission trading systems, business operators that have failed to fulfill obligations are fined in accordance with the degree of failure. Therefore, in view of those cases, we will consider specifics in terms of the direction of regulatory tightening.