Carbon Credit Report

Carbon Credit Report Draft published by Study Group on Preparation of Operational Environment to Ensure Proper Use of Carbon Credits toward Achieving Carbon Neutrality

In October 2020, Prime Minister Suga declared that Japan aims at carbon neutrality by 2050 and realization of a decarbonized society, and in April 2021, announced Japan’s 2030 goal to reduce greenhouse gas emissions by 46% from the 2013 level. The government has pledged to mobilize all policy tools at its disposal to support the positive efforts of the private sector to make bold investments and innovations to realize this goal.

Carbon Credit Report Draft

As part of this policy review, the Ministry of Economy, Trade and Industry (METI) set up a study group on ideal Economic and other approaches for achieving worldwide carbon neutrality and conducted a series of consultation through seven meetings held from February to August 2021 for presenting the basic thinking and viewpoints necessary for promoting “carbon pricing that contributes to growth,”. The study group released an interim report in August 2021 showcasing the direction of concrete measures.
With carbon credit trading positioning itself as one of the carbon pricing mechanisms by the private sector, and based on common understanding that the activation of such transactions can contribute to the reduction of emissions in Japan as a whole, the interim report presented two policy directions: “illustration of the status of carbon credits” and the “creation of a carbon credit market.”
Due to the nature of these directions, it was determined that there was a need to undertake a policy review in an integrated manner at the same venue, and in November 2021, the Study Group on Preparation of Operational Environment to Ensure Proper Use of Carbon Credits toward Achieving Carbon Neutrality was established, and based on the discussions at this study group, Carbon Credit Report Draft was published with the following three objectives.

1. To illustrate the significance of various types of carbon credits and ways in which they are used

2. To show directions of actions to promote the achievement of Japan's emission reduction targets through carbon credits
3. To show directions of the carbon credit market in Japan

• Carbon Credit Report Draft (as of April 2022)
• Summary Paper

If you have any comments or questions regarding the Carbon Credit Report (Draft), please copy the format below and send an email to the contact information below.
 
The deadline for comments and questions is 5pm（Japan Time） on 13th May 2022.
 
Your comments and questions will be handled within the Secretariat only, and will be used as valuable feedback for future revisions of the Guidance. E-mail addresses and other personal information provided will not be used for any other purpose.
 

Event history（in Japanese）

1^st
Wednesday, December 8, 2021 9:00～11:00
Agenda:①Carbon credits trends
       ②Issues of carbon credits
 
Hearing of industry opinion, January 18 – February 3
Agenda: Issues of carbon credits
Sector: Energy, Exchange, Finance, Trading Company, Airline, Domestic voluntary credit system
 
2^nd
Monday, February 14, 2022 10:00～12:00
Agenda: Aim and issue of Carbon Credit Report under hearing of industry opinion

3^rd
Thursday, March 24, 2022 15:00～17:00
Agenda: Draft of carbon credit report

Related Links

Japanese page

Section in charge

​Environmental Economy Office,
Industrial Science and Technology Policy and Environment Bureau, METI
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo