Japanese government considers carbon trade

TOKYO, July 1 (UPI) -- The Japanese government said it will pilot an emissions trading system.

As part of its efforts to tackle global warming, the government has said it plans to pilot an emissions trading system in the fall based on energy efficiency, The Yomiuri Shimbun reported.

Under the system, individual companies will try to improve on energy-efficiency levels that they have already voluntarily agreed to in an effort to reduce carbon dioxide emissions.

The industrial sector is reportedly still wary of the introduction of an emissions trading system, but the government hopes the envisaged system will encourage companies to take part by focusing on energy efficiency rather than caps on greenhouse gas emissions.

The government has already unofficially presented the plan to the industrial sector and plans to incorporate the scheme in an action plan to be prepared as early as next month.

The proposed system will use individual companies' goals to improve the volume of carbon dioxide emissions per given unit of output.

When a company improves its energy-efficiency level beyond the set goal, it will be able to trade relevant volumes of carbon dioxide emissions.