The Japan Electric Power Exchange (JPEX) is all set to launch a trial carbon trading program in October to help the country’s electricity utilites meet their emission targets. Though the details are yet to be finalized, the carbon credits will be traded in yen/metric ton through a web-based application. Companies such as Tokyo Electric Power and Merrill Lynch are expected to trade through the program.

Prime Minister, Yasuo Fukuda would eventually like to launch a comprehensive trading program but wants to use the trial trading to see if it runs smoothly.

Japan is the fifth largest polluter in the world and it has been under pressure to take serious steps to reduce its carbon footprint. The carbon trading initiative is part of its plan geared towards meeting the country’s long term goal of cutting down greenhouse gas emissions by 60 to 80% by 2050.

Tags: Carbon Trading, Japanese Government, JPEX

Before the Japanese government can decide on a carbon trading scheme, it has to figure out whos got it right on emissions calculations.

Firms using cogeneration systems blame the government for miscalculating the carbon cuts they have realized. These firms, along with gas companies that sell cogeneration generators, believe the governments formula for estimating emissions isnt appropriate. The amount of emissions reduced can vary depending on the type of power plant used to generate electricity.

Tags: Bridgestone, Bridgestone Corporation, Carbon, Carbon Cuts, Carbon Trading, Cogeneration Systems, Emissions Reductions, Emissions Trading Scheme, Federation of Electric Power Companies of Japan, FEPC, Hydroelectric Plants, Japan, Japan Gas Association, Japanese Government, Thermal Power Plants, Yokohama