MOSCOW (MRC) -- Japan, the world's fifth-biggest carbon dioxide (CO2) emitter, will begin a carbon pricing scheme in stages from April to encourage companies to curb emissions and achieve its goal of carbon neutrality by 2050, said Hydrocarbonprocessing.
The country is the latest among Asian nations to formulate plans to create a carbon pricing mechanism and emissions trading system. The plan is aimed at speeding up decarbonization to tackle climate change but Japan lags behind other major economies that have already implemented similar policies.
Still, Japan believes the scheme, which combines emissions trading and a carbon levy, will help to turn the world's third-largest economy greener while maintaining the global competitiveness of its industries, including heavy emitters like steelmakers.
As the private sector cannot make a stand-alone green investment commitment due to the high costs and risk, Europe and the United States have developed state support tools, said Shigeki Ohnuki, director of the environmental policy division at the ministry of economy, trade and industry (METI).
Japan also needs to make a commitment quickly to support green investment to incentivize companies to change their behavior, he said. The scheme, based on METI proposals and approved by the cabinet this year, consists of emissions trading and a carbon levy.
We remind, Japan's Renewable Energy Institute pointed to an estimated carbon price level of about one-tenth of the level of USD130 per ton that the International Energy Agency (IEA) says is required of developed countries, calling Japan's plan "too passive".