Asian Network of Major Cities 21

Tokyo Cap-and-Trade ProgramTokyo

■ Overview

In order to reduce urban CO2 emissions, the Tokyo Metropolitan Government introduced a cap-and-trade program in April 2010 that covers large office buildings, commercial establishments, and industrial facilities. The particulars of the program are as follows:

• Targeted facilities ・　Facilities whose consumption of fuel, heat, and electricity exceeds a crude-oil equivalent of 1,500kl a year
• Targeted gases ・　CO2 emitted by consumption of fuel, heat, and electricity
• Compliance period (1) 1st compliance period: FY2010 to FY2014 (2) 2nd compliance period: FY2015 to FY2019
• Contents of obligations and Base year emissions (1) Contents of obligations
  The emissions amount for each compliance period (five years) shall be less than the maximum emissions defined below Allowances = (Base year emissions x Compliance factor) x 5 years (2) Base year emissions
  In principle, the average emissions of three consecutive years within the period from FY2002 to FY2007
• Compliance factor
  
  (1) How the cap is set
  1st compliance period: Avg. 6%
  2nd compliance period: Approx. 17% (proposed)
  (As per figure 1)

  

  (2) Compliance factor (1st compliance period)
  ① Office buildings and district heating and cooling facilities: 8%
  ② Amongst the office buildings, facilities that are receiving energy heavily from
  　 district heating and cooling facilities: 6%
  ③ Facilities other than classifications 1 and 2 above (factories, etc.): 6%
• Execution method of total reduction obligations
  
  (1) Self reduction by emitters by updating to highly efficient energy consumption
  equipment and devices, and promoting measures to operate such equipment and devices efficiently, etc. (2) Emissions trading (acquisition of credits outlined in figure 2)

  

• Ensuring compliance (including penalties)
  

  In the event that reduction obligations are not fulfilled:
  (1) An order will be issued to take measures to reduce the emissions exceeding the
  obligation amount (amount exceeding obligation x 1.3 times amount of reduction) (2) If the order is violated, a penalty of up to 500,000 yen will be assessed, the fact of the violation will be publicized, and the expenses assumed by the Governor of Tokyo in purchasing the credits for the offending amount will be collected.

■ Period of Implementation

• July 2008　 The Tokyo Metropolitan Environmental Security Ordinance amended
  April 2010　Reduction obligations begun

■ Features

• ・ This is the world's first urban cap-and-trade program, which also targets office buildings
• ・ The Tokyo CO2 Emission Reduction Program was introduced in FY2002, which requires large facilities to submit regular reports on GHG emissions amounts, and related data was collected from each facility. Based on this data, an appropriate program was developed.
• ・ This program implements emissions obligations through five-year intiatives, and promotes self-reduction efforts by facilities
• ・ Emissions reductions amounts from small- and medium-sized facilities in Tokyo can be used as offset credits, and emissions reductions are being promoted throughout industrial and commercial sectors

■ Outcomes / Achievements

• Tokyo is advancing efforts to pursue "green" buildings, including constructing highly energy efficient buildings, such as carbon-half buildings, and retrofitting existing buildings.

■ Inquiries

• Emission Cap and Trade Section, Urban and Global Environment Division, Bureau of Environment, Tokyo Metropolitan Government
  （Tel.）　+81-3-5388-3487
  （Mail Address） S0000728@section.metro.tokyo.jp

■ Related Links

• http://www.kankyo.metro.tokyo.jp/en/climate/cap_and_trade.html