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Tokyo Emissions Trading System (TETS)


Launched in 2010, the Tokyo Emission Trading System (TETS) started as the first local emission trading scheme worldwide and the first mandatory scheme in Asia. Moreover, it has become widely recognised as it is the first ETS scheme that targets mainly service sector buildings, and not only power sector and other industrial facilities like most emission trading schemes (e.g. the EU ETS) do. This is partly because 90% of Tokyo’s electricity is generated outside of TMG jurisdiction. The TETS has established compliance targets for 1,400 facilities, covering 20% of Tokyo’s CO2 emissions. The system is straightforward and transparent and is considered to benefit from the management capacities of the public and private sector (World Bank 2010, p. 4-1). An evaluation by TMG’s Bureau of Environment (BoE 2012) shows that facilities already saved 23% against the base-year already in the first two years of TETS’ implementation. However, most of these savings are rather a result of the Fukushima nuclear accident and the consequent attempts to reduce electricity consumption.

Authors

  • Adisorn, Thomas (Lead author)
  • Aydin, Vera (Reviewer)
  • Thomas, Stefan (Reviewer)

References and further reading

Brooking Institution (2012): Global MetroMonitor. www.bigee.net/s/znn26f
Bureau of the Environment (BoE) (2010): Tokyo Cap-and-Trade Program: Japan’s first mandatory emission trading scheme. www.bigee.net/s/icb96s
Bureau of the Environment (BoE) (2012): Climate Change. In: Environment White Paper 2012. www.bigee.net/s/y93n9y
Bureau of the Environment (BoE) (2013): Tokyo Cap-and-Trade Program achieved 23% reduction in the 2nd year. www.bigee.net/s/dmjvk5
The Climate Group (2013): Carbon Pricing. www.bigee.net/s/cgp6wv
The Environomist (2014): China Carbon Market Research Report 2014. www.bigee.net/s/t6nqhx
Environmental Defense Fund; International Emissions Trading Association (EDF & IETA) (2013a): Tokyo - The World’s Carbon Markets: A Case Study Guide to Emissions Trading. www.bigee.net/s/9q4r54
Environmental Defense Fund; International Emissions Trading Association (EDF & IETA) (2013b): Kazakhstan
The World’s Carbon Markets: A Case Study Guide to Emissions Trading. www.bigee.net/s/jac8e4
Environmental Defense Fund; International Emissions Trading Association (EDF & IETA) (2013c): Emission Trading Targets and Timetables. www.bigee.net/s/htw6kz
Kaneko, Maya (2014): Tokyo Cuts CO2 Emissions but hoards credits. www.bigee.net/s/vn2ykx
Local Governments for Sustainability (2012): Local Sustainability 2012. Showcasing Progress. www.bigee.net/s/wn4pzp
Miyazawa, Koji (2010): Japan's cap-and-trade program for carbon emissions. www.bigee.net/s/vtzgsq
Ministry of Economy, Trade and Industry (2013): Summary of the Bill to Partially Amend the Act on the Rational Use of Energy (Energy Conservation Act). www.bigee.net/s/4j596c
Niederhafner, Stefan (2013): The Governance Modes of the Tokyo Metropolitan Government Emissions Trading System. www.bigee.net/s/1j3xdc
Nishida, Yuko (2013): Energy Efficiency in Buildings: Policy and Programs in Tokyo. www.bigee.net/s/x45dif
Pacific Northwest National Laboratory (2009): Country Report on Building Energy Codes in Japan. www.bigee.net/s/r74q17
Rudolph, Sven; Kawakatsu, Takeshi (2012a): Klimaschutz Lokal – Tokyo etabliert das erste städtische CO2-Emissionshandelssystem. www.bigee.net/s/dn4evv
Rudolph, Sven; Kawakatsu, Takeshi (2012b): Tokyo’s Greenhouse Gas Emissions Trading Scheme: A Model for Sustainable Megacity Carbon Markets?. www.bigee.net/s/ytg2ss
Tokyo Metropolitan Government (TMG) (2011): Low Emission Buildings Top 30 in Tokyo. www.bigee.net/s/nsvka2
Tokyo Metropolitan Government (TMG) (2012a): “Tokyo Cap-and-Trade Program” for Large Facilities. www.bigee.net/s/qfzmqw
Tokyo Metropolitan Government (TMG) (2012b): The Tokyo Cap-and-Trade Program Results of the First Fiscal Year of Operation. www.bigee.net/s/n942j4
Tokyo Metropolitan Government (TMG) (2013): Tokyo Cap-and-Trade Program achieved 23% reduction in the 2nd year. www.bigee.net/s/3d72ya
World Bank (2010): Cities and Climate Change Mitigation: Case Study on Tokyo’s Emissions Trading System. www.bigee.net/s/xed9ut

Info

  • Location:
    Japan

  • Type of policy:
    Energy/CO2 taxation and emissions trading

  • Implementation period:
    2010 to present

  • Part of the package:
    Japan

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