Publication: Tokyo's Emissions Trading System : A Case Study
Date
2010-06
ISSN
Published
2010-06
Author(s)
Lee, Marcus
Colopinto, Kimberly
Abstract
The Tokyo Metropolitan Government (TMG)
has developed the world's first cap and trade program
at the city level targeting energy-related CO2. Called the
Emissions Trading System (ETS), the program took effect in
April 2010 and covers 1,340 large facilities including
industrial factories, public buildings, educational
institutions and commercial buildings. Targeting the city
level for the reduction of Greenhouse Gas (GHG) emissions is
of vital importance for climate change mitigation goals.
Although there are several ETSs targeting GHGs around the
world, none have operated at the city level until
Tokyo's. City-based ETS systems have been largely aimed
at enhancing local air quality by targeting local pollutants
that may also happen to be GHGs. There are three
particularly relevant cases of ETSs covering local
pollutants at the city level. Tokyo's ETS is unique
because it is the only one targeting GHGs, with the primary
objective of mitigating climate change. Emissions trading
are a market-based approach for addressing air pollution
problems. If designed and implemented well, emissions
trading systems can be economically efficient, providing
incentives for participants to reduce their emissions of
specified pollutants. An ETS, when functioning well, results
in overall emissions remaining within the cap, while
individual participants have the flexibility of a
market-based mechanism within which to operate.
Citation
“Lee, Marcus; Colopinto, Kimberly. 2010. Tokyo's Emissions Trading System : A Case Study. Directions in Urban Development. © World Bank, Washington, DC. http://hdl.handle.net/10986/10184 License: CC BY 3.0 IGO.”