Publication: Tokyo's Emissions Trading System : A Case Study
Loading...
Published
2010-06
ISSN
Date
2012-08-13
Author(s)
Editor(s)
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.
Link to Data Set
Citation
“Lee, Marcus; Colopinto, Kimberly. 2010. Tokyo's Emissions Trading System : A Case Study. Directions in Urban Development. © World Bank. http://hdl.handle.net/10986/10184 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Black Carbon and Climate Change : Considerations for International Development Agencies(World Bank, Washington, DC, 2011-12)This report is intended to inform the international development community about the links between black (BC) carbon and climate change. With growing scientific clarity on the contribution of black carbon to climate change, the benefits of limiting its emissions are becoming more evident. This report reviews the existing knowledge on the subject and identifies relevant considerations for development organizations. Climate modeling shows that a large reduction in the global amounts of BC emissions, without changes in emissions of organic carbon, will lead to a sharp onetime decrease in the warming influence of human activities. A rapid reduction in BC emissions has thus been proposed as a way to partially offset the projected increase in temperatures in coming decades. This will not solve the long-term problem of climate change, which is caused by the greenhouse gas (GHGs), but it could extend the limited time that is available to reduce emissions of GHGs aggressively, before global temperatures reach dangerous levels. Proposals to reduce BC emissions also often address the need to reduce emissions of several other short-lived gases (such as ozone) that are mostly not covered by the Kyoto Protocol. This paper is designed to inform development agencies, in a brief, simplified, and non-technical manner, about the links between BC and climate change, and how these could relate to development policy. The paper describes: (a) what is known about the impact of BC and related aerosols on climate, (b) the sources and importance of BC emissions, (c) possible actions and policies to mitigate emissions, and (d) considerations for agencies in light of these issues.Publication Carbon Markets, Institutions, Policies, and Research(World Bank, Washington, DC, 2008-10)The scale of investment needed to slow greenhouse gas emissions is larger than governments can manage through transfers. Therefore, climate change policies rely heavily on markets and private capital. This is especially true in the case of the Kyoto Protocol with its provisions for trade and investment in joint projects. This paper describes institutions and policies important for new carbon markets and explains their origins. Research efforts that explore conceptual aspects of current policy are surveyed along with empirical studies that make predictions about how carbon markets will work and perform. The authors summarize early investment and price outcomes from newly formed markets and point out areas where markets have preformed as predicted and areas where markets remain incomplete. Overall the scale of carbon-market investment planned exceeds earlier expectations, but the geographic dispersion of investment is uneven and important opportunities for abatement remain untapped in some sectors, indicating a need for additional research on how investment markets work. How best to promote the development and deployment of new technologies is another promising area for study identified in the paper.Publication Technical Guide to Actions on Global Warming and Clean Development Mechanism in Sri Lanka(World Bank, Washington, DC, 2012)The Ministry of Environment and Natural Resources of the Government of Sri Lanka is the apex body under which all environmental issues and policy matters are addressed. The Global Affairs Division of the Ministry of Environment and Natural Resources is tasked with formulating policy and strategic planning and liaise with the international organizations dealing with global environmental issues and is the Designated National Authority (DNA) for matters arising out of the Kyoto Protocol. Under the Kyoto protocol, the Clean Development Mechanism (CDM) provides for Green House Gas (GHG) mitigation projects that contribute towards sustainable development in developing nations and the net emission reductions can be traded to a developed nation to meet its Kyoto obligations. The report begins with green house effect with GHG emissions and their contributions to global warming. To highlight the gravity of the problem various projections are presented on future climate change, extreme weather events, sea level rise and their impact on developing countries. It describes the global initiative to tackle climate change and specifically details the Kyoto protocol.Publication Clean Air and Healthy Lungs : Enhancing the World Bank's Approach to Air Quality Management(World Bank, Washington, DC, 2015-02)This report specifically deals with air pollution, which was reported, by the World Health Organization (WHO), as the single largest environmental health risk globally in 2012 (WHO, 2014a). Air pollution from outdoor and household sources jointly account for more than 7 million deaths (3.7 million from ambient air pollution and 4.3 million from household air pollution). The following sections of this chapter present the objectives of, and key aspects of the institutional context for, this report followed by an examination of some of the major drivers of deteriorating ambient air quality in developing countries; air pollution sources and impacts; and the status of air quality management in developing countries. Chapter two presents the results of a desk-based portfolio review of World Bank projects that are relevant to reduction of air pollution. This is followed, in chapter three, by an examination of case studies of World Bank projects whose objectives include addressing ambient air pollution, highlighting good practices and lessons for future work of the Bank in supporting clients. Chapter four presents possible approaches for enhancing future Bank support in helping clients to improve air quality and reduce the associated adverse health outcomes. Chapter five presents overall conclusions and recommendations.Publication State and Trends of the Carbon Market 2012(World Bank, Washington, DC, 2012-05)The total value of the carbon market grew by 11 percent in 2011, to $176 billion, and transaction volumes reached a new high of 10.3 billion tons of carbon dioxide equivalent (CO2e). This growth took place in the face of economic turbulence, growing long-term oversupply in the EU Emissions Trading Scheme (EU ETS) and plummeting carbon prices. By far, the largest segment of the carbon market was that of EU Allowances (EUAs), valued at $148 billion. With the end of the first commitment period of the Kyoto Protocol in 2012, the value of the pre-2013 primary certified emission reduction (CER), emission reduction unit (ERU) and assigned amount unit (AAU) markets declined in 2011. At the same time, the post-2012 primary Clean Development Mechanism (CDM) market increased by a robust 63 percent, to US$2 billion, despite depressed prices and limited long-term-visibility. Against this backdrop, several new domestic and regional carbon market initiatives gained traction in both developed and developing economies in 2011. Five new jurisdictions (i.e., Australia, California, Québec, Republic of Korea, and Mexico) passed legislations laying the foundation for cap-and-trade schemes. Together, these initiatives will drive substantial resources towards low-carbon investments and they have the potential to unleash a truly transformational carbon market, in support of a global solution to the climate challenge.
Users also downloaded
Showing related downloaded files
Publication Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises(Washington, DC: World Bank Group, 2013-10-28)Eleventh in a series of annual reports comparing business regulation in 185 economies, Doing Business 2014 measures regulations affecting 11 areas of everyday business activity: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business, Employing workers. The report updates all indicators as of June 1, 2013, ranks economies on their overall “ease of doing business”, and analyzes reforms to business regulation – identifying which economies are strengthening their business environment the most. The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. Doing Business is a flagship product by the World Bank and IFC that garners worldwide attention on regulatory barriers to entrepreneurship. More than 60 economies use the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 870 articles in peer-reviewed academic journals since its inception.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication World Development Report 2011(World Bank, 2011)The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.