The Japanese government should have the strategy to get...
Transcript of The Japanese government should have the strategy to get...
![Page 1: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/1.jpg)
Kyoto Mechanism group
Aki Inamasu Keisuke Shiinoki Kenji OoshimaShigetaka Udagawa Youichi Maeda
The Japanese government should havethe strategy to get Kyoto Mechanism credits
![Page 2: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/2.jpg)
Structure of our presentation1.What are Kyoto Protocol and Kyoto Mechanism?
2. The Japanese government’s currentStrategy and policies to get Kyoto Mechanism credits
3. Evaluation on current policies to getKyoto Mechanism credits.
4. Our proposal for the Japanese government
![Page 3: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/3.jpg)
Structure of our presentation1.What are Kyoto Protocol and Kyoto Mechanism?
2. The Japanese government’s currentStrategy and policies to get Kyoto Mechanism credits
3. Evaluation on current policies to getKyoto Mechanism credits.
4. Our proposal for the Japanese government
![Page 4: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/4.jpg)
What is Kyoto Protocol
• It is an international agreement to stop global warming
• Each Annex 1 countries have thedifferentiated targets to limit or reduceGHG emissions from the 1990 level.
Ex.) Japan 6% USA7% EU8%
![Page 5: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/5.jpg)
The characteristics of Kyoto Protocol
1. Limits to Annex 1 countries2. Flexible to achieve the target
![Page 6: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/6.jpg)
Three flexibilities
1. Flexible of what (6 types of GHGs)2. Flexible of when (5-years commitment period)
3. Flexible of how and where⇒Kyoto Mechanisms
![Page 7: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/7.jpg)
Kyoto Mechanism
• International Emission Trading (IET)• Joint Implementation (JI)• Clean Development Mechanism (CDM)
![Page 8: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/8.jpg)
International Emission Trading
Cap
A B
emission
emission
Emission Trading
![Page 9: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/9.jpg)
Joint Implementation①
Developed Country A
Developed Country B
FundsTechnology
GHG reduction program
Amount of emission cuts
One part of the emission cuts
![Page 10: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/10.jpg)
Joint Implementation②
Emission quartos of developed country B
Emission quartos of developed country A
![Page 11: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/11.jpg)
Clean Development Mechanism
Before project implementation in developing country
emission
emission decrease
emission
After project implementation in developing country
To developed country
To developing country
Emission quotas of developed country
![Page 12: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/12.jpg)
Why getting Kyoto mechanism credits is important for Japan to achieve the target
cost effectively?◎Marginal Abatement Cost to reduce emission・・・the cost associated with one additional unit of
reduction
(MAC, US$/ton)
(IPCC Third Assessment Report)
Japan$400 EU
$300 U.S.$200
![Page 13: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/13.jpg)
Why getting Kyoto Mechanism credits are so important for Japan to achieve the
target cost effectively?The predicted prices of credits (US$/ton) by Point Carbon
5-203-53-5CER
5-205-82-4ERU
5-144-63-5AAU
201020052003
![Page 14: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/14.jpg)
Structure of our presentation1.What are Kyoto Protocol and Kyoto Mechanism?
2. The Japanese government’s currentStrategy and policies to get Kyoto Mechanism credits
3. Evaluation on current policies to getKyoto Mechanism credits.
4. Our proposal for the Japanese government
![Page 15: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/15.jpg)
1.The Japanese government’s strategyand Measures to get KM credits
![Page 16: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/16.jpg)
The Climate Change Program(to achieve 6% reduction target from 1990 level)
Even if this target will be achieved, the Japanese governmentstill need to compensate for of total 6% reduction by getting Kyoto Mechanism Credits.
-4.4%Total
-3,9%The use of Sinks
-2,0%Reductions by innovative technologies and change of lifestyle
+2%Emissions of HFCs, PFCs and SF6
-0,5%CO2 emissions from non-energy use, methane emissions, and nitrous oxide emissions
±0%CO2 emissions from energy use
-1.6%
![Page 17: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/17.jpg)
The necessary amount of KM creditsThe total amount of GHG emissions in 1990=1.23 billion ton
1.23billion×0.016×5(Year)=98million tons
The proportion of using KM
The number of years of the first commitment period
(2008-12)
The Japanese government needs to get
98millions tons of credits
![Page 18: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/18.jpg)
Japanese Government’s Strategy and Policies to get necessary amount of credits.
The Japanese Government’s current Strategy about KM
The credits that Japanese firms have cannot be used for the government to achieve the target.
“Encouraging Japanese companies to carry out CDM and JI projects for themselves”
![Page 19: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/19.jpg)
Japanese Government’s Strategy and Policies to get necessary amount of credits.The government’s only existing policy to get Kyoto
Mechanism credits
Granting subsidy to Japanese firms that carry out CDM/JI projects. The firm has to transfer part of their credits to the account of the government.(2.1billion yen≒1990million US dollars)
The main purpose is promoting CDM/JI projects.It will not be a main policy to get necessary amount of credits
![Page 20: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/20.jpg)
Japanese Ongoing Policies
Japanese Government (need to get 98MtC)
Japanese Firms
Foreign Firms
PCF
Developing Countries Annex 1 Countries
ET Market
C D M J I E T
1, Subsidy
(2.1 billion yen)
![Page 21: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/21.jpg)
Japanese Ongoing Strategy and PoliciesPolicy (under consideration) to get credits
Requesting Japanese firms to contribute (transfer) their credits to the account of the government
No certainty to get necessary amount of credits.
If the government will not take any additional policy to get credits…
The government need to buy credits from IET market(start from 2008) to get necessary amount of credits.
![Page 22: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/22.jpg)
In summary• There is no strategy to get KM credits.
• The government’s only existing policy to get credits is a subsidy system→Will not be a main policy to get necessary amount of
credits
If there will be no additional policies→The government need to buy credits from IET
market (start from 2008) to get necessary amount of credits.
![Page 23: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/23.jpg)
Structure of our presentation1.What are Kyoto Protocol and Kyoto Mechanism?
2. The Japanese government’s currentStrategy and policies to get Kyoto Mechanism credits
3. Evaluation on current policies to getKyoto Mechanism credits.
4. Our proposal for the Japanese government
![Page 24: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/24.jpg)
Evaluation on the current policies to get KM credits
In terms of①Certainty of getting KM credits②Cost effectiveness of getting
KM credits.
![Page 25: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/25.jpg)
①certainty of getting necessary amount of creditsRemarks1, the government has no policies to get credits at
this moment2, without any additional policies, the government
needs to buy credits in the IET market starting from 2008
Russia; the largest seller of credits, as a result of the drop in emissions level due to stagnation in the 1990s
“Hot-AIR”
![Page 26: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/26.jpg)
①certainty of getting necessary amount of credits
-2(-10)
High growth(5,4%)
199(995)
Low growth(2%)
The amount “Hot-Air” per year (during the 1st commitment period)
case(EconomicGrowth rate from 2000 to 2010)
Projected Russian emissions (MtC)
There is a possibility that the amount of credits sold in the market is far too little
The Japanese Government may fail to get KM credits certainly
Source: Department of economics University of Colorad
Eliminated completely
![Page 27: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/27.jpg)
②Cost effectiveness of getting KM credits.
source: Point Carbon
Predicted carbon prices in the period 2001-2012
The Japanese Government may fail to get KM credits cost-effectively
No policies aiming to acquire
KM credits
![Page 28: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/28.jpg)
In summaryThe government may fail to get KM credits
cost-effectively and certainly without any additional policies
The government should introduce additionalpolicies and change their strategy,,,
![Page 29: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/29.jpg)
The strategy which the Japanese Government should take
Acquiring KM Credits
as earlier as possible
![Page 30: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/30.jpg)
Structure of our presentation1.What are Kyoto Protocol and Kyoto Mechanism?
2. The Japanese government’s currentStrategy and policies to get Kyoto Mechanism credits
3. Evaluation on current policies to getKyoto Mechanism credits.
4. Our proposal for the Japanese government
![Page 31: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/31.jpg)
Our proposal for the Japanese government
The government should change their strategyfrom “Encouraging Japanese companies to carry out CDM and JI projects for themselves”(need to depend on IET market)
to“Getting KM credits certainly and cost-
effectively as soon as possible”
![Page 32: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/32.jpg)
Our proposal for the Japanese government• To crystallize this strategy,“Getting necessary amount of credits certainly and
cost effectively as soon as possible”
The Japanese government need to introduce additional measures to get credits certainly and cost effectively
![Page 33: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/33.jpg)
Policies to get KM credits certainly and cost-effectively
Option1. Purchasing carbon credits thorough tenders (The system such as ERUPT/CERUPT in the Netherlands)
Option2. Investment in PCF (Prototype Carbon Fund)
Option3. Increasing the existing subsidy for CDM/JI projects(The Japanese government can get KM credits)
Option4. Requesting Japanese companies to contribute (transfer) their KM credits to the Japanese government account.
![Page 34: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/34.jpg)
Option1
[Purchasing KM credits through tenders](The system such as Erupt/Cerupt in Netherland)
○What is ERUPT/CERUPT
![Page 35: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/35.jpg)
Option1. Purchasing carbon credits thorough tenders(The system such as ERUPT/CERUPT in the Netherlands)
ERUPT/CERUPT is…• Public getting carbon credits on tender base.(ERUPT for JI projects and CERUPT for CDM projects)
• Fixing prices of credits in advance and delivering credits later.
• Firms can receive part of payments in advance
![Page 36: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/36.jpg)
Possible ways to get Carbon Credits
Japanese Government
Japanese Firms
Foreign Firms
PCF
Developing Countries Annex 1 Countries
ET Market
C D M J I E T
![Page 37: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/37.jpg)
CDM projects
Dutch government
20EUR/t-CO2
10EUR/t-CO2
30EUR/t-CO2
5EUR/t-CO2
Offered price
The government purchases credits.
Transfer of credits
![Page 38: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/38.jpg)
Option2. Investing in PCF (prototype carbon fund)
○ What is PCF
![Page 39: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/39.jpg)
Developedcountries
GovernmentFirms
P C FDevelopingcountries
Money Money
Credits Credits
system of PCF
amount$180million
![Page 40: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/40.jpg)
Japanese investors
Chubu Electric Power Co. Electricity, Japan)Chugoku Electric Power Co.(Electricity,Japan)Kyushu Electric Power Co. Electricity, Japan)Mitsubishi Corp. Trade, Japan)Mitsui (Trade, Japan)Shikoku Power Co. Electricity, Japan)Tohoku Electric Power Co. Electricity, Japan)Tokyo Electric Power Co. Electricity, Japan)
Japanese firms are 8 of all 17 firms
![Page 41: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/41.jpg)
Possible ways to get Carbon Credits
Japanese Government
Japanese Firms
Foreign Firms
PCF
Developing Countries Annex 1 Countries
ET Market
C D M J I E T
![Page 42: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/42.jpg)
Option3.
Increasing subsidy for CDM/JI projects
![Page 43: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/43.jpg)
Possible ways to get Carbon Credits
Japanese Government
Japanese Firms
Foreign Firms
PCF
Developing Countries Annex 1 Countries
ET Market
C D M J I E T
![Page 44: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/44.jpg)
Option 4
Requesting Japanese companies to contribute (transfer) their KM creditsto the Japanese government account.
![Page 45: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/45.jpg)
Possible ways to get Carbon Credits
Japanese Government
Japanese Firms
Foreign Firms
PCF
Developing Countries Annex 1 Countries
ET Market
C D M J I E T
![Page 46: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/46.jpg)
Ⅰ.certainty of acquiring necessary amount of credits
Ⅱ.cost-effectiveness
Ⅲ.transfer of the Japanese government’s money from Japan to foreign countries
The criteria which must be considered when the government introduce these policies.
More important
![Page 47: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/47.jpg)
Ⅰ.certainty of acquiring credits
It is possible to get credits from all over the world.
The sellers are limited to domestic firms.
more certainty of acquiring necessary amount of credits
less certainty of acquiring necessary amount of credits
Option1(ERUPT/CERUPT) and option2(investment in PCF)
Option3(increasing subsidy) and 4 (requesting firms to contribute their credits)
![Page 48: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/48.jpg)
Ⅱ.cost-effectiveness
The Japanese government can get credits at international market prices.
(Ex. about 6 to 12 dollar/t-CO2; ERUPT/CERUPT 3dollar/t-CO2; PCF)
The sellers are limited to domestic firms.
Cost-effective
Not cost-effective
Option1(ERUPT/CERUPT) and option2(investment in PCF)
Option3(increasing subsidy) and 4 (requesting firms to contribute their credits)
![Page 49: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/49.jpg)
Ⅲ.transfer of the Japanese government’s money from Japan to
foreign countries
• There are transfer of the Japanese government’s money to foreign countries.
• There are no transfer of the Japanese government’s money to foreign countries.
Option1(ERUPT/CERUPT) and option2(investment in PCF)
Option3(increasing subsidy) and 4 (requesting firms to contribute their credits)
![Page 50: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/50.jpg)
Technically, it is possible to introduce every policy if you do not think about budget restriction.
◎◎××Ⅲtransfer of the government's
money
△△◎◎Ⅱcost-effectiveness
×○◎◎Ⅰcertainty of acquiring credits
Option4Requesting
firms to contribute
credits
Option3Increasing
subsidy
Option2Investment
in PCF
Option1Purchasing
credits thorough tenders
![Page 51: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/51.jpg)
The policy mix that the Japanese government should introduce
• Option1 and option2 should be introduced immediately.
• Option 4 cannot be main policy to get credits.
• Option3 also cannot be a main policy. But, this system should be continued.
This is effective to increase total amount of credits in Japan
![Page 52: The Japanese government should have the strategy to get ...web.econ.keio.ac.jp/staff/myamagu/seminar_www/2003/PDFrejume/… · Our proposal for the Japanese government. What is Kyoto](https://reader034.fdocuments.net/reader034/viewer/2022042205/5ea798de6f6bef769562a927/html5/thumbnails/52.jpg)
Conclusion!!The Japanese government should change the strategyfrom“Encouraging Japanese companies to carry out CDM and JI projects for themselves”to“Getting KM credits certainly and cost effectively as
soon as possible”
And introduced these policies immediately!
1. Introducing ERUPT/CERUPT system 2. Investing in PCF