Japan's Carbon Clock Is Ticking
For years, climate action in Japan's corporate sector ran on goodwill. That changes this April. Around 300 to 400 of the country's heaviest emitters, collectively responsible for about 60% of Japan's total emissions, must now begin mandatory climate reporting under the Green Transformation Emissions Trading System. Reduction targets are due by 2027, with allowance trading to follow. Japan joins the EU and China in running a cap-and-trade system, anchored to a net-zero-by-2050 goal. But Bloomberg Intelligence has flagged that price controls and carbon credit provisions could limit the system's ability to drive near-term reductions. A system that reshapes 60% of a country's emissions landscape, or merely documents it, depends entirely on what happens next. Read more here →For years, climate action in Japan's corporate sector ran on goodwill. That changes this April. Around 300 to 400 of the country's heaviest emitters, collectively responsible for about 60% of Japan's total emissions, must now begin mandatory climate reporting under the Green Transformation Emissions Trading System. Reduction targets are due by 2027, with allowance trading to follow. Japan joins the EU and China in running a cap-and-trade system, anchored to a net-zero-by-2050 goal. But Bloomberg Intelligence has flagged that price controls and carbon credit provisions could limit the system's ability to drive near-term reductions. A system that reshapes 60% of a country's emissions landscape, or merely documents it, depends entirely on what happens next. Read more here →Expert summary pending. Showing the newcomer version.