Japan Govt Shows Draft Plan for Carbon Pricing System

Tokyo, Dec. 14 (Jiji Press)--Japan's industry ministry presented a draft plan Wednesday for a proposed carbon pricing system under which companies will pay for their carbon dioxide emissions according to the amounts.

The plan, shown at a ministry panel meeting, also envisions that a full-fledged carbon emission trading system will start as early as fiscal 2026 and that power utilities will be required to buy emission quotas in stages from around fiscal 2033.

The plan is expected to be reported to the government's green transformation implementation council, headed by Prime Minister Fumio Kishida, within this month for a final decision.

The government estimates that over 150 trillion yen in public and private investments will be necessary in the next decade to promote decarbonization.

Of the total, about 20 trillion yen will be raised by issuing new green transformation bonds, which will be managed under a special account of the government.

[Copyright The Jiji Press, Ltd.]