Responding To The Kyoto Protocol: The Promotion of Regional and Private Sector Initiatives to Address Global Warming

ABSTRACT

A survey distributed by FRI in June and July of 2002 to the 175 prefectural and major city governments nationwide showed that global warming has been singled out as the most important current environmental issues and that it was recognized as a problem that requiring additional policy measures. The current initiatives of the local governments are centered upon educating the residents about the environment. However, many of the smaller scale local governments have yet to take any concrete steps at all. While about 90% of the prefectural, metropolitan, and government decreed city governments monitor their levels of greenhouse gas emissions, only 20-30% of the core city and special city governments do so. There are also large differences in the established goals for emissions reduction depending on the size of the local government. Nonetheless, close to 40% of local governments have begun or are considering independent global warming initiatives, while almost all of them have interest in beginning one.

The delay in initiating global warming counter measures in this country is not just a matter of procrastination but is also related to the potential loss of business opportunities. A preemptive approach to global warming with a view toward new innovations is necessary in order to raise competitiveness. Compared to Europe, which continues to move forward with its development of market tools and incentives by way of its system of emissions trading, Japan has yet to setup an emissions trading program. Even the supporting businesses for projects related to global warming have yet to emerge. As the national government does not plan to begin any full-scale initiatives until 2004, it is largely up to the local regions to push forward with direct and early measures.

In thinking about the independent and regionally designed global warming initiatives, it is hoped that, once the reducers are chosen and the reduction projects are set up, the local governments consider expanding their projects through alliances with other local governments and affiliations with third party institutions. From the perspective of maintaining a high level of freedom in choosing the means for reduction, the adoption of free-willed programs would be the best choice and are the best fit to be adopted by the industrial sector. On the other hand, from the perspective of security of resources and potential for expansion, either the foundation type or the independent tax type programs are the best to adopt. Finally, with regard to free-willed and foundational type programs, it would be possible to strengthen incentives for voluntary participation and to circulate capital back into the region if a portion of the reduction credits or the dividends from project revenue are distributed as regionally exchangeable, green merchandise credits.