Tokyo Metropolitan Government

Climate Change Measures

Tokyo Cap and Trade Program

Yuko Nishida
Bureau of Environment

Tokyos GHG Emission Reduction Target

25%below 2000 levels by 2020

2020200025%
Tokyo Carbon Dioxide Footprint

Total CO
2
Emissions: 65 million tons (FY2007)
6,5002007
Residential

27%
Trans-
Portation

22%
Commercial &
Industrial

49%
Large CO
2
emitting
facilities
CO
2

approx.
40%
approx.
60%
Small to medium sized CO
2
emitting
facilities
CO
2

TOKYO
METROPOLITAN
GOVERNMENT
3
Cap & Trade Programs Worldwide

2005
2009
2010
TOKYO
METROPOLITAN
GOVERNMENT
EU ETS
RGGI
Ten northeastern states in the US
RGGI
Tokyo
Cap-and-Trade Program

4
Program Development
2002 2005 2008 2010
Mandatory reporting program
(Voluntary reductions program)

--require to report yearly emissions

--
--require to establish reduction plans
for 3yr-terms
--
--advise energy saving measures
--
2008 Enacted
2008
2005 Revised
2005
TOKYO
METROPOLITAN
GOVERNMENT
2002 voluntary
program started
2002

2010 mandatory
program started
2010

Mandatory
Program:

Tokyo
Cap-and-Trade
Program

5
Tokyo Cap-and-Trade
2007~8 Consultation Process
20072008
June 2008 Unanimous approval
in the Metropolitan Assembly
20086
Public comments

Stakeholder
Meetings

TOKYO
METROPOLITAN
GOVERNMENT
Introduction
6
Tokyo Cap-and-Trade
The worlds first urban cap and trade
program to cover office buildings

40% of commercial and industrial

sectors emissions
40%
1,300 facilities 1,300
1,100 Commercial & institutional buildings
1,100
200 Industrial facilities 200
TOKYO
METROPOLITAN
GOVERNMENT
Target: Facilities with annual energy consumption of
1,500 kl or more (crude oil equivalent)
1,500 kl
Tokyo Cap-and-Trade
Current estimation. Fix by the end of the 1
st
compliance period
1
*
1
st
compliance period
2010-2014
1
2010 -2014
2
nd
compliance period
2015-2019
2
2015 - 2019
*
Base-year
Emission

6% reduction
(5 year average)
6%
5
17% reduction
(5 year average)
17%
5
Cap Setting
8
Tokyo Cap-and-Trade
Based on historic emissions
Base-yr emission(1-Compliance factor)5yrs
1 5
Allowance
46,000 = 9,200

5yrs
10,0008%
Total 5 yrs Emissions
5
Method 1Self reduction
Method 2: Emission trading
1
2
reduction

2010 11 12 13 14 2010 11 12 13 14
Example

Base year emissions: 10,000 tons 10,000

Compliance factor for 1
st
compliance period 8% r educ t i on
18%
Penalty for
non- compliance

Ordered to reduce 1.3 times the shortfall

1.3
If order is violated:
Monetary fine, surcharge, public announcement,etc.

Allowance Allocation
9
Tokyo Cap-and-Trade
Trading & Credits
Emissions trading

Trading Amount:
Reduction exceeding the obligation
Emission reduction exceeding the yearly obligation is allowed to be
traded from the 2nd year.

Offsets
--Credits

1. Emission reductions from small and midsize

facilities within the Tokyo area
* Emission reduction by energy-saving measures
*
2. Renewable Energy Certificates
* Solar (heat and light) energy, wind energy, etc.in J apan
*
3. Emission reductions outside the Tokyo area
* Sellers will be assumed to be covered under the
Tokyo Cap-and-Trade Program, and reduction exceeding the
reduction obligation would be counted as offset credit
*

* Can only buy up to 1/3 of the reduction obligation

* 1/3
10
Tokyo Cap-and-Trade
Key Points
Urban cap and trade program is as
extremely effective to lower CO
2
emissions
from new and existing buildings in cities

Trading is crucial for an entire scheme

Careful design of a local carbon market is

important to facilitate retrofit programs in
Tokyo

TOKYO
METROPOLITAN
GOVERNMENT
11
Key barriers and challenges

Failure story in 2005

2005
Tried introducing mandatory emission reductions
program without trading

--lack of sufficient data

--
--lack of knowledge (esp.building side)
--
--insufficient communications with stakeholders,
--
Lack of support from national level policy

TOKYO
METROPOLITAN
GOVERNMENT
12
Expansion
Tokyos Proposal on Nationwide Introduction
of cap and trade program (Sept.2009)
20099

--Two-tier (national level and

regional level) cap and trade
programs covers entire J apan

Expansion to the Greater

Tokyo Region

TOKYO
METROPOLITAN
GOVERNMENT
13
Climate Change Strategy
Changing Developments
and Corporate Activities

TOKYO
METROPOLITAN
GOVERNMENT
Green Building Era in Tokyo

High performance buildings in progress 1

1
Energy efficiency, Low energy:
LED lights, Energy efficient air conditioning,
Double glazed windows, Natural lighting
Natural ventilation
LED

(Eco-Office Project, SHIMIZU CORPORATION)

Renewable energy use:

PV panels in system walls

15
Green Building Era in Tokyo

High performance buildings in progress 2

2
Energy efficiency, Low energy:
PV system, ground water
source heat pump system
PV
(TAISEI CORPORATION)

Renewable energy use:

PV panel louver

Exterior
Interior
16
Green Building Era in Tokyo

Retrofit Projects

Installing highly efficient air conditioning & lighting system.

Improve district heating system

(Mitsui Sumitomo Marine and Fire Insurance Co.

Ltd.)
17
Use 100% renewable energy for the electricity consumption
in the high-rise energy efficient building
100%

(New Marunouchi Building, Mitsubishi Estate Co. Ltd.)

(Futamata Wind Power Development Corporation,

Aomori Prefecture)
Futamata
Progressive Actions
A New Scheme of Renewable Energy Use

18
Projects in small and mid sized buildings and
corporations

Various improvement efforts for

energy efficiency are actively
taken

Install energy efficiency lights,

reflecting devices, and management
systems

Install high efficiency boilers

Thermal insulating
materials to cover
heat sources and bulbs

FY
270
383
560
0
100
200
300
400
500
600
2008 2009 2010
Energy assessment program
for small businesses are grown

Tokyo Climate Change Strategy

http://www.kankyo.metro.tokyo.jp/en/climate/index.html
Contact us: tokyoets@kankyo.metro.tokyo.jp
tokyoets@kankyo.metro.tokyo.jp