Japan plans carbon offset scheme with India: Report

June 18, 2014 - 12:00:00 am

TOKYO: Japan is set to offer India a carbon offset scheme that would see Tokyo’s environmental technology used by the rising Asian giant to help reduce its emissions, a report said.

The scheme would see Japanese firms earn carbon credits in return for helping developing countries reduce their greenhouse gas emissions, the Nikkei newspaper said, adding India was a likely early partner.

The joint crediting mechanism (JCM) would encourage Japanese firms to participate by allowing them to promote technologies such as energy-efficient furnaces and air-conditioning systems, in developing countries with huge market potential such as India.

The Nikkei report comes as Japan struggles to further cut its greenhouse gas emissions, with businesses claiming many factories, vehicles and household appliances are already fitted with energy-efficient technologies.

It also comes as the latest energy white paper showed Japan is increasingly dependent on imported fossil fuels for power generation, with the public still unwilling to allow nuclear reactors to be switched back after the huge 2011 quake-tsunami disaster that crippled the Fukushima nuclear plant. 

Under the mooted joint crediting mechanism (JCM), participating firms would be allowed to count the carbon credits as reductions in their own greenhouse gas emissions or could sell them to the government, the Nikkei said.

Japan has already signed JCM agreements with 11 developing countries, including Indonesia, Mongolia and Kenya. AFP

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