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What is Carbon Credits?
Carbon credits are CO2 (or other GHGs) emission reduction/sinking realized by others. Those credits are used for “compensation” in carbon offsetting activities.
Unique points of carbon credits in Japan
As carbon offsetting is a voluntary measure in Japan, credits used in it are also voluntarily created and traded. Despite its voluntary nature, the quality of credits are certified under national and international schemes.
The mixture of national and international ones
The credits used in carbon offsetting in Japan consist of national and international ones. In one hand, national ones, J-Credit, J-VER and Domestic credit, allow carbon offset practitioners to invest in reduction/sink projects in Japan. This leads to the protection of Japan’s forests, facilitation of techniques. On the other hand, international ones, mainly CER under CDM scheme, enables practitioners to invest in projects outside Japan.
Sorts of carbon credits
J-Credit Scheme is Japan’s carbon credit certification scheme which has been operated since Apr, 2013. Besides J-Credit, J-VER and Domestic Credit, the credits created under old schemes, are also subject to market trade.
The followings are the sorts of credits available under Japan Carbon Offsetting Scheme:
|Sorts of Credits||Credit Scheme
|J-Credit||Ministry of the Environment,
Ministry of Economy,
Trade and Industry (METI)
Ministry of Agriculture,
Forestry and Fisheries (MAFF)
|A carbon credit issued under J-Credit Scheme, which is operated by the Government of Japan.|
|J-VER||Ministry of the Environment,
|A carbon credit issued under J-VER Scheme (terminated in 2013).
The stock of J-VER credits are still subject to market trades until 2020.
|Kyoto Mechanism Credits
(AAU, RMU, CER, ERU)
|These are globally-used carbon credits issued and operated under the UN authorities.|