[Reference]

(GHG: Green house gases)

・	The framework permits trade in emission credits between countries that succeed in exceeding GHG reduction targets and countries that fail to meet the targets. It also permits countries to buy and sell emission credits obtained through joint implementation and clean development mechanisms.

・	Through agreements reached between the advanced industrialized nations and Russia/Eastern Europe, countries that participate in the joint implementation of projects designed to reduce GHG emissions can share credits for the amount of reduction achieved.

・	Reductions in GHG emissions resulting from projects implemented among advanced and developing countries can, after passing designated approval procedures, be distributed among the nations involved.
・	This mechanism covers projects implemented from 2000 onwards.

・	Creation of a sound market and market mechanisms will lead to cost-effective control of CO2 emissions.
・	Recognizing the autonomous participation of the private sector in international trading will make voluntary, private-sector involvement more flexible.

・	By applying the advanced energy-conservation technologies of industrialized countries by means of joint programs implemented in countries that are less advanced, it becomes possible to improve cost effectiveness and make greater reductions in GHG emissions, as compared with similar efforts conducted by individual countries alone.
・	Joint implementation not only contributes to the steady reduction of GHG emissions in the world as a whole, but also promotes capital flow and technology transfer.
・	Same as at left.

・	Same as at left.
・	Same as at left.
・	Same as at left.
・	The only system that connects developing countries to GHG limitations.

[Reference]

Oct. 13, 2000
Federation of Electric Power Companies

1. Basic Approach of the Electric Power Industry

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It is possible to cost-effectively control CO2 emissions on a global scale, and the electric power industry believes that this is an important measure that supplements Japanﾕs national policy.

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This also has the advantage of transferring Japanﾕs advanced electric power technology and know-how overseas.

2. Opinions concerning the Rules and Framework of the Kyoto Mechanisms

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It should be cost-effective on a global scale.

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No upper limit should be placed on the use of the Kyoto Mechanisms

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A market should be created in which transactions can be conducted at appropriate prices. To achieve this, the private sector should be broadly involved.

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Operational costs associated with the Kyoto Mechanisms should be minimized.

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In addition to the joint implementation of afforestation and other measures to create atmospheric CO2 sinks, CDM projects should also be addressed.

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The framework should be simple, easy to understand, and capable of being used with a sense of security.

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Until the market is adequately developed, it is appropriate for the sellers to assume responsibility.

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The framework should be sustainable.

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It is important to ensure that the projects are sustainable and feasible as a business. Any profitable activity that contributes to the reduction of CO2 emissions should be recognized.

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The judgment of the recipient country is important when evaluating the sustainability of a given project. Nuclear power and other designated technologies should not be excluded in advance.

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The framework should make the project profitable for both the implementing and recipient countries.

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Early involvement should be both recognized and advocated.

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Based on the idea of ﾒlearning while doing,ﾓ minimal rules and frameworks should be established as soon as possible.

3. Approach to Japan's Domestic System

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The methods proposed for following the initial emission quotas present various problems with respect to fairness and practicality, and are difficult to accept.

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Even if the national government secures a source of revenue through emissions trading and other means, the basic approach should be to squeeze further funds out by reviewing expenditures. No new surtaxes should be imposed.