Operational Cooperation for Introducing Carbon Project Rating (Risk Assessment) Service To Invigorate Emissions Trading in Japan
Environment
NR/2007-13
May 2, 2007
May 2, 2007
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today a memorandum of understanding (MOU) with IDEA Carbon Limited (IDEAcarbon), a British private sector consultant firm engaging in emissions trading, and the Japan Institute for Overseas Investment (JOI) for cooperation with a view to introducing to the domestic carbon trading market a rating (risk assessment) service on the individual projects generating carbon credits.
- It is expected that the Keidanren Voluntary Action Plan on the Environment of Nippon Keidanren (Japan Business Federation) and considerations for corporate social responsibility (CSR) will boost the momentum of acquiring carbon credits among Japanese businesses. When firms directly acquire carbon credits from greenhouse gas (GHG) emission reduction projects, they face traditional project risk, as well as the risk of failing to get authentic approval for emission credits under the Kyoto mechanisms*1. Thus there will be a growing need for third party rating (risk assessment) of carbon projects.
- This MOU aims to offer advice to IDEAcarbon, which has been providing a rating service (risk assessment) for carbon projects, based on JBIC's experience in conducing the carbon business and making environmental considerations for JBIC-supported projects. It is also designed to support Japanese businesses in acquiring carbon credits by enabling JOI to introduce to Japanese firms the rating methodology of carbon projects by IDEAcarbon through its network.
- JBIC is making active efforts to promote the Kyoto Mechanisms by making maximum use of its long-cultivated ties with developing country governments through past loan and guarantee operations and its overseas network of representative offices. The signing of this MOU represents part of these efforts. JBIC intends to continue its commitment to Japan's effort to achieve the target of reducing greenhouse gas emissions.
- *1 Kyoto Mechanisms are economic arrangements set out in the Kyoto Protocol to achieve the target of reducing global warming gases among industrial countries and countries with economies in transition, and consists of the Clean Development Mechanism (CDM), Joint Implementation (JI) and Emissions Trading.
