Japan to Offer Subsidies for Carbon-Offset Projects

15 August 2010 (Last Updated August 15th, 2010 18:30)

The Japanese Government has selected 15 Japanese firms including Toshiba, Tokyo Electric Power and Mitsubishi, to carry out feasibility studies for pollution-cutting projects to earn carbon credits overseas. The government will provide about JPY500m ($6m) for research into projects aime

The Japanese Government has selected 15 Japanese firms including Toshiba, Tokyo Electric Power and Mitsubishi, to carry out feasibility studies for pollution-cutting projects to earn carbon credits overseas.

The government will provide about JPY500m ($6m) for research into projects aimed at exporting low-carbon technology to developing countries according to Bloomberg, citing the country's trade ministry.

Aiming to reach its 2020 emission targets of reducing emissions by 25%, Japan will seek bilateral agreements to earn carbon credits according to trade ministry director of global environmental affairs Keisuke Murakami.

Japan has planned projects in nine developing countries and has initiated talks with Vietnam, Indonesia, the Philippines and India for agreements on a carbon-offset mechanism.

Toshiba and Mitsubishi are planning work on geothermal plants in the Philippines and in Indonesia. Nippon Steel has proposed adding energy-conservation technology at a steel plant in India.

Tokyo Electric is considering building a coal-fired power plant in Indonesia.