Innovating in sub-national climate policy: the mandatory emissions reduction scheme in Tokyo

Abstract

This study analyses the drivers behind the policy-making and implementation of the recently developed climate policies in the Tokyo Metropolitan Government (TMG). In 2010, the TMG introduced a mandatory CO₂ emission reduction and a cap-and-trade scheme; the world's first such scheme that sets binding targets for buildings. The research was carried out through reviews of the published and unpublished literature, surveys and face-to-face interviews with various stakeholders involved in the policy process. The essential components that enabled successful policy-making and implementation of the scheme in Tokyo are revealed, such as the administrative leadership and the capacity of the TMG administration, the availability of historical data supporting the policy discussions and the gradual and flexible implementation mechanisms. The article concludes with recommendations for future improvements in the TMG and beyond.

Policy relevance

This article presents the lessons from the recent advancements in climate policy in Tokyo, particularly the world's first mandatory city-scale emission reduction and cap-and-trade scheme that includes buildings. The scheme was relatively effective as the total GHG emissions were reduced by 23% on average from the base years and 10% below the average of other parts of the country before the end of the first compliance period of five years (2010–2014). The policy innovations from the world's largest city and the capital of Japan can inform sub-national governments about the potential barriers and opportunities for introducing mandatory GHG emissions reductions.

Keywords:

• city
• emission trading scheme
• governance
• Japan
• sub-national
• Tokyo

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Corrigendum

Notes

1 Sub-national governments are any administrative or/and political layers of government below the national level. In the case of Japan, prefectures define the second-tier sub-national governments above municipal units like cities, towns, villages and wards. Local, sub-national and cities are used interchangeably sometimes.

2 Mega-cities are urban conglomerations with a population greater than 10 million.

3 Facilities were codified according to the use classification as per the Guideline for Monitoring and Reporting Energy-Related CO₂ Emissions (TMG, 2015c).

4 A telephone interview was used with one individual. Face-to-face interviews were conducted with eight individuals on one or multiple occasions. We asked questions about stakeholder involvement, details of the policy process and key drivers of policy-making and implementation.

5 Consulted parties are current and former employees of entities including the TMG Bureau of Environment, the Japan Renewable Energy Foundation, WWF Japan, Friends of the Earth Japan, the PV Owner Network Japan, the Institute for Sustainable Energy Policies, the University of Tokyo and the Japan Rail East Building.

6 Some facilities were re-classified as non-regulated facilities during the first compliance period due to their extensive effort in reducing their energy consumption to below 1500 kl equivalent of oil. The number of compliance facilities as of June 2015 is 1281 (TMG Bureau of Environment, 2015).

7 Facilities that meet the Standards for Certifying Top-Level Facilities enjoy reductions of their compliance factor by half for top-level and a quarter for near-top-level. The certification standard assesses general management and operation, the energy performance of buildings and equipment, and energy management on mandatory, general and additional items based on a scoring system. Facilities that ‘make great progress against global warming', especially including those who implemented measures prior to the TMG scheme, are recognized (TMG Bureau of Environment, 2012).

8 Carbon price is decided based on negotiations by market participants. As a reference, the selling price of TMG-offered offset credits and the declared price listed in the application of transfer credits to the TMG are released.

9 Interview with a former TMG official on 19 December 2013.

10 The initial introduction of mandatory reporting led to a reduction of 3.5% from the base year of choice, but only 1% of facilities were rated as AAA for taking ‘exceptionally excellent measures', as opposed to 79% ranked average and 4% insufficient (TMG Bureau of Environment, 2012).

11 Interviews with large business facilities and NGOs from 27 November to 18 December 2013.

12 Interviews with TMG officials, large business facilities and NGOs from 27 November to 19 December 2013.

13 Interviews with large business facilities and NGOs from 27 November to 18 December 2013.

14 Interviews with former and current TMG officials between 17–19 December 2013.

15 Interviews with NGOs from 27 November to 18 December 2013.

16 Interviews with NGOs from 27 November to 18 December 2013.

17 Interviews with NGOs from 27 November to 18 December 2013.

18 Interviews with TMG officials, large business facilities and NGOs from 27 November to 19 December 2013.

19 JVER is one of the most robust offset credit systems already in place, but JVER credits are not subject to credit offset under the Tokyo ETS (MOEJ, 2014).