In April 2010, the Tokyo Metropolitan Government launched a major environmental initiative to help tackle climate change. Its new Emissions Trading Scheme will impact on hundreds of large commercial and industrial properties in the city, each of which must have its emissions verified by an approved, independent organization.
Within days of the scheme coming into force, LRQA Japan was inundated with requests for its help as a certified verification body, and within weeks, many of the country’s leading organizations signed up for its services – among them blue-chip household names like Bank of Japan and Suntory Holdings Ltd.
Simon Batters, Vice President, LRQA Japan and Korea, said the range of high profile organizations seeking its help was a major confirmation of the company’s standing in Japan. “The decision by Bank of Japan, Suntory and similar organizations to appoint LRQA underlines our competence, reputation and standing within the Japanese financial and commercial communities, and is of vital strategic importance to the development of our business in Asia.”
The Tokyo Metropolitan Government’s Emissions Trading Scheme (Tokyo-ETS) is designed to reduce carbon dioxide emissions from large office buildings and factories within the city, and is Asia's first carbon trading initiative that allows organizations to purchase emissions credits achieved by others.
It is also the world’s first urban cap-and-trade program to cover office buildings as emissions reduction targets, and is expected to serve as a model for the Japanese central government, which plans to design a nationwide emissions trading system within a year.
Launched in April 2010, the Tokyo-ETS will cover some 1,400 offices, commercial buildings and factories (‘entities’) that annually consume more than 1,500 kilolitres of energy. The government of Tokyo - home to nearly 13 million people - aims to slash these emissions by 25 per cent from 2000 levels, by 2020.
Under the first phase of the scheme - 2010 to 2014 - targeted entities will be required to cut CO2 emissions by either 6 per cent or 8 per cent from base-year levels that are calculated from average emissions over a period of three consecutive years between 2002 and 2007. In the second phase - 2015 to 2019 - they will be required to cut emissions by 17 per cent from their base-year levels.
Entities affected will also be able to buy credits earned through reduction efforts by small and medium-sized companies in Tokyo and their branch offices outside the capital. Renewable energy certificates issued by power generators can be also purchased, and actual trading under the scheme will begin in 2011.
Any entity that fails to reach its reduction goal will be ordered to cut emissions by 1.3 times the amount it failed to cut in the first phase. Those who do not comply with this will be publicly ‘named and shamed’ and will face fines of up to 500,000 yen.
BANK OF JAPAN
Bank of Japan is the country’s central bank, with 15 departments at its Tokyo headquarters, 32 branches and 14 local offices.
One of the best known ‘brands’ to choose LRQA’s verification services under the ETS, under the agreement, LRQA will help the Bank to conform to the requirements of the scheme by verifying that its reported greenhouse gas emissions are accurate.
Simon Batters, Vice President, LRQA Japan and Korea, said; “Tokyo is taking this mandatory scheme very seriously indeed, and we are pleased and proud that leading organizations such as the Bank of Japan are turning to the professionalism and experience of LRQA to help them comply with its requirements, and also to gain the benefits it can bring.
“The introduction of the Tokyo-ETS is a major development that will have a significant impact on business and industry in Tokyo, and Bank of Japan’s decision to appoint LRQA is a high profile statement of our capabilities as an emissions verifier”.
SUNTORY HOLDINGS LTD
Suntory Holdings Ltd is one of Japan’s leading food and beverage manufacturers, with more than 200 companies and nearly 25,000 employees engaged in the manufacture of food, alcoholic and non-alcoholic beverages; restaurants; sports; flowers and services.
It is Japan’s leading non-alcoholic drink producer, with 18 per cent of the market, and ranks in the top three of the beer market, also with 18 per cent.
The company is the latest in a list of blue chip Japanese organizations to choose LRQA as its preferred verification body under the TMG scheme.
Simon Batters, Vice President, LRQA Japan and Korea, said the Suntory appointment confirms LRQA’s standing as a preferred verification body by some of the most prestigious Japanese companies. “We are delighted that Suntory, one of the largest household names, has appointed LRQA to assist with their compliance to the Tokyo-ETS. Our environmental capabilities are strategically important for LRQA Japan, and will be instrumental in retaining existing clients and developing further business with existing major accounts.”
LRQA JAPAN AND ETS VERIFICATION
LRQA Japan is poised to become one of the first verification bodies to achieve full certification for all seven categories of the Tokyo-ETS scheme, including as a. Top Level Verification body.
Under its agreement with Bank of Japan, Suntory and other leading names, LRQA will help the organizations conform to the requirements of the Tokyo-ETS by verifying that their reported greenhouse gas emissions are accurate. The process will also enable clients to:
- publicly demonstrate their compliance with the scheme;
- establish the integrity of systems and processes that generate emissions data;
- identify any deficiencies against the scheme’s requirements;
- identify opportunities for improvement in the accuracy and completeness of data.
LRQA’s ETS verification opinion statement can also be submitted to the relevant authorities, allowing clients to register their verified emissions and trade surplus amounts.
For further information on ETS verification services offered by LRQA Japan, please contact LRQA-Japan-Marketing@lrqa.com.