http://www.businessgreen.com/business-green/news/2268932/japan-emissions-trading-scheme

The Japanese government is preparing to revive pre-election plans to introduce a nationwide emissions trading scheme, according to draft documents obtained by Reuters.

The news agency reported that draft plans that would see the country's carbon trading scheme come into effect from 2013 will be presented to an expert committee at the Environment Ministry today.
The documents set out a wide range of proposals for the structure of the scheme and leave many of the details undecided.
For example, Reuters said the draft plan contains no conclusions on how emission quotas should be assigned and whether the Japanese carbon market should be linked to other international schemes such as the EU's emissions trading scheme.
It does, however, confirm that companies forced to comply with carbon caps under the new rules will be able to buy carbon offsets from abroad to help them meet their target.
It also signals that some concessions will be made to carbon-intensive industries that face stiff international competition and to low-carbon sectors, such as solar panel manufacturing, that help to curb greenhouse gas emissions.
The Environment Ministry is keen to finalise its proposals for the end of the year as it seeks to revive plans that were put on ice as a result of Japan's general election earlier this year.
However, the immediate future of the plans remain uncertain given that recently elected prime minister Naoto Kan is expecting to face a leadership challenge later this month.
The government could move swiftly to pass the legislation required to deliver an emissions trading scheme by presenting the same bill as was postponed earlier in the year at an upcoming extraordinary parliamentary session. However, the result of the leadership election could lead to a shift in climate change strategy by the government.
In related news, Japan signed a bilateral agreement with China over the weekend that will see the two neighbours work closer together on climate change and energy-efficiency projects.
According to reports in the state-backed Xinhua newspaper, officials from both governments met in Beijing and signed an agreement that will see them co-operate on projects relating to energy efficiency, renewable energy, clean coal technology, methane recovery and utilisation, carbon capture and storage, adaptation to climate change and the UN's clean development mechanism offsetting scheme.