HOME > Useful Experiences from Existing Practices > JVETS
In designing a new market mechanism, it is important to learn from past experiences of similar acticities. MOEJ conduct the Japan’s Voluntary Emission Trading Scheme (JVETS) and the Offset Credit Scheme (J-VER) as domestic system in Japan. JVETS supports voluntary CO2 reduction activities by business operators, and J-VER scheme is a verification scheme for credit generated through the reduction/ removal by sinks of greenhouse gases carried out via domestic projects. These activities may offer helpful perspectives for the new mechanisms
(Total participants: 303 companies)
|Number of transactions||24||51||23||24|
|Average JPA price (JPY/t-CO2)||JPY1,212||JPY1,250||JPY800||JPY750|
One of the big contributions of JVETS is that it has established basic infrastructure (the emission monitoring, reporting and verification guidelines, registry system, and emissions management system etc.) which is required for smooth operation.
Step 1 : Identification of geographic boundary
■Identify the geographic boundary of the site by using public documents such as Fire Defense Law report, Factory Location Law report, etc.
Step 2 : Identification of emission sources and system boundary
■Identify emission sources using document such as Fire Defense Law report, High Pressure Gas Safety Law, equipment list, purchase bill, etc.
■Identify emission sources owned/operated by other companies and omit them from the boundary.
■Among the emission sources inside the boundary, those which are below the emission threshold may be omitted.
Step 3 : Determination of monitoring plan
■Determine the monitoring plan/monitoring point for each emission sources.
■Check if the monitoring plan meets the required tier, which is defined by
the predicted activity level at each monitoring point.
Approval of monitoringplan by CA(Competent Authority)
(before start of the commitment year)
* No approval procedure for baseline emission
Step 4 : Establishment of monitoring/calculation structur
■Assign individuals responsible for monitoring and calculation.
■State “how” and “who” monitor the data, and “how” and “who” manage the quality of the calculation result.
Step 5 : Monitoring and reporting
■Monitor the data according to the monitoring plan, calculate and report the CO2 emission amount using the monitored data.
Verification by 3rd party verifiers
Approval ofverification report by CA
(Covered Gas ：CO2)
|CO2 from fuel consumption||Fossil fuel burning （including for automobile use within boundary）|
|CO2 from electricity and heat||Use of electricity and heat supplied from outside boundary|
|CO2 from waste management||waste incineration / combustion and waste recycling|
|CO2 from industrial process||Cement production, burnt lime production, use of lime or dolomite, ammonia production, chemical goods production, use of acetylene, dry ice, liquefied carbon dioxide or aerosol.|
|Registry system||• Manages the initial allocations (JPAs), emissions allowance transactions(trading) and retirement
• Manages all accepted allowances and credits in JVETS (JPAs and jCER)
• Emission allowance transaction time: 10am-6pm (JST) on business days
|• No double counting and the same security
level of allowance retirement as the
national registry in Kyoto Protocol
• Open access to the web-based registry system for all participants
|Emissions management system||• Based on the emissions monitoring and
reporting guidelines, all participants’
emissions base years and their actual
emissions amounts in their commitment
periods are stored under the system.
• The data are used for third-party verification.
• EU-ETS verifiers voluntarily use similar management systems
|• Integrated emissions calculation method
• Streamlined emissions calculation and verification processes
• Database of all stakeholder information
|Trade matching system(“GHGtrade.com”)||• Encourages emission allowance transactions
among the participants
• Requires pre-contacts before sales of allowances
• Updates allowance prices and amounts for participants’ transactions on the notice board. (After confirmation of the contract details, participants should pay to their clients’ bank accounts and apply for allowance transactions in the registry system.)
|• Opportunities for the participants to find
their trading counterparts through the