On March 16, 2021, the Tokyo Metropolitan Government (TMG) held an online meeting with the Department for Business, Energy and Industrial Strategy (BEIS) of the United Kingdom to exchange views on emissions trading systems. The UK has been operating the United Kingdom Emissions Trading System (UK-ETS)* since January of this year after its withdrawal from the EU. TMG has a well-established urban emissions trading system that covers office buildings.
* What is UK-ETS?
UK-ETS is a UK-specific emissions trading system that replaces the European Union Emissions Trading System (EU-ETS). It was introduced after the UK’s withdrawal from the EU and has been in effect since January 2021. The total emission allowances for the first year of Phase 1 from 2021 to 2030 are 95% of the estimated total emission allowances for the UK in Phase 4 of EU-ETS, making them stricter than those of the current EU-ETS.
At the meeting, an official of the Emission Cap and Trade Section, Climate Change & Energy Division, Bureau of Environment, introduced an outline of the Tokyo Cap-and-Trade Program and described our efforts for achieving reduction targets. BEIS gave an overview of UK-ETS, shared their knowledge and best practices, and actively exchanged opinions on institutional design with us.