2018 Reports

Raising Awareness of Negotiating and Implementing Tokyo's Cap-and-Trade System

Dreyfus, Magali

Tokyo’s city-level Emissions Trading System (ETS) is the first mandatory cap-and-trade program for greenhouse gases at the municipal scale, targeting a 25% CO₂ reduction from 2000 levels by 2020. It applies to large industrial and commercial facilities, which can trade unused allowances or face fines for noncompliance. The system combines monitoring, reporting, and renewable energy credits to promote mitigation and capacity-building among stakeholders. Tokyo’s ETS demonstrates how cities can translate global climate goals into local, enforceable action and serves as a model for other urban areas.