Calculation of greenhouse gas conforms to the international standards
Calculation of greenhouse gas conforms to the international standards ―J-Credit and Green Power Certificates and Non-fossil Energy Certificates can be applied for the international initiatives
On March 12th , The METI (Ministry of Economy, Trade and Industry) summarized the draft guidance to comply with the method to calculate the GHG (greenhouse gas) emissions which is taking root as standard in private sectors overseas. Given the growing impact of international initiatives such as “RE100”, which aims to replace all the electricity to be used with renewable energy, this guidance arranges not only the method to calculate GHG emissions but also the information for the procurement and recognition of the value for renewable energy, and leads domestic companies’ efforts to be evaluated properly and contributes to expansion of the related investments.
On the same day, secretariat presented the draft guidance at the “Research Group Meeting on Response to the International Climate Change Initiative by Japanese Companies: Chairperson: Kenji Yamaji, Director / Head of Research Division, the Research Institute of Innovative Technology for the Earth” In addition to “RE100”, in international initiatives such as CDP which discloses and evaluates company’s environmental information and provides investors with the outcomes and SBT (Science Based Target )which is cooperate version 2 ℃ target, this guideline recommends application of the standard called “GHG protocol” for calculating the GHG in order to compare and evaluate the companies side by side.
On the other hand, in Japan, the companies calculate and report the GHG emissions based on “ Act on Promotion of Global Warming Countermeasures”, and the purposes of the two systems differs from each other. A guidance is prepared in order to clarify the differences of the two systems, secure the credibility of the reports prepared by Japanese companies and transmit accurately the value of RE-related certificates to overseas investors etc.
The guidance explains the method of calculating the GHG emissions generated by electricity corresponding to the GHG protocol. It also defines J-Credit, Green Power Certificates and Non-fossil Energy Certificates as “the Certificate”, and specifies that they should be applicable for the international initiatives. It also shows preventative measures not to double-assert the value of the certificate considered in case of creating or transferring each certificate.