JP-7:Emission Credit Scheme for Small and Medium-Sized Companies
This offset credit system has been introduced under the Kyoto Protocol Target Achievement Plan (2008). Under this scheme, the emission reductions achieved at small and medium-sized companies (SMEs) through financial, technical, or other assistance from large industrial companies can be certified as offsets (so called J-VER) for these large companies to meet their targets under the Keidanren Voluntary Action Plan.
This offset credit system
participants draft an emission reduction project document, including a calculation of the expected emission reduction, which is validated by a third-party. A Certification Committee certifies the offsets on the basis of specific methodologies named in their “positive lists” to ensure a high level of stringency and additionality (with independent verification of the offsets). Issuance of credits is verified by a third party.
Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.
Policy Instrument Type: Economic
Position in the PyramidAbout Us
Start Date: 2008
|Complements||Keidanren Voluntary Action Plan (VAP) (ENDED)||Effort Defining|
Ministry of Economy Trade and Industry (METI)
Agency for Natural Resources and Energy (ANRE)
Ministry of Environment
Primary Objective: GHG Emissions
Cost-effective GHG emission reduction across sectors 
SMEs and large enterprises for the J-Credit Scheme
Driver of energy consumption or emissions affected by policy: GHG emissions
Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.
Quantitative Target? no
Progress Monitored? yes
Verification Required? yes
Requirements on the Target Group
- Each applicant has to draft a project design document in accordance with a specific methodology  ;
- Each applicant needs to implement the project within a certain period, and monitor and reports on the resulting emission reductions
Support by Government
Government provides regulatory framework and has set up the certification procedures, registry and organization.
Complexity of Implementation
Case-by-case evaluation needed. Projects are often small, so transaction costs for certification can be relatively high.
Baseline needs to be established, Project Design Document (PDD) developed, monitoring reports submitted for verification. Offset projects are often small, so transaction costs (monitoring and verification) can be relatively high
Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.
|Impact||Quantitative Estimate||Qualitative Estimate|
|Estimated effect on energy consumption or emissions||Not available||Not available|
|Estimated costs/benefits for industry||Not available|
|Estimated cost for government||Not available|
|General Benefits||Reduced local air pollution, improved competitiveness, promotion of local businesses|
|Specific Benefits||Carbon price incentive and/or technology support made available to SMEs. Larger enterprises can use credits towards their action plans|