November 22, 2008

Japanese steelmakers agree to emission cap talks - Nikkei

Nikkei News paper said that Japan's steel and power industries have agreed to talks with the government on a so called cap and trade system to reduce greenhouse gas emissions.

The paper said that Japan Iron and Steel Federation and the Federation of Electric Power Companies have now agreed to talks with the government on the system.

Under the cap and trade system, companies that produce too much greenhouse gas must buy permits from companies whose emissions are below the limit.

Nikkei reported that steelmakers and utilities have previously opposed introducing the system saying it would hurt investment and reduce Japan's global competitiveness. It said that both groups oppose mandatory emission caps and are asking for more flexible targets.