Marubeni Corp. has won Japanese government approval to be awarded carbon credits for hydropower projects in China under the Clean Development Mechanism outlined in the Kyoto Protocol.
The seven projects will give the major trading house a total of 1.3 million tons in greenhouse-gas emission credits, the Ministry of Economy, Trade and Industry said Wednesday.
The CDM allows polluters in rich countries to gain credits for investing in projects that reduce emissions in developing nations. The credits are tradable in Europe. The Tokyo Stock Exchange plans to start trading the rights as early as next year.
Marubeni's projects include the construction of six hydropower plants. To qualify for the credits, known as certified emissions reduction credits, CDM projects need approval from both the applicant's government and the government of the country where they will be carried out. The Chinese government has yet to sign off on all the projects, METI said. Final approval is granted by the United Nations.
Japan has pledged to cut annual average emissions during the five years that started in April by 6 percent.