Japan’s Carbon Offset Scheme Raises Concerns of ‘Greenwashing’ as Nations Eye Paris Agreement Targets
By Lucas Fernandez, World-Today-News.com – June 17,2024
Key Takeaway: As nations prepare to submit updated national climate plans by 2035,a growing reliance on carbon offsets – notably those purchased from other countries - is sparking fears of a new wave of “greenwashing.” Early implementation of a pioneering scheme by Japan highlights critical flaws in the emerging Paris Agreement offsetting mechanism, raising questions about its environmental integrity.
The international community is increasingly turning to bilateral agreements to trade carbon credits, spurred by finalized rules at last November’s COP29 summit in Baku. This offers a potential pathway for funding climate action and achieving ambitious emissions reduction targets outlined in updated national plans. Though, a closer look at Japan’s decade-long experiment with international carbon offsetting, designed to align with Article 6.2 of the Paris Agreement, reveals troubling inconsistencies.
Tokyo touts its Joint Crediting Mechanism (JCM) as a means to “contribute to the decarbonization of the world,” creating a pool of credits for both the government and Japanese companies to utilize in meeting their climate goals. But a new analysis by Climate Home News casts a shadow over these claims, uncovering potential shortcomings in the climate benefits and overall integrity of several projects.
Forests Under Threat, Corporate Subsidies Questioned
The investigation reveals a disturbing trend: in Cambodia‘s Prey Lang forest – a critically endangered ecosystem – deforestation has increased since the launch of Japan’s largest offsetting project, which was predicated on preventing forest loss. Furthermore, Tokyo is awarding carbon credits for emissions reductions achieved through public subsidies provided to major Japanese corporations, including fast-fashion giant Uniqlo.
This practice raises fundamental questions about additionality – the core principle that offsets should fund projects that wouldn’t have happened otherwise. Are these credits genuinely driving new emissions reductions, or simply rewarding actions already underway or incentivized by existing policies?
A ‘Free-for-All’ Under Article 6.2
Article 6.2 of the Paris Agreement allows countries to directly trade “mitigation outcomes” – essentially carbon credits – through bilateral deals. Wealthy nations fund projects in developing countries to cut pollution, receiving ITMOs (Internationally Transferred Mitigation Outcomes) in return. These ITMOs can then be used to meet national climate targets or allow companies to offset their emissions, as is the case with CORSIA for airlines.
Over 100 bilateral agreements are now in place between more than 60 countries, with many more signaling their intention to leverage Article 6.2 in their updated Nationally Steadfast
