Romania, Japan eye emissions trading deal

Japan is negotiating with Romania on facilitating emissions trading of greenhouse gases under the Kyoto Protocol, which enters into force in February, officials said Monday. The officials said Japanese trading houses and other firms are moving to enter the East European country's emissions trading market. Tokyo hopes to sign a memorandum of understanding on the issue with Bucharest, they said. Russia's ratification process was completed earlier this month, opening the way for the pact's ratification. Under the pact, trading of emission rights is defined as a means of achieving reduction goals for countries that ratified the protocol. Japanese companies aim to earn emission-cut credits by conducting energy-saving projects in Romania and other countries in Central and East Europe, which lag behind in implementing energy-efficient measures, the officials said. In Romania, a foreign company is required to obtain parliamentary approval for each emissions trading deal. But firms from countries with which Bucharest has a comprehensive arrangement on trading, such as Austria, do not need to obtain permission. Japan hopes to win the same arrangement from Romania. Tokyo is also considering launching talks on emissions trading with Bulgaria and other Central and East European countries, they said. Under the 1997 pact, Japan is required to reduce its carbon dioxide and other greenhouse gas emissions by 6 percent from the 1990 level by 2012.