The government is considering an environment tax to help it cut greenhouse gas emissions under a 1997 protocol, according to a draft version of measures that are to form the mainstay of a new basic plan on the environment.
The draft, to be finalized at the end of this year, was made available to Kyodo News on Wednesday.
Japan is required to cut its emissions of greenhouse gases, including carbon dioxide, by an average of 6 percent from 1990 levels by 2012 under the Kyoto Protocol.
The draft contains a pledge to achieve that goal and also a call for Japan to continue to curb greenhouse gas emissions beyond 2012. To that end, it says, an environment tax will be needed.
The draft gives high marks to market mechanisms such as an environmental tax but says the government will need to gain public understanding and investigate possible socioeconomic influences before introducing such measures.
It also says Japan needs to combine existing regulations with environmental investment mainly by companies.
The draft says central and local governments as well as private companies should be asked to report on their targets for greenhouse gas cuts and progress in achieving the cuts.
It calls on the government to rely on domestic measures to reduce greenhouse gas emissions, rather than purchase emission rights from other countries that go beyond their target cuts through an emissions-trading mechanism written into the protocol.
The mechanism is highly controversial because it will help large emitters of greenhouse gases such as the United States and Japan to achieve their protocol goals without slashing the amount of greenhouse gases they produce.
The draft, however, also suggests that a "final adjustment mechanism" be set up to secure emission rights in case Japan cannot achieve its target for greenhouse gas cuts despite efforts to do so.