A regional government developing global
warming countermeasures that are gaining
the world’s attention: Efforts to reduce CO2
emissions through the Target-Setting
Emissions Trading Program (TSETP)
Background/Reason for and Aims of theProject
Advanced efforts by a local government inJapan to reduce CO2 emissions
Saitama Prefecture has been carrying out
measures against global warming since the1990s, but in 2002 Saitama issued an ordinancerequiring companies using energy of or above acertain amount to formulate and submit a planfor measures against global warming.
Momentum for measures against global
warming subsequently grew in Japan after
Tokyo introduced its own independent
emissions trading system in 2007 and the G8
Hokkaido Toyako Summit was held in 2008.
Against this backdrop, Saitama Prefecture
focused attention on emissions by theindustrial and business sectors, which
comprised approx. 40% of total emissions
within the prefecture, and in 2011 introduced
the Target-Setting Emissions Trading Program(TSETP) with the aim of reducing emissions
from large-scale workplaces.

Saitama Prefecture

Evaluation: Each plant’s achievement of thereduction target for the relevant plan period isevaluated.
*First Plan Period: FY2011–FY2014
Second Plan Period onwards: plan period foreach five-year plan
Features and Innovation
1 ． A unique emissions reduction method
incorporating the concept of emissions trading
In addition to persistent energy-saving
measures, in the case of workplaces that arefalling below the target emission level, theprogram aims to achieve emission targets forthe entire area through the trading of emission
amounts in excess of reduction targets
achieved by other workplaces and/or carbon
dioxide reduction value (credit) obtained
through the introduction of renewable energy.
2. Prefectural government proactively
advertises outstanding companies
Workplaces
thatareimplementing
outstanding measures are accredited by thePrefectural Governor as Top Level Workplaces.
Accredited workplaces can have not only theiroutstanding measures advertised to thegeneral public, but also their emission target
reduction rate reduced. As of 2019, twoworkplaces have been accredited as Top Level
Workplaces and one plant has been accredited
as a Semi-Top Level Plant.

Outline of the Target-Setting Emissions
Trading Program (TSETP)
The current program is the Third TargetSetting Emissions Trading Program (TSETP)(Five-Year Plan) (2020–2024)
Targets: Workplaces that have been using 1,500
kL or more of crude oil equivalent energy forthree consecutive fiscal years.
Content: Reduce the CO2 emissions (totalamount) for the target workplaces with the aimof achieving the reduction target.
Reduction target: Standard emissions amountfor each plant multiplied by the target
reduction rate set by Saitama Prefecture for therelevant plan period.

3．Operation of the system across prefecturalborders
Under a partnership agreement, Saitama
workplaces can exchange credit for emissions
reductions with a similar system operating inTokyo, which borders Saitama, and plant1

operators are working together in preparing
registration paperwork for the third-party
verification organisations that verify thecalculated CO2 emission amounts.

buildings
System targets: 586 workplaces (as of FY2018)

Effects of the System
The world is focusing on the results of global
warming measures developed by a local
government body in Japan!
In order for target workplaces to achieve
their emissions reduction targets, they
implement various measures including
switching to fuel with low CO2 emissions,introducing LED lighting and high-efficiency cogeneration systems, and installing powergeneration equipment that uses renewableenergy. In the plan periods this far, thereduction rates achieved have far exceeded thereduction targets.

Conceptual Diagram of the Target-Setting
Emissions Trading Program (TSETP)
Features and Innovation
1．Measures gaining the world’s attention andpraise
At the Innovate 4 Climate (I4C) international
conference held by the World Bank in
Singapore in June 2019, the program wasintroduced together with one of the companies
accredited as a Top Level Workplace, Kanto
Glico Co., Ltd. (now Glico Manufacturing JapanCo., Ltd.) in a presentation describing theprogram’s content and results.
In December of the same year, the Thailand
Greenhouse Gas Management Organization—
which is promoting measures to reducegreenhouse gasses in Thailand—visited
Saitama Prefecture and hearings were held soThailand could consider introducing its own
emissions trading scheme back home.

・First Plan Period (2011–2014)
Reduction target rate: 6% of the standard
emission amount for plants; 8% for officebuildings
System targets: 608 workplaces
Results: Overall reductions of 22% (7.8 milliontons) were achieved, greatly exceeding thereduction targets (22% reduction for plants;
22% reduction for office buildings)
Of the target workplaces, approx. 10% utilized
emissions trading.
・Second Plan Period (2015–2019)
Reduction target rate: 13% of the standard
emission amount for plants; 15% for officebuildings
System targets: 586 workplaces (based on
results for 2018)
Results: Overall reductions of 29% (3.05 milliontons) were achieved (29% reduction for plants;
29% reduction for office buildings) (based on
results for 2018)
The workplaces that were unable to meet theirtargets intend to utilize emissions trading in thefuture.

2．Deepening emissions reduction activities
using top sporting events as incentives
For the Rugby World Cup 2019TM held inJapan, matches were also played in Kumagaya
City, Saitama Prefecture, and the CO2 emitted inKumagaya City over those three days wasreduced to zero using emissions credit
generated
underTSETP
through
implementation of the “Zero Carbon Saitama”
system.
Furthermore, similar initiatives are to be
implemented for the Tokyo 2020 Olympics andParalympics, with calls made for largecompanies to provide credit, resulting in approx.
0.96 tons being provided by 63 companies by
the end of September 2020.

・Third Plan Period (2020–2024)
Reduction target rate: 20% of the standard
emission amount for plants; 22% for office2

Future Developments
In addition to promoting energy-saving
measures, Saitama Prefecture is aiming toachieve the targets of the Third Plan Period,
while at the same time promoting the spreadof low-carbon electricity.
For the Third Plan Period, which began inFY2020, Saitama Prefecture has raised target
reduction rates by 7% with the aim of achieving
further reductions in CO2 emissions.
In addition, as a new initiative, Saitama
Prefecture has revised regulations to enable
power supplied to target workplaces in theform of low-carbon electricity (e.g., solarpower) to be calculated toward emissions
reductions.
Movingforward,
SaitamaPrefecture intends to also promote reducing
CO2 emission amounts by selecting low-carbon
electricity sources such as this.

Presentation at an international conference
Issues and Responses
Program will continue as businesses andgovernment work together
When companies targeted for emission
reductions consult with the prefectural
government on issues such as difficulty infinding more ways to reduce emissions or
confusion with how to implement reduction
measures, government employees visit theworkplaces in question with specialists andpropose possible measures to be taken andprovide consultations regarding the program.
With regard to small and medium sizedbusinesses, which are said to be experiencing
difficulties implementing emissions reduction
measures due to cost and technological issues,
Saitama Prefecture provides free energy-saving
diagnosis services and has established a system
for subsidising the installation of CO2
emissions-reducing equipment, extending
support for concrete reduction measures.

Reference URLs
https://www.pref.saitama.lg.jp/a0502/torihiki
seido.html(Official Saitama Prefecture website “TargetSetting Emissions Trading Program (TSETP)”(Available in Japanese only; multilingualtranslation services provided.))Contact
Division in charge: Environment Global
Warming Strategy Division
Phone: +81-48-830-3043
E-mail: a3030-03@pref.saitama.lg.jp

Conducting energy-saving diagnoses throughplant visits3