Japan signs carbon-offset deal with ChilOREANDA-NEWS. Japan has signed a bilateral carbon-offset agreement with Chile, its first deal with any South American country, as part of its efforts to curb greenhouse gas (GHG) emissions.

This is the 14th bilateral carbon offset deal signed by Japan, which is aiming to utilise its green technology to help reduce GHG emissions overseas, particularly in developing countries in Asia and Africa. Japan has previously signed a bilateral carbon offset agreement with Central American countries Costa Rica and Mexico.

Under the agreement signed in Santiago yesterday, the governments of Japan and Chile will set up a joint crediting mechanism to encourage Japanese investments in low-carbon technology, products, systems, services and infrastructure in Chile. GHG reductions or removals verified under the mechanism can be used by both countries as part of their GHG mitigation efforts. Japan and Chile are aiming to make credits obtained under the joint mechanism tradable in the future.

The bilateral agreement will remain effective until a new international framework take effect under the UN Framework Convention on Climate Change. Nations are to gather in Paris later this year to strike a post-2020 global climate deal, a successor to the Kyoto protocol. The Japanese government is finalising its 2030 goal to cut GHG emissions by 26pc against 2013 levels for premier Shinzo Abe to officially unveil the new target during the G7 summit in Germany early next month.