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After the adoption of Kyoto Protocol, Emissions Trading (ET) has attracted the attention of many Annex I countries. In response to it, the Domestic Emissions Trading (DET) scheme for greenhouse gas began to work in UK on April 2, 2002. It aims at a broad subject, and is well combined with existing climate policies such as Climate Change Levy (CCL) and Climate Change Levy Agreement (CCLA).This paper aims to extract the important elements from the introductory background and the argument on design process of the DET in UK. Comparing the elements of UK practice and Japanese proposal, issued by Ministry of the Environment in July 2002, the latter lacks environmental integrity. It is recommended to abolish the energy scheme gradually in order to make the scheme work properly in Japan.

Comparison of domestic emissions trading scheme of UK practice and Japanese proposal