Tokyo Cap-and-Trade Program

The Tokyo Cap-and-Trade Program is an initiative where the Tokyo Metropolitan Government sets a limit (cap) on the total greenhouse gas emissions from large businesses and factories. Organizations are assigned emission allowances, which they can reduce or sell as credits. Those who cut emissions below their allowance can sell surplus credits to others. The program encourages companies to innovate and reduce their carbon output to meet environmental goals, helping Tokyo lower overall greenhouse gases and combat climate change while maintaining economic activity.