Techno-Materiality, Culture, and Climate Change: Japan and the Bilateral Carbon Offsetting Mechanism

Across the Asia-Pacific countries including China, South Korea, Singapore, Australia and New Zealand are embracing emissions trading and establishing their own national systems.  Japan is a notable exception. After several failed attempts to develop an emissions trading system, Japan is developing a unique program that emphasizes bilateral trade and technology transfer, the Bilateral Offsetting Mechanism (also known as the Joint Crediting Mechanism).   Through this program Japanese companies directly trade technology for emissions offsets from developing country partners. Japan’s refusal to engage in emissions trading is in part structured by its heavy reliance on fossil fuels, as well as its need to reconstitute its energy supply mix.  In the aftermath of the Fukushima crisis securing energy supply is of critical importance.  Broad public contestation of the continued use of nuclear energy to meet Japan’s demand increases pressure to use more fossil fuels.  To an extent that has placed security energy supply in direct conflict with reducing greenhouse gas emissions.  However the bilateral offsetting mechanism also reflects interesting aspects of Japan’s refusal to engage with more speculative forms of finance.   The program emphasizes material outcomes and has the potential to make a bold policy statement in the Asia-Pacific especially as the Clean Development Mechanism fades in significance.   This article explores the unique Japanese approach to climate policy, the role of both private and public sector in shaping the program, as well as the cultural elements that are reflected in its aims and instrumentalization.  The program is particularly evaluated from the perspective of sustainability.  Japan’s approach to emissions reduction manifests underlying socio-political as well as cultural institutions.  However, the emphasis on materiality and tangible outcomes, as well as longer rates of investment may demonstrate a more sustainable approach to emissions reduction than those advanced by Japan’s neighbors in the Asia-Pacific.