JAPAN TO REDUCE CARBON EMISSION - DROUGHT IN EAST AFRICA

 Decarbonized government bonds, government start discussions carbon tax and emissions trading revenue to redemption funds

The government held a Green Transformation (GX) Executive Meeting at the Prime Minister's Office on May 26 and began discussions on the GX Economic Transition Bond (tentative name), a new government bond issued by the government to promote decarbonization. The government assumes revenue from "carbon pricing (CP)," which charges carbon dioxide (CO2) as a source of redemption funds. By the end of the year, the government is expected to indicate the direction of specific CP measures, such as a "carbon tax" that taxes companies according to their CO2 emissions and an "emissions trading system" that exchanges emissions in the market.

JAPAN'S PRIME MINISTER - FUMIO KISHIDA

'Hybrid' Prime Minister Orders Consideration

At the meeting, Prime Minister Fumio Kishida instructed METI Minister Yasutoshi Nishimura to "consider effective mechanisms, such as a hybrid type that combines both carbon levies and emissions trading markets." They called for a concrete system proposal to be presented at the next meeting.

Regarding the emissions trading system, the Ministry of Economy, Trade and Industry launched the GX League, a demonstration project to buy and sell CO2 at the Tokyo Stock Exchange in September. About 500 companies, which account for about 40% of Japan's CO2 emissions, have announced their participation. The government has announced a policy to develop the GX League and make full-scale emissions trading operation, such as requiring certain companies to participate in FY2026.

The government will also consider whether to introduce a carbon tax, which is another means of CP. However, there are concerns about an increase in the burden on companies, and it is unclear how much it will contribute to CO2 reduction, so there is a deep-rooted cautious opinion in the industrial world. The ruling party's tax committee, which is leading the tax reform in earnest toward the end of the year, has not been able to make any progress. Keidanren Chairman Masakazu Tokura spoke to the press after the meeting on March 26 and reiterated his negative view on the introduction of a carbon tax.

At the meeting, the government also indicated that it would establish a certain transition period to avoid the transfer of production abroad. With the intention of achieving both economic growth and decarbonization efforts, the government plans to keep the burden low for a certain period of time after the introduction of CP and gradually raise it.

The government aims to achieve net-zero greenhouse gas emissions by 50 years, and will require 150 trillion yen in public and private investment over the next 10 years. Of this amount, 20 trillion yen will be raised in transition bonds to encourage related investment. 

Green Transformation (GX)

The word is a combination of the English word "Green", which means environmentally friendly, and "Transformation", which means change. In English-speaking countries, "Trans" is sometimes replaced by "X", so it is abbreviated as GX. Demonstrate the transformation of companies, industries, and economies and society toward decarbonization, such as carbon dioxide (CO2) reduction. Investment is expected to increase, mainly in Europe and the United States, and the Kishida administration is also working to promote it.

500g spaghetti for 6 people a day East Africa suffers from drought for the first time in 40 years

Kenya, Ethiopia and Somalia are three East African countries experiencing the worst drought in nearly 40 years. For more than two years, the rainfall during the twice-a-year rainy season has been greatly reduced. Crops and livestock were severely damaged, about 22 million residents were short of food, and about 8.9 million livestock died. One of the causes of drought is believed to be global climate change. The UN warns that "there could be a large number of deaths (starvation deaths) in the coming months."

DROUGHT IN EAST AFRICA

Livestock starving to death one after another

Dhambalafachana is a village on the northern border of Kenya with a cloudless blue sky. In late September, in a vacant lot on the outskirts of the village, more than a dozen cow carcasses were left unattended, emitting a foul odor. Livestock starved to death due to lack of food. "We had 40 cows, but they died one after another this year, and only five remain. Adan Gilmo, a 48-year-old resident, lamented.

The village is located in an arid region close to the desert, where residents graze to raise cattle, camels and goats and sell them at the market for a living. However, due to the drought that lasted for more than two years, the area was not able to grow grass satisfactorily. Zilmo buys hay from vendors to sustain the lives of the remaining cows, but it costs about 500 shillings (about 600 yen) for 5 kilograms, which is not enough for the current situation where he has almost no income. The two dams that were the village's reservoirs had also dried up, revealing the bottom of the lake, which was the size of a soccer field.