Japan's Corporate Leaders Propose Carbon Tax

Source: Japan for Sustainability

TOKYO, May 10, 2006 - The Japan Association of Corporate Executives has released a paper called "Considering an Environment-Conscious Tax Scheme -- the Creation of a National Vision toward the Conservation of the Global Environment," proposing an environment-oriented tax system as Japan's efforts to tackle global warming.

Saying that the current tax system, including energy taxation, should be drastically reformed, the association urged the government to introduce a new energy tax on carbon content that would provide general revenues in the national budget. Such a tax, it reasoned, is a market-based approach and an efficient instrument to provide households and other non-industrial sectors economic incentives for eco-friendly behavior.

The Japan Association of Corporate Executives is one of the three major economic organizations in Japan, the other two being the Japan Business Federation and the Japan Chamber of Commerce and Industry. While the Japan Business Federation's members are comprised of companies and organizations, and the Japan Association of Corporate Executives is composed of individual corporate executives.