Kyoto Compliance to Cost Japan $10.5 Billion. Only.

Let's see if Japan blinks on complying with Kyoto or lives up to its commitment. A government report says it would cost the island nation $10.5 billion in carbon credits to do the right thing. That's less than a 1/4 of 1% of GDP. Small price to pay for being a global exemplar.

Japan is the fifth largest emitter of greenhouse gases, behind the US, China, India and Russia, but the only one among these countries on the hook to reduce its emissions under Kyoto. The treaty calls for Japan to reduce its emissions 6% below 1990 levels by 2012, and latest data show it's going to fall short. It's only recourse? Buy carbon credits to offset its emissions.

The government had planned to spend about $2 billion on offsets, but the report says it's likely to cost $10.5 billion to fully comply.

Japan has a number of excuses. Finger pointing at the US and China, which are doing squat, is an option, but not culturally acceptable. Its industries and households are already among the most energy efficient in the world. And the closing of a nuclear plant there -- the world's biggest -- due to an earthquake, is driving up use of fossil fuels. Tough spot to be in looking for fewer emissions.

The government could beef up spending to meet the shortfall. For a country with a GDP of $4.2 trillion in 2006, it wouldn't be a hard pill to swallow. But there's even talk from the Mitsubishi Research Institute of introducing a carbon tax to raise the needed funds -- on the order of 2400 yen per ton of carbon emitted by households using fossil fuels for heating and cooking. That's about $21 a ton.

Okay, how many Americans would be willing to spend 21 bucks a ton for carbon from their households to allow the US of A to uphold Kyoto, raise your hands.

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