News
Energy-saving Technology
The Japanese government and companies held the first joint public-private sector meeting in Bangkok, Thailand to introduce their decarbonization technologies, such as the ammonia that does not emit carbon dioxide when burned and electric vehicle technologies, demonstrating Japan’s determination to support Southeast Asian countries in reducing carbon emissions. At the same time, the Japanese government hopes to initiate specific projects to support the development of related industries.
【VIEW】
https://www3.nhk.or.jp/news/html/20221020/k10013865411000.html
Green Investment
Recently, the Japanese government and Japanese companies have been actively participating and promoting cooperation with Asian countries, aiming to promote the development of carbon neutral business through exchanges, investments and consultations.
1. The Japanese and Thai governments held the first Japan-Thailand Energy Policy Dialogue Business Forum in Bangkok on October 20 to encourage cooperation between major companies from both countries in the field of decarbonization. Approximately 15 companies, including Toyota Motor Corporation and the Petroleum Authority of Thailand (PTT), participated in the forum and exchanged views on the introduction of hydrogen energy and electric vehicles to Thailand. In addition to this, Japan intends to support the gradual energy transition by providing low-carbon technologies, such as improving the efficiency of thermal power plants.
2. Japan and Sri Lanka signed a Memorandum of Cooperation on the Joint Crediting Mechanism (JCM) for Low Carbon Growth Partnership on Oct 10th at the Presidential Secretariat.
3. The Japan International Cooperation Agency (JICA) plans to increase its participation in private-sector projects in India, and is looking to boost its global investments in private-sector projects to $15 billion in the coming years.
【VIEW】
https://www.nikkei.com/article/DGXZQOGS19BDN0Z11C22A0000000/
https://www.newsfirst.lk/2022/10/10/mou-inked-with-japan-for-low-carbon-growth/
https://www.livemint.com/industry/infrastructure/japans-jica-looks-to-step-up-investments-in-private-sector-projects-in-india-11666121474657.html
Environment & Policy
New targets for international passenger flights to achieve net-zero carbon emissions are prompting Japanese airlines to speed up efforts to cut their carbon footprint. The International Civil Aviation Organization proposed a 15-percent reduction in carbon dioxide emissions from international flights compared to 2019 levels by as early as 2024. In order to achieve the new global goal, Japanese carriers are introducing more fuel-efficient planes and streamlining aircraft operations. They also plan to use emissions trading to help them meet the targets.
【VIEW】
https://www3.nhk.or.jp/nhkworld/en/news/20221017_33/
Green Investment
Asian countries are experiencing a dramatic increase in demand for energy due to economic growth. On the other hand, countries are also suffering from the effects of climate change, with floods, droughts, and high temperatures occurring all over the world. In response to the problem of fossil fuel dominated energy composition in Asia, the Asian Development Bank (ADB) is planning to achieve early decarbonization by integrating grants from developed countries and private funds. With the gradual implementation of “green hydrogen energy” applications, it is expected that it will greatly improve the energy composition of Asia. Since large-scale investments of 3,900 trillion to 5,500 trillion yen are needed, discussions on funding at the 27th United Nations Climate Change Conference in Egypt in November will be of significance.
【VIEW】
https://www.nikkei.com/article/DGXZQOCB160SH0W2A011C2000000/
Perspectives
Carbon Accounting & Visualization
Canon Inc. began to investigate the life cycle assessment (LCA) of products at the end of the 1990s. Researchers made calculations on the supply chain, and they amazingly found that the carbon emissions from Scope 3 accounted for about 60% of the total emission, with the remaining 30% or so coming from the procurement of raw materials and the factory’s emissions accounting for only about 3%. From this point on, Canon Inc. recognized the importance of visualization, and that visualizing carbon emissions could give clear direction to energy saving and emission reduction efforts. This allows the company’s R&D, logistics, factories, procurement and sales to all move toward the same goal with their respective roles and tasks.
【VIEW】
https://www.amita-oshiete.jp/voice/entry/016065.php?site=hl18825381
Energy-saving Technology
The international environmental NGO Friends of the Earth (FoE) warns that the use of ammonia and hydrogen does not help reduce carbon emissions. First, while neither of them produces carbon dioxide when burned, the process of producing ammonia and hydrogen emits carbon dioxide. Second, they are more expensive than existing fuels and do not have the large-scale commercial supply chain development. In addition, the Japanese government’s plan to use ammonia to reduce carbon emissions from coal-fired power generation is also unfeasible, not only because the technology’s contribution to emissions reductions is extremely limited, but also because of its inconsistency with the idea of phasing out coal-fired power generation. Finally, the use of hydrogen and ammonia does not receive international recognition.
【VIEW】
https://news.yahoo.co.jp/articles/c03996cd7a4a1a48e9c08f0527588b6735b77bc1
Green Finance 【Jean Rogers】
Blackstone Group, a major U.S. investment fund engaged in private equity and real estate investments, sees high growth potential in industries involved in the transition and expects $100 billion in investment opportunities over the next decade. For investee companies, energy efficiency can reduce operating costs; companies committed to decarbonization can also achieve higher valuations in the process of going public; and in real estate, low or zero carbon emission buildings will be the asset of choice. Blackstone Group conducts due diligence on investments from three perspectives: risk, readiness and resilience, in which ESG plays an important role and which can be seen as an opportunity to help companies realize their potential. ISSB has put forward a journey to standardize disclosures in the public markets. A uniform, rigorous, and comparable standard can be of great benefit to investments.
【VIEW】
https://project.nikkeibp.co.jp/ESG/atcl/column/00004/101300021/
Green Economy 【Stéfan Le Dû】
Japan has lagged in global sustainability rankings, losing ranks in the annual index that monitors progress towards the UN’s Sustainable Development Goals for 2030. However, as international investors join NGOs and local governments in shareholder climate activism, that may be about to change. Japanese financial regulations have already taken a further step to facilitate such initiatives – the mandatory disclosure of climate-related risks and compulsory reports for investors in English. Combined, these two changes will make it much easier for foreign investors and activists to identify which Japanese companies are most exposed to climate risks – and which are less credible in their decarbonisation plans.
Climate & Policy 【Eric Johnston】
Japanese prime minister Kishida’s Green Transformation strategy relies not only on expanding renewable energy, and restarting conventional nuclear power plants, but also proposed emerging technologies like smaller nuclear reactors, and carbon capture and storage. The Green Transformation is based on meeting the goals of Japan’s energy mix target for 2030, and it will see renewable energy sources provide 36% to 38% of Japan’s total energy by 2030, while nuclear power will provide 20% to 22%. Although Kishida’s green plan differs from his predecessor, it still faces criticism from experts who warn it relies too much on future technological developments.
Interpretations
【Green Transformation】The real situation of carbon neutrality in medium-sized manufacturing companies and the real value of digital transformation (DX) in supporting carbon neutrality
Asahi Tekko Co., LTD, which handles metalworking products for the automotive industry, was one of the first medium-sized manufacturing companies to adopt various carbon-neutral initiatives. The company has recently developed its own production-visualization tools using the IoT(Internet of Things) and has significantly improved its production capacity by introducing these tools. The company is working internally to “visualize and display CO2 emissions” by aggregating the various data generated at the production site and displaying graphs like “unit emissions and unit average emissions transition charts,” “production emissions”, “production weight and power consumption”, and many other graphs on a dashboard.
【VIEW】
https://monoist.itmedia.co.jp/mn/articles/2210/07/news007.html
【Carbon Tariff】Asian economies ill equipped to meet EU cross-border carbon tax challenge
The EU’s carbon border adjustment mechanism (CBAM) could be implemented as early as 2023 when European companies have to start reporting emissions of imported goods. For Asian countries, there may still be time to put in emissions accounting frameworks, however, decarbonizing supply chains could still take years to accomplish. Many experts have expressed their concerns regarding CBAM. Some people claim that a unilateral EU CBAM will not only distort international trade, but also shift the burden of addressing climate change to developing countries.
【Energy-saving Technology】Toshiba Group Decarbonization Technologies in the Spotlight at COP27 Japan Pavilion
Toshiba Corporation and Toshiba Energy Systems & Solutions Corporation will exhibit technology innovations that advance decarbonization at the Japan Pavilion, the exhibition accompanying the 27th UN Climate Change Conference of the Parties (COP27). The first exhibit is a technique that can convert CO2 into valuable products, especially in industries where it is difficult to reduce CO2 emissions. The second is called Superconducting Motor, which aims to replace fossil-fuel engines with superconducting motors to power large mobility vehicles and to boost zero emissions.
【Decarbonization】Firms sharing carbon footprint data
More and more Japanese companies are focusing on calculating Scope 3 emissions (i.e., the carbon footprint of a product from raw material procurement to final disposal). Sumitomo Chemical has developed a system to calculate the carbon footprint of its 20,000 products, including polyethylene and synthetic rubber. The company has now begun offering the system free of charge to other companies. About 50 manufacturers have adopted the system so far, many of them chemical companies. Toma Masaaki of Sumitomo Chemical believes that by adopting the system, companies are able to reduce their carbon emissions more in the manufacturing process, which will make them more competitive.
【VIEW】
https://www3.nhk.or.jp/nhkworld/en/news/20221018_22/
Other resources
Green Finance in China and the EU: A Starting Point for Cooperation – Sino-German Cooperation on Energy and Energy Efficiency
Environmental, Social and Governance (ESG) Report Research for Hong Kong Listed Companies in 2022 – PricewaterhouseCoopers
Carbon Neutral Energy Technologies – Institution of Engineering and Technology (IET)
【VIEW】
https://www.theiet.org/media/9032/energy-technologies-for-net-zero.pdf
Events
Upcoming Events
Nov.16 Webinar Potential and challenges of decarbonization with hydrogen and e-fuels
【DETAIL】
https://response.jp/article/2022/10/20/363122.html
Oct.31 Webinar COP 15 — the ‘Paris moment for nature’: Is finance on board?
Nov.2 Webinar The Evolution of Climate Investing
Recordings
Oct.10 Webinar Dubai Launches Ambitious Clean Energy Strategy for 2050
Oct.19 Webinar Estimating Carbon Footprints of Airports Globally from Traffic & Geospatial Data
June.24 Webinar Bring your ESG program out of the shadow
10月26日 カーボンニュートラル 2050年への経済戦略～国内外の最新動向・企業変革のシナリオとは
【DETAIL】
https://www.jiji.com/jc/article?k=000000121.000015233&g=prt