Climate Change and Japanese Business

1
Climate Change and Japanese Business

• Masayuki Sasanouchi
• Chairman, WG on International Environment
  Strategy, Keidanren
• Project General Manager, Toyota Motor Corporation
  

2
Outlook of Keidanren

• Keidanren is
• - comprehensive economic organisation
• - more than 1,300 major private companies and
  industrial associations

3
Kyoto Protocol and Japans Target

• COP 3 in Kyoto (1997)
• Government of Japan ratified KP in 2002
• Japans target - 6
• The New Climate Change Policy Program (2002)
• - Industry - 7
• - Transport 17
• - Household Office - 2

4
CO2 Emissions in 2003 by Sector

• CO2 emissions in Japan 1,255Mt (2003)
• CO2 emissions in 2003 compared to 1990
• ltsectorgt (1990) (2003)
• - Industry 476Mt ? 476Mt
  (-0.02)
• - Transportation 217Mt ? 259Mt (19.5)
• - Office and others 144Mt ? 197Mt (36.9)
• - Household 129Mt ? 166Mt (28.9)

5
CO2 Emissions in Japan by Sector (continued)
476 Mt-CO2
468 Mt-CO2

Industry
Transportation
468 Mt-CO2
217 Mt-CO2
261 Mt-CO2
197 Mt-CO2
Offices others
144 Mt-CO2
116 Mt-CO2
Household
129 Mt-CO2
(Fiscal year)
6
Environment Topics in East Asia

• No Other Annex I Countries in the Region
• Other Topics to be Considered
• - Waste Management, Air Pollution etc.

7
Keidanren Voluntary Action Plan

• Numerical targets for CO2 emissions reduction set
  by each industry
• Overall target to reduce CO2 emissions from
  industrial and energy-converting sectors in 2010
  to below the levels of 1990
• Periodically review the progress

8
Follow-up Process
Company
Data
Industry Association
Keidanren Secretariat
Aggregate data
Company
Data
Calculation Report
Calculation/Evaluation
Company
Data
Industry Association
Aggregate data
Evaluation Committee for the VAP
Company
Data
Review of the Plan
Aggregate data
Company
Data
Industry Association
Reviews
Company
Data
Governmental Council (METI)
Peer Pressure
Public
9
Result of the Fiscal 2004 Follow-up (1)

• 34 industries participated (505.55Mt-CO2)

34 industries 45.0
34 industries 82.2
10
Result of the Fiscal 2004 Follow-up (2)
11
Analysis of 2004 follow-up
Cf. fiscal 1990 Cf. fiscal 2002
Change in CO2 coefficient 0.4 0.8
Change in production 4.9 0.8
Change in CO2 emissions per production -5.9 -0.6
Total -0.9 1.0
12
Voluntary Action Planand Governments Program

• Climate Change Policy Program(March
  2002)Voluntary Action Plan is one of the core
  measures of this program, which aims to realize
  environment protection and economic growth at the
  same time.
• Industrial Structure Council (August 2004)
• The energy consumption per industrial activity
  (IIP) in 2010 will improve by 9.3 under The
  Keidanren Voluntary Action Plan on the
  Environment, compared to a case without measures.

13
Utilising Kyoto Mechanisms

• 12 CDM Projects were endorsed by Japanese
  government
• Japan GHG Reduction Fund (JGRF)
• - 141.5 M US
• - 33 companies (cordinated by JBIC, DBJ)
• Participation in WB funds
• Japanese private firm is the largest buyer
• - purchased 41 of the volume (2003-04)

14
Further Efforts by Keidanren

• Strengthen measures to reduce emissions from
  transportation, offices and household sectors
• 1) Development and diffusion of energy-saving
  products
• 2) Provision of information and services on
  energy-
• saving to the public
• 3) Promotion of global warming measures in
  distribution
• etc.
• Promotion of VAP in transportation and service
  sectors

15
Keidanren and Kyoto Protocol

• Accept ratification by the government
• Contribute to achieve Japans KP target
• First step but not perfect
• Continuous improvement is needed
• (P-D-C-A cycle)

16
Future Framework and Industry

• Industrial Structure Council
• Environmental Sub-Committee
• Special Committee on a Future Framework for
  Addressing Climate Change
• Published interim report Sustainable Future
  Framework on Climate Change

17
Future Framework and Industry (continued)

• Evaluation of Kyoto Protocol
• Flexible Structure is needed
• Engagement of major emitters
• Integration of top-down and bottom-up
  approaches
• Possibility of sectoral approaches