Carbon Recycling Fund Institute
Progress Report 2022
- Making Progress
Towards the Realization of a Sustainable Carbon Society -August 2022
Carbon Recycling Fund InstituteContents

1. Carbon recycling trends
2. The importance of carbon recycling, the roles of the Carbon Recycling
Fund Institute, and the progress that has been made so far
3. Progress made through actions by members of the Carbon Recycling
Fund Institute working towards the realization of a sustainable carbon
society
4. Recommendations for realizing a sustainable carbon society
5. Summary
Attachment 1. Overview of the Carbon Recycling Fund InstituteAttachment 2. Overview of the results of the questionnaire administered to
Carbon Recycling Fund Institute members

1Main points


Carbon recycling trends
The report of the results of COP26 (held in October and November 2021) clearly indicated ongoing resolve toachieve the 1.5°C target and demanded that 2030 greenhouse gas level reduction targets be re-considered andreinforced by the end of 2022
* Moves towards achieving carbon neutrality are accelerating worldwide* In Japan, as well, the basic policy of the Green Innovation Fund Project was revised and government policies
aimed at promoting carbon recycling, such as green energy strategies, were prepared and updated. Companies, local
governments, and members of academia have made progress in developing concrete measures.

The importance of carbon recycling, the roles of the Carbon Recycling Fund Institute (CRF), and theprogress that has been made so far* Through measures for reducing CO2 emissions and carbon recycling, using CO2 as a resource, will be vital forachieving carbon neutrality* The creation of a sustainable carbon society, which lies at the core of carbon recycling, is the optimal means ofachieving carbon neutrality and going beyond that to create truly sustainable social and economic systems* Roles of CRF:
The CRF is a platform for coordination between stakeholders in the creation of sustainable carbon societies. It

facilitates activities, supporting innovation that contributes to carbon recycling* Activity progress:
・ Of the 12 research grants selected in 2021, two were selected by the New Energy and Industrial Technology
Development Organization (NEDO) and the Green Innovation Fund
・ In addition to accepting public applications in 2022, a support framework was also established for start-ups.
14 of the 55 public applications were selected, and 2 of the 29 start-up applications were selected
・ The Chairperson and Vice-Chairperson have given speeches at international conferences, etc., regarding theimportance of carbon recycling and the activities of the CRF
・ The CRF has focused on nurturing the next generation of people who will be involved in carbon recycling byholding "Carbon Recycling University" training for junior employees in member companies and developing "TheTale of Carbo and Risa" digital content for junior high and high school students
・ The CRF has formulated a medium-term plan for 2022-2025

Progress made through actions by members of the CRF working towards the realization of a carbon
recycling society* Examples of progress made in concrete activities by CRF members to deploy carbon recycling technologies insociety
・ Comprehensive measures in Hiroshima Prefecture such as carbon recycling verification research・ Soma IHI Green Energy Center・ Methanol conversion of CO2 recovered from factory exhaust gas
・ Development of innovative methanation technologies
・ Green hydrogen production
・ Manufacture of carbonate from calcium and CO2 derived from industrial waste

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・ Plastic chemical cycle
・ Offshore wind power generation
・ Carbon recycling through marine biomass production
・ Planting and growth of forests of fast-growing trees
・ CCUS value chain digital platform, etc.



Three core recommendations for realizing a sustainable carbon society:
Develop and promote innovation, develop human resources
・ The CRF and its members should develop carbon recycling technologies and products aimed at achieving carbon
neutrality by 2050, verify these technologies and products, deploy them in the real world, and promote investmentin them. To accelerate the speed with which this is performed, we should engage in cross-industry coordination,
including coordination with start-up companies, and make maximal use of open innovation. We should utilize theverification opportunities provided by the national government, such as Expo 2025 Osaka, Kansai, Japan.
・ To support the activities of these industries, the national government should enrich its measures, including
providing greater support, and provide solid support for the development and promotion of innovation in order toaccelerate green transformation. Support should be provided for the advancement and expansion of measures thathighly motivated companies can voluntarily take part in, such as the GX League.
・ Between 2030 and 2050, personnel who can implement carbon neutrality measures and carbon recycling should
be developed.
・ A deeper greater understanding of carbon neutrality and carbon recycling should be fostered among the generalpublic in order to promote greater adoption by society.

CO2 value chain creation
・ Carbon recycling technologies and products establish their importance and roles in society through theirdeployment and application, so CRF members should promote the creation of CO2 value chains that contribute to
the valuation of CO2 by promoting the understanding and usage of carbon recycling technologies and products.
・ To maintain and enhance Japan's international competitiveness, the national government should promotemeasures which provide incentives, such as providing premiums for products and services that use CO2 value chains.
・ The quantitative evaluation of data regarding CO2 separation, capture, and usage should be promoted, as should
the visualization of CO2 flow based on LCA. Furthermore, efforts should be made to further the overall optimizationof the effects and impact of introducing carbon recycling.
・ Discussion regarding matters with major impacts which would transform the social structure, such as emission
trading, carbon taxes, and carbon pricing, should be promoted. Unified systems which ensure fairness between
industries should be prepared and implemented without delay.
・ Leadership should be provided with respect to evaluating CO2 sinks such as oceans and vegetation, and withrespect to the creation of international rules.
・ The national government should accelerate carbon recycling promotion measures and deliberations regarding
CO2 capture and storage. Laws should be developed, solid support should be provided for active private measures,and the division of roles between the public and private sector should be clarified with respect to the bearing of risks
and costs.

Integration with regional revitalization and expansion to the global market
・ CRF members should create case examples that leverage the strengths and features of communities bycollaborating with local governments. The agriculture, forestry, and fishing industries should be vitalized from the3perspective of carbon recycling. For example, this could include combining offshore wind power generation withfishing reefs. Multifaceted investigation and coordination will also be necessary in order to create carbon neutral

ports.
・ Efforts should be expanded to the global market, including licensing business. For Asian countries, especially,
carbon neutrality technologies should be introduced to grow carbon recycling into one of Japan's growth industries,
contributing to carbon neutrality throughout Asia.



Summary
In order to create sustainable social and economic systems based on carbon neutral despite the instability and lackof transparency produced by international affairs, all stakeholders must collaborate together and steadily implement
concrete measures.
However, this cannot be allowed to lead to a hollowing out of Japanese industry by shifting industry overseas.
A variety of measures must be implemented together, including the creation of carbon recycling societies by clearly
defining the value of CO2, capturing and storing CO2, and using CO2 and carbon compounds as resources.
Carbon recycling is a field that spans all domains. The Carbon Recycling Fund Institute includes not only
cooperation between members of private industry, but also cooperation between industry, academia, the public sector,
and overseas organizations with the aim of creating sustainable carbon societies, in Japan and around the world.

1. Carbon recycling trends
The movement of working to achieve carbon neutrality is accelerating worldwide in order to achieve sharedglobal objectives such as curbing global warming and engaging in sustainable procurement of resources and energy.
The report of the results of COP26 (held in Glasgow, Scotland from October 31 to November 13, 2021) clearly
indicated ongoing resolve to achieve the 1.5°C target and demanded that 2030 greenhouse gas level reduction targets
be re-considered and reinforced by the end of 2022.
In order to cut global CO2 emissions by 45% vs. 2010 levels by 2030, required to achieve the 1.5°C target, andto achieve carbon neutrality/net zero carbon emissions by 2050, numerous countries, companies, and organizations
are formulating roadmaps and action plans based on fundamental policies for solving environmental and social
issues while maintaining economic development. In order to achieve carbon neutrality and net zero CO2 emissions
while balancing both environmental considerations and economic development, it will be vital to implement
thorough emissions reductions and carry out carbon recycling, using CO2 as a resource.
In Japan, led by the 2050 carbon neutral declaration in October 2020, the government formulated a "Green
Growth Strategy Through Achieving Carbon Neutrality in 2050." This strategy identifies 14 industrial fields withgrowth potential that will serve as drivers that promote both environmental protection and economic growth, andsets forth action plans. Among these 14 fields is the field of carbon recycling. These 14 fields are fields which will
be significantly affected by policies and which will require long-term ongoing support leading up to societal
deployment. Because of that, a 2 trillion yen Green Innovation Fund was created to support companies and otherorganizations committed to achieving ambitious targets. In April 2021, Japan announced its new emissions target

for 2030 of reducing greenhouse gas emissions by 46% compared to 2013 levels. It has become clear that green
transformation (GX) and digital transformation (DX) will be central to efforts to transform industrial structures andsocioeconomic systems into ones with carbon neutrality at their core, and in 2022, various policies were formulated
4and updated with the aim of encouraging measures aimed at achieving carbon neutrality. These included making
revisions to the basic principles of the Green Innovation Fund Project and defining related policies such as clean
energy strategies as comprehensive strategies that include not only technology development but also infrastructure,industrial complexes, market creation, and more. Measures by companies, local governments, and academia arebeing refined and detailed at an accelerating rate.
Russia's invasion of Ukraine has manifested energy security risks. At the same time, it has also had a major impact
on the procurement of foodstuffs and industrial materials, increasing the level of instability and reducing the amountof transparency in the business environment and living conditions. With regard to COVID-19, advances invaccinations and the accumulation of related knowledge and experience has led to the relaxation of restrictions on
peoples' activity. Against this backdrop, decentralization and digitalization have irreversibly changed peoples'behaviors and values.

Figure 1. Ministry of Economy, Trade and Industry - Green Growth Strategy fields
Source: Ministry of Economy, Trade and Industry website

Figure 2. Carbon recycling technology roadmap
Source: Ministry of Economy, Trade and Industry website

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The Nobel Prize in Physics 2021 was awarded to Dr. Syukuro Manabe for his groundbreaking research into theforecasting of the effects of CO2 on global warming using weather models based on simulations. His researchshowed that climate change must be seen in terms of physical cycles on a global scale, and that it involves every
domain.

2. The importance of carbon recycling, the roles of the Carbon Recycling Fund
Institute, and the progress that has been made so far（１） The importance of carbon recycling
Several measures have been formulated with the aim of achieving the 1.5°C target. Global CO2 emissions levels
are to be cut by 45% by 2030 in comparison to 2010 emissions. In addition to this, carbon net zero emissions
measures will seek to offset CO2 emissions that cannot be prevented by even stringent emissions reduction measuresby absorbing and eliminating CO2. All excess CO2 emissions are to be offset by the year 2050, resulting net zeroCO2 emissions.

Figure 3.

CO2 emissions forecasts by energy source, formulated by the Ministry of Economy,
Trade and Industry
Source: Ministry of Economy, Trade and Industry website

Many carbon compounds containing CO2 are essential matter needed to maintain the Earth's systems, including
life itself. For example, greenhouse gasses which contain CO2 protect the Earth's environment from the harshenvironment of space. Plants use CO2 to synthesize carbon compounds and provide them to nature. Our own bodies
are made up of carbon-based substances. The carbon system is made up of all of the Earth, including its atmosphere,
land, and seas.

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Figure 4. Model of the Earth's carbon cycle
Source: Created by the Carbon Recycling Fund Institute based on materials from the National Institute forEnvironmental Studies, Center for Global Environmental Research

What we must aim to do is to achieve the 1.5°C target and go beyond that to creating truly sustainablesocioeconomic systems. To achieve this, we must not look at CO2 as an enemy but must instead restore and maintainour planet's health by creating carbon recycling societies which are based on the idea that CO2 is a resource to be
circulated and utilized. Based on this comprehensive approach, it is vital that we identify and recover CO2 produced
by social and economic activities. We need to make dramatic changes to our energy production and usage, including
developing and introducing renewable energy and transforming our lifestyles. We must switch to the use of addedvalue materials for the materials that are indispensable for our societies and economies, such as concrete andchemicals. Furthermore, we must use the power of nature in industries such as the agriculture, forestry, and fishingindustries while we fix CO2 and turn it into a resource by capturing and storing it. We must transform it into a valueadded product and create a market for it, promoting integrated initiatives that take into consideration the entire CO2
value chain, including CCS and hydrogen.

Figure 5.

Conceptual image of CO2 value chain used in realizing carbon recycling societies
Source: Carbon Recycling Fund Institute materials

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(2) The roles of the Carbon Recycling Fund and the progress that has been madeso farIn August 2019, employees from 15 corporations established the Carbon Recycling Fund Institute (CRF) withthe aim of supporting the creation of innovation that contributes to carbon recycling by carrying out publicity
activities, providing research grants, issuing policy recommendations, and more with the aim of addressing both the
problems of global warming and global energy access. The purpose of the CRF is to serve as a platform throughwhich stakeholders work to achieve carbon neutrality and create carbon recycling societies, led by the key conceptof carbon recycling and to facilitate related activities.
Now, three years after its establishment, the CRF has over 130 members who support its goals and participate inits activities (106 corporate members, 8 local governments, three academic members, and 17 individuals, as ofAugust 1, 2022). Its activities have deepened, and the CRF serves as the foundation through which the private sector
will implement carbon recycling policies, the heart of the Green Growth Strategy Through Achieving Carbon
Neutrality in 2050 announced by the Japanese government.
This document presents recommendations regarding the refinement of the activities discussed in therecommendations issued in June 2021, together with policy recommendations. It does so from the following threeperspectives: 1) promoting the development of innovation and the cultivation of personnel, 2) preparing the market
environment, and 3) addressing public issues involved in commercialization in conjunction with the progress madeby the CRF based on expansion into the global market.
[Example of progress: research grant activities]
Through its research grant activities, the CRF supports the discovery of new ideas and personnel withincompanies, universities, and the like, fundamental carbon recycling research that is both unique andinnovative, and measures that contribute to the steps that lie beyond this: verification testing and actual
implementation in society. Specifically, research grants are provided to both individual researchers andresearch teams in a broad range of fields related to carbon recycling, such as CO2 fixing using mineralization,
conversion to fuel usage, conversion to chemicals, CO2 separation and capture, social science-related
research, research related to CO2 sinks (soil; forests; blue carbon; biological usage; agriculture, forestry,
and fishing industries), hydrogen creation, geoengineering, functional materials, medical fields, and more.
In addition to accepting public applications in 2022, a support framework was also established for start-ups.

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Figure 6. Overview of Carbon Recycling Fund Institute research grant activities
Source: Carbon Recycling Fund Institute materials

In 2020, 12 of the 35 applications were selected, and in 2021, 12 of the 46 applications were selected. In
2022, there were 55 public applications and 29 start-up company applications (with an overlap of 6
applications). Of these, 14 public applications and 2 start-up company applications were accepted.
Over the three years since the launch of the research grant activities in 2020, the CRF has provided roughly
26 million yen in grants. From the applications selected to receive grants by the CRF, two* have been
selected and are currently receiving NEDO research grants and national project grants such as Green
Innovation Fund grants, etc.
* NEDO project"Research and Development of CO2 Mineralization Method Using Sea Water and Biogenic Amine" Head
researcher: Ko Yasumoto(The Kitasato Institute, Kitasato University)* Green Innovation Fund Project
Development of Ultra-efficient Method of Manufacturing Polyurethane Raw Material Using CO2" Head
researcher: Katsuhiko Takeuchi(National Institute of Advanced Industrial Science and Technology)

Figure 7. Number of Carbon Recycling Fund Institute research grant applications
Source: Carbon Recycling Fund Institute materials

9[Example of progress: Local government collaborative working group]
The CRF plans working group activities in which it coordinates with local governments to connect loopsof CO2 emissions sources and CO2 uses, striving to create CO2 value chains. Its goal is to build a modelthat leverages the strengths of the community while providing a space to perform societal pilot testing ofcarbon recycling technologies, whose elements are falling into place through the connection of CO2 emittersand latent CO2 users, while looking ahead to the 2030 commercialization of CCS, to which the Japanese
government has announced its commitment.

Figure 8. Overview of the CO2 value chain creation working group
Source: Carbon Recycling Fund Institute materials[Example of progress: Carbon Recycling University - Nurturing the Next Generation of People Who WillBe Involved in Carbon Recycling]
Carbon neutrality-oriented R&D and commercialization requires a major, global-scale mission and longterm efforts involving complex systems. That's why it's essential that the people involved in the process see
the challenges as ones that they face themselves and that they take a proactive approach while drawing in
those around them, expanding their circle of collaboration. The CRF holds Carbon Recycling University
courses for young employees who are expected to become core members of their companies in the future.
In these courses, participants develop the skills and mindsets that are important when implementing ideas
in collaboration with organizations and people with various approaches and values. These skills andmindsets are cultivated through discussions with management personnel from blue-chip startup companies
and colleagues. In 2021, the first year of the courses, 20 young employees from member companies
participated. They engaged in group work on four themes selected from their own recognitions of issues:① energy, ② upcycling, ③ decentralized societies, and ④ CO2 visualization and valuation.
Participants shared many positive impressions of the Carbon Recycling University through a follow-up
questionnaire. They said they reaffirmed the importance of cross-industry cooperation in order to createcarbon recycling and carbon neutrality solution businesses. They cultivated their recognition of the need to
be proactive and not simply wait for systems to be put in place. They also felt anew the need for reforms inorder to further social acceptance, and developed the mentality that would be needed when junior colleagues
issued proposals in the future.
We plan to continue this initiative in 2022 as well.
10[Activity progress: Messages from top leaders]
Top leaders give discussions at international symposia and exhibitions regarding the importance of carbon
recycling and call for collaboration. In October 2021, the CRF's Chairperson, Yoshimitsu Kobayashi (nowthe CRF's top advisor) gave a presentation during the International Conference on Carbon Recycling, andin March, Vice-Chairperson Masayoshi Kitamura gave a presentation during World Smart Energy Week
2022.



[Activity progress: "The Tale of Carbo & Risa" - digital content for the next generation
Due to the importance of reaching the younger generation, we created the "Tale of Carbo & Risa" series ofdigital content for junior high and senior high school students. The fascinating story conveys the importanceof carbon recycling to restoring the health of our planet. Carbo and Risa, high school students in the year
2222, when sustainable carbon societies are commonplace, together with Ninja Owl, travel through time to2022 and learn about the passion and effort devoted to innovation. It is available for viewing on the CRF
website.

Figure 9. Excerpts from the Tale of Carbo & Risa
Source: Carbon Recycling Fund Institute materials

11[Example of progress: Formulation of the CRF Medium-term Plan (2022-2025)]
Carbon recycling has made a great deal of progress towards the goal of carbon neutrality by 2050.
The CRF will continue to build even greater trust among its members and the Japanese government as it
becomes an indispensable part of the real-world implementation of carbon recycling aimed at achievingcarbon neutrality, making the tide of carbon recycling a permanent one. To this end, it has formulated an
action plan for the years leading up to 2025 and a medium-term plan which includes KPI for measuring
progress. The entire CRF is working to carry out these plans and implement carbon recycling throughout
society.
* The roles of the CRF:


Provide a space for high-level information sharing and coordinationServe as a catalyst and facilitator that connects diverse stakeholders



Stimulate measures related to carbon recycling with a broad and long-term perspective rooted in
restoring the health of our planet

Figure 10. Overview of the Carbon Recycling Fund Institute's medium-term plan (2022-2025)
Source: Carbon Recycling Fund Institute materials

3. Progress made by CRF members towards the realization of carbon recycling
societies
Carbon recycling technologies and products establish their importance and roles in society through theirdeployment and application. That is why CRF members promote verification and real-world deployment throughcross-industry cooperation and cooperation between industry, academia, and the public sector that contributes to thecreation of CO2 value chains that leads to CO2 valuation. CRF members are working to promote greater
understanding and usage of CR technologies and products.
Below, we report on the progress of several concrete initiatives being conducted by CRF members to deploy
carbon recycling in the real world.

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Figure 11. CO2 value chain
Source: Carbon Recycling Fund Institute materials[Example of member progress: Comprehensive carbon recycling verification research measures in
Hiroshima Prefecture]
Keywords: Regional cooperation, CO2 value chain
Implementation member(s): Hiroshima Prefecture, Osakikamijima (Hiroshima Prefecture), Electric Power
Development Co., Ltd., Chugoku Electric Power Co., Inc.
In May 2021, Hiroshima Prefecture established the Hiroshima Prefecture Carbon Circular Economy
Promotion Council. The goal of the Council is to promote the real-world deployment of carbon recycling
technologies, stimulate local economies, and create "carbon circular economies*". To achieve this, theprefecture coordinated with a national project being conducted in Osakikamijima to create a verification
and research center for carbon recycling. By promoting the gathering of companies, research organizations,and researchers involved in the research of carbon recycling and similar areas, it hopes to make the area aleading carbon recycling R&D site.
(* Carbon circular economies are regional economies in which carbon is sustainably circulated by using itin the natural world and in industrial activity by converting it into various forms, including living organisms,
chemicals, and fuel.)
In May 2022, Hiroshima Prefecture launched the HIROSHIMA CARBON CIRCULAR PROJECT. This
carbon recycling technology research and verification support project provides support to people engaged
in the research, development, and verification of carbon recycling-related technologies and to companies
within the prefecture who deal with carbon recycling issues. Its goals increasing the number of carbon
recycling research and verification projects in the prefecture and the promotion of the real-world
deployment of carbon recycling technologies.
Following the Ministry of Economy, Trade and Industry announcement in 2019 of the Carbon Recycling
3C Initiative, in July 2020, NEDO began preparing a carbon recycling verification and research site
(composed of a verification research area, a fundamental research area, and an algae research area). This
site was established in conjunction with the Osaki CoolGen Corporation, which was founded through joint
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investment by the Electric Power Development Co., Ltd. and the Chugoku Electric Power Co., Inc., on the
grounds of Chugoku Electric Power Co., Inc.'s Osaki Power Plant (located in Osakikamijima, Hiroshima
Prefecture). The Osaki Power Plant had previously been used as a verification research site for CO2 capturebased oxygen-blown integrated coal gasification combined cycle (IGCC) and integrated coal gasificationfuel cell combined cycle (IGFC). At the verification research site, Osaki CoolGen Corporation plans toprovide captured CO2 to companies and organizations researching carbon recycling technologies.

Figure 12. (Left) Carbon recycling verification research site
(Right) Conceptual image of effective CO2 utilization and how it relates to the research, development, andverification project
Source: NEDO materials

In July 2020, three research projects being conducted by CRF members (Chugoku Electric Power Co., Inc.,
Mitsubishi Corporation, and Kawasaki Heavy Industries Ltd.) were selected as research to be carried out
in the verification research area.
The Institute of Microalgal Technology's project, "Establishment of a Research & Technology Center for
Industrialization of Bio-Jet Fuel and Improvement of CO2 Utilization Efficiency with Microalgae," which
was selected in October 2020, is being performed in the algae research area.
In April 2022, six research projects were selected to be carried out in the fundamental research area, as
shown in the table. Of these six, three are being implemented by CRF members or related organizations(Tokyo University of Science, Japan Coal Frontier Organization, ENEOS GLOBE Corporation, and Nippon
Steel Corporation).
Projects selected by NEDO

Planned implementation members

Manufacture of Basic Substances from CO2 Captured from

Keio University

Coal-Fired Exhaust Gas Using Diamond ElectrodesTokyo University of Science
Japan Coal Frontier Organization

Research and Development of New CO2 Decomposition andTokai National Higher Education andReduction Processes Using Atmospheric Pressure Plasma

Research System
Kawada Industries, Inc.

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Development of Technologies for Algal Biomass Production

Nippon Steel Corporationand Utilization Capable of High Efficiency CO2 Usage
Industrial Waste-Derived Silicon Carbide Synthesis Using

University of Toyama

CO2 as Its Carbon Source
Research and Development of Carbon Recycling LPG
Production Technologies and Processes

ENEOS GLOBE Corporation
Nippon Steel Corporation
University of Toyama

Research and Development Related to the Capture of CO2
and Effective Use in Chemicals Through the Use of

Algal Bio Co., Ltd.
Kansai Electric Power Co., Inc.

Microbial Algae
Figure 13.

Contents of research and development being conducted in the fundamental research area
Source: NEDO materials

Hopes are high for these carbon recycling verification projects which aim to contribute to carbon neutrality
by 2050 through cooperation between industry, academia, and the public sector, and through cooperation
with local governments, which leverage the features and strengths of their areas.
[Example of member progress: Soma IHI Green Energy Center]
Keywords: Regional cooperation, CO2 value chain
Implementation member(s): IHI Corporation
Since April 2018, IHI has coordinated with Soma City in Fukushima Prefecture in operating the Soma IHI
Green Energy Center (SIGC), a smart community project site aimed at new urban development in order torecover from the Great East Japan Earthquake and restore the local economy. As the figure below shows,
SIGC's concept is generating renewable energy in the form of solar power and using the energy within thearea (local production and local consumption), reinforcing the area's disaster prevention functions, andrevitalizing the area.

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Figure 14. Smart community model
Source: IHI materials

The SIGC, which covers 54,000 m2, uses solar power generation equipment with an output of 1.6 MW, alarge-scale battery system with an output of 1 MW and a capacity of 5.5 MWh, and electrolyzers that use
electricity to generate hydrogen from water (an alkaline hydrolysis device from Asahi Kasei Corporation
and a PEM hydrogen generator from Hitachi Zosen Corporation). The power that is generated at the site
is supplied to a sewage treatment plant and incinerator in nearby Soma City, and any power shortfalls are
made up for by purchasing grid power. When the facility generates power at full capacity during good
weather, the amount of power even exceeds battery charging capabilities, resulting in surplus power. This
surplus power is used to generate hydrogen using hydrolysis devices. The two tanks at the site can store
up to 400 Nm3 of hydrogen. Power supply and demand within the site, and the site's equipment, arecentrally controlled by a local production, local consumption energy management system. Information
about the amount of power generation, offsite power consumption, offsite power storage, and the like are
aggregated in real-time and displayed on monitors in SIGC and in Soma City. Even if a grid power outage
occurs, solar power and battery power can be operated independently, providing resilience functions bysupplying electricity.

Figure 15.

Equipment used at SIGC: (from left to right) 1.6 MW solar power generation facilities, battery
system, hydrogen tanks, energy management system screen
Source: Nikkei BP

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In September 2020, "Soma Lab" was created. This hydrogen research facility is used to perform technicalverification for the carbon-free hydrogen produced and stored at SIGC. Soma Lab is expected to perform
verification of "Power to X" technology, which synthesizes methane, ammonia, olefin, and the like fromcarbon-free hydrogen, etc. The methane synthesis testing equipment installed in Soma Lab can be used tosynthesize 12 Nm3/h of methane from CO2 and hydrogen generated through water electrolysis.

Figure 16.

(Left) The Soma Lab (Right) the lab's 12 Nm3/h methanation equipment
Source: IHI materials

We believe that the effective use of regional renewable energy and the creation of carbon-free hydrogenvalue chains will play important roles in achieving carbon neutrality by the 2050 date declared by thegovernment. The local production, local consumption energy management technologies and Power to X
technologies developed by SIGC will be key technologies for these measures, so IHI is working topopularize and expand the smart community model.
[Example of member progress: Methanol conversion of CO2 recovered from factory exhaust gas]
Keywords: Chemical conversion, methanol
Implementation member(s): Mitsubishi Gas Chemical Company, Inc.
Mitsubishi Gas Chemical Company, Inc. is promoting the Environmental Circulation-based Methanol
Framework, an initiative which seeks to use methanol production technologies based on the company's own
catalysts to convert CO2, waste plastic, biomass, and the like into ethanol, recycling it for use as a chemical
and in fuel and power generation applications.
Mitsubishi Gas Chemical was the first company in Japan to successfully convert CO2 recovered fromcleaning plant exhaust gas into methanol conversion. It achieved this in verification testing, conducted inconjunction with JFE Engineering Corporation, of processes for synthesizing methanol from CO2. It also
concluded a memorandum of agreement with Tokuyama Corporation to deliberate regarding thecommercialization of the production and sale of methanol made from CO2 and hydrogen produced by the
Tokuyama Factory. If this commercialization is carried out, the plant is expected to become Japan's firstcommercial plant that manufactures methanol from CO2 plant emissions.

17Figure 17. Environmental Circulation-based Methanol Framework and pilot facilities
Source: Mitsubishi Gas Chemical website

[Example of member progress: Development of innovative methanation technologies]
Keywords: Methanation, hydrogen and ammonia production, fuel conversion
Implementation member(s): Osaka Gas Co., Ltd.
Osaka Gas Co., Ltd. is engaged in fundamental research regarding solid oxide electrolysis cells (SOECs),a technology that contributes to innovative methanation with the potential for synthesizing methane with ahigh level of energy conversion efficiency using CO2 and renewable energy. It has successfully createdprototypes of actual size cells. SOEC technology has the potential for use not only in the manufacture ofmethane but also in the highly efficient production of hydrogen, liquid fuel, ammonia, and other chemicals,
and the company aims to establish these production technologies by the year 2030.

Figure 18.

Comparison of conventional methanation and innovative methanation processes
Source: Osaka Gas website

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[Example of member progress: Green hydrogen production]
Keywords: Carbonatization, mineralization, concrete
Implementation member(s): ITOCHU Corporation
As it works to build green hydrogen supply chains, ITOCHU Corporation has signed a memorandum ofagreement to engage in strategic operational cooperation in the hydrogen field with Nel ASA (Norway),
which supplies industries around the world with hydrogen production, storage, and delivery technologies.
The two companies have agreed to jointly promote hydrogen-related business (October 2021). Nel ASA is
one of the world's top manufacturers of water electrolysis equipment, vital for green hydrogen production,in terms of production capacity, equipment scale, units sold, and net sales. In 2021, it announced that it was
the first water electrolysis equipment manufacturer to receive orders for a 20 MW-class system. The
primary methods currently used in commercial water electrolysis are alkaline and PEM (solid polymer)
water electrolysis. Nel is one of the few countries in the world that produces both types of equipment.
Furthermore, in 2021, ITOCHU reached an agreement with three companies (Dalrymple Bay Infrastructure
Limited (Australia), North Queensland Bulk Ports Corporation Limited (Australia), and Brookfield AssetManagement Inc. (Canada) to perform a joint commercialization study regarding green hydrogenproduction, storage, and supply chain creation in Australia, including the exporting of green hydrogen.

Figure 19.

(Left) Nel water electrolysis equipment (alkaline) (Right) Nel water electrolysis equipment (PEM)
Source: ITOCHU website

[Example of member progress: Manufacture of carbonate from calcium and CO2 derived from industrial
waste]
Keywords: Carbonatization, mineralization, concrete
Implementation member(s): Idemitsu Kosan Company, JGC Holdings Corporation
Idemitsu Kosan Company, JGC Holdings Corporation, and others conducted a research and development
project on consignment for NEDO from 2020 to 2024, in which they worked to practically apply processes
for developing and popularizing technologies for extracting calcium from industrial waste such as concrete
and reacting it with CO2 in exhaust gas to solidify it. Carbonation has promise for purposes such as
conventional product filler usage, but also for building material uses such as concrete admixture, for which
there is a large market. Because of this, it has tremendous potential for reducing greenhouse gas emissions,so testing and evaluation are underway for accelerated carbonation technologies that can increase theefficiency of calcium extraction and carbonation. Through this technical development project, participants
19are actively working towards real world deployment in a wide range of fields, from material procurement
to application development.
Furthermore, Idemitsu Kosan has reacted CO2 in boiler exhaust gas with waste water with a highconcentration of calcium, a concrete waste product, to solidify it and produce synthetic calcium carbonate,
which it used as an admixture in asphalt. This asphalt was then used to perform test paving of the area infront of the entrance of the company's Coal & Environment Research Laboratory (4 cm thick pavement
covering an area of 500m2), and the company is currently performing verification testing.

Figure 20.(Left) Conceptual image of CO2 recycling through carbonation(Right) Asphalt test paving using CO2-solidified carbonate
Source: Idemitsu Kosan materials[Example of member progress: Plastic chemical cycle]
Keywords: Circular economy, resource circulation, waste plastic liquefaction
Implementation member(s): Mitsubishi Chemical Group Corporation, ENEOS Corporation
The Mitsubishi Chemical Group Corporation and ENEOS Corporation are engaging in a joint plastic
chemical recycling project. They are liquefying waste plastic and using it to create recycled oil, which isused by the two companies' existing petroleum refining equipment and naphtha pyrolyzing equipment.
Through this process, it is recycled and reused in petroleum products and plastic products, resulting in ahigh efficiency chemical recycling process. The project uses waste plastic liquefaction processing
technologies from U.K.-based Mura Technology. The facility they have constructed at Mitsubishi
Chemical's Ibaraki Plant is the largest commercial facility of its kind in Japan, with a processing capacityof 20,000 tons per year. In fiscal year 2023, they plan to begin the liquefaction of waste plastic. In the future,
the project's participants will strive to create products that offer greater added value by obtaining
certifications for stable waste plastic procurement, the use of chemical recycling for plastic products, andthe reduction of greenhouse gas emissions from petroleum product production.

20

Figure 21. Conceptual image of plastic recycling
Source: Mitsubishi Chemical Group website

[Example of member progress: Offshore wind power generation]
Keywords: Renewable energy, offshore wind power generation, green hydrogen
Implementation member(s): Marubeni Corporation
Marubeni Corporation joined SSE Renewables Limited, a renewable energy subsidiary of major U.K.
power company SSE plc and Danish investment company Copenhagen Infrastructure Partners P/S inbidding on offshore lease rights related to the development of an offshore wind power generation projectin Scotland conducted by a Scottish governmental organization (popularly referred to as "ScotWind"). In
January 2022, they were selected by the government organization as winning bidders for the project. The
project involves the development of the largest floating offshore wind power generation site off the eastern
coast of Scotland, with a maximum capacity of 2.6 GW. It is expected to be one of the first projects in theworld involving large-scale floating offshore wind power generation, and operation is scheduled to begin
in roughly 2030. The Scottish government aims to reduce greenhouse gas emissions dramatically by 2030,
cutting them by 75%, and to achieve net zero emissions by 2045. It is also actively pursuing a strategy of
converting to a hydrogen society with the goal of large-scale green hydrogen production using offshore
wind power by 2045.
Marubeni owns and operates roughly 12 GW of power generation assets in 21 countries, including Japan.
It has been a pioneer in floating offshore wind power generation, participating in verification research suchas the Fukushima floating offshore wind farm verification research project. Based on the knowledge andexperience gathered through these power generation projects, it will contribute to carbon neutrality in
Scotland, to the creation of offshore wind power generation supply chains, and to regional economic
development.

21

Figure 22.

Planned development area

Source: Marubeni website

In the agriculture, forestry, and fishing fields, expectations are high for blue carbon, forest planting, and soil
fixation. In the agricultural field, carbon recycling contributes to the improvement of food self-sufficiency levels.
Pioneering farmers are managing production in plant factories, etc., by managing CO2 concentration levels. In theforestry field, large amounts of CO2 fixing are being achieved by the creation and improvement of forests, which
are CO2 sinks, and planned logging of appropriately aged trees through the use of robots on steep slopes, etc. In thearea of civil engineering and construction, the use of lumber is contributing to CO2 fixing as it is being actively usedin some regions in the construction of public facilities such as schools and community centers because of its CO2
fixing qualities. In the fishing field, blue carbon has tremendous potential. There have been several examples ofprojects consisting of collaboration with the agricultural and construction sectors, such as sinking concrete madeprimarily from materials such as coal ash, an industrial by-product, into the ocean to increase seaweed growth andproduce fish reefs. Projects such as these have major potential for CO2 capture and storage.

[Example of member progress: Carbon recycling through marine biomass production]
Keywords: CO2 sinks, blue carbon, seagrass bed creation, fishing industry support
Implementation member(s): Nippon Steel Corporation
Nippon Steel Corporation is aiming to create a new supply chain in which it produces marine biomass(seaweed) and then uses it in steel production processes in a "marine biomass local production, local
consumption" model. It is working to use marine biomass as a carbon source for steel production processes,
and is actively growing seaweed by levering its technologies for creating seagrass beds from steel slag
generated through the steel production process. These initiatives are based on a project selected for the"NEDO Feasibility Study Program/Energy and Environmental New Technology Pioneering Research
Program/Development of Technologies Related to the Creation of Supply Chains Focused on Blue Carbon(Marine Ecosystem Carbon Sink)," implemented by NEDO with the aim of creating supply chains that
contribute to blue carbon (a joint project by Nippon Steel Corporation, Nippon Steel Chemical & MaterialCo., Ltd., and the Japan Research and Development Center for Metals).

22Figure 23. New carbon circulation system for steel plants
Source: Nippon Steel website

[Precedent set by CRF member: Planting and growth of forests of fast-growing trees]
Keywords: CO2 sink, forestry support
Implementation member(s): Sojitz Corporation/Cool Earth, Inc.
Sojitz Corporation and Tokyo University’s venture company Hongo Research Institute Inc. jointly
established Sojitz Morinomirai Corporation, which will produce Japanese aspen tree saplings that can reachmaturity for logging five years after planting. These saplings are currently being grown by Hongo ResearchInstitute on a trial plantation in Miyazaki Prefecture. Japanese aspen is notable for its ability to provide astable supply of fuel for biomass power generation. In parallel with the production of the tree saplings,
Sojitz is also considering the early commercialization of the forest planting project. Sojitz seeks to provide
solutions to the region’s issues through the realization of a forest resource cycle in close cooperation withthe regional community. It has also begun test planting of Japanese aspen in deserted agricultural land,
undeveloped forest land, and the like in the prefectures of Miyazaki, Yamaguchi, Okayama, and Hokkaido.

Figure 24.

The Hongo Research Institute's Japanese aspen trial plantation (one year after planting)Source: Sojitz website

Cool Earth, Inc. aims to restore forest and denuded land while helping remove greenhouse gasses fromthe atmosphere by planting and growing "Japaulownia," a fast growing Japanese species of paulownia.
Japaulownia can be felled after five years, and over that time, 10,000 Japaulownia trees can absorb 420 to
600 tons of CO2 (according to calculations performed together with the Seikei University Faculty of Scienceand Technology, Department of Materials and Life Science). Expectations are high for its potential in theenvironmental conservation industry, as it can not only be used as fuel for biomass power generation,23

but thanks to its light weight humidity control effectiveness, it can also be used in furniture and as aconstruction material. Japaulownia growth management does not require the use of chemicalfertilizers or other agricultural chemicals. Instead, organic growing techniques using mycorrhizal
fungus, its partner bacteria, and partner plant vulpia myuros can be used to create safe, dependable,
and sustainable Japaulownia production systems. Since 2021, Cool Earth has collaborated withcompanies to plant hundreds of tree saplings at a time. It plans to have planted over 30,000 saplings by June
2023.

Figure 25. Japaulownia tree saplings, planting, and furniture made from Japaulownia

Source: Cool Earth materials
The creation of CO2 value chains will be essential for capture and storage in Japan. As discussed during theinterim summary of the CCS long-term roadmap announced by the Ministry of Economy, Trade and Industry in
May 2022, systematically and rationally implementing the CCS will contribute to the advancement of the Japanese
economy and industry and the stable supply of energy. In preparation for commercialization in 2030, it is importantthat overall system design and policy support be linked to clean energy strategies, new material industry visions,the carbon neutral plans of local governments, and other plans with the same objectives, and that they be led by thenational government. Collaboration with the agriculture, forestry, and fishing industries can also be enhanced bybroadly interpreting CO2 capture and storage, expanding it to include the use of bio-organisms, such as soil fixing
and blue carbon.

Figure 26. CCS long-term roadmap (draft)
Source: Ministry of Economy, Trade and Industry materials

24[Example of member progress: CCUS value chain digital platform]
Keywords: CCU, CCS, CO2 value chain
Implementation member(s): Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries, Ltd., together with IBM Japan, Ltd., is developing CO2NNEX, a CCUS value
chain digital platform. The goal of this platform is to connect the valuation of CCUS, in which captured
CO2 is transported, reutilized, and stored, with the IoT and blockchain technology. Through this, they aim
to make visualization, tracking, transactions, and optimization possible, helping invigorate the use of CO2
ecosystems and contributing to environmental conservation.

Figure 27. CO2 capture technology process flow
Source: Mitsubishi Heavy Industries website

The fundamental platform will be completed in 2022, and, based on this, there are plans to start digital
verification testing together with the stakeholders of various CCS/CCU projects, both inside Japan andabroad. The CCUS data collected in CO2NNEX will be used to create an open platform that allows various
service providers to provide their own unique value, and they aim to put the platform into operation from2023.

Figure 28. CO2 capture technology process flow
Source: Mitsubishi Heavy Industries website

25

CRF members are engaged in a variety of other projects, some of which are introduced on the following page.

Figure 29.

Projects by CRF members

Source: Carbon Recycling Fund Institute materials

26

4. Recommendations for realizing a sustainable carbon society
The Carbon Recycling Fund Institute (CRF), carrying out the roles described in Section 2, has updated therecommendations it issued last year for achieving carbon neutrality led by carbon recycling and creating carbon
recycling societies. These updates to its recommendations were made from the following three perspectives, andthe CRF, together with its members, is actively working to put the recommendations into practice.
Develop and promote innovation, develop human resources● The research, development, and verification of carbon recycling technologies and products are accelerating.
Overseas, in particular, start-up companies with the seeds of technologies with future potential are attracting
funding, and research and development are making speedy progress. In the U.S., Germany, and other countries,
massive amounts of funding are being invested, and these countries are poised to take the initiative indevelopment competition. Given this environment, CRF members should develop, verify, deploy, and actively
invest in carbon recycling technologies and products with the aim of achieving carbon neutrality by the year 2050
through green transformation (GX). In doing so, they should engage in cross-industry coordination, including
coordination with start-up companies, and make maximum use of open innovation in order to accelerate these
activities. Utilizing the verification opportunities provided by the national government, such as Expo 2025 Osaka,
Kansai, Japan, would be an efficient approach.
● In order to support these industrial activities, the Japanese government must strive to enrich its measures, such asproviding additional support in order to accelerate development and verification related to green innovation(carbon recycling, hydrogen and ammonia production, the usage of biological resources, coordination with theagriculture, forestry, and fishing industries, CCS, and the creation of CO2 value chains which include financial
coordination). It must provide solid support for the development and promotion of innovation. Expectations arehigh for its support for the advancement and expansion of measures that highly motivated companies canvoluntarily take part in, such as the GX League.
● Measures for developing personnel that can lead innovation and real world deployment will also be important.
CRF members should make wide-ranging efforts to develop personnel that will implement carbon neutrality andcarbon recycling measures, and, especially, the core personnel that will lead implementation between 2030 and
2050.
● We hope that the Japanese government will provide greater opportunities in schools to learn about carbon
neutrality and carbon recycling and that, along with nurturing the personnel that will be responsible for these
efforts in the future, it will carry out measures for fostering a greater understanding of carbon neutrality andcarbon recycling among the populace, which will lead to greater adoption.
CO2 value chain creation● Carbon recycling technologies and products establish their importance and roles in society through theirdeployment and application. Because of this, CRF members should promote the creation of CO2 value chains that
contribute to the valuation of CO2 by promoting the understanding and usage of carbon recycling technologies
and products.
● To maintain and enhance Japan's international competitiveness through the real-world deployment of carbon
recycling technologies and products, the national government should strive to provide incentives, such as27

providing premiums for products and services that use CO2 value chains.
● Companies and the national government should acquire and collect data regarding CO2 separation, capture, andutilization through real world deployment, and prepare the groundwork for quantitative evaluations. When doing
so, efforts should be made to further the overall optimization of the effects and impact of introducing carbon
recycling through the use of objective investigation based on lifecycle assessments (LCAs).
● The national government should promote the visualization of the flow of CO2 based on LCAs and engage in active
discussion regarding matters with major impacts which would transform the social structure, such as emission
trading, carbon taxes, and carbon pricing,. Unified systems which ensure fairness between industries should be
prepared and implemented without delay.
● We hope that the Japan will provide leadership and take initiative with respect to evaluating CO2 sinks such as
oceans and vegetation, and with respect to the creation of international rules.
● Carbon recycling promotion measures and deliberations regarding CO2 capture and storage must be accelerated,and discussions have begun regarding enacting laws within Japan related to the implementation of CCS projects.
The government should provide solid support for active measures by the private sector working towards thecommercialization of CCS by 2030. Furthermore, it would be best if it were to divide the roles, risks, and costsof these measures between the private and public sectors.
Integration with regional revitalization and expansion to the global market● If carbon neutrality and carbon recycling are to be linked to the revitalization of Japan and the enhancement of its
competitiveness, integration with regional revitalization will be essential. CRF members should create CR caseexamples that leverage the strengths and features of communities by collaborating with local governments. When
doing so, they should keep the creation of CO2 value chains, including the aforementioned CO2 capture and storage,
in mind, and they should focus on discovering CO2 consumers and coordinating with the agriculture, forestry, andfishing industries from a carbon recycling perspective. Coordination with multifaceted investigations will also benecessary in order to create carbon neutral ports.
● The local production and local consumption of energy Is also a key concept linked to the carbon recycling andregional revitalization. It is important to carry out measures that leverage natural local assets such as offshore wind
power, small-scale hydropower, and geothermal energy. Offshore wind power generation also has the potential tocontribute to the creation of fish reefs. There are high expectations for measures that help improve food selfsufficiency rates by revitalizing agriculture, forestry, and fishing industries that make use of carbon recycling.
● Global standards are being developed for carbon neutrality initiatives, and CRF members should see these as
excellent opportunities, actively expanding into the global market, including licensing business.
● We hope that the Japanese government will demonstrate a strong presence in international deliberations in orderto support these efforts. The government can expand carbon recycling into a growth industry for Japan by keeping
in mind that Japan is part of Asia and deploying Japanese carbon neutrality technologies in Asian countries,
contributing to carbon neutrality throughout Asia. It will also be important to conclude memorandums ofagreement with the International Conference on Carbon Recycling and the governments of individual countries,
and to conduct joint research and other work based on these memorandums of agreement, thereby strengthening
Japan's international cooperation.
● Industry, academia, and the public sector must work together as one to advance the effectiveness and progress ofcarbon recycling, enhancing their sharing of information around the world. As part of this, the carbon recycling
technology roadmap defined by the Japanese government must be revised as further progress is made.

28

5. Summary
With COP26, the global community launched into action, working to achieve the shared goals of cutting CO2
emissions by 45% from 2010 levels by 2030 and achieving carbon neutrality by 2050. To build sustainable socialand economic systems founded on carbon neutrality in the face of international political instability and a lack ofglobal transparency, every stakeholder must work together to steadily implement concrete measures.
However, this cannot be allowed to lead to a hollowing out of Japanese industry by shifting industry overseas.
Furthermore, achieving carbon neutrality is not feasible simply through decarbonizing or striving to reduce carbon
footprints, rejecting all emission of CO2 produced by using fossil fuels.
A variety of measures must be implemented together, including the creation of carbon recycling societies byclearly defining the value of CO2, capturing and storing CO2, and using CO2 and carbon compounds as resources.
Carbon recycling is a field that spans all domains. The Carbon Recycling Fund Institute includes not only
cooperation between members of private industry, but also cooperation between industry, academia, the public
sector, and overseas organizations with the aim of creating carbon recycling societies, in Japan and around the world.

[Attachment 1]
Overview of the Carbon Recycling Fund Institute(1) Vision
We coordinate with the national government to provide support for the real-world implementation of carbon
recycling and the conduct of carbon recycling business by the private sector.

（２）

Organization structure

Top Advisor: Yoshimitsu Kobayashi (Chairman, Tokyo Electric Power Company Holdings)
Advisor: Takeo Kikkawa (Vice-President, International University of Japan)
Chairperson: Nobuo Fukuda (Representative Corporate Executive Officer, Executive Vice President, Mitsubishi
Chemical Group Corporation)
Vice-Chairperson: Masayoshi Kitamura (Special Counselor, Electric Power Development Co., Ltd.)(3) Activities① Public relations: Raising awareness regarding carbon recycling② Research sponsorship: Offering grants to researchers, etc.
③ Other activities: Issuing recommendations, performing studies of domestic and international carbon recycling
technology trends, etc.

29

Members (as of August 1, 2022)
106 corporate members, 17 individual members, 8 local government members, and 3 academic institutemembers

Summary of 2021 Carbon Recycling Fund Institute member questionnaire
Questionnaire period: February 10 to March 17, 2022
Questionnaire scope: 89 corporate members and 15 individual members * Includes prospective members planningto join in 2022
Number of respondents: 53
1.

We administered a multiple-choice questionnaire covering the following items.
①

Carbon recycling technology fields for which respondents had high hopes or wished to implement measures,
expectations regarding promising technologies, stages of measures, and challenges faced during real-world
deployment (see figures below)②

Participation in national projects③

Countries/regions in which participants were considering taking part in international cooperation

30

Figure 1 Carbon recycling technology areas for which members had high hopes or wished to implement
measures(including areas in which members had already implemented measures and areas of interest to members,
whether or not their own organizations possessed those technologies)

Figure 2 Expectations regarding promising technologies

Figure 3 Stages of measures in technology areas for which members had high hopes or wished to implement
measures31

Figure 4 Challenges faced during real-world deployment
2.

We also administered a free response questionnaire covering the following items. Below were the main responses.
①②

Expectations for carbon recyclingCarbon recycling technologies will be essential to maintaining growth while achieving carbon neutralityComprehensive global strengths will need to be leveragedThis will also be important for increasing the societal value of companies

Opinions regarding the establishment of the carbon recycling throughout societyIt will be important to develop and promote new technologies in order to thoroughly and widely establish
the fact that CO2 is a resourceWe must communicate that this is not merely a concept but an actual system that can be implemented as a
product



We should focus on the development and verification of research technologies that contribute to real-world
deployment③

Carbon recycling measures other than technology development


Forest planting

Funding of start-up companies, development of measurement methods that can be used to evaluate CO2
absorption and fixing amounts

④

Carbon credit businessComparison of Japanese and foreign technology development
Japan is superior with respect to catalyst technologies, electrochemical technologies such as hydrogen fuelcells, artificial photosynthesis, etc.

Japan lacks sufficient national support for verification and real-world implementation



Other countries have the lead with respect to market establishment, the development and widespread use of32

decarbonization technologies, and the verification testing of seeds⑤

Inexpensive renewable energy is widely used overseas

Industrial fields in which members wish to engage in collaboration aimed at real-world deployment* Responses covered a wide range of industrial fields, including the petrochemical industry and the constructionindustry⑥

Expectations of industry members/academic organizations in collaborations between industry and academia

Establish and improve system for fostering exchange between researchers in the industrial and academic
spheres

Target technologies should be clarified and efforts should be focused on research technology development
fields in which participants are internationally competitive

Information should be communicated and shared through open innovation regarding technologies in highdemand in industry⑦

Challenges with implementing CCS in Japan

There is little land suited to it

It is absolutely vital to secure the understanding of local members of the community, such as fishingcooperatives⑧

Society must be made aware of the potential and impact of CCS

Comments regarding CO2 sinks such as blue carbon


Absorption amounts must be evaluated based on scientific evidence and using measurement methodsJapan should take the lead in creating rules regarding blue carbon, based on scientific assessments

Awareness needs to be raised and legal systems need to be put in place so initiatives can be advanced bothon land and at sea

⑨

Global utilization and international collaboration are important

Opinions regarding reforms to regulations that present impediments to R&D, product manufacturing, etc.
(regulatory relaxation and the tightening of regulations, etc.)Support for adding value to carbon negative products/technologies, support for the global use of CO2 andconversion of CO2 into a resource⑩

Standardization of products that fix CO2, introduction of incentive systems, tax benefitsCreation of systems that are prioritized for use in public procurement, such as green procurement

Opinions regarding what approaches should be used to create systems that provide CO2 with value

There need to be systems in which final consumers seamlessly and naturally bear CO2 costs

CO2 reductions through the use of CR technologies should be one of the reduction items in CO2 emissions
reductions from carbon pricing

Care needs to be given to prevent a loss of competitiveness in comparison to overseas companies

33

⑪

Improvements to address challenges in real-world deployment of carbon recycling technologies[Chemicals]

System of premiums for developed products (such as compensation for increases in prices), tax breaks, etc.



Cost reduction through technology development[Fuel]


Creation of systems and rules through wide-ranging collaboration and collaborative creation



Expand market by providing incentives for base usage of hydrogen[Mineralization]
Appropriate design of carbon pricing systems, relaxation of regulations and development of legal systems
involved in use of carbonate in construction and civil engineering applications

Standardization of concrete products made using carbon recycling technologies (JIS, etc.)[Capture]Creation of systems and rules through wide-ranging collaboration and collaborative creationCollaboration in the form of supply chains, from capture to utilization and storage, total LCA activities, etc.

[Absorption]


Active desert greening, creation of seagrass beds in oceans, etc.

Creation of blue carbon credits, incentives for developed material providers, etc.

[Storage]Design of appropriate carbon pricing system, development of laws promoting CCS

34