RecommendationsforAchievement of Carbon Neutrality by 2050
- Toward Achievement of Net Zero Carbon Dioxide Emissions
and Creation of New Businesses by Carbon Recycling -June, 2021
Carbon Recycling Fund InstituteTable of Contents
1. Outline of Recommendations
2. Background to Promotion of Carbon Recycling
3. Influence of COVID-19 Pandemic
4. Significance of Carbon Recycling
5. Promotion of Public Relations for Carbon Recycling
6. Acceleration of Innovation and Development of Human Resources
7. Sectors with Potential to Utilize Large Amount of Carbon Dioxide
8. Improvement of Market Environment
9. Linkage with Regional Revitalization
10. Entry into Global Market
11. Conclusion

Attachment－1. Overview of Carbon Recycling Fund InstituteAttachment－2. Outline of Member Survey Results

11. Outline of Recommendations
As a last resort, looking beyond COVID-19, the carbon neutrality is now an international trend to solve

globally shared issues such as the global warming and sustainable procurement of resources and energies.

The following are recommendations made, taking this opportunity, by Caron Recycling Fund Institute(CRF) toward the achievement of carbon neutrality through the establishment of “Sustainable Carbon

Society” based on the carbon recycling that utilizes carbon dioxide as a resource, and we will, on our own
initiative, work with our member companies (hereinafter referred to as “CRF member(s)”) for theirrealization:
Acceleration of Innovation and Development of Human Resources●Carbon recycling technologies are still at the early stage of full-fledged research anddevelopment/demonstration. Japan, as well as U.S., Germany and other countries, remains competitivein development. In order to achieve the carbon neutrality by 2050, CRF members will be actively
committed to developing, putting to practical use, and socially implementing carbon recycling
technologies and products as well as investing therein. To that end, they will make the best use ofinter-industry collaboration and open innovation including collaboration with start-ups and ventures toaccelerate the development.
●To help such industrial movement, the national government needs to enhance its measures to accelerate
the development and demonstration related to green innovation (such as carbon recycling andimprovement of carbon dioxide (including hydrogen and ammonia) supply chains) for strong support
for the development and promotion of innovation.
●Also important are measures to develop human resources that will lead the creation and social
implementation of innovation.

Improvement of Market Environment●The significance and role of carbon recycling technologies and products will be established through theirsocial implementation. Thus, CRF members will endeavor to promote their social implementation while
utilizing inter-industry and industry-academia-government collaboration for fostering an
understanding of, and widespread use of, the carbon recycling technologies and products.
●In alignment with the industrial movement, the national and local governments need to support theenlargement of market for, and cost reduction of, those products through the public procurement. To
that end, it is expected to make the best use of EXPO 2025, Osaka, Kansai and other occasions.
●Companies and the national government will collect and accumulate data related to the separation,
recovery and use of carbon dioxide through social implementation to proceed with the preparation for
quantitative evaluation. In doing so, they should, through objective considerations, focus on the total
optimization of impacts associated with the implementation of carbon recycling.
●Japan should lead, and take the initiative in, the evaluation of a carbon dioxide sink such as ocean andplants and the development of international rule.
●In order to maintain and enhance the global competitiveness of Japan through the social
implementation of carbon recycling, the national government is required to push forward the review of
relevant systems and regimes.
2

●COVID-19 is changing our values and behaviors. It is also important to take advantage of the ongoingdigitization and decentralization to link carbon recycling with measures for regional revitalization.
Development in Global Market●As a movement toward carbon neutrality spreads internationally, CFR members, seeing it as anopportunity, will actively tap into the global market, including the licensing business.
●To support the movement, the national government is expected to show Japan’s presence in international discussions. It isalso important to enhance the international collaboration through an industry-academia-government international
conference on carbon recycling, conclusion of a memorandum of cooperation with other countries,
and/or joint research based on them.
●It is important for the government, industry and academia to work together to enhance the transmissionof information to the world on the usability and progress of carbon recycling. As a part of this, Roadmap
for Carbon Recycling Technologies developed by the national government is required to be revised as itprogresses.

32. Background to Promotion of Carbon Recycling
At the Davos Forum in January, 2019, former Prime Minister Abe said, taking as an example theartificial photosynthesis and methanation1, “carbon dioxide could well be the best and most affordable
resource for multiple use” as we were to be committed to solving globally shared issues such as theglobal warming and sustainable procurement of resources and energies, and “it is time now to think about
CCU, Carbon Capture and Utilization.”
This led to the launch of carbon recycling policy in February, 2019. The Carbon Recycling
Promotion Office was established in the Ministry of Economy, Trade and Industry, and the Roadmap
for Carbon Recycling Technologies was developed in June. In parallel with the action of the national
government, Carbon Recycling Innovation Study Group had been formed on a private sector basis thatthen evolved into Caron Recycling Fund Institute (CRF). CRF aims to solve the global warming issues
while improving the access to energies in the world at the same time, with intent to support the creationof innovation that helps the carbon recycling through public relations, sponsorship for research and otheractivities.
In October, 2020, Prime Minister Suga, in his policy speech, declared that he would aim forachieving the carbon neutrality by 2050, and told that the revolutionary innovation, especially carbon

recycling, would be a key to this. Green Growth Strategy through Achieving Carbon Neutrality in
2050 developed in December, 2020 has formulated 14 growth sectors including the carbon recycling

and created the Green Innovation Fund of two trillion yen, which has accelerated the efforts forcarbon recycling.

Under these circumstances, Japan’s new greenhouse gas emissions reduction target of a “46%decline from fiscal 2013 levels” was announced in April, 2021.

Figure 1: Green Growth Sectors Formulated by Ministry of Economy, Trade and Industry (METI),
Source: Website of METI

4

3. Influence of COVID-19 Pandemic
In 2020, the fast spread of COVID-19 caused the serious economic stagnation due to lockdown in major cities
in the world. This led to the reduction of carbon dioxide emissions in the world. However, carbon dioxide
emissions derived from energy consumption is said to be reduced by about 6% from the previous year2, indicating

how challenging and difficult it is to achieve zero emissions of carbon dioxide.

On the other hand, there is a huge challenge of improving the energy access as the number of people
without access to electricity still amounts to 800 million in the world, which casts a shadow over theachievement of SDGs in 2030.
Under such circumstances, in May, 2020, the European Commission placed the European Green
Deal at the center of their economic recovery policy from COVID-19, and clearly stated that EU would
focus on the environmental issues such as renewable energy, energy storage technologies, hydrogen,batteries and CCS. China, at the U.N. General Assembly in September, 2020, called for a “green
recovery” of the world economy in the post-COVID era, and told that it would achieve a peak in carbon
dioxide emissions before 2030 and carbon neutrality by 2060. The United States, which had withdrawn
from the Paris Agreement under the former administration, formally rejoined the agreement in April, 2021
under the new administration. The country hosted the Leaders’ Summit on Climate in April, 2021 andset a goal of net zero of carbon dioxide emissions by 2050. Thus, it has clearly displayed an attitudeof seeking to regain leadership in the international community through measures against global
warming.

As mentioned before, Japan’s new target for reducing greenhouse gas emissions was publicly
announced in April, 2021. From the view point of sustainable corporate value improvement, highly
conscious companies, looking at the post-COVID era, have accelerated their activities toward thecarbon neutrality while utilizing digital technologies and AI based on the understanding that theyshould reshape the future in a flexible manner with COVID-19 as a turning point.
The significance of carbon recycling that is a key to those issues will increase its importance.

1

Technology to use carbon dioxide and hydrogen to produce methane

2

Quotation from Global Energy Review 2020, IEA, issued on March 2, 2021

5

4. Significance of Carbon Recycling
The carbon neutrality means, not the reduction of carbon dioxide emissions caused by humanactivities to zero, but balancing of “carbon dioxide to be emitted no matter how hard we try after our
greatest efforts to reduce emissions” with “carbon dioxide to be immobilized and used as resources with thehelp of ocean, plants and other power of nature and through the science-and-technology based use and/or
storage of them” to add up to net zero.

Figure 2: Estimated Carbon Dioxide Emissions Derived from Energy Consumption
Developed by METI, Source: Website of METI

Most carbon compounds containing carbon dioxide are from natural sources and a fundamental
substance that is essential to maintain life. For example, plants play a role in using carbon dioxide as
raw materials to synthesize carbon compounds to supply them to the natural environment. A body ofcreatures including human beings is composed of substances with carbon as framework, thus being apart of the carbon cycle on the earth as a whole.
The global warming issues are essentially caused by the increased carbon dioxide in the air above
the naturally balanced level due to the use and combustion of fossil fuels by human beings at anextremely rapid pace after the Industrial Revolution. What we human beings should do is to use andrecycle as resources by an innovation such excessive carbon dioxide to restore the natural balance. It

is also necessary to take steps at the same time with regard to the adaptation to climate change,
especially the disaster prevention, given the looming phenomenon such as extreme weather events.

6

Figure 3: Global Carbon Cycle Model

Source: Prepared based on materials from Center for Global Environmental Research, etc.

Toward the carbon neutrality by 2050, it is indispensable to positively push forward a radical energy
transformation including the development and implementation of renewable energy and change in life
style. A key to this is to aim to achieve the carbon neutrality through the establishment of “Sustainable
Carbon Society” based on a concept of carbon recycling. This will help the adaptation to, and mitigationof, climate change, improvement of access to energies, economic recovery from the COVID-19
pandemic, promotion of circular economy and enhancement of global competitiveness, bringing about
the sustainable development of Japan and the rest of the world for a longer term.

Figure 4: Roadmap for Carbon Recycling Technologies developed by METI
Source: Website of METI
7

5. Promotion of Public Relations for Carbon Recycling
CRF members will disseminate the significance of carbon recycling mentioned above by deliveringscience-based information so as to gain an understanding and cooperation of a wide range ofstakeholders ranging from specialists to the public. These public relations are expected to dispel
misconceptions of “the elimination of carbon dioxide, which allegedly causes the global warming, is the
only way to solve the global warming issues” and “the carbon neutrality targets will limit economic
activities”, and to lead to a positive awareness and behavior on a societal level such as seeing the carbon recycling
as a new business opportunity and/or change in life style on a voluntary basis.


CRF Activities: Our website provides a content that describes scientific events in acomprehensible way related to the carbon recycling for a proper understanding of carbon
dioxide. The public relations include the introduction of CRF members’ activities related tothe carbon recycling and career seminars held online for students in order to find nextgeneration industrial leaders.

Figure 5: Online Seminars in FY 2020
Source: Website of CRF

6. Development and Promotion of Innovation and Development of Human
Resources
Carbon recycling technologies are still at the early stage of full-fledged research anddevelopment/demonstration. As startups with a promising technological seed have attracted capital

especially in foreign countries, the research and development has advanced rapidly. Japan, as well as
U.S., Germany and other countries, remains competitive in development. So as to keep Japan’s
research and development abreast, CRF members will be actively committed to developing, putting topractical use, and socially implementing carbon recycling technologies and products as well as

investing therein.

To that end, they will make the best use of inter-industry collaboration and open

innovation including collaboration with start-ups and ventures to accelerate the development.

To help such industrial movement, the national government needs to promote the encouragementof the social implementation in an interdisciplinary manner of a promising technology, and to strongly
support the development and promotion of innovation, including the development of humanresources taking responsibility for the future and of ventures, through accelerating the development
and measures related to green innovation (such as carbon recycling and development of carbon
dioxide (including hydrogen and ammonia) supply chain). CRF plans to establish a carbon recycling
university as a new venue for developing human resources.
8

CRF Activities: They include the discovery of hidden ideas and talents in companies anduniversities, and support of a fundamental study with excellence in creativity and/or innovation
related to the carbon recycling to help its next step of demonstration test and/or social
implementation. Specifically, we conduct sponsorship activities for individual researchers or
research teams in the wide range of fields related to the carbon recycling, including energy,
chemistry, materials, separation and recovery, hydrogen as well as agriculture, forestry and fisheries.
In fiscal 2020, twelve were chosen among 35 projects applied, with grant of 81.86 million yen in
total.

7. Sectors with Potential to Utilize Large Amount of Carbon Dioxide
As the carbon recycling is a concept related to not only the energy industry but also all kinds ofindustries, it has a potential to utilize a large amount of carbon dioxide for zero emissions. Other sectors
with a potential to deploy are as follows:

Figure 6: Sectors with Large Potential to Utilize Large Amount of Carbon Dioxide
Source: Prepared based on materials published by U.S. DOE
at 15th Carbon Dioxide Utilization Summit (2020)(１) Materials Sector
Concrete and aggregate are among first industries listed under the carbon recycling sector in theGreen Growth Strategy. In addition, U.S. Department of Energy (DOE) estimates that the concrete
will be the largest market, with potential carbon dioxide emissions reduction, if combined withaggregate, being 5 billion tons, the largest in the world. By enhancing the competitiveness throughthe research and development, demonstration projects and public procurement by the national
government, a social implementation and entry into global market is expected to be achieved around2030. As the offshore wind power generation is to be widely deployed in Japan, the concrete can be used as afoundation block for it.
9

Example of Leading Practice by CRF Members: Taiheiyo Cement Corporation
Taiheiyo Cement Corporation will set up a demonstration facility to separate and recovercarbon dioxide in its cement factory with the research grant from NEDO to conduct ademonstration test for the separation and recovery of carbon dioxide of 10 tons a day fromexhaust (fiscal 2020/21).
It will be the first demonstration test in Japan to separate and recover carbon dioxide of thisamount in the cement factory. In addition, it is developing an elemental technology toimmobilize as carbonate the separated and recovered carbon dioxide with using concrete
wastes or ready-mixed concrete sludges to recycle it as cement raw materials, base course
materials for road paving, and/or other civil work materials.

Figure 7: Conceptual Diagram of Carbon Recycling Technology-Enabled Cement
Manufacturing Process
Source: Materials from Taiheiyo Cement(２) Agriculture, Forestry and Fisheries Sector
Promising elements in the agriculture, forestry and fisheries sector include the blue carbon,
afforestation and soil fixation. As the carbon recycling in the agriculture sector will lead to theimprovement of self-sufficiency in food products, innovative farms are committed to the production
management through the carbon density control such as a plant factory. The forestry sector can
immobilize a large amount of carbon dioxide by the development of forest as a carbon dioxide sink andlogging in a planned manner of trees at their appropriate age through the promotion of robotization
Moreover, a civil engineering/construction project contributes to theon a steep terrain.

immobilization of carbon dioxide as more woods are used actively for schools, community halls andother public facilities from a stand point of immobilizing carbon dioxide. In the fisheries sector, highexpectations are placed on the blue carbon, and there is an initiative to make concrete mainly out ofindustrial by-products of coal ashes to install it in the sea for an increase in seaweeds attached. Some ofthose actions have been put into practice as an agro-industrial collaborative project, providing a large
potential of carbon dioxide storage.
7Previous Case by CRF Members: Electric Power Development Co., Ltd.
Osaki CoolGen Corporation, co-founded by Electric Power Development Co., Ltd. and the
Chugoku Electric Power Co., Inc., plans to liquefy and transport carbon dioxide recoveredfrom a coal-fired power plant to utilize it as a raw material for photosynthesis at a tomato
garden in Kitakyushu that it co-operates with Kagome Co., Ltd. By setting the carbon
dioxide density in the greenhouse of the garden higher than that in the air, the growth ofplants will be stimulated for increased productivity.

Figure 8: Tomato Garden Co-operated by Electric Power Development and Kagome
Source: Website of Electric Power Development(３) Chemical Sector
As carbon dioxide is a nonpolar and chemically stable molecule, it is hard to cause its reaction.
Therefore, the catalyst development holds the key to the development of technology to make chemicals
from carbon dioxide, and high expectations are placed on the improved selectivity and efficiency as well
as lower cost of the catalyst. Its effective use is also expected in and out of a chemical complex thatemits a high level of carbon dioxide.
Previous Case by CRF Members: Mitsubishi Chemical Corporation
Mitsubishi Chemical Corporation, as a member of Japan Technological Research Association of
Artificial Photosynthetic Chemical Process (ARPChem), has worked to establish artificial
photosynthetic and chemicals manufacturing processes to make chemical materials and plastics
from carbon dioxide-free hydrogen derived from water splitting by the sunlight and carbon dioxide
emitted from factories. Toward its social implementation around 2040, the company plans to
conduct a large-scale demonstration by 2030.

8Figure 9: Artificial Photosynthesis; Outline of its Mechanism
Source: Materials from Mitsubishi ChemicalPrevious Case by CRF Members: Furukawa Electric, Co., Ltd. and Chiyoda Corporation
Furukawa Electric, Co., Ltd. and Chiyoda Corporation are developing a system to directly make,under conditions of low temperature and pressure, basic chemicals (C2 compounds such as
ethylene) from carbon dioxide and water (H₂O) that uses as an energy source the electricity,
renewable energies in particular, through the development of electrode materials for cathodes.
While an existing method emits about 11 tons of carbon dioxide equivalent per 1 ton of ethylene,
the reduction by some three tons is expected by combining electricity from thermal power withcarbon dioxide as raw materials. It is further estimated that the use of electricity from renewableenergy sources will immobilize as ethylene three tons of carbon dioxide equivalent per 1 ton of
ethylene, without emitting any carbon dioxide.

Figure 10: Making Basic Chemicals from CO2 and H2O with Catalyst-based Electrolysis Device
Source: Materials from Furukawa Electric9(４) Fuel Sector

Bio-based diesel and jet fuels are under development. Furthermore, with the ongoing methanation
technology-enabled development of gas fuels and e-fuels, the fuel sector for automobiles, ships andaircrafts has a high potential for the use of carbon dioxide.
Previous Case by CRF Members: euglena Co., Ltd.
euglena Co., Ltd. has been committed to introducing biofuels into the mobility on the land,in the sea and air. In its production and demonstration plant for biofuels established in

Tsurumi, Yokohama, the company is making next-generation biodiesel and bio-jet fuels fromoils derived from euglena microalgae and used edible oils. It was certified to a new standardof ASTM International in January, 2020, and perfected fuels in conformity to the standard in

March, 2021. It looks to achieve the world’s first flight of a jet using euglena biofuels during
2021.

Figure 11: History of Bio-jet Fuels
Source: Website of euglena(５) Recovery from Air
Direct air capture (DAC) technologies to recover carbon dioxide from the air have started to
deploy overseas. While securing and storing carbon dioxide emitted, Japan should examine a way
to utilize it as an important carbon source.

8. Improvement of Market Environment
As shown in 7 above, the significance and role of carbon recycling technologies and products will beestablished through their social implementation. Thus, CRF members will endeavor to promote theirsocial implementation while utilizing inter-industry and industry-academia-government collaboration
for fostering an understanding of, and widespread use of, the carbon recycling technologies andproducts.
In alignment with the industrial movement, the national and local governments need to support theenlargement of market for, and cost reduction of, those products through the public procurement. To
that end, it is expected to make the best use of EXPO 2025, Osaka, Kansai and other occasions.

10Companies and the national government will collect and accumulate data related to the separation,
recovery and use of carbon dioxide through the social implementation to proceed with the preparation
for quantitative evaluation. In doing so, they should, through objective considerations, focus on the total
optimization of impacts associated with the implementation of carbon recycling.

Japan should also lead, and take the initiative in, the evaluation of a carbon dioxide sink such as
ocean and plants and the development of international rule.
In order to maintain and enhance the global competitiveness of Japan through the social
implementation of carbon recycling, the national government is required to push forward the review
of relevant systems and regimes. For the hydrogen, in particular, as a social system is expected to becreated, including lower price and practical use of methanation, toward 2050, the promotion of its
heavy use and deregulation needs to be considered. In spite of an idea of classifying hydrogen intocolors, including green, blue and gray, according to its manufacturing processes, it is important to drive
its use without distinction for the time being. Measures that require urgent considerations include thepositioning of carbon dioxide-free hydrogen as non-fossil energies in the sophisticated methods ofenergy supply structures, and development of guidelines for research and development.
Furthermore, as it is essential to store carbon dioxide internally, the legal system should be
improved to promote CCS.

9. Linkage with Regional Revitalization
Efforts to reduce carbon dioxide emissions may unintentionally lead to the overseas drain of anindustry. To avoid the overseas drain, it is also important to identify the trend of ongoingdigitalization and decentralization through the response to COVID-19 and movement of aiming forthe carbon neutralization by local governments, and link the carbon recycling with measures for theregional revitalization while making use of local characteristics and existing infrastructures.
For example, Hiroshima Prefecture has been positive about the carbon recycling since the early stage, and thenational government is now developing a center of excellence there to research with utilizing carbon dioxide separated
and recovered from a thermal power plant. As the prefecture has shown its enthusiasm by its efforts including theestablishment of Hiroshima Global Academy prefectural junior and senior school. Its roles as an international centerof excellence for carbon recycling will lead to the education for the coming generation and the international interaction,
which would contribute to the local revitalization.
Activities to disseminate “Carbon-neutral LNG” have been set in motion in Japan. “Carbon-neutral
LNG” is a concept that LNG, which emits carbon dioxide when mined or burnt, is considered, for the
purpose of calculation, to emit no carbon dioxide by combining with afforestation and othercommitments. The afforestation activities will further lead to the activation of domestic forestry
industry and improvement of forest’s function to recharge water sources.
The national government should encourage the industry-academia-government collaboration to use
existing chemical complexes, thermal power plants, cement factories, waste combustors and otherinfrastructures and launch a new business in a rural area while supporting local governments committed
to a carbon recycling project toward the achievement of carbon neutrality.

11

Previous Case by CRF Members: TODA KOGYO CORP.
TODA KOGYO CORP. based in Hiroshima City, Hiroshima developed a technology to recover
combustion exhausts containing carbon dioxide from the in-house power generation to obtainsoda ash with the same purity as traditional ammonia-soda processes. It realizes the carbon

recycling within its manufacturing processes by making its products out of sodium carbonate
solution manufactured.

Figure 12: Carbon Recycling Using CO2 from Boiler Exhaust Gases
Source: Materials from TODA KOGYO

10. Entry into Global Market
As a movement toward carbon neutrality spreads internationally, CFR members, seeing it as anopportunity, will actively enter into the global market, including the licensing business.
To support the movement, the national government is expected to show Japan’s presence in international
discussions. It is also important to enhance the international collaboration through an industry-academiagovernment international conference on the carbon recycling, conclusion of a memorandum ofcooperation with other countries, and/or joint research based on them.
It is important for the government, industry and academia to work together to enhance the deliveryof information to the world on the usability and progress of carbon recycling. As a part of this,Roadmap for Carbon Recycling Technologies developed by the national government is required to berevised as it progresses.

12Previous Case by CRF Members: JAPAN COAL FRONTIER ORGANIZATION (JCOAL),
Kawasaki Heavy Industries, Ltd. and Hitachi Zosen Corporation

One example of the international collaboration to introduce Japanese technologies overseas is a
U.S.-Japan international CCUS demonstration project. Specifically, at the Dry Fork coal plant inWyoming, U.S., JCOAL plans to, with the support of a Ministry of the Environment project, assess
environmental impacts of a technology to separate and recover carbon dioxide with solid sorbents.
Kawasaki Heavy Industries, Ltd. looks to socially implement the technology. Aside from this,JCOAL has a plan to separate and recover carbon dioxide from exhausts to use it for EOR(Enhanced
Oil Recovery) and/or mineralize it with coal ash.

Furthermore, in China, a project has started at the Yulin economic and technologicaldevelopment zone in Shaanxi Province that utilizes carbon dioxide emitted and unusedenergies used to be discarded (such as by-product hydrogen and surplus electricity), andconvert them into natural gases (methane) with a methanation technology of Hitachi Zosen
Corporation.

Previous Case by CRF Members: Mitsubishi Corporation
Mitsubishi Corporation has pushed forward its sponsorship activities to, and partnership with,startups overseas that are committed to the CCUS. A Canadian business CarbonCure, which
the company has invested in and formed a partnership with, developed a method to mix readymixed concrete directly with carbon dioxide to produce calcium carbonate. As the method helps
to maintain the alkaline property, it can be used for reinforcing steel and has been increasingly
implemented mainly in North America. Blue Planet in U.S. concluded a collaborationagreement with it and developed a technology to make gravels (aggregate) out of calcium

carbonate that uses carbon dioxide. The technology was employed for a renovation project of
San Francisco International Airport.

Figure 13: Outline of Processes from Recovery of CO2 to its Utilization as Construction Materials
Source: Materials from Mitsubishi Corporation

1311. Conclusion
The steady implementation of measures toward the achievement of the carbon neutrality by 2050
is required while reviewing the roadmap. It will make no sense, however, if the achievement brings
about the overseas transfer of an industry in Japan resulting in hollowing-out. If you seek to realize adecarbonized or low-carbon society only by negating carbon dioxide emissions caused by the use offossil fuels, etc., it will be difficult to achieve the carbon neutrality.
The sustainable carbon neutrality should be achieved through the carbon recycling, where the valueof carbon dioxide is defined to utilize as resources the carbon dioxide and carbon compounds
including its absorption and immobilization: that is, co-existence of a wide variety of measures
including the establishment of a “Sustainable Carbon Society”.
The carbon recycling industry is one of the growth sectors, specifically the 11th sector, in the Green
Growth Strategy. Currently, carbon recycling focuses on minerals, fuels, chemicals and separation andrecovery, but it is a cross-sectional and cross-cutting field related to all regions. We should aim for theachievement of carbon neutrality not only in Japan, but also around the world under the strong
leadership of Japan, through an industry-academia-government collaboration and strong collaboration
with foreign countries, let alone the industrial collaboration on a private sector basis.

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【Attachment―1】
Overview of Carbon Recycling Fund Institute(１) Vision
In collaboration with the national government, to support the social implementation of, andcommitments at a private sector as a part of their business to, the carbon recycling.
（２）Organizational Structure
Chairperson: Dr. Yoshimitsu Kobayashi(Director of the Board, Mitsubishi Chemical Holdings Corporation)
Vice Chairperson: Masayoshi Kitamura(Special Counselor, Electric Power Development Co., Inc.)(３) Activities① Public Relations: Awareness-raising activities related to carbon recycling② Sponsorship for Research: Grants offered to researchers③ Others: Including surveys on carbon recycling technologies trends in and out of Japan,
development of rules to promote CCUS and policy recommendations(４) List of Member Companies (as of June 17, 2021)

Total 77 companies
10 persons

15

【Attachment―2】
Outline of Members Survey Results
Survey Period: January 26 – February 25, 2021
Respondents: 66 corporate and 11 individual members
Number of Responses: 46
1.

The questionnaire survey consisting mostly of closed questions asked about the following:① Their ongoing national project(s)② Their commitments to a hydrogen project and its progress③ Any country or region of their potential international partner④ Challenges in carrying out research and development⑤ Supposed supply source of carbon dioxide and associated challenges⑥ A method to separate and recover carbon dioxide that they are considering and working on, and its
associated challenges⑦ A method to transport carbon dioxide that they are considering and working on, and its associatedchallenges⑧ Their view on CCS⑨ Potential benefits of, and challenges in socially implementing, a promising carbon recycling
technology(Refer to Figures 1 and 2)⑩ Comparison of technological development between Japan and foreign countries⑪ What it takes to promote the technological development in Japan⑫ What it takes to socially implement and bring into business Japanese technologies

Reduced CO₂ emissions
Early realization
High added value
Great social significance
OthersFigure１: Potential Benefits of a Promising Carbon Recycling Technology

16Technological maturity
Cost
Reduced CO₂ emissions
Relianceon othertechnologies
as combination
Relianceon othertechnologies(such(suchas combination
withwith hydrogenand collaboration
with renewable…
hydrogenand collaboration
with renewableenergies)

LCA
Marketability
Value of CO₂ (incentives)
CO₂ infrastructures
CO₂ infrastructures (transport, storageand other(transport, distribution
storage and other
distribution
facilities)
facilities)

CO₂ trading system
Legal regulation
Underdvelopment of laws, certification systems,
Underdvelopmentof laws, certification systems,
evaluation
evaluation methods,
etc.methods, etc.

Social understanding
Geographical restrictions
Others
0

20

40

60

80

Figure２: Challenges in Socially Implementing Carbon Recycling Technologies

２．The free-format questionnaire survey asked about the following, with the major answers received asfollows:① Expectations for carbon recycling Can be a measure to reduce carbon dioxide emissions for all industries.
Will give more choices of energies and more measures to achieve the carbon neutrality.
Has a potential to enable the return of valuables.

CCS has a potential to drive consumption in terms of quantity, while its storage volume islimited.

② Opinion on a sink such as blue carbon
 Improvement of environmental assessments, development of a rule to measure carbon dioxide
sinks, and encouragement on a global basis is required.



Would expect inter-agency initiatives.

Scientific and careful examination on a quantitative and multifaceted basis is required for an
impact on biodiversity.

Enhanced social visibility and development of a certification system is required.

17

③ Opinion on the regulatory reform (such as deregulation and tighter regulations) related to research &development, manufacturing of products, and other issues
 Development and/or improvement of a certification system and standards such as adaptation to
JIS is required for products that immobilize, or avoid emissions of, carbon dioxide.

The evaluation on a lifecycle basis is important.

Would expect a mandatory use of, subsidy for, and tax breaks for development and production of,
those products.

Active utilization by a public agency and tighter regulations to drive widespread use in a private
sector is desirable.



Development of a system to trade carbon dioxide emissions in and out of Japan④ Opinion on how a way to add value to carbon dioxide should be institutionalized

System to evaluate carbon dioxide emissions reduction properly and quantitatively

Institutionalization in a manner that enables the maintenance of global competitivenessTax credits, like 45Q in U.S., to support carbon dioxide emissions reductionDevelopment of a scheme to share the costs and social significance in an entire society is required.

⑤ Remedies for challenges in socially implementing carbon recycling technologies[Chemicals/Fuels Issue]
 Cross-industrial collaboration


Scheme to evaluate value of CN and reflect it in price[Fuels Issue] Being well-positioned to supply a large amount of hydrogen stably and inexpensively

Non-EU-driven international standardization
Utilization of existing assets[Mineralization Issue]
 Standardization of products with CR technologies[CCS Issue]
 Improvement of business environment and legislation

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