Japan CCS Forum 2023

Mitsubishi Corporation CDR activities

November 2023
Mitsubishi Corporation

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Mitsubishi’s EX Strategy

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Necessity of Tech Carbon Dioxide Removal (CDR)(1) reduce/avoid GHG emissions from all sources and (2) remove the remaining emissions To achieve 1.5°C.
5-16 Bt/y of emissions will remain in 2050, Tech CDR will be responsible for 60-70% (approx. 10 Bt/y).
SBTi requires all remaining emissions to be offset by long permanent CDR to achieving NZE.
(emission：1Bt/y)70

Base scenario

60
50①Reduce/Avoid

40
30
20
100(5~16Bt/年)

1.5° scenario
2021

2025

2030

2035

Reference：IPCC AR6 / WG3 / SFM (C.3 / 3.3 / 3.5)
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Residue

2040

2045

②RemoveTech-Base

60~70%（ca.10Bt/y）Nature Base

30~40%（ca.5Bt/y）

2050

SBTi Net-Zero Standard Criteria
Residual emission must be offset by only CDR
2Definition of Tech Carbon Dioxide Removal
Carbon Dioxide Removal refer to the technology, practices and approaches that remove and durably store from the atmosphere.

DurabilityLong
CO2source

Short

Carbon Capture and Utilisation (CCU)
Carbon Capture and Storage (CCS)
Mineralizatione-chemicale-fuelFossil source

CO2 Source

CCCO2CC

Mineralization
Biochar

BECCS
Biogenicsource
CO2Mineralization

DACCS
DirectAir
CaptuteCO2

CO2 negative

CO2 neutral

RemovalCarbon Carbon
DioxideRemoval（Negative Emission）

CO2 positive (emissions)

Carbon AvoidanceSource：ClimateWorks Foundation
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Mitsubishi Corporation CDR activities

Tech CDR

Vision to become one of the largest CDR project developer in the world by leveraging our knowledge/Network in multiple industries.
Category

Mitsubishi Corporation’s Activities

Afforestation
Reforestation• Investment in AI Carbon (Australian NBS Developer)

Biochar• Business Development

Mineralization• Investment and Business Development with multiple CCU
technologies

Enhanced Weathering
Ocean• Seeking new Investment and Business Development opportunities

BiCRS/BECCS• Investment and Business Development

DACCS• Participation in Breakthrough Energy Catalyst• Investment and Business Development

Carbon Credit• NextGen CDR Facility• Steering Committee member of CCS+ Initiative

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NextGen CDR Facility
NextGen is a carbon credit offtake platform jointly established by Mitsubishi Corporation and South Pole to cultivate technology-based carbon
dioxide removal (CDR) credit industry. NextGen conducts/supports carbon credit offtake and CDR methodology creation.
NextGen has secured five foundation buyers and acts as the third largest credit off taker in the world.
Certification partner

Initiative to develop methodology for CDR
projects which South Pole and Mitsubishi area member ofBuyers

Projects

Buyers’ partner

×Initiative led by the U.S. government andthe World Economic Forum to bring together
major companies that commit to purchasing
green products with green premium.
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5Appendix

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6Supply and Demand Forecast of CDR
Supply of Tech CDR is limited due to high cost.
However, a significant supply shortfall is forecasted due to rapid demand growth and slow development of projects.

Supply and demand range (Mt CO2 per annum) for 2030 market as of June 2023

Pipeline for CDR project is insufficient
to meet the demand in 2025.

Demand of CDR will increase
rapidly to achieve net-zero.

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7Challenges to scale Tech CDR“Chicken-and-egg dilemma" between Supply and Demand, preventing Tech CDR industry to scale.

Reason why Tech CDR not scaling up
Chicken-and-egg dilemma
SupplyWe can scale and reduce cost
if there are premium price buyers….

We can purchase CDRs
if the price was cheaper…..

DemandTech CDR not scaling
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8Solution to scale the Tech CDR
Both ➊Government-initiated incentives and ➋Private-initiated incentives is necessary.
Public and Private incentives to scale Tech CDR＜Experience carb of renewable-energy/FIT>➊Government（financial support）• Government-initiated incentive helps
demand and supply to reduce cost, andto expand markets.
＜Ex：Renewable energy/FIT＞• Government procurement of renewableenergy at fix price＜Credit buyers＞➋Private sector（Green premium）• Tech CDR procurement at a premium
price (US$100-2,000/CO2-t) to support
the industry.

Our approach
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