October 11, 2018
ICEF 2018 Statement from the Steering Committee
1．Introduction
The fifth annual meeting of the Innovation for Cool Earth Forum (ICEF 2018) was held in Tokyo on October 10 and 11. The
theme of this year’s forum was “Driving Green Innovation.” More than 1,000 people from government institutions,international organizations, industry, and academia from approximately 70 countries and regions participated in the event.
According to the ICEF Steering Committee, our mission is to facilitate discussion and encourage the cooperation among
participants in order to promote technological and social innovation in the energy and environmental fields so as to reaffirm
our ultimate goal of achieving net-zero CO2 emissions. This ultimate goal cannot be achieved in the near future, but firststeps and actions need to be taken today. This following statement summarizes what kind of actions should be taken withhigh priority.
2. Realization of a virtuous cycle of climate change countermeasures and economic growth
In order to achieve the net-zero goal, total CO2 emissions must begin decreasing as soon as possible. However, worldwide
emissions of carbon dioxide have not yet started to decline but are still rising. Under such circumstances, a combination ofclimate change countermeasures and economic growth is required. In recent years, there has been much activity bymaking use of corporate and investor-led financial innovation, largely centered on renewable energy. For example, the flowof global funds such as environment, social, and governance (ESG) investments and green bonds is expanding greatly. In
addition, climate change countermeasures are no longer costs but are now considered to be a stimulus for economic growth.
In fact, there has been a change of worldwide trend which reflects recommendation by Task Force on Climate-related
Financial Disclosures (TCFD) based on G20's request. As such, financial and investment institutions (as well as various
industry sectors) are beginning to promote business-led innovation. Furthermore, future energy savings will be possible
with the spread of electrified vehicles and shared economy in the mobility field. The involvement of independent parties
such as local governments and individual companies is also increasing, generating opportunities to scale up such advanced
approaches. During ICEF 2018, these topics were taken up in plenary sessions. In addition, a total of 12 directions ofinnovations—six from social fields and six from technical fields—were chosen and discussed in concurrent sessions asfollowing.
3．Toward social innovation- Movement toward establishing sustainability at the core of business activities is progressing in order to pursue theSustainable Development Goals (SDGs) specified in the United Nations "2030 Agenda for Sustainable Development." Thereare multiple co-benefits to achieving SDGs targets from CO2 reduction.
- New business concepts such as “product as a service” have been actively introduced aiming to lead to economic activities
not depending on resource consumption. A circular economy is also attracting attention as a possible measure for CO2
reduction through a transition to economic activities less dependent on resource consumption.
- By aggregating and networking power generation and storage devices and optimally controlling them according todemand, microgrids have the potential to contribute to a massive introduction of renewable energy in harmony withexisting grids. There is a movement to address the energy access problem by disseminating microgrids with renewables asa form of a distributed power supply.
- Companies are investigating how to change consumer behavior through innovation without sacrificing economic growthin order to reduce consumption-based CO2.
- Proper application of FinTech is leading to developments in climate change countermeasures that utilize smartphonetransaction applications and financial platforms, movements in renewable energy expansion, and applications of blockchain technology.
- There are emerging trends to reduce CO2 emissions not only through manufacturing processes but also through thespread of eco-friendly products across national borders.
4．Toward technological innovation- Reductions in CO2 emissions are being carried out through energy-saving processes, digitalization, and other IoTfunctions.
- Solutions are being sought for possible problems in power grid operation caused by the transition to renewable energies

for power generation.
- Various problems pertaining to the production, storage, transportation, and utilization of hydrogen are expected to besolved as part of efforts to increase its use as an energy source.
- Along with renewable energy and hydrogen, nuclear is feasible CO2-free power source that has the potential to contributeconsiderable reduction of CO2 emission. Further development of small modular reactor (SMR) is underway and it is one of
the leading candidates having a possibility to produce CO2-free energy.
- There is an expectation concerning an increasing use of biorefinery technologies for manufacturing chemical products andfuel from biomass resources.
- Further development of CO2 capture from industry and air, utilization, and storage (CCUS) technology has the potential tomake a big contribution to the reduction of CO2 emissions. CCUS is an effective, transitional technology to reduce CO2emissions and to support energy security and diversity in power generation.
５．Key actions
Industry, government, academia, and investors must come together to realize and promote innovation and createbusinesses using innovation by facilitating research and development and investment under international collaborative
frameworks. In this regard, the private sector should continue to play an active and central role. In order for the private
sector to fully commercialize innovation and make it widely available, it is recommended that government and the industrial
sector carry out the following key actions that are needed for the future with unprecedented urgency.
Action 1. Inspire investment in technology, products, and services for green growth- Government should promote the industrial sector in visualizing the contributions and strengths of company climatechange countermeasures in consideration of the key metrics to manage climate-related risks and opportunities as well as,
if necessary, the internal carbon pricing. This will promote dialogue between manufacturing and service companies and thefinancial and investment sectors as proposed by TCFD.
- Government and the industrial sector should encourage the private sector to change consumer behavior for theestablishment of a social mechanism that funds technology, products, and services that contribute to green growth. In suchcases, it will be beneficial to explore consumer behavioral change using advanced behavioral science and technologies.
- Government and the industrial sector should encourage the private sector to establish sustainable business models thatwill further promote the inflow of investors. Investors should support efforts for sustainable growth to realize SDGs.
Action 2. Involve industry and consumers in accelerating technologies and innovation for decarbonisation- The industrial sector should pursue every possibility in terms of decarbonisation technologies including electrified mobility,distributed power supplies, SMR, biorefineries, and CCUS as well as in terms of utilization of feasible CO2-free powersource such as renewable energy, hydrogen and nuclear.
- The industrial sector should utilize digital technologies such as IoT to further reduce CO2 emissions. In addition,government and the industrial sector should solve institutional issues such as cyber security.
- Based on the fact that the spread of advanced technologies can influence consumer behavior, government and theindustrial sector should help the private sector create products and services that will encourage environmentally friendly
consumer behavior.
Action 3. Internationalize cooperative efforts for deploying innovation outcomes- Government and the industrial sector should enhance worldwide cooperation to promote the introduction of market
scheme for low-carbon society systems and removal of legal barriers.
- Government and the industrial sector should utilize the SDGs framework based on the premise of collaboration withvarious stakeholders inside and outside of a country.
- Government should establish a mechanism to disseminate the outcome of corporate-driven green innovations to society.
- The industrial sector should reduce global CO2 emissions by promoting not only manufacturing processes with lessemissions but also spreading eco-products across national borders so as to decarbonise through the global value chain. Inaddition, the industrial sector should consider the mitigation of short-lived climate pollutants such as black carbon.
- Governments and the industrial sector and investors should encourage private companies to promote their superior
environmental technology developments in consideration of changes in worldwide trend such as caused by TCFD
recommendations.

NET ZEROEMISSION

InspireInvolve

Visualization of thecompany climate change
countermeasures

Every possibility in termsof decarbonisation
technologies andCO2-free power source

Internationalize

Market scheme for low-carbon
society systems and removal oflegal barriers

SDGs framework based on thepremise of collaboration withvarious stakeholders

A social mechanism thatfunds contribution togreen growth

Utilization of digitaltechnologies and solution ofinstitutional issues such as
cyber security

INNOVATION
Sustainable businessmodels further promoting
the inflow of investors

Products and services thatwill encourage
environmentally friendly
consumerA mechanism to disseminate theoutcome of corporate-driven green
innovations to society

Processes with less emissions
and eco-products, anddecarbonisation through theglobal value chain

Superior environmental technology
developments in consideration ofchanges in worldwide trend