The Japanese Business Community's
Initiative to Tackle Climate Change
September 8
Masayo Hasegawa
Acting Chair, WBCSD Task Force,
Committee on Environment and Safety, KEIDANREN/
TOYOTA MOTOR CORPORATION

1．Basic Concept1Basic Concept to tackle climate change(1) Climate change should be addressed globally in the long turn. Technology holds the key tackle this issue(2) It is important to promote widespread use of BAT (Best Available Technologies) domestically as well as
disseminate existing technologies on a global scale.
(3) In addition, developing and diffusing innovative break-through technologies will be essential in order totackle global warming in the long term.

○Technological innovation is the key to reconcile economic growth and emission reduction.

Kaya identity
equation

CO2
emissionsLevel of energy

Energy cleanliness level

conservation＝

Energy supplyGDP［Energy consumers］[Industrial sector]○ Promotion of energy conservation(Improvement of energy consumption rate)[Transport sector]○ Improved fuel economy[Household sector]○ Evolving lifestyles

CO2 emissions
×

Energy supply

Economic activity
GDP
× Population× Population[Energy suppliers]○ Adoption of renewable energy(biomass, solar, wind power)○ Promotion of nuclear power

Data input○ High-efficiency thermal power
generation (coal, LNG)
○ CCS (carbon capture andsequestration)

Technological innovation and dissemination
22. What have we done so far?
～Promotion of the Keidanren Action Plan～

1997～20123

History of KEIDANREN’s Global WarmingCountermeasures
Apr. 1991
Jun. 1992
Jul. 1996
Jun. 1997
Dec. 1997
Dec. 1998
Jul. 2002
Dec. 2009
Jan. 2013
Apr. 2013 -Keidanren Global Environment Charter released
United Nations Earth Summit (Rio de Janeiro)
Keidanren Environment Appeal (implementation policy
for Action Plan on the Environment) released
Keidanren Action Plan on the Environment released
Kyoto Protocol adopted
First follow-up on Action Plan on the Environment(annual follow-ups thereafter)
Establishment of third-party evaluation committee
for Keidanren Action Plan on the Environment
Keidanren Commitment to a Low Carbon Society(basic policy) released
Keidanren Commitment to a Low Carbon Society
formulated and released
Keidanren Commitment to a Low Carbon Society
initiated
4Overview of the KEIDANREN Action Plan on the Environment
Industrial sector

Energy conversion
sectorBusiness operations
sectorTransport sector
13 industries(separate targets for each industry)

31 industries

3 industries

14 industries(separate targets for each industry)(separate targets for each industry)(separate targets for each industry)

Common target = ±0% change from FY1990 levels(average over FY2008-FY2012)(1) Participants consist of a total of 61 industries or enterprises from not only the manufacturing sector, a large energy
consumer, but also a wide range of other fields including business operations such as logistics and financial services.
(2) With regard to manufacturing processes (at the service provision stage), four separate quantitative targets are set (total
CO2 emissions, CO2 emission intensity, total energy consumption, energy consumption rate) and the most appropriate target
selected for each process, taking into account differences among industries and business categories.
(3) When results exceed initial predictions, more ambitious targets are set. At the same time, in some industries large numbersof CDM (clean development mechanism) credits or other credits are purchased in order to meet targets.
(4) Annual reviews by government councils (Central Environment Council, Industrial Structure Council) and third-party
evaluation committee.
Share of Japan’s total CO2 emissions, FY1990(1,143.4 million tons)

Share of industrial and energy conversion sector CO2 emissions, FY1990(612.2 million tons)

34 industries
44.3%
34 industries
82.8%
5

P-D-C-A cycles of the Keidanren Action Plan
Plan

Do

●Establishment of the Action Plans by Each Individual
Association
Numerical Target Setting & Specified
Measures
Actions for Climate Change Mitigation, etc.
●Compilation (with Verification by the Keidanren
Committees) & Publication as the ‘Keidanren Action
Plan on the Environment’●Constitution of Social Commitment●Implementation of the Action Plans by Each Individual
Association●International Cooperative Schemes (e.g. CDM, Joint
Implementation, etc.)

ActionCheck●Additional Measures for Further Actions to reduce
CO2)●Publication of the Results,
Ensuring Credibility & Transparency●Check the Progress of the Actions by the Actual
Performance (e.g. CO2 Emissions & Energy
Consumption in the Previous Year)●Review of the Follow-up Process by the Evaluation
Committee to Improve Credibility and Transparency

6

CO2 Emissions by 34 Industries in
the Industrial and Energy Converting Sectors
With regard to the uniform target (endeavor to reduce average CO2 emissions from the industrial
and energy-conversion sectors between fiscal 2008 and 2012 to below the level of fiscal 1990),
participating industries marked a 12.1% reduction, a significant achievement far beyond theinitial target.

7

The Attribution of the Follow-Up
Note: Sum of items
may differ from total
due to rounding.

Comparison toFY 1990+2.0%

Change in production activity*1
Change in CO2 emission factor*2
Change in CO2 emissions per unit of output+0.0%(efficiency

improvement)

Total-14.0%-12.1%

Efficiency improvement is the driving force to reduce CO2 emissions*1 For change in production activity, the indices with the closest relation to energy consumption in each industry were selected.
*2 CO2/MJ for fuel use and CO2/kWh for electricity consumption.

8

International Comparisons of Energy Efficiency
in Industrial and Energy-conversion Sectors
Energy efficiency in key industries is among the world’s highest
Energy required to produce 1kWh of electricity throughthermal power generation （2010）

140

180

120

140
120
100
80

132

159

160

100

111

100

Japan Germany US

112

126

125

113

China France India

Energy required to produce 1 ton of electrolytic caustic
soda（2009）

Energy required to produce 1 ton of iron （2010)

80

Ｓｏｕｒｃｅ： ：INTERNATIONAL COMPARISON OF FOSSIL POWER
EFFICIENCY AND CO2 INTENSITY（2013）（ECOFYS）

123

117

124
100

104

100

120

80
Japan

Korea Germany China UK
IndiaUS
Source: Research Institute for Innovative Technology for
the Earth, "International Comparison of Energy Efficiency"

100 100

112
109 109 111
107
103 105118Japan Korea China Canada Middle India US Western Eastern Mexico
East

EuropeSource：ＣＭＡＩ "Capacity Database“（2009）, Japan Soda Industry
Association "Soda Handbook" （2009）

Japanese industries' have introduced Best Available Technologies aggressively.
Energy saving potential by adopting BATPaper) （ＧＪ/T）

14
12
10
8
6
4
2
0

(Pulp andEnergy saving potential by adopting BAT
Ｊ/T）

1.3

1.4

12.9

(Cement) （Ｇ

1.4

1.2
8.3

1

6.5

0.3

0.1

1

2.3

0.8

0.8
3.0

Japan Germany Finland France US Canada Russia World
Source: IEA Energy Technology Perspective 2012

0.6
0.4
0.2

0.4

0.5

0.9

0.9

0.6

Japan Brazil India Europe China Korea US World

Source: IEA Energy Technology Perspective 20109

Industries which raised their targets
 All Japan Freight
Forwarders Association(twice) Association of Japanese
Private Railways
 Brewers Association ofJapan Flat Glass Manufacturers
Association of Japan Fourelectrical/electronicsrelated groups Japan Aluminium
Association
 Japan Association of
Rolling Stock Industries
 Japan Automobile
Manufacturers
Association (three times) Japan Cement Association;
Japan Chemical Industry
Association
 Japan Copper and Brass
Association
 Japan Department Stores
Association (twice) Japan Federation ofConstruction Contractors
 Japan Federation of
Housing Organizations
 Japan Foreign Trade
Council Japan Gas Association(three times) Japan Mining Industry
Association
 Japan Paper Association(twice) Japan Rubber
Manufacturers Association(twice) Japan Sanitary
Equipment Industry
Association
 Japan Sugar Refiners’
Association
 Japan Trucking
Association
 Japanese Electric Wire &Cable Makers’
Association (three times) Japanese Ship-owners
Association
 KDDI Lime Manufacture
Association (twice) Petroleum Association ofJapan Real Estate Companies
Association of Japan;
 Scheduled Airlines
Association of Japan(twice)10

The role of Keidanren Action Plan inJapanese Government’s Climate Change Policy
Quoted in the Government's Kyoto Protocol Target Achievement Plan
(Government Decision: 28 March 2008)"These voluntary action plans by business operators have thus far
produced results and the voluntary action plans of Nippon
Keidanren are, in particular, playing a central role incountermeasures in the industrial community. The advantages ofa voluntary instrument include the ease of selection of superiorcountermeasures for each actor based on its originality andingenuity, the likelihood of providing incentives to pursue
aggressive targets, and no procedural costs for both theGovernment and implementing actors. It is expected that theseadvantages will be further exploited in voluntary action plans bybusiness operators."
11

3. Where are we heading?
～ KEIDANREN's Commitment toa Low Carbon Society～2013～2050
15 Dec. 2009

Announced the "Basic Concept"

17 Jan. 2013

Released the "Commitment" integrating participating
industries' action plans (as of January 2013)

1 Apr. 2013

Launch its PDCA cycle for the "Commitment" for2013 onwards
12

Japan's CO2 Emission Per Sector
166 Commercial
160 Residential

129 Energy Conversion

104 Transportation
87 Industrial

Source: Ministry of Environment, Japan13

CO2 Emission Worldwide
 Emission from developing countries such as China, India, andthe Middle East is expected to increase drastically in the
future.
（billion ｔon）
（40）

World
1.2 Times

38

India
2.8 times
（20）

31
6
65
6
23
22

（10）

22
30
11
49

1990
21billion ｔon

中南米（非OECD）
52

World
1.4 Times（30）

その他（非OECD）

11
10
16
16

India
2.0 times

14
12
22
32
101

16
20

China
1.4 times

2010
30 billion ｔon

中国
ロシア
OECD(日米欧除く）

米国

33

11
53

インド

日本
18
21

39

Japan
1.1 times

中東

欧州（OECD）

72

China
3.2 times

アフリカ

Japan
0.9 times

10
46

2030
36 billion ton

Source: International Energy Agency"World Energy Outlook 2012",
Ministry of Economy, Trade andIndustry (Japan)

14

The Importance of Innovative Technology
Short/Medium-term
2020
Geothermal PG

Medium/Long-term
2030

Future Path with Current
Technologies

High-Efficiency Coal-Fired PG(IGCC, A-USC)

Nuclear PG
Wind PG (Offshore)

2050

2040

High-Efficiency Natural Gas-Fired PG(1700°C-class)Solar Heat Utilization
Marine Energy (Wave, Tides, Current)
Next-Generation Automobiles Next-Generation Automobiles(EV)(Hot-Water Supply)

Innovative Structural
Materials (CERP)

Innovative Devices

27%

Production• Supply
37%

High-Efficiency (Fuel-Saving)
Aircrafts, Ships, and Railways
Intelligent Transportation System(Telework)(Probe Information Mutual Utilization)

Innovative Devices

Innovative Devices(SiC Semiconductors)

Energy Management Systems

Energy Management Systems(HEMS/BEMS/CEMS)(Power Interchanging/Networking Technologies)

Current Emissions
Heat Storage/Insulation Technol.

Innovative Manufacturing
Process (Energy-Saving Cement)(Microalgae)

Diffusion ofMore Innovative
Technologies

CO2 Capture and Storage (CCS)
Environment-Conscious Iron Manufacturing
Electricity Transmission by
Superconductivity (SC Cables)

Energy Efficient Houses/Buildings

Hydrogen Production/Transport/Storage(Production)

Fuel Cells(PEFC/SOFC)

Hydrogen Production/Transport/Storage(Transport/Storage)

High-Performance Electricity Storage
Methane etc. Reduction Technol.

Artificial
Photosynthesis

Biomass Utilization(Normally-off Processors)

High-Efficiency Energy
Industrial Use (Cogeneration)
Global Greenhouse gas(GHG) emissions(Diffusion ofexisting technologies,
other innovativetechnologies)(Fuel Cell Vehicles)

High-Efficiency Heat Pumps~30billiontons

Others

Improvement
and Diffusionof Existing
Technologies

Solar PG (¥14/kWh)Contribution rate of eachtechnology sector tohalving global GHG
emissions by 2050

Target:Reduce Global
Emissions by 50%

Carbon Fixation by Vegetation(Super Trees)(Anaerobic Treatment)

Earth Observation • Climate Change Prediction Global Warming Adaptation Technol.

Distribution • S/D
Integration 7%
Other
Technologies
14%*4 Contribution rates were
estimated by ResearchInstitute of Innovative
Technology for the Earth.

FusionSpace solar

2030*1 The horizontal position of environmental and energy technologies indicates approximate time of practical diffusion based on the roadmap of each technology.
*2 “Future path with current technologies” indicates approximate transition of global GHG emissions assuming no change in efficiencies for existing technologies(e.g., generating efficiency of coal-fired generation)*3 The downward arrows for “Improvement and diffusion of existing technologies” and “Diffusion of innovative technologies” indicate both contributions are required
to reduce global GHG emissions; they do not specify the amount of reduction by each contribution.

Source: Ministry of Economy Trade and Industry

Consumption• Demand15%

Legend2050

Production • Supply

Consumption • DemandDistribution • S/D Integration

Other Technologies*1 Center of bars indicates approximate time of practical diffusion.
*2 Parentheses show technology examples. Refer to the full text for details.

1Industrial
Sector

1

Business
SectorTransportation
Sector Set reduction targets assuming widespread implementationof the best available technologies for the low carbon path.
* Demonstrate viability of targeted reduction levels.

Domestic
Measures

Explore ways of guaranteeing
reduction targets will be achieved.
Stronger collaboration with
consumers, etc.

2

 Development and commercial adoption of world-leading energy-saving
products and services
 Efforts to educate employees and provide information to consumers

3International
Contributions

 Transfers of advanced technology and expertise to motivated developing
countries in compliance with international rules
 Reinforcement of private-led undertakings in international cooperation

4
DevelopmentofInnovative
Technologies

Contribution to the global goal of halving GHG emissions
by the year 2050

Corporate Operations

Year 2020: Strengthening of domestic GHG
reduction measures

KEIDANREN’s Commitment to a Low Carbon Society Formulation and pursuit of sector-specific, medium- to long-range
technology development road maps leading to the creation of a low carbon
society on a global scale

16Participating Industries
 55 industries
are participating.
Industries/Companies* as of August 2014

【Industrial Sector】① Japan Iron and Steel Federation② Japan Chemical Industry Association③ Japan Paper Association④ Japan Electrical Manufacturers' Association, Japan
Electronics and Information Technology Industries
Association, Communications and Information network
Association of Japan, Japan Business Machine andInformation System Industries Association⑤ Japan Cement Association⑥ Japan Automobile Manufacturers Association (JAMA) andJapan Auto-Body Industries Association (JABIA)⑦ Japan Auto Parts Industries Association⑧ Japan Mining Industry Association⑨ Japan Federation of Construction Contractors⑩ Japan Federation of Housing Organizations(Judanren)⑪ Lime Manufacturing Association⑫ The Japan Rubber Manufacturers Association⑬ The Federation of Pharmaceutical Manufactures’
Associations of JAPAN⑭ Japan Aluminum Association⑮ Japan Federation of Printing Industries⑯ Flat Glass Association⑰ The Japan Soft Drinks Association⑱ Japan Dairy Industry Association⑲ Japan Electric Wire and Cable Makers' Association⑳ Japan Bearing Industrial Association㉑
Japan Society of Industrial Machinery Manufacturers㉒
Japan Petroleum Development Association㉓
Japan Brass Makers Association㉔
Brewers Association of Japan㉕
The Shipbuilders' Association of Japan, The Cooperative
Association of Japan Shipbuilders㉖
Limestone Association of Japan㉗
Japan Machine Tool Builders' Association㉘
Japan Sanitary Equipment Industry Association㉙
Flour Millers Association㉚
Japan Industrial Vehicle Association㉛
Japan Association of Rolling Stock Industries【Commercial Sector】① Japan Chain Stores Association (JCA)② Telecommunications Carriers Association③ Japan Franchise Association④ Japan Department Stores Association⑤ Japan Association of Refrigerated Warehouses⑥ Japanese Bankers Association⑦ The Life Insurance Association of Japan (LIAJ)⑧ Japan Foreign Trade Council⑨ The General Insurance Association of Japan⑩ Japan LP Gas Association⑪ The Real Estate Companies Association of Japan⑫ Japan Building Owners and Managers Association【Transportation Sector】① The Japanese Shipowners' Association (JSA)② Japan Trucking Association③ The Scheduled Airlines Associations of Japan④ Japan Federation of Coastal Shipping Associations⑤ Non-governmental Railways Association⑥ East Japan Railway Company⑦ West Japan Railway Company⑧ Central Japan Railway Company⑨ All Japan Freight Forwarders Association【Energy-Conversion sector】①The Federation of Electric Companies of Japan (FEPC)② Petroleum Association of Japan③ Japan Gas Association of Japan

17

The role of Keidanren Action Plan inJapanese Government’s Climate Change Policy
Interim Policy on Global Warming Measures(Decision made by Headquarters for Global Warming Measures, 15 March 2013)

Regarding sector-specific measures to cope with CO2 emissions ofenergy origin, voluntary approaches taken by industries participating to
the Commitment to a Low Carbon Society shall undergo evaluation andverification, and institutional measures, including the formulation,
announcement and implementation of guidelines on emission
regulations, and various support measures shall be promoted.
*provisional translation

18

4. Further Challenges by theJapanese Business Community～Phase 2 of our Commitment
to a Low Carbon Society～19Overview on Countermeasures on Global Warming
2008～2012
 Countries
participated toInternational
Kyoto Protocol
undertook
Framework
reductioncommitments.

2013～2020

Post 2020

 Pledge and review
under Cancun
Agreements

 Adopt a protocol, another legal
instrument or an agreed outcome
with legal force under theConvention applicable to all Parties
 Intended nationally determined
contributions ..in advance of COP21(by the first quarter of 2015 by thoseParties ready to do so) 6% decrease 3.8% emission
compared toreduction from 2005  Estimated to discuss policies at the1990 （achieved）
 A firm target will
latter half of 2014 (fiscal year).
 Promoted
Japanesepolicies andeventually be set.
measuresbased
Government
on Kyoto
Protocol Target  Intend to formulate New Global Warming Measures Plan.
Achievement
Plan

KEIDANREN's
Initiative Promoted
Voluntary
Action Plan

 Promote Promote Phase 2 of
KEIDANREN's
Commitment to a
KEIDANREN's Commitment to a
Low Carbon
Low Carbon Society
Society＊KEIDANREN's Commitment to a Low Carbon Society is based on four pillars (p16).
Time period above is about the first pillar (Domestic emission target).

20

KEIDANREN's Commitment to a Low Carbon Society Phase 2
 Endeavor to expand our efforts based on the Commitment to a Low Carbon Society
in order to further enhance our contribution to long-term measures against global
warming.

Four Pillars of the Action Plan
1. Emissions from domestic business
operations
2. Strengthened cooperation withother interested groups, including
consumers and customers
3. Contributions at the international
level, including technology transfer
to developing countries

Targets etc. shall be established
for 2030, in addition to thosefor 2020

Efforts shall be enhanced
to the extent possible

4. Development of innovativetechnologies
 In order to ensure the effectiveness, transparency and credibility, KEIDANREN shall continuallyencourage the implementation of the PDCA cycle.
 It will become increasingly important to consider various factors, such as structural changes in society
and industry or advancements made in technological innovation.

21

5. KEIDANREN's Opinion～ on Climate Change Policy ～22

Opinion on Climate Change Policy
National Target(1) Should adopt a bottom-up approach and aggregating individual efforts thatwill have a direct impact on reductions, instead of being bound to rates of
reduction from emission levels of certain baseline years.
(2) Should make a realistic energy policy that enables the achievement of Japan’s
growth strategy (Abenomics).
(3 ) Should ensure international fairness, feasibility of implementation, andappropriateness of the burden on the people.

Domestic Countermeasures(1) Incorporate the Commitment to a Low Carbon Society into Government
policies (such as the Action Plan for Global Warming Countermeasures, etc.),
as the pillar of industrial measures.
(2) Should not adopt cap-and-trade style domestic emission trading scheme
which not only hinder corporate initiatives taken from an LCA perspective but
also slow R&D efforts by enabling companies to meet targets by simply
purchasing credits.

23

ETS Should not be Introduced in Japan
1. Hinder corporate initiatives taken from an LCA perspective
 Even if companies produce products which contributes to emission
reduction throughout its lifecycle, they may be forced to purchase credits if
emission from the productive process increases and exceeds the cap.

2. Hamper technological innovation


If companies are able to purchase emission credits, they can achievetargets without curbing emissions and may have less R&D motivation.



If funds allocated to development of innovative technology are instead
dedicated to purchasing emission credits, tech investment will suffer

3. It could cause carbon leakage and run counter to global warming It could cause carbon leakage and run counter to global warming.
24

ETS Should not be Introduced in Japan
4. Could interfere with fair competition among enterprises
 Emissions trading schemes characteristically cause disadvantage tocompanies that step up manufacturing of products that win popular
approval, and advantage to companies that cut production because
products fail to win approval.

Disadvantage for companies which make preferred products.

5. Could detract from the competitiveness of Japanese industry
 To curb greenhouse gases more than it could be achieved through BAT,
there is no alternative but cutting production or purchasing credits. This
could severely impact the economy and employment.

25

The importance of assessing entire lifecycles
 Industry works to develop and supply energy-efficient products.
 However, supplying energy-efficient products may entail increased emissions
during manufacturing stage.

 Tracking only emissions from manufacturing and imposing inflexible caps
is irrational from the perspective of low-carbon society formation.
 It is essential to track emissions over a product’s entire lifecycle including
materials procurement, manufacturing, use, etc.
*In some cases, a product produces less CO2 during usage, but its manufacture generates more CO2 than that of aconventional product (manufacture generates more, but seen comprehensively the new product contributes to curbing CO2
emissions.)*In some cases, the high-performance materials required for low-carbon products are manufactured in small lots with many
steps in the manufacturing process, and thus produce more CO2 during the manufacturing stage.
*Pre-treatment of recycled waste products consumes energy, thus while recycling contributes to formation of a cyclicalconsumer society, it boosts CO2 emissions.
*Switching from conventional water heaters and air conditioners to heat pump models, or from traditional motor vehicles toelectric vehicles, curbs CO2 emissions overall but boosts emissions from the electric power sector.
*As IT advances, more efficient business operations cut CO2 emissions for the whole of society, but emissions resulting from26
growing IT device use are rising.

The importance of assessing entire lifecycles
CO2 reduction throughout life cycle (hybrid vehicle life cycle assessment)

ライフサイクルでのCO2削減（ハイブリッド車のLCA評価）

Because they have specialized hybrid components*1 lacking in conventional vehicles,※１ が追加される為、素材製造やハイブリッド車は、従来車に比べ、ハイブリッド専用の部品
hybrid vehicles generate more CO2 during the materials,
body and component
車両・部品製造段階でCO
2排出が増加するが、使用段階での燃費が約半減することにより、
manufacturing stages, butthey consume approximately half the fuel during operation.
Hybrid vehicles have the potential to reduce CO2 emissions by approximately 43%.
トータルで▲４３％のＣＯ２排出量削減ポテンシャルがある。

Battery
バッテリ<Overviewof hybrid system>＜ハイブリッドシステムの概要＞
エンジン
Engine

発電機
Generator*1 Where a conventional vehicle
would have only an engine, a※１．ハイブリッド車では、エンジンにhybrid加えて、バッテリ、発電機、モータ、
vehicle also has agenerator,
battery, inverter,
インバータ、動力分割機構、減速機
motor,等が追加になる。
decelerator, and drive
separation mechanism.

Inverter
インバータ

Drive
separation
動力分割機構mechanism
Decelerator
減速機

モータ
Motor

＜次世代車生産のCO2＞<CO2emitted by eco-friendly vehicles>
ハイブリッド車
Prius hybrid
プリウス
Conventional vehicle
同クラス従来車of sameclass

Materials
manufacture
素材製造
Body
manufacture
車両製造
Driving
走行
Maintenance
メンテナンス
Disposal
廃棄

▲43％
43%
削減
reduction

0%

20%

40%

60%

80%

100%

Source: Prepared出典：トヨタ自動車資料より作成
on the basis of Toyota Motor Corp. materials*Assumes a driving distance of 100,000 km and Japan’s 燃費認証用driving mode.
※走行距離は１０万ｋｍ、日本の燃費認証用走行モードで使用した場合。

（出典）日本自動車工業会資料(Source: Japan Automobile Manufacturers
Association materials)

27