Keidanren’s Opinion on Japan’s Climate Change Policy for the Immediate Future
4 October 2013
Keidanren
Based on Prime Minister Shinzo Abe’s instructions on 25 January this year, theJapanese government is currently conducting a zero-based review of its 25 percent
emission reduction target in preparation for the 19th session of the Conference of theParties (COP 19) to the United Nations Framework Convention on Climate Change, aswell as developing assertive diplomatic strategies to tackle climate change with the aimof contributing to the international community by fully utilising Japanese advancedtechnologies.
Furthermore, in a new climate change initiative following on from the Kyoto Protocol
Target Achievement Plan which ended in fiscal 2012, joint meetings of Japan’s Central
Environment Council and Industrial Structure Council have taken the lead in examining
policies to form a plan for Japan’s climate change measures.
In view of these circumstances, Keidanren makes the following proposals regarding
Japan’s climate change policies for the immediate future.

1. Importance of Climate Change Measures(1) Climate change prevention is a crucial issue for all humanity, requiring proactive
initiatives by government, industry, and citizens worldwide. Since 1997 we have
reduced Japan’s CO2 emissions through Keidanren’s Action Plan on theEnvironment, and in April this year we took this plan to the next level by
beginning implementation of Keidanren’s Commitment to a Low Carbon Society1,
as a social commitment.
(2) Although Japan is not participating in the second commitment period of the Kyoto
Protocol, it needs to take proactive steps to address climate change while balancing
such environmental measures with economic growth. In this context, it is vital forJapan to adopt targets and plans of some kind, and to steadily take measures toaddress climate change on the basis of a plan-do-check-act cycle.

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See http://www.keidanren.or.jp/en/policy/2013/003.html.

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Through such efforts, Japan needs to maintain world-class levels of national andcorporate energy efficiency, and the goods and services supplied by its companies
should remain global leaders in energy conservation and low-carbon technologies.
2. Fundamental Approach to 2020 Targets(1) Since CO2 from energy sources accounts for 90 percent of Japan’s greenhouse gas(GHG) emissions, climate change policy is inextricably linked to energy policy.
To address climate change while achieving economic growth, Japan first needs toestablish a growth strategy and formulate the energy policies and basic energy planrequired to fulfil this strategy. It then needs to determine the energy mix to beachieved by 2020 and decide GHG emission targets for that year.
(2) The Advisory Committee for Natural Resources and Energy is now discussing
future energy policy and the basic energy plan in light of the Japan Revitalization
Strategy formulated in June and the impact of the Great East Japan Earthquake. A
review of nuclear power generation based on the new standards that went into
effect in July has just begun, and at present it is difficult to predict future
operations.
Amid such difficulties in settling on an energy mix before the end of this year, it is
impossible for Japan to responsibly decide or announce national targets for 2020
before COP 19 in November. Nor is it appropriate to simply set a broad target
range on the grounds that many uncertainties exist, since such a course could
damage the government’s credibility both domestically and internationally.
(3) Accordingly, Japan should not set targets for 2020 until next year at the earliest,
once it has determined a specific energy mix.
In addition to fulfilling the three prerequisites of implementation feasibility,
appropriateness of the burden on the people, and international fairness2, suchtarget-setting should build up the actual emission reduction potential of Japan’sindustrial, transportation, and commercial and residential sectors.
2In addition to comparisons of CO2 emissions and primary energy usage per unit of GDP, indicatorsof international fairness should reflect past reduction efforts and, from the perspective ofpreventing carbon leakage, consider other factors including verifying the comparative assessmentsof marginal abatement costs for leading industrial countries that were conducted as part of thestudy of the midterm targets made under the Aso administration.

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3. Upcoming Climate Change Negotiations(1) Given the above situation, the Japanese government should declare its intention tosubmit 2020 targets for Japan once energy policy has been set and prospects fornuclear power generation have become clear.
(2) At the same time, Japan needs to show the international community that it
continues to actively pursue measures to address climate change on a global scale.
Based on Keidanren’s Commitment to a Low Carbon Society and its Proposal for
Assertive Diplomatic Strategies to Tackle Climate Change (16 July 2013)3, thegovernment should formulate specific policies in a climate change measures plan
focused on the three key pillars set out below. It should also swiftly conduct a
sweeping review of global warming tax and the feed-in tariff system for renewableenergy, which impede innovation.
(a) Enhanced Domestic MeasuresThe government needs to work towards steadily restarting nuclear power
stations where safety has been confirmed and the understanding of local
residents has been gained.
It should also support the greatest possible introduction of best available
technologies applicable to domestic business activities.
Moreover, tax breaks and other incentives are required in order to encourage
CO2 emission reductions throughout the entire life cycle including the usage andconsumption phases by promoting wider spread of energy-saving products andservices.
Essential to such initiatives will be IT-driven energy conservation systems, suchas intelligent transport systems, home energy management systems, and building
energy management systems, as well as national efforts such as publiccampaigns.
(b) Promotion of International Contributions
Widespread use of Japan’s advanced technologies, products, and expertise cangreatly contribute to global climate change countermeasures.

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See http://www.keidanren.or.jp/en/policy/2013/065.html.

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The Bilateral/Joint Offset Mechanism is a particularly effective tool for realisingemission reduction potential in emerging and developing countries. In order toactively promote the Mechanism, the government should announce specificpublic support measures to be implemented by 2020 and collaborate with thebusiness community to design systems based on partner countries’ needs fortechnologies, products, and expertise.
(c) Innovative Technology Development
The government needs to draw up a defined road map based on theEnvironmental Energy Technology Revolution Plan, share it with the public, andpromote innovative technology development 4 focused on priority fields. It
should internationally disclose specific measures towards this end, including
details of government investment in R&D.

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For more information on key technologies, see the outline of the results of Keidanren’s
Questionnaire Survey on Energy and Low-Carbon Technologies published on 22 July 2013(http://www.keidanren.or.jp/en/policy/2013/069.html).

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