Achieving Paris Agreement andSDGs in East Asia
Prof. Kazuo Matsushita
Professor Emeritus, Kyoto University（Environmental Policy,Sustainability Theory）
Senior Fellow, Institute for Global Environmental Strategies（IGES)

Summary
１． We are in the age of Paris Agreement and SDGs. What does this signify?
２． Paris Agreement and SDGs present new world socio-economic visions:
３． Socio economic development in the safe and just space for humanity, keeping
Ecological Ceiling & improving Social Foundations.

４． Transformation to Decarbonized Society has already begun: new decarbonizedbusiness models, expansion of renewable energy and sharp decline of the costof renewables.
５． Towards East Asia low carbon environment and energy communities.

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Implications of Paris Agreement• Massive transformation by 2050 –• Advanced nations reduce 80 – 90 %, emerging
economies reduce growth significantly• Net zero goal (sources = sinks) by 2nd half ofcentury• Current targets closer to 3℃ than 2℃⇒expect targets to strengthen over time

２℃ target＝Net zero CO2 emission society

Sustainable Development Goals(SDGs)
Adopted as a core part of 2030 Development Agenda at UN/GA(2015.9.25)

Leave no one behind.

What do SDGs & Paris Agreement signify?
・ Zero poverty/hunger by 2030
・ Net zero GHG emissions by the latter half of the21st century

・ Socio economic development in the safe andjust space for humanity, keeping Ecological Ceiling& Improving Social Foundations.
⇒How do we attain these goals in a mutually
reinforcing and equitable way?

Preconditions in the 21st Century- Planetary Boundaries -Steffen et al.,Science(2015)⇒ from Environmental
Problems to Earth
System Transformationc.f. Anthropocene(Crutzen 2002)
8Donut Economy: The safe and just space for humanity. Source: Kate Raworth, 2012

Ecological Ceiling & Social Foundations

Some Good news
• Marginal cost zero society to shared economy（Jeremy Lifkin(2015) ）More and more goods & services are provided with zero marginal
cost and less energy and materials inputs.

• Sharp decline in the cost of low carbon technology,renewable energy.
• Under the current low or negative interest rate, the cost offinancing is low and there are abundant funds available.
What we need is a mechanism to channel funds.

Transformation to DecarbonizedSociety has already begun.

IPCC Chair Hoesung Lee• The 6th assessment report of IPCC will
present research results which
demonstrate CO2 reduction activities
would open up new economic
opportunities rather than economicburdens.
• Carbon pricing stimulate technologicalinnovation, low-carbon technologies will
gain market competitiveness, which will
result in economic development.
（Source: Interview by Joseon Ilbo(朝鮮⽇報) dated
21/12/2015, provided by Prof. Soocheol Lee of Meijo Univ.）Expansion of renewable energy• Wind Power Generation Capacity: 59GW⇒432GW （2005 to2015, 7 folds)• Solar Power Generation Capacity: 5.1GW⇒234GW(2005 to2015, 46 folds)• Global Investment for Renewable Energy Power Generation(excluding large scale hydro) in 2015: 286 billion US$ (morethan 6 folds increase compared to 2004),• While for Investment for Fossil Fuel was 130 billion US$, lessthan half of the renewables

New business model: Companies committed to 100% Renewable
EnergyESG Investment, Green Investment,
Green Bond, Divestment• ESG (Environment, Society, Governance) Investment:
Global :18.3 trillion US$(2014)⇒22.9trillion US$(2016)
Japan: 7 billion US$(2014)⇒474billion US$(2016) (2% of theworld)・Green Investment : 54 trillion US$ for renewable energy &energy efficiency required by 2035(IEA)
・Green Bond: 81 trillion US$(2016, twice as that of 2015)･ Divestment: fossil fuel divestment in response to globalwarming

Long-term Low Carbon Development Strategy
GOJ (under preparation)• Long-term national development strategy for the future.
• CO2 reduction activities would open up new economic
opportunities rather than economic burdens.
• Innovations of technology, socio-economic system and life
style are required, which aims to simultaneously address
drastic reduction of GHGs and issues that Japanese society
faces such as shrinking and aging population, declining ofrural areas.

Promising new market for de-carbonization• Additional Investment of 9 trillion US$ ( 2016 to 2050) is
required for decarbonizing electricity sector (IEA)• Additional Investment of 3 trillion US$ ( 2016 to 2050) is
required for energy efficiency improvement for building,industry and transportation sector (IEA)• Huge promised market• Climate change measures⇒reduction of energy expenditure,
improving international competitiveness, job creation,
reduction of climate change risk, energy security• Low interest rate ⇒abundant fund available, lack ofinvestment opportunities• What we need is a mechanism to channel funds.

China, Japan, Korea• China: Low carbon energy cooperation under One Belt, OneRoad (Chinese development strategy)• Korean President Moon: proactive position on climatechange• Japan: Need new measures to address climate change andother issues simultaneously, including carbon pricing

East Asia Low-Carbon Community• shaping a sustainable and dynamic East Asia regionalsociety that features harmonization of economies,environment and communities, in addition to global
warming countermeasures.
• innovative low-carbon technology and transfer of existingtechnology,• low-carbon-oriented economic and industrial systems aswell as reformation of material and product life cycles,• Co-benefit effects of CO2 countermeasures• international cooperation for energy and materials cycles,

Concluding remarks• Paris Agreement and SDGs: demonstrated the need for fair and equitable zero carbon
society, implies massive economic & social transformation.
• Put climate change measures at the center of development policies – including arobust and credible carbon price, fossil fuel subsidy reform, well-designed renewableenergy incentive policies and clear, long-term climate policy goals, as well as
addressing other social issues simultaneously.
• Low carbon and decarbonizing technologies and business models are becoming
economically rational.
• New environmental financing mechanisms are emerging: ESG Investment, GreenInvestment, Green Bond, Divestment• Towards East Asia Low-Carbon Community