Keidanren Carbon Neutrality
Action Plan
－ Vision toward Carbon Neutrality by 2050
and Fiscal 2022 Follow-up Results(Performance in Fiscal 2021) －(Provisional Translation)

March 31, 2023
KEIDANREN(Japan Business Federation)

Keidanren’s efforts toward carbon neutrality (CN)
“Challenge Zero” (Jun 2020)○Proactively publicize and support actions to create innovation taken

by companies and organizations towards early achievement of CN
which the Paris Agreement sets as the long-term goal.

First Policy Speech by then Prime Minister Suga (Oct 2020)“We hereby declare that by 2050 Japan will aim to reduce greenhouse gas emissions
to net-zero, that is, to realize a carbon-neutral, decarbonized society.”

Chairman Tokura’s Speech at the Keidanren Regular General Meeting”Urgent Policy Proposal toward Achieving Green Growth” (Jun 2021)

Announced that the Keidanren Commitment to a Low Carbon Society would be reformulated as the Keidanren
Carbon Neutral Action Plan, an initiative for achieving CN by 2050 and realizing GX (Green Transformation).
Relevant industries were invited to formulate action plans following the announcement.

Formulated the “Keidanren Carbon Neutrality Action Plan” (Nov 2021)”Toward Green Transformation (GX)” (May 2022)
Proposed that a society- and economy-wide ”green transformation (GX) would be required to achieve CN in 2050
and called for the early formulation and implementation of a GX policy package by the Government. Renewed its
announcement that Keidanren would firmly implement the Keidanren CN Action Plan and promote themaximum deployment of BATs to reduce emissions and the development of innovative technologies.
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Vision toward Carbon Neutrality by 2050 (1)2050CN◼ CO2 emissions from the industries that have alreadyformulated visions collectively amount to 96 percent of total
emissions.
Status of Vision formulation among participating industries(In terms of emissions (10,000 t-CO2) )March, 2021

March, 2022

1683
（2%）
7567
（10%）

66521
（88%）

* CO2 emissions after electric power distribution are used for theindustry, commercial and transport sectors, and CO2 emissions before
electric power distribution are used for the energy conversion sector. 2

Vision toward Carbon Neutrality by 2050 (2)2050CN◼ The number of industries with Visions increased to 40, covering around
60% of all participating industries.

◼ This shows their determination to maximize their efforts toward achieving CN by
2050.

Status of Vision formulation among participating industries(In terms of number of industries)
March, 2021

18
（29%）

27
（44%）

March, 2022

Already formulated
Under consideration
To be considered

17
（27%）

3

Industry-specific Visions toward CN by 2050

2050CN

SectorIndustry

Vision (Basic Policy, etc.)

Energyconversion

Electric power

Continue to implement measures that serve both purposes of “decarbonizing electric power” and “promoting electrification,” such as
maximizing the use of established technologies for decarbonizing power generation (nuclear power and renewable energy) and utilizing heatpumps, while also pursuing an energy mix that simultaneously achieves “S+3Es.” At the same time, it will work closely with the government
toward the practical application of innovative technologies (small module reactors, next-generation solar power, storage batteries, hydrogen- andammonia-fired power generation, CCUS/carbon recycling) through “innovations,” or solutions to advance electric power supply services.

Petroleum

Aim to achieve net zero CO2 emissions (CN) and at the same time contribute to achieving society-wide CN through decarbonizing the products it supplies byaccelerating efforts to decarbonize supply chains and products and actively engaging in the research and development and social implementation of innovativetechnologies infrastructure (CO2-free hydrogen, synthetic fuels, CCS/CCU, etc.) that can utilize existing.

Gas

Under the policy to achieve carbon nuetralization of gas, promote conclusive shift to natural gas and the sophisticated use of natural gas,decarbonization of gas (methanation and hydrogen use, etc.) and development of CCS/CCU-related technologies.

Iron and steel

Toward achieveing carbon-neutrality, explore multiple pathways by employing every possible means including the drastic reduction of CO 2
emissions from blast furnace through COURSE 50 and ferro coke technologies plus CCUS, development of super innovative technologies such ashydrogen-based iron making and expanded use of scrap.

ChemicalAllow the potential power of “chemistry” to emerge, thereby promoting and accelerating innovations that will resolve global issues and contribute tosustainable development. Under this policy, engage in the carbon circulation of raw materials (material use of CO2, utilization of plastic waste, etc.) ,structures to minimize energy use and in the conversion of processes (membrane separation processes).

CementFor reducing CO2 emissions from producing clinker, the cement industry enhances to reduce not only clinker cement ratio but also fossil
energy sources by using various waste and biomass, in addition hydrogen and ammonia in the future.

Paper
manufacturing

Promote energy efficiency efforts and fuel conversion in production activities (active introduction of the latest energy-efficient facilities and technologies,
increase of the utilization ratio of renewable energies, innovative technologies (development of high efficiency pulp production methods), etc.).
Also engage in unique efforts such as reducing CO2 emissions from product life cycles by developing and utilizing environment-friendly materials
derived from wood biomass (cellulose nanofiber, etc.) and expand contribution in afforestation as a source of CO2 absorption.

Electrical &electronics

Under the policy of contributing to resolve social issues related to climate change and energy constraints through various business fields from the threeperspectives of “technology development”, “co-creation”, and “resilience”, engage in innovating advanced energy conservation and carbon-free technology(smart grids, hydrogen production using water electrolysis, power semiconductors, rapid or wireless charging systems, etc.) and the social
implementation of advanced data utilization solutions (autonomous driving systems, smart factories, accurate weather observation and simulation
technologies, etc.).

Automobile

Deploy electric vehicles (HV, PHV, EV, FCV, etc.) and to achieve a hydrogen economy (spreading FC-based mobility, etc.).

Shipping

Work on the shift to zero-emission vessels using alternative fuels such as carbon-recycled methane, ammonia and hydrogen.

Railway

Promote the development of renewable power sources and accelerate its deployment, deploy storage battery-powered railing stock, develop fuel cellrolling stock, with a view to achieving net zero CO2 emissions at every stage across energy production to use.

Real estate,buildings

Envisioning a society that has reached CN by 2050 with widely deployed “energy-savings and renewable energy-conscious buildings, such as ZEB
and ZEH”, “buildings that use low-impact construction material,” and “cities that enable community-wide CO2 reductions by combining renewableenergy facilities, storage batteries and power interchange,” promote ZEB/ZEH and HEMS/BEMS in individual buildings and promote ZET and
CEMS in the context of entire communities.

(Efforts toachieve CN inenergy)Industrial(Efforts toestablishtechnologies tofundamentally
reduce CO2)

Transportation-related(Efforts toachieve CN in
mobility andtransport)

Commercial(Efforts for fullenergyefficiency)

4

Emission reductions from domestic business
operations (Reviewing targets)

2030 target◼ Participating industries incessantly review their targets. Industries arereviewing their targets at a higher pace, with 13 industries announcing
revisions in the FY 2021 FU survey and 25 industries, in the current FU.
◼

This is evidence of the business community’s will to contribute to achievement of theGovernment’s 2030 target to reduce emissions by 46%.

Status of review of Phase II (FY 2030) target (number of industries)
ledged 46% emission
reductions in 2030

※Result for the 58 industries that have disclosed their targets and performance.

5

Pillar 1: Emission reductions from domestic business
CN Action Plan Performance
operations ①◼ Total CO2 emissions from all sectors (industrial, energy conversion,commercial, transportation) decreased by 17.0％ from fiscal 2013(*)
to fiscal 2021. (*) Baseline year for Japan’s 2030 target◼ Although emissions have increased by 5.7％ from fiscal 2020, it should
be noted that economic activity recovered from the impact of COVID-19
in fiscal 2021.
<Emission trends in fiscal 2013-2021>
17.0％
Total emissions from all sectors

reductions

５.7％
increases※The Preliminary Version reports CO2 emissions (after electric power distributions) from 58 industries out of the 62 participating
industries. The most recent heat values and carbon emission coefficients available at the time of the survey have been used for
calculating CO2 emissions.
※The scope of calculations differs between fiscal 2013 and after fiscal 2019 due to offshoring of businesses, etc.

6Pillar 1: Emission reductions from domestic business
CN Action Plan Performance
operations ②◼ In fiscal 2021, CO2 emissions were reduced in all sectors relative to fiscal
2013. Compared to the previous year, CO2 emissions were reduced inenergy conversion and commercial sectors. On the other hand, industrial
and transportation sectors were increased.

<CO2 emissions after power distribution>

SectorIndustrial
Commercial
Transportation
Energy conversion*

Target industries/
participating ind.
31/31 industries
16/16 industries
12/12 industries
3/3 industries<CO2 emissions before power distribution>

FY2021emissions336.84 Mt-CO2
15.16 Mt-CO2
109.03 Mt-CO2
358.45 Mt-CO2

Relative toFY2013-15.2%-34.6%-18.8%-33.2%

Relative toprevious FY(FY2020)
+6.7%
-0.1%
+3.6%
-0.6%

* Emissions before power distribution are provided for the energy conversion sector; and emissions after power distribution, for other sectors.

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Pillar 1: Emission reductions from domestic business operations- Factor analysis of change in emissions: relative to FY2019 -Breakdown of factors of change in CO2 emissions① Change in economic activity
Increase in all sectors② Change in CO2 emission factors（decarbonization of energy)
Decrease in all sectors③ Change in energy consumption per unit economic activity (energy saving efforts)
Increase in the energy conversion sector, decrease in the industrial, commercial andtransportation sectors<by sector> ②-0.1％①+9.6％③-2.8％

From previous FY: +6.7％

2020

2021

Industrial①+1.1％③+0.5％②-2.2％

From previous FY: -0.6％

2020①+7.6％

From previous FY: -0.1％

2021

Energy conversion<Main factors>②-1.1％③-6.6％<Main factors>①：Increased energy consumption due to①:Increased production due to recovery from COVID-19
recovery from COVID-19②：Continued operation of restarted②: Fuel conversion, energy
nuclear power plants; increased
recovery
deployment of renewables, higher thermal③:Continued energy saving
power efficiency, increased LNG shareefforts, improved emission③：Lower heat efficiency of thermal
intensities due to increased
power due to the increased deployment or
production
renewables, and thus increased low-

2020

2021

Commercial<Main factors>②-0.1％③-1.5％①+5.2％

From previous FY: +3.6％

2020

2021

Transportation<Main factors>①: Increased telecommunication ① Increased people and material
volumes with more time spent at flow due to recovery from COVID19 (aviation, domestic shipping)home amid COVID-19②:Improved emission factors for ②：Improved emission factors forpurchased electricity
purchased electricity③：Introduction of and③: Improved efficiency of
improvement to high-efficiency
facilities, equipment andmobility; efficient operations
operations

8

Status of deployment of renewable energy, energy
CN Action Plan Performancerecovery and utilization◼

With a view to achieving CN, more industries are deploying and developing renewableenergy (solar power, hydropower, wind power, biomass and geothermal, etc.).

◼

Seek CO2 emission reductions by recovering and utilizing waste heat and byproductgases generated during manufacturing or fuel use, thus reducing fuel consumption.
Deployment of renewable energy

Development and deployment of solar, hydro, wind,biomass and geothermal power generation (Electric PowerCouncil for a Low Carbon Society)

Biomass power generation (Japan Paper Association, Japan
Cement Association)

Use of hydropower generation at businessestablishment (Japan Aluminium Association)
Solar power generation（Liaison Group of Japanese Electricaland Electronics Industries for Global Warming, The Japan Rubber
Manufacturer Association, Japan Soft Drink Association, Japan
Dairy Industry Association, The Japan Bearing Industry Association,
Japan Machine Tool Builders’ Association, Japan Industrial Vehicles
Association, Japan Franchise Association, Japan Foreign Trade
Council, The Real Estate Companies Association of Japan）

PPA (Power Purchase Agreement)* (Japan Auto Parts
Industries Association, Japan Federation of Printing Industries,
Japan Franchise Association）

Renewable power generation (Japan Chemical Industry
Association, Japan Cement Association, The Japan Bearing Industry
Association, Japan Society of Industrial Machinery Manufacturers,
Brewers Association of Japan, Telecommunications Carriers
Association, Telecom Services Association)

Energy recovery and utilization
Power generation using byproduct gases and waste
heat recovered energy; steam use (The Japan Iron andSteel Federation)

Use of waste as alternatives for heat (Japan Cement
Association)

Waste heat power generation (Japan Cement Association,
Japan Mining Industry Association, The Japan Rubber
Manufacturers Association, Flat Glass Manufacturers Associationof Japan, Limestone Association of Japan)

Utilization of waste heat from boilers as a heat sourcefor HVAC at plants (The Japan Rubber Manufacturers
Association, etc.)

Cogeneration Systems (Japan Chemical Industry Association,
The Japan Rubber Manufacturers Association, The Federation of
Pharmaceutical Manufacturers’ Associations of Japan, Brewers
Association of Japan, Japan Foreign Trade Council)

Other waste heat recovery and use (Japan Mining Industry
Association, Japan Lime Association, Japan Aluminium Association,
Japanese Electric Wire & Cable Makers’ Association, Petroleum
Association of Japan)* An agreement where solar power systems, etc. are installed on the rooftop
of a business operator’s building free of charge and the power generated isbought by consumers, such as the business operator.
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Pillar 2: Strengthening co-operation with other
CN Action Plan Performanceinterested groups◼
◼

Many industries contribute to achieving avoided emissions along the value
chain (procurement, provision of products and services, use, disposal, etc.).
Active communication through the quantification of reductions and
Keidanren’s concept book in order to raise public recognition of products andservices that contribute to society-wide emission reductions.

＜Examples of emissions reduction efforts along the value chain＞
Procurement of products that emit less before manufacturing

Biomass polyethylene containers (The Federation of
Pharmaceutical Manufacturers’ Associations of Japan)
Deep Groove Ball Bearing with bioplastic cage (The Japan Bearing
Industry Association)
Provision of products and services that emit less during use

High-function steel (The Japan Iron and Steel Federation)
Residential thermal insulation material (Japan Chemical Industry<Approach to avoided CO2 emissions>
CO2 emissions(t-CO2)baseline

nextgeneration
product

Avoided emissions of** t-CO2 per
product/service

Association)

Digital solutions utilizing IoT and AI (Liaison Group of JapaneseElectrical and Electronics Industries for Global Warming)
Next-generation vehicles (Japan Automobile Manufacturers Association)
High mileage tires (The Japan Rubber Manufacturers Association)
Insulating glass (Flat Glass Manufacturers Association of Japan)

Latent heat recovery type high-efficiency oil hot water boiler(Petroleum Association of Japan)
Provision of lightweight products that emit less during transport

Lightweight paper and cardboard (Japan Paper Association)

Disposal,
recycling
Use
Sales &
distribution
Manufacturing
Raw material
procurement

Disposal of products (3R)

Effective utilization of waste and byproducts (Japan Cement Association)

10

Pillar 3: Promoting contribution at the international
CN Action Plan Performance
level
◼

◼

Many industries contribute to reducing global GHG emissions throughoverseas transfer of advanced products and services and overseas deploymentof products and services.
Industries are promoting the quantification of emissions avoided throughinternational contribution, as done in measures taken under Pillar 2.

＜Examples of avoided emissions overseas＞
Overseas transfer of technologies and knowhow
CDQ (coke dry quenching), TRT (top-pressure
recovery turbine) power generation, GTCC*1 exclusively
fired using by-product gas (The Japan Iron and SteelFederation)

Desalination technologies using reverse osmosis
membranes (Japan Chemical Industry Association)
Aluminum recycling (Japan Aluminium Association)
Recovering CO2 from coal-fired power generation

Provision of low-carbon products and services
Polyethylene terephthalate from biomass, aircraft

lightweight materials, next-generation vehicles materials(Japan Chemical Industry Association)

High efficient thermal power generation and renewable
power generation technologies, high efficiency IT
products, solutions (Liaison Group of Japanese Electrical andElectronics Industries for Global Warming Prevention)

plants and utilization for CO2-EOR※２ (Japan Petroleum

Next-generation vehicles (Japan Automobile Manufacturers

Development Association)

Association)

Renewable power generation (Electric Power Council for a

Energy-saving ships (The Shipbuilders’ Association of Japan &Low Carbon Society, The Japan Gas Association, etc.)

The Cooperative Association of Japan Shipbuilders)

Renewable energy IPP*3 business (Japan Foreign Trade
Council)*1 Gas Turbine Combined Cycle*2 Enhanced Oil Recovery*3 Independent Power Producer

Water-saving toilets (Japan Sanitary Equipment Industry
Association)

Permanent magnet synchronous motors (PMSM) for
railway vehicles (Japan Association of Rolling Stock Industries)

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Pillar 4: Development of innovative technologies
CN Action Plan Performance
toward CN by 2050◼
◼

The creation of completely new innovations is key to achieving significant
CO2 reductions in the medium- to long-term toward CN by 2050, as drastic
reductions cannot be achieved along the lines of conventional measures.
Medium- to long-term R&D that the private sector finds difficulty in committing
to alone will be continued through collaboration with the Government.

<Example of roadmaps for developing and deploying innovative technologies>
Industry/company

Innovative technologies※

The Japan Iron and SteelFederation

COURSE50

Japan Chemical Industry
Association

Plastic feedstock production
technologies using CO2, etc.

Japan Paper Association

Cellulose nanofiber (CNF)

Japan Cement Association Lower emission cement
Electric Power Council for a
Low Carbon Society

Ammonia co-firing

Petroleum Association ofJapan

Technology development of synthetic
fuels (e-fuel)

The Japan Gas Association Methanation
Telecommunications
Carriers Association

DX in agricultural product distribution

East Japan Railway
Company

Development of hydrogen-powered
train※Includes transition technologies

2021

2025

2030

2050

Actual operation

Deployment

R&D, commercialization

Business phase

Market creation
Preliminary
considerations

R&D

Confirm manufacturing conditions,
economic rationality, etc.

Demonstration

Start operations;increase cofiring ratio

Single fuel firing

Demonstrationof large scale

Increased
deployment;
cost reduction

Commercialization (nonsubsidized)

Commercializati
on

Increased
commercialization

Introduction

Increased
deployment

R&D, demonstration
Demonstration

Commercializati
on

Demonstration

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ReferenceKeidanren’s efforts to combat climate change◼ Keidanren took the first pioneering steps on climate change ahead ofgovernmental policy decisions.
1991 April

Presentation on Keidanren Global Environment Charter

1992 June

Adoption of the Framework Convention on Climate Change

1997 June

Presentation on the Keidanren Voluntary Action Plan on the Environment

1997 December

2015 July

Adoption of Kyoto Protocol (COP3)
Announcement of the first phase of the plan for Keidanren’s Commitment
to a Low Carbon Society (FY 2020 targets)
Current Policy of Global Warming Countermeasures（Decision of Global Warming Prevention Headquarters）
Announcement of the second phase of the plan for Keidanren’s Commitment
to a Low Carbon Society (FY 2030 targets)
Submission of Japan’s Intended Nationally Determined Contribution (INDC) to the UN2015 December

Adoption of the Paris Agreement (COP21)

2016 November

Entry into force of the Paris Agreement

2018 November

Announcement of Keidanren’s Concept Book “Contributing to Avoided Emissions
through the Global Value Chain”

2019 January

Announcement of Keidanren’s “Actions by the Business Community on Long-term
Global Warming Countermeasures up to 2050”

2019 June

Japan's Long-term Strategy under the Paris Agreement （Cabinet decision）

2020 June

Starting “Challenge Zero”

2020 October

Declaration of challenge of achieving carbon neutrality by 2050

2021 November

Announcement of Keidanren Carbon Neutrality Action Plan

2013 January
2013 March
2015 April

14

Outline of Keidanren Carbon Neutrality Action Plan
◼ Contributing to long-term global warming countermeasures on a global
scale through efforts based on the formulation of a Vision and four pillars.
VisiontowardCN2050PhaseⅠ

PhaseⅡ

Efforts toward 2020

Efforts toward 2030

Emission reductions from domestic business operations

Setting up
2020 target

Setting up
2030 target

Pillar2

Strengthening co-operation with other interested groups

Pillar3

Promoting contribution at the international level

Pillar
4（Contribution through low-carbon energy-saving products and services）（Deploying and supporting products and technologies on a global scale, including developing countries)

Development of innovative technologies toward CN by 2050
(incl. transition technologies)

P D C A

（Verification by the Third Party Evaluation Committee)＊The current report summarizes the results of Phase I.

62 industries
participate

Towards significant global GHG
emission reductions

Pillar1

Vision toward carbon neutrality by 2050

Evaluation and verification of the Keidanren CN
Action Plan
◼ Individual industries formulate targets based on the maximized deployment of BAT(best available technologies) and prospects of economic activity.
◼ The progress made under the Action Plan is checked by the Third Party Evaluation
Committee and Government councils and target levels are continuously reviewed.

●Progress is reported atGovernment council meetings(Joint WG meetings of
Subcommittees under theCentral Environment Council andIndustrial Structure Council)

16

Annual follow-ups by the Government⚫ Annual follow-ups are conducted for industries under the supervision of the Ministry of Economy,
Trade, and Industry (METI) by 7 industry-specific WGs under Councils comprising expert
committee members from universities and research institutions. Results are reported to a higher
level, the joint meeting of METI and the Ministry of the Environment (MOE)’s councils.
⚫ Government-wide annual follow-ups are conducted on global warming countermeasures, including
the business community’s Commitment to a Low Carbon Society, and results are compiled by the
Global Warming Prevention Headquarters led by the Prime Minister.

Global Warming Prevention Headquarters
Variousministries: MIC,
NPA, FSA, MOF,
MEXT, MHLW,
MAFF, MLIT,
MOE, METI*
METI
MOE

Industryspecific WGs(METI)
Source: METI material

ReportFollow-ups of global warming countermeasures atrelevant councils under each ministry/agency
Report
Joint meeting of the Global Environment Subcommittee (Industrial Structure Council) and the Expert
Committee on Follow-ups to the Commitment to a Low Carbon Society (Industrial Structure Council)

Resource& energy

Iron andsteel

Chemical;non-ferrous
metalsPaper
manufacturing;
flat glass;cement, etc

Electrical &electronics;
industrial
machinery, etc.

Distribution;
service

Automobile;
auto parts;
auto-body*MIC: Ministry of Internal Affairs and Communications; NPA: National Policy Agency; FSA: Financial Services Agency; MOF: Ministry of Finance;
MEXT: Ministry of Education, Culture, Sports, Science and Technology; MLIT: Ministry of Land, Infrastructure, Transport and Tourism; MAFF:
Ministry of Agriculture, Forestry and Fisheries; MHLW: Ministry of Health, Labour and Welfare of Japan; MOE: Ministry of the Environment

17

Positioning in Japan’s Climate Change Countermeasures◼ Keidanren’s proactive efforts have been positioned as a pillar of Japan's climatechange countermeasures.
“Current policy regarding global warming prevention”（March 15, 2013; Global Warming Prevention Headquarters)
Regarding measures to be taken in each sector against carbon dioxide emissions, of energy origin, evaluationsand verifications of voluntary approaches taken by business operators under the Commitment to a Low
Carbon Society will be conducted along with institutional measures including the formulation, announcement
and implementation of emissions control guidelines and various support measures.

Japan’s NDC (interim target)（decision by the Global Warming Prevention Headquarters and registration
with the U.N. on July 17, 2015; re-submission on March 30, 2020)<Reduction target>
・Japan seeks to firmly achieve its target of reducing emissions by 26% relative to fiscal 2013 levels(-25.4% relative to fiscal 2005 levels) in fiscal 2030.
・The NDC reduction target will be revisited before the next deadline (every five years) under the Paris
Agreement, in line with the revision of Japan’s energy mix, by taking a bottom-up approach of building up
GHG-related measures and aiming to set up a highly motivated figure that reflects further ambition
reduction efforts.
(Explicitly refers to the Commitment to a Low Carbon Society as measures which form the basis for thebottom-up calculation of the GHG emission reduction target.)“Plan for Global Warming Countermeasures” (Cabinet decision of Oct 22, 2021)
The business community, led by Keidanren, has engaged in emission reduction by formulating theVoluntary Action Plan and has achieved highly successful results. Given the steady GHG reductions
achieved while maintaining economic efficiency in many industries under the Commitment to a Low
Carbon Society, in order to secure emission reductions toward achieving the reduction target set up
under this Plan, measures taken by the business community will continued to be centered upon
voluntary approaches.

18