IPCC Symposium
Business Sector’s Efforts and Expectation for IPCC

The Chairman of Working Group on International Environmental
Strategy, KEIDANREN (Japan Business Federation)

Hiroyuki Tezuka

Scheme of Paris Agreement
Kyoto Protocol

Paris Agreement

Top-down approach/ Kyoto Protocol))Bottom-up approach/Pledge & Review scheme＜Participants: Other than US and developing countries such as China ＞＜Participants: all major emitting countries including US and China＞

UNUN Reduction targets by each country
Only developed countries are required
to reduce emissions.
 Common rule punitiveCountryACountryＢCountryＣ

 Voluntarily pledge emission reduction
The progress are to be reported and mutuallychecked (MRV) non punitive

CountryA

CountryＢ

CountryＣ

the same scheme as Keidanren Voluntary Action PlanCopyright © 2016 JFE Steel Corporation. All Rights Reserved.

1経団連 低炭素社会実行計画
Keidanren'sCommitment
to a Low Carbon Society
Keidanren's Commitment to a Low Carbon Society
Phase Ⅰ
Efforts for 2020

Pillar 1

participants:
55 industries

Phase Ⅱ
Efforts for2030

Participants:
40 industries

emission reduction through domestic business operations
Reduction target for 2020

Reduction from Domestic
Contribution throughPillar 2
Business Operations
energy-saving products

Reduction target for 2030
Fourpillars

Reductionfrom Domestic contribution tostrengthening
BusinessOperations long-term
measuresmeasures

Pillar 3

International Contribution

strengthening
measures

Pillar 4

Development of Innovative
Technologies

strengthening
measures

Reinforcement of PDCA cycle

toContribution
to thegoal ofhavingemissions by2050

prevent global
warming6

Emission Credit : Way of thinking in Kyoto Protocol era
Target year 2030
Global Emissions = Σ Emissions from developed Countries+ Σ Emissions from developing Countries
Emissions

BAU emissions (=GDP× emission intensity)－Emissions reduction from base year

－INDC emissions reduction－Carbon credit+ Carbon credit(=Emissions reduction from developingcountries )(= Emissions reduction by the support fromdeveloped countries )In Kyoto era, developing countries have no obligation to reduce emissions→Transfer emission credit of developing countries to developed countries.
Under Paris Agreement where developing countries have also NDC, transfer ofemission credit will be more cautious?
21

International cooperation under Paris Agreement?
In target year（2030）
Global emissions ＝Σ Emissions from each country
Existing emissions+ Increase (decrease) of BAU emissions in target year－Reduction through future efforts
Self reduction＋Reduction through international cooperation

 Reductions through technology deployments and innovations are
more effective under international cooperation.
 ”Facilitation and enlargement of cooperation” is more important
than how to distribute emission credits under cooperation.

24

Eco-Products: Contribution through development of products

To de-carbonizing the whole society, assessing the measuresfrom the viewpoints of total lifecycle is necessary.
Case of CO2 emission by steel product cycleLCA assessment of Prius

Raw materials AssemblyPrius

Dribving

MaintenanceDisposal/Recycling

Hybrid effectGasolineCar(same class)
Source: Homepage of Toyota Moter Co.

Carbon Pricing（ＷｏｒｌｄＢａｎｋ）

Carbon Pricing in japan: $2/t-CO2??

Source: ”Carbon Pricing Watch 2016” Worldbank Group, Ecofys

6Implicit carbon pricing
Carbon pricing＝Explicit carbon pricing+ Implicit carbon pricing
FIT Levy
Equivalent to 50,000 yen/t-CO2
Increase in future

Cost upCommitment tolow carbon
society
Cost up
Energy saving
LawExplicit
Carbon Tax
狭義の炭素価格
Tax for tackling Global Warming289 yen/t-CO2

FIT
Levy
Tax for tackling
Global Warming

Energy Tax etc.
Equivalent to 4,000 yen/t-CO2

EnergyTax etc.

Source: the Platform for a Strategic Dialogue on Carbon Markets Takes Place” (19 Dec. 2016）