## 5 Development and Dissemination of Low Carbon Technology

## (1) Development and Dissemination of Innovative Technology

In order to achieve the long-term goal of halving the world’s GHG emissions from the current level by 2050 as proposed in Cool Earth 50, we must take political action to improve and popularize the existing technology and at the same time, research and develop innovative technology. As examples of innovative technology, the Cool Earth 50 mentioned zero-emission coal-fired power generation and advanced nuclear power generation. With this backdrop, the Low Carbon Technology Plan was formulated to seek breakthroughs in related innovative scientific technologies and to promote improvement and dissemination of existing technologies in order to find a fundamental solution to the energy and global warming problems. The Plan was reviewed by a working group and approved by the Council for Science and Technology Policy of the Cabinet Office in May 2008.

## (2) Popularization and Development of the Existing Highly Efficient Technologies

The world economy in the future is expected to experience continued high economic growth in the Asian region. High economic growth is accompanied by an increase in industrial activities and construction of infrastructure; and in general, energy consumption will go up and GHG emissions will increase. If this chain reaction is not stopped, global warming cannot be arrested. For this reason, it is imperative for the developed countries to share with the world, including developing countries, their existing technology of controlling GHG emissions while continuing production. This can substantially enhance the effectiveness of GHG emissions reduction. Japan has experienced two oil crises and has developed and adopted many highly efficient technologies. Thanks to these technologies, Japan is able to maintain its international competitiveness. These technologies become a very effective tool for decoupling economic growth and GHG emissions.

If technological transfer of these highly efficient technologies is carried out under the Clean Development Mechanism (CDM), the developed countries can not only support the sustainable development of developing countries but also share the achieved GHG emissions reduction credits with the developing countries. The developed country can add the Certified Emission Reduction (CER) credits to its own emissions reduction amount or trade the CERs received from CDM. The CDM Executive Board established under the United Nations Framework Convention for Climate Change (UNFCCC) has 1,056 registered projects on its registry as of May 8, 2008. Technological transfer from developed countries to developing countries through CDM is an effective means to reduce GHG emissions. In a future world where transition to a low carbon society is necessary, the country that has many highly efficient technologies will have a relatively advantageous position. Compared to other developed countries, Japan has many highly efficient technologies. Fully utilizing their merits, Japan can create business opportunities through technological transfers to developing countries.

As shown above, transfer of low carbon technology will bring tremendous benefits to Japan. However, as seen in the thermal efficiency of thermal power plants, Japan was surpassed by the United Kingdom and Ireland in FY 2002 and FY 2003 in the weighted average of thermal efficiency at the generating end, which combines the heat efficiency of coal, oil and gas, because the two countries have adopted the latest natural gas thermal power generation (Figure 3-2-3). To continue to be an environmental nation, Japan must devote its greatest effort to developing technology. To maintain our lead in this and other environmental technology fields, we must always seek the latest cutting-edge technology.

## (3) Development and Dissemination of Low Carbon Technology for Power Generation and Industry

In our transition to a low carbon society in the future, the industrial sector shall contribute by seizing global warming as a business opportunity and actively taking measures to develop technology, improve the efficiency of production processes, and transfer technology to developing countries.

The energy conversion sector, including power generation, accounts for approximately 6% of the carbon dioxide emissions in Japan. Of emissions from power generation, those emitted from electricity consumption, etc. by sectors other than the energy conversion sector are also counted as indirect emissions (see Chapter 2, Section 2, Column 4, Figure 2-2-13).

The development and dissemination of low carbon technology shall be embraced not only by the energy conversion sector and the industrial sector but also by all sectors