22 November 2019 FEATURE : Japan's Long-term Strategy under the Paris Agreement CURRENT TOPICS : · 2nd General Meeting of the African Clean Cities Platform and TICAD7 · G7 Environment Ministers’ Meeting and the Metz Charter on Biodiversity · Strengthening Measures on Fluorocarbons and International Expansion NATIONAL PARKS of JAPAN : Setonaikai National Park ◦ FEATURE ◦ Japan's Long-term Strategy under the Paris Agreement A foundation for the transition to a “decarbonised society” This long-term strategy aims for a The Agreement stipulates its objective Additionally, towards achieving the paradigm shift over the next few to strengthen global responses to the 2°C target, due to the significant gap decades leading up to the middle threat of climate change by holding between the global reduction amount of this century to economic and the increase in the global average estimated to be required in the future social systems that emit virtually no temperature to below 2°C above and the reduction targets currently greenhouse gases. The long-term pre-industrial levels and pursuing set by countries, the Agreement strategy is also designed to maintain efforts to limit the increase to 1.5°C. invites countries to formulate and and develop the economy and society It also stipulates that efforts are to communicate a long-term strategy within this context. be made to make swift reductions for low greenhouse gas emission in greenhouse gases to achieve a development (hereinafter, long-term 1. Background balance between anthropogenic strategy). emissions and removals by sinks of (1) International efforts and greenhouse gases (carbon neutrality (2) Changes in responses to the decarbonisation requirements under throughout the world) in the second climate change issue in finance and the Paris Agreement half of this century. All countries business sectors The Paris Agreement was are obligated to implement domestic Significant changes that have adopted at COP21 in December 2015. measures toward this purpose. not been experienced before are 2 JEQ JAPAN Environment Quarterly | Vol.22 now taking place with regards to International Renewable Energy that may lead to restraints on the climate change measures. An energy Agency (IRENA) has estimated use of fossil fuels that emit large transition based on lowering the cost the additional investment needed amounts of CO2, including coal, of renewable energy and the trend for decarbonisation of the energy such as examples of engagement and for companies and financial sectors industry. This figure could reach divestments. to aim at zero GHG emissions are more than 29 trillion USD by 2050, characteristic changes. Namely, as these investments drive new (3) Viewpoint on addressing the there is a growing possibility that economic growth and increase issue of climate change within the the evaluation and assessment of a GDP worldwide by 0.8% in 2050, Sustainable Development Goals company will depend on whether revealing the magnitude of potential. The “2030 Agenda for or not it can promptly make the Additionally, in the financial sector, Sustainable Development” was transition to decarbonisation. This there is a growing movement to adopted by the United Nations is indicated in Prime Minister Abe's regard non-financial information, General Assembly in September remarks that, "responding to climate such as corporate environmental 2015. Within the 2030 Agenda, change is no longer an additional efforts, as criteria for investment which clearly states that “no one cost for the economy, but a growth decisions, such as ESG investing. is left behind” on the earth, 17 strategy for the future." Global ESG investment in 2018 goals and 169 targets were set as increased by approximately two “Sustainable Development Goals The scale of the market in quadrillion yen compared to 2012, (SDGs)". The SDGs, along with the event of global initiatives and ESG investment in Japan grew the Paris Agreement, are universal under the Paris Agreement has more than four times from 2016 to international targets for global been examined. For instance, the 2018. Moreover, there is a movement sustainable growth. Responses to Japan's Mid-term and Long-term Targets for GHG Reduction FY2017 (confirmed report value) Baseline year 1.292 billion tonnes Emissions [1.2% reduction compared to previous Emissions FY2013 1.408 FY2020 (hundred million billion tonnes fiscal year] 〈8.4% reduction Over 3.8% tonnes CO2 FY2005 1.397 equivalent) compared to FY2013〉 reduction billion tonnes (6.5% reduction compared 16 *Figures at the time compared to FY2005) to FY2005 FY2030 of reduction target setting 26% reduction 14 Compared to FY2013 (1.042 billion tonnes) Sinks As early as 12 possible in the second half of 80% this century 10 Sinks reduction Decarbonisation (virtually 8 by 2050 zero emissions) 6 4 2 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: Prepared from “FY2017 Greenhouse Gas Emissions (confirmed report values)”, “Plan for Global Warming Countermeasures” and “Long-term Strategy under the Paris Agreement”. Japan's Mid-term and Long-term Targets for GHG Reduction JEQ JAPAN Environment Quarterly | Vol.22 3 Long-Term Strategy under the Paris Agreement as Growth Strategy（1/2） Chapter 1: Basic Concept Provisional Translation Vision: Proclaiming a “decarbonised society” as the ultimate goal and aiming to accomplish it ambitiously as early as possible in the second half of this century, while boldly taking measures towards the reduction of GHGs emissions by 80% by 2050 * an unconventional vision of an “ideal future model” * contributing to the achievement of the long-term goals of the Paris Agreement, including efforts to limit the temperature increase to 1.5℃ Basic Principles of Policy Realising “a virtuous cycle of environment and growth” towards the vision with business-led disruptive innovation, Swift implementation of actions from now, contributing to the world, Action Towards a bright Society with Hope for the Future [Factors: Achievement of SDGs, Co-creation, Society5.0, the Circulating and Ecological Economy, leading country in solving problems] Chapter 2: The Vision of Each Sector and the Direction of Measures 1.Energy 4.Community and Living Pursuing every option for promoting Realising carbon neutrality, energy transitions and decarbonisation resilient and comfortable communities and lives by 2050/ creating the “Circulating and 2.Industry Ecological Economy” Decarbonised manufacturing 5. Measures for Carbon Sinks Conserving the natural environment and 3.Transport creating sustainable new values in agriculture, Contribution to the challenge of forestry and fisheries industries to secure ”Well-to-Wheel Zero Emission” sufficient carbon sink for decarbonised society Overview of Long-term Strategy (1/2) climate change that involve major Abe instructed that meeting is June 2019. Subsequently, it was transitions in socioeconomic systems, established toward the formulation submitted to the United Nations on 26 could be factors that influence the of the Long-Term Strategy under June. achievement of other SDGs. Further, the Paris Agreement and relevant in order to achieve the SDGs, it is ministries and agencies expedite 3. Contents and direction of policies necessary to promote climate change deliberations under this meeting. indicated in the long-term strategy measures in an integrated manner In August 2018, the Meeting in line with elements of SDGs not on a Long-term Strategy under the The long-term strategy is related to climate change. In the Paris Agreement (chaired by the comprised of five chapters. The context of the Paris Agreement and President of the Japan International strategy incorporates the direction of the SDGs in the business world, Cooperation Agency (JICA), Shinichi policy countermeasures in detail, but there is increasing awareness that Kitaoka) was launched to engage in due to the large volume, not all can addressing environmental issues discussions on the basic concepts be introduced here. The following within corporate strategies and core of the long-term strategy, held on points give a shortened explanation. business, not only as corporate five occasions. Consequently, a Please refer to the original strategy social responsibility (CSR), makes recommendation for the government for details (*1). corporate structures more resilient was compiled in April 2019. Chapter 1 sets forth the basic and brings new growth. Following the recommendation, concepts of the long-term strategy. the government developed a draft Three points concerning the 2. Formulation process of the long- of the long-term strategy. Following characteristics of the strategy have term strategy public comment, the “Long-Term been selected and introduced below. Strategy under the Paris Agreement” In June 2018, Prime Minister was approved by the cabinet on 11 (1) Decarbonised society: a shared 4 JEQ JAPAN Environment Quarterly | Vol.22 ◦ FEATURE ◦ Long-Term Strategy under the Paris Agreement as Growth Strategy（2/2） Chapter 3: Cross-sectoral Measures to realise “a virtuous cycle of environment and growth” 1. Promotion of Innovation Promoting innovation for practical application and wider usage of cross-sectoral decarbonisation technologies that lead to drastic reduction of GHG, achieving cost that allows commercialisation (1) Progressive environment innovation strategy (2) Innovation in economic and social systems/Lifestyle innovation Fuel Cell Buss CO2 Capture Plant 2. Promotion of Green Finance Appropriate “visualisation” of innovation, and mobilisation of