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Tackles Climate Change JAPAN Embassy of Japan in Thailand 1 Kyoto Protocol is an Epoch-Making First Step in Reducing Emissions 2008-2012 Overview of Kyoto Protocol Adopted at Conference of the Parties (COP3) Established obligations for developed countries to achieve numerical greenhouse gas reduction targets during the period 2008-2012 comparing to 1990 levels (Japan and Canada: 6%, United States: 7%, EU:8%, etc.) Introduced the Kyoto Mechanism as a complementary measure to help them achieve the emissions reductions commitments. Breakdown of CO2 Emissions per Country (2005) Others 22.3% EU 14.7% Countries that have Developing ratified Russia 5.7% Japan countries Canada Iran 30% 4.5% 2.0% 1.5% Australia Country Korea India that have 1.4% 49% 1.7% 4.2% Other reduction not ratified obligated 21% countries US China 1.6% Source: IEA 21.4% 18.8% Issues Remaining for Kyoto Protocol The total amount of emissions from ratifiers that are obligated to reduce is still about 30% of the world. 2 Halving Global Emissions by 2050 Global CO2 emissions Future estimation (Business as usual) <Medium-term strategy> Post-Kyoto Framework ・Peak out global GHG emissions within the next 10-20 years International Environment Cooperation <Long-term strategy > Innovation ・Develop innovative technologies ・Shift to low carbon society “Cool Earth 50” Halving global emissions by 2050 • Accelerate improvement of global energy efficiency ・Cool Earth Partnership Present 2018~2028 2050 3 Japan Proposes Sectoral Approach 2013- ◆At the annual World Economic Forum held in Davos in January 2008, Prime Minister Fukuda outlined his new proposal aimed at ensuring equity in the target setting for the post-Kyoto framework Sectoral Approach Japan, along with other major emitters, will establish quantified national targets for emissions reductions The target could be set based on a bottom-up approach by compiling on a sectoral basis energy efficiency and tallying up the reduction volume Review of Target Year The base year should also be reviewed from the standpoint of equity Without equity, it will be impossible to maintain efforts and solidarity over the long term 4 Tally the Reduction Potential to Help Set Fair and Effective Targets Cooperative Sectoral Approach Image of Sectoral Approach Country A Country B Country C Electric Generation Electric Generation Electric Generation Industry Industry Industry Transportation Transportation Transportation Civil Sector Civil Sector Civil Sector ・・・ ・・・ ・・・ Total reduction target of A Total reduction Target of B Total reduction Target of C Bottom up Sectoral Approach 〔Ton of CO2 equivalent〕 5 Japan’s New Proposal: “In Pursuit of ‘Japan as a Low-carbon Society’” On June 9 2008, Prime Minister Fukuda announced Japan’s new proposal “In pursuit of ‘Japan as a Low-carbon Society.’” ① Long-term goals Sets 60-80% reduction in emissions of its current level by 2050 as Japan’s long- term goal. ② Mid-term goals Japan could cut emissions by 2020 by 14% - compared to 2005 levels by 2020 (Government estimate) Japan will strive to gain the understanding of nations around the world on the sectoral approach, in setting quantified national emission reduction targets. Japan will announce its national emission reduction target at an appropriate time next year. It is essential to have a “total participation” framework that includes all the major economies, not just the EU and Japan. ③ Technological development and assistance for developing countries Japan will contribute up to US$1.2 billion to a new multilateral fund which Japan is working with the US and UK to establish, aiming to assist developing countries in addressing climate change. At the Toyako Summit, Japan will propose an International Partnership for Environment and Energy, which aims to share a global roadmap for innovative technological development looking 30-40 years ahead by having the international community work in unison, to advance technological development. The achievement of this partnership is also to be shared with developing countries. ④ Emissions trading This fall, Japan will begin an experimental introduction of an integrated domestic market of emissions trading. 6 Japan Also Leads in Investment on R&D Government R & D Investment in the Energy Sector in Various Countries Global Trend in Public Investment in Research and Development in the Energy Sector (2005) England Italy German France 129.9 320.5 513.2 523.4 (Unit: million dollars) US Japan is the world leader 3017.8 3905.3 Japan 1250 EU 0 500 1000 1500 2000 2500 3000 3500 4000 4500 (Source: IEA, European Commission) Prime Minister Fukuda made a commitment at the Davos forum in January 2008: “We will invest US$30 billion over the next five years in R&D in the environment and energy sector.” 7 Supporting Developing Countries Making Efforts to Reduce Emissions While Achieving Growth Prime Minister Fukuda gives speech at Davos Forum (January 2008) Multilateral funds Aim to establish a new multilateral fund together with the US and UK, and call for participation from other donors Cool Earth Partnership Japan provides support on a scale of 10 billion US$ Support domains: - Climate change mitigation policies - Adaptation policies for developing countries vulnerable to climate change - Improvement of access to clean energy Target countries/projects: ◆ Senegal, Madagascar and Guyana: Non-project grant aid ◆ Indonesia: Climate change program loans (under consideration) ◆ Others 8 Financial Mechanism “Cool Earth Partnership” (Image) From 2008, Japan will provide funds on the scale of US$10billion over the next five years.→ to assist developing countries making efforts to reduce GHGs emissions and achieve economic growth in a compatible way. Up to US $2 billion Assistance for adaptation & improved access to clean energy Grant aid Developing countries (on the basis of policy consultation) Vulnerable countries Transfer Japanese technology and promote GHGs emission reductions at global level (e.g.) Improvement in energy efficiency of power generation Technical Assistance Assistance through international organizations Up toUS$8 billion Assistance for mitigation “Cool Earth ODA loan” (US$4 billion) Eligible countries for ODA loan Other public funds (e.g.) Forest conservation, measures against disasters related to climate change (including disaster prevention) such as drought and floods, electrification of rural communities by introduction of solar power generation and small-scale hydro energy. Private sector activities & funds Projects Assistance for adaptation and improved access to clean energy; promote sustainable development Other funds Encourage private finance and promote technology transfer ※ Japan has also created a new multilateral fund together with the United States and the United Kingdom, and calls on other donors to join in. JBIC NEXI NEDO etc. 9 Basic Policy of ‘Cool Earth Partnership’ “The other pillar of International Environment Cooperation is assistance to developing countries that are aiming to achieve both emissions reductions and economic growth and working to contribute to climate stability. As one measure, Japan will establish a new financial mechanism, Cool Earth Partnership, on the scale of US$10 billion. Through this, Japan will cooperate actively with developing countries’ efforts to reduce emissions, such as efforts to enhance energy efficiency. At the same time, we will extend the hand of assistance to developing countries suffering severe adverse impacts as a result of climate change. In addition, Japan aims to create a new multilateral fund together with the United States and the United Kingdom, and we call for participation from other donors as well. We will use such instruments to strengthen our solidarity with developing countries and work towards the reduction of greenhouse gases globally.” - Special Address by Prime Minister Fukuda in Davos (Jan 26, 2008) Establishment of Cool Earth Partnership (Financial Mechanism): ①Japan will have policy consultations with developing countries to reach common understandings of policies regarding climate change (e.g. Reduce greenhouse gas emissions and achieve economic growth In a compatible way to contribute to climate stability.). ②Japan will provide program and project assistance (policy formulation, institution building, human resource development, project implementation) in order to promote efforts to address climate change in developing countries . ③Through such assistance, Japan will facilitate the negotiation process to formulate an effective framework beyond 2012, in which all countries participate. Policy Consultations with Developing Countries 〈Program and Project Assistance〉 ● Policy Formulation ● Institution Building and Human Resource Development ● Project Implementation Promotion of Efforts to Address Global Warming (In addition, Japan aims to create a new multilateral fund together with the United States and the United Kingdom, and we call for participation from other donors as well. ) 10 Climate Change Program Loan for Indonesia • First case of climate change-related ODA loan • Up to the total amount of 300 million U.S. dollars • With special preferential interest rate (Significance) Efforts of the Indonesian Government to address climate change issues by formulating the National Action Plan Addressing Climate Change Indonesian appreciation of the Japanese “Cool Earth Promotion Program” and its active participation in formulating a future framework on climate change in which all major economies participate in more responsible manner Japanese assistance can promote the Indonesian Government’s measures addressing climate change and also boost the international efforts to cope with climate change (Scope of the partnership) Forestry Sector Energy Sector Industry, Domestic (household) and Commercial Sector Water Resource Management Sector Others 11 Now is the time We have to stop global warming as for both countries soon asindustrialized possible for posterity and developing countries to join forces to fight climate change 12