Started the study on the long-term strategy to reduce greenhouse gas emissions

On 3rd August, the Government established a consultation group of experts to formulate “Long-Term Low Carbon Emission Strategy” (Long-Term Strategy) based on the Paris Agreement, and started the study. Looking for the government target to reduce greenhouse gas emissions by 80% in 2050, the group will explore the ways to make environment protection compatible with economic growth, and the ideal wayof the innovation that contributes to global warming countermeasures. They plan to make discussions and recommend the outcomes to the government during FY 2018.

The consultation group held a first“Roundtable meeting for long-term strategy formulation as a growth strategy based on the Paris Agreement”. The group consists of ten members such as Mr. Shinichi Kitaoka (Chairman of the International Cooperation Agency (JICA)) who is appointed the chairman of this group, Takeshi Uchiyamada (Chairman of Toyota Motor Corporation), Mr. Hiroaki Nakanishi, Chairman of the Nippon Keidanren, and Dr. Yukari Takamura (Graduate school professor at Nagoya University.)The secretariat is composed of the cross ministries of the Cabinet Secretariat, the Ministry of Economy, Trade and Industry, the Ministry of Environment and the Ministry of Foreign Affairs.

Mr. Nakanishi pointed out that the energy policy and the global warming countermeasures are inseparable and emphasized the importance of ensuring the balance of “S + 3E”. Mr. Uchiyamada introduced the current circumstances surrounding the automobile industry and appealed that the viewpoint of innovation in not only performance and quality but also cost reduction is necessary. Prime Minister Shinzo Abe who attended the first meeting said thatthe measures to overcome global warming are no longer the cost related matter but sources of competitiveness for companies and havingbird’s eye view on the trends of finance and the actual situation of business, especially the movements of the world,herequested the attendants to present a new vision that will be able to lead the international trend“

At the roundtable discussions, they discuss the strategies to achieve the goal of “80% reduction by 2050” set forth in the Global Warming Countermeasure Plan. As the opinion of the Ministry of Environment, they will study, as the basic references,the report on global warming countermeasures that the government decided in July as the Cabinet decision and summarized by the Ministry of Economy, Trade and Industry and the Ministry of the Environment as well as the 5th Basic EnergyPlan, which included theperspective to 2050 for the first time.

On the other hand, it will be the main theme how to link global warming countermeasures, such as the positioning of carbon pricingwith different perceptions among the ministries and the agencies, the way of ESG (environment, society, corporate governance) finance, etc.to the investment and economic circulation.