Major Economies Business Forum On Energy And Climate 21 & 22 September 2009 Washington, Dc

MAJOR ECONOMIES BUSINESS FORUM ON ENERGY AND CLIMATE 21 & 22 September 2009 Washington, DC Session 4 Technology Teruaki MASUMOTO Special Adviser, Keidanren/Japan Business Federation Executive Advised, Tokyo Electric Power Company Inc.

The role of technology and business

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Proper utilization of highly energy efficient and low carbon emission technology is “a key” for sustainable development. Business, together with academia and others, is a prime provider of technological solutions by improving efficiency and developing innovative technologies. Dynamics of business for doing more should not be eliminated or weakened by posing unfeasible emission reduction targets which are inconsistent with the current maturity of technologies. 2

Both existing and new technologies are needed

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Three stages for efficiency improvements

Ⅰ 　 Improvement of energy conversion efficiency of individual or single machinery and equipment. E.g. turbines, car engines, motors or electric bulbs

Ⅱ 　 Improvement of each product and system, being composed of individual high-efficiency machinery and equipment. E.g. high efficient vehicles and buildings

Ⅲ 　 Improvement of system efficiency, by collaboration with all wider stakeholders and ecosystems. E.g. urban infrastructure including transportation system 4

Actions of technology transfer in progress by industry sectors 

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Progress has been seen in existing sector-based international programs and cooperation on bottom-up bases, for example;  APP  World Steel Association  Cement Sustainability Initiative  WBCSD Cement Sustainability Initiative  WBCSD Sustainable Forest Products Industry..etc Governments are required to provide incentives and support with private sector actions. MEF Global Partnership could provide opportunities for private sector involvement in international technology cooperation in deployment and development.

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Keidanren’s view on Intellectual Property Rights 

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Private companies are encouraged to further undertake R&D only if there are marketplaces where Intellectual Property Rights (IPRs) are effectively protected and future reinvestments are continuously maintained by reasonable returns for R&D. As environmentally sound technology advances, successful transfer of technology requires transferring of relevant know-how and capacity building as well as licensing provision in a collaborative manner. We are, therefore, strongly convinced that proper IPRs protection regimes should ensured, and compulsory licensing should not be allowed. 6

Long-term and stable policies and supports for Technology R&D

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Technological development cannot possibly be achieved overnight. E.g. thermal generation efficiency and PV technologies The role of industry, research and development organizations is to generate innovative technologies, while the role of governments and consumers is to support thereof in a longer-term perspective. E.g. To develop and share a technology roadmap No technology should be excluded from further research, development and demonstration toward a low-carbon and sustainable society 7

Cool-Earth Innovative Energy Technology Road Map Efficiency improvement Oil

Supply side

Nuclear Power Wind Biomass Solar 3. Carbon Dioxide Capture 2. Efficient/ near-zero emission and Storage (CCS) Electric coal-fired power plant ElectricPower Power 4. Innovative solar power 5. Advanced nuclear power 1. Efficient LNG-fired power plants 6. Superconducting power transmission 7. ITS 8. FCV 9. PHEV/ EV Transport Transport 10. Biofuel

Demand side

Industry I ndustry

LNG

Low carbonization

Coal

11. I nnovative materials/ manufacturing process

13. Efficient Residences/ Residences/ houses/ buildings Buildings Buildings

Cross sectroral

16. Efficient Heat pumps 19. Power storage

14. Efficient lighting

17. Efficient IT devices/ networks 20. Power electronics

12. Steel making process with Hydrogen 15. Fuel Cell for residential use 18. HEMS/ BEMS/ Regional EMS

21. Hydrogen 1 production/ storage/ transport

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The role of governments 

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To stimulate and encourage the dynamic power of business. To provide financial support. To encourage citizens to select highly energy efficient and low carbon goods. To ensure private sector involvement and to enhance public-private partnership. To enhance capacity building. To develop a long term plan for energy and climate R&D, including developing a technology road map 9

Thank you !

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Appendix

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Proposal for a Post-2012 International Framework The Japanese Business Community’s Position I. Introducti on

Background 1.At COP 13 in December 2007, negotiations for a post-2012 framework began with the aim of reaching an agreement at COP 15, to be held at the end of 2009. 2.Keidanren (Japan Business Federation) submitted its recommendations on major points in preparation for the mid-term review of negotiations made at COP 14 in December 2008. Principles of a post–2012 international framework Compatibility of Equitable Effective to prevent environmental commitments by climate change protection & economic countries growth

II. Essential Elements of a Post-2012 International Framework Participation by all major emitters Participation by all major emitters, including the U.S., China, and India

Equitable medium-term targets ・ Sectoral approach to target setting ・ Reconsideration of base year

Emphasis on technology ・ Spur development of innovative technologies ・ Spur dissemination of existing technologies

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Peer Review Activities for existing thermal power plants ・ Currently implementing peer reviews under APP activities to increase thermal efficiency in existing coal-fired thermal power plants ・ Best practices of operational improvement to achieve immediate effects without the need for large-scale modification Specific Contribution of Japan’s Electric Industry ‘Green Handbook’ Instructions of day-to-day operation and maintenance technologies and practices of coal-fired power plants. ‘Check List’ and ‘Review Sheets’ First used for efficiency improvement proposal in India

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