MRIs climate activities Kenichiro Yamaguchi Senior Staff Researcher

What is MRI? 2 n A Japanese private think tank established in 1970, with

MRI’s recent climate-related activities n Activities to explore and forecast the “carbon-constrained world” n

MRI Carbon Offset Initiative 4 n Find and evaluate commercially viable projects that result

Outline of COI Project identification Information / analysis Analysis of business opportunities FDecision making

Project Identification Credit Transfer Clients HFC、PFC、SF 6 N 2 O Methane Carbon sinks Carbon

UNIDO-MRI cooperation n New initiative to push the climate agenda forward n n n

Why reduction in Japan is difficult (Even though every country says the same thing…)

Japan’s unique situation (Even though every country is unique…) n n n 10 Already

Reason 1: Kyoto looks easy on paper Data from International Energy Outlook 2001 11

…but would it really be easy? n n Implication of Marrakech Eligibility to participate

Scheme of projects ERU Japanese government Host government (MOU ) SPC register account equity

Current activities n Identification of projects n n Formulation of scheme n n n

Slides: 14

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MRI’s climate activities Kenichiro Yamaguchi Senior Staff Researcher, MRI New Delhi, October, 2002 1 Mitsubishi Research Institute Inc.

What is MRI? 2 n A Japanese private think tank established in 1970, with a wide variety of activities n Has 14 years’ experience on climate-related research, since 1988 Toronto conference n Has the largest research staff among the Japanese think tanks n Has worked closely with both the Japanese government and industry on this issue n Is involved in the internal discussions within Keidanren, and has wide network in Japanese business n Able to introduce suitable contacts to foreign counterparts Mitsubishi Research Institute Inc.

MRI’s recent climate-related activities n Activities to explore and forecast the “carbon-constrained world” n n 3 Carbon Offset Initiative JEMS (Japan Emissions Management Simulation) Cooperation with UNIDO Strategic consulting on corporate climate policy Mitsubishi Research Institute Inc.

MRI Carbon Offset Initiative 4 n Find and evaluate commercially viable projects that result in emission reduction n Explore opportunities to expand businesses related to credit trading n Eventually set up a pilot system to assess, trade and verify credits from such projects through “learning-bydoing”process Mitsubishi Research Institute Inc.

Outline of COI Project identification Information / analysis Analysis of business opportunities FDecision making support FIn-depth feasibility study FImplementation support FBusiness development consulting 5 Mitsubishi Research Institute Inc.

Project Identification Credit Transfer Clients HFC、PFC、SF 6 N 2 O Methane Carbon sinks Carbon emission reduction • Efficiency improvement • Fuel switching • Renewables ＭＲＩ • Expertise in climate issues • Contact • Consulting experience üE üC üC host country organizations host country government 6 Mitsubishi Research Institute Inc.

UNIDO-MRI cooperation n New initiative to push the climate agenda forward n n n 7 Identifying projects in the ASEAN area Cooperating with the Japanese private sector in implementing the projects Utilizing international and Japanese funding opportunities Developing JI/CDM assessment methodologies Workshop in Tokyo (June, 2002) Mitsubishi Research Institute Inc.

Why reduction in Japan is difficult (Even though every country says the same thing…) 8 Mitsubishi Research Institute Inc.

Japan’s emission profile n n Has to decrease emissions by 6% So far it has increased by about 7% Without measures, it will increase by another 10% Decrease in 1997 -98 mainly due to recession Data from the government of Japan 9 Mitsubishi Research Institute Inc.

Japan’s unique situation (Even though every country is unique…) n n n 10 Already energy-efficient Already afforested (>60%) Few non-CO 2 measures (waste, pasture, aluminum) EU’s closer links with Eastern Europe Australia…a great deal under Kyoto Canada…very tough, but will it ratify? GHG Emissions 1999 Data from the governments Mitsubishi Research Institute Inc.

Reason 1: Kyoto looks easy on paper Data from International Energy Outlook 2001 11 Mitsubishi Research Institute Inc.

…but would it really be easy? n n Implication of Marrakech Eligibility to participate in Kyoto Mechanisms will be scrutinized… n n n 12 Scrutiny on source inventory Submission on sinks inventory National systems Assigned amount Casts doubt on the availability of AAU/ERUs from FSU Mitsubishi Research Institute Inc.

Scheme of projects ERU Japanese government Host government (MOU ) SPC register account equity Investor return export credit loan Equity (CF) Debt Bank return approval Equity finance return document data Project company DOE (CDM) verification validation request for CER issuance Debt (CF) EB Registry Exim 13 CER CDM Mitsubishi Research Institute Inc.

Current activities n Identification of projects n n Formulation of scheme n n n 14 Eastern Europe, Asia, Latin America Pre-payment of CER/ERU finance and risk coverage Organizing a financing scheme Expressing the needs of private sector Mitsubishi Research Institute Inc.