8 December 2014: Participants discussed research findings on sectoral energy efficiency and greenhouse gas (GHG)-intensity indicators at an event ‘Exploring the Potential Path towards a Decarbonized Earth,’ which convened on the sidelines of the Lima Climate Change Conference. The side event also considered corresponding measures that can be taken by world business leaders.

The Institute of Energy Economics, Japan (IEEJ), Global Industrial and Social Progress Research Institute (GISPRI) and Japan Business Foundation (Keidanren) organized the event.

In opening remarks, Soichiro Sakuma, Keidanren, said technology offers the best solution for meeting the demands of economic growth while addressing climate change. Hiroki Mitsumata, Japanese Ministry of Economy, Trade and Industry, noted Japan’s “relentless research and development (R&D), application and dissemination” of energy efficiency technology in carbon-intensive sectors.

Yasushi Ninomiya, IIEJ, and Kornelis Blok, Ecofys, presented joint work to develop indicators for decarbonization potential in sectors such as steel, cement, transport, energy and chemicals. Ninomiya explained why indicators matter, as combating climate change requires either reducing GHG emissions through decreased activity levels or through lowering the carbon intensity of activities. He said the latter can more realistically be controlled by policy, underscoring the importance of policy makers to be able to measure such progress.

Brian Flannery, Resources for the Future (RFF), highlighted benefits that can be captured by companies that invest in energy efficiency, even without additional policy incentives, such as lower operational energy costs, reduced environmental impacts and conservation of finite fossil resources. To supplement private sector efforts, he said public policy can promote decarbonization through industry standards, demand-side management, market-based incentives, voluntary public-private partnerships and regulatory reform.

Hiroyuki Tezuka, Keidanren and JFE Steel Corporation, lauded voluntary industry initiatives in Japan, which have led to a 12.1% reduction in emissions during the Kyoto Protocol’s first commitment period. He described how 55 companies plan to halve GHG emissions by 2050 through Keidanren’s environmental action plan for 2020 and beyond, by reducing domestic emissions, promoting energy-saving products, contributing to global mechanisms and diffusing advanced green technologies.

A panel discussion further considered the role of indicators in information sharing and benchmarking as well as how indicators might contribute to a post-2020 climate framework. [IISD RS ENBOTS Coverage] [IISD RS Coverage of Lima Climate Change Conference] [IEEJ Website] [GISPRI Website] [Keidanren Website]