MRI

1
MRIs climate activities

• Kenichiro Yamaguchi
• Senior Staff Researcher, MRI
• New Delhi, October, 2002

2
What is MRI?

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

3
MRIs recent climate-related activities

• Activities to explore and forecast the
  carbon-constrained world
• Carbon Offset Initiative
• JEMS (Japan Emissions Management Simulation)
• Cooperation with UNIDO
• Strategic consulting on corporate climate policy

4
MRI Carbon Offset Initiative

• Find and evaluate commercially viable projects
  that result in emission reduction
• Explore opportunities to expand businesses
  related to credit trading
• Eventually set up a pilot system to assess, trade
  and verify credits from such projects through
  learning-by-doingprocess

5
Outline of COI
Information / analysis
Project identification
Analysis of business opportunities

• Decision making support
• In-depth feasibility study
• Implementation support
• Business development consulting

6
Project Identification
Credit Transfer
Clients
HFC?PFC?SF6
N2O

• MRI
• Expertise in climate issues
• Contact
• Consulting experience
• E
• C
• C

Methane
Carbon sinks

• Carbon emission reduction
• Efficiency improvement
• Fuel switching
• Renewables

host country organizations
host country government
7
UNIDO-MRI cooperation

• New initiative to push the climate agenda forward
• 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)

8
Why reduction in Japan is difficult(Even though
every country says the same thing)
9
Japans emission profile

• 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
10
Japans unique situation(Even though every
country is unique)
GHG Emissions 1999

• Already energy-efficient
• Already afforested (gt60)
• Few non-CO2 measures (waste, pasture, aluminum)
• EUs closer links with Eastern Europe
• Australiaa great deal under Kyoto
• Canadavery tough, but will it ratify?

Data from the governments
11
Reason 1 Kyoto looks easy on paper
Data from International Energy Outlook 2001
12
but would it really be easy?

• Implication of Marrakech
• Eligibility to participate in Kyoto Mechanisms
  will be scrutinized
• Scrutiny on source inventory
• Submission on sinks inventory
• National systems
• Assigned amount
• Casts doubt on the availability of AAU/ERUs from
  FSU

13
Scheme of projects
ERU
Japanese government
Host government
(MOU)
SPC
register
account
approval
Equity
equity
document data
Investor
finance
Project company
DOE (CDM)
return
Equity (CF)
export credit
verification validation
Debt
return
loan
request for CER issuance
Bank
return
Debt (CF)
EB Registry CDM
CER
Exim
14
Current activities

• Identification of projects
• Eastern Europe, Asia, Latin America
• Formulation of scheme
• Pre-payment of CER/ERU finance and risk coverage
• Organizing a financing scheme
• Expressing the needs of private sector