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The Global Green Finance Leadership Program (GFLP)�Scaling-up Sustainable Finance in Southeast Asia��“Carbon Pricing Instruments in the Corporate Decarbonization Efforts” ��

Hiroshi Tomita

ERM

November 30, 2022

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Carbon Pricing Instruments

The business of sustainability since 1971

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Carbon Pricing Instruments

Our combined expertise mean we can support from high level strategy through to project implementation

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Large volume of carbon credit were traded during the Kyoto Protocol

Carbon Pricing Instruments

Both Japanese government and private sector utilized large volume of carbon credits under the Kyoto flexible mechanism.
320mnCO2t of CERs, 236mnCO2t of AAUs and 28mnCO2t of ERUs were purchased and active swaps transactions were conducted to adjust private sector’s carbon credit portfolio.

Total CER purchased

320mnCO2t

Total AAU purchased

236mnCO2t

Total ERU purchased

28mnCO2t

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Carbon Offset: Major tool to achieve Net Zero�

Carbon Pricing Instruments

Current GHG Emission

Ongoing emission reduction efforts

Greening

the Power

New Technologies

Hydrogen / CCUS

Offset / Carbon Trading

Big Challenge

to achieve Net Zero

“Private sector start to consider the necessity of offsets towards 2050”

Corporate Road Map to achieve Net Zero

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Challenges to the private sector to fully involve in the carbon market

Carbon Pricing Instruments

Limited

supply of

domestic credits

Private Sector

Net Zero achievement efforts

Emission reduction overseas needs to align with multiple NDCs

Use of voluntary

credits limited

under the current rules

Currently, no direct link of Japanese National Net Zero achievement Plan

Supply of Credits

National Target

International

/Bilateral credits

Linkage TBD

Voluntary Target

Overseas Target

Forestry credits

APAC region

JCM

bilateral

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Thank you

Hiroshi Tomita

Partner Japan

Japan

Hiroshi.tomita@erm.com

+81-090-8120-1219

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