JCLP has released a “Statement on a Growth-Oriented Carbon Pricing Architecture.”
JCLP, a coalition of 225 companies committed to an early transition to a decarbonised society, has released a “statement on the growth-oriented carbon pricing architecture”
-Calling for support for the proliferation of decarbonisation technologies, such as renewables and energy-saving schemes, and a just transition-
Tokyo, Japan, November 1 2022 – Japan Climate Leaders’ Partnership (JCLP), a corporate coalition proactively committed to climate action and a transition to a decarbonised society, has released a “statements on the growth-oriented carbon pricing architecture” .
The statement puts forward the background and key suggestions as follows to achieve both the 1.5℃ goal based on the Paris Agreement and sustainable economic growth through decarbonisation.
● Background:
Why JCLP requests support for the proliferation of decarbonisation technologies (e.g. renewables and energy-saving schemes) and a just transition：
- Carbon prices in Japan are set at very low levels compared to the global standard, and are not functioning as drivers of emissions reduction.
- Amid soaring corporate goods and consumer prices, it is important to help companies with the uptake of the decarbonisation technologies such as renewables and energy-conservation, and shift priorities to measures that reduce dependence on fossil fuels.
● Suggestions based on the background above：
- Consider setting a minimum carbon price at around ¥3,000 t-CO2 now as a standard to ensure energy transition in the power generation sector.
‒ Examine the future introduction of carbon prices that are high enough for decarbonised products made by Japanese heavy industries such as the steel, cement and chemical sectors to be competitive in the international market.
‒ Shift the volunteer-based emissions trading under the GX League to a cap-and-trade system sector by sector in order to make a more effective trading scheme that covers large emitters.
‒ Secure enough financial resources to accelerate technological innovation in off-shore wind power generation, next-generation photovoltaic cells and others, and also to proliferate existing decarbonisation technologies as exemplified by renewables and energy conservation.
‒ Support a shift from high-emitting facilities and equipment such as coal-fired power plants to renewable electricity generation and storage battery systems while providing job-placement/ skill-learning assistance for workers who would be adversely affected by the transition.
‒ Provide direct support and benefits for people who stand to lose economically due to energy crisis such as low-income earners to reduce dependence on fossil fuels.
Download the full statement here.
Download the press release here.