December 10, 2021
The Ministry of Economy, Trade and Industry (METI) formulates sector-specific technology roadmaps for the transition to decarbonization, with the aim of promoting climate transition finance. It has now complied one for the chemical sector.
In order to become carbon neutral by 2050, funding for transitions toward steady decarbonization (such as energy conservation and energy transition) will also be essential in addition to projects like renewable energy that are already at the decarbonization level.
METI worked together with the Ministry of the Environment (MOE) and the Financial Services Agency (FSA) to formulate the "Basic Guidelines on Climate Transition Finance" (hereinafter referred to as the Basic Guidelines) in May 2021. The Basic Guidelines were presented to businesses, financial institutions, and other relevant parties in order to raise funds toward transitioning to decarbonization under the name "Transition Bonds/Loans."
METI has held meetings of the Taskforce for Formulating Roadmaps for Promoting Transition Finance in the Economy and Industry (chaired by Akimoto Keigo, Group Leader, Systems Analysis Group, Research Institute of Innovative Technology for the Earth [RITE]) to concretely point the way to transition so that industries with large CO2 emissions will be carbon neutral by 2050. Following the technology roadmap for transition finance in the steel sector, it has now formulated one for the chemical sector as well.
Roadmaps are also planned for the following sectors: energy (electric power, oil and gas), paper/pulp, and cement.
This roadmap shows the technologies that are expected to be necessary in order to make the chemical sector carbon neutral by 2050, basing its choices on scientific grounds. These technologies include future innovative technologies as well as tried-and-true low-carbon technologies that are available now (such as energy conservation and energy transition). The roadmap refers to domestic policies and international scenarios, and presents the technologies along with their backgrounds and timeframes.
This roadmap should be referred to by companies when considering climate measures that use transition finance. It will also help financial institutions decide whether a company's strategies and efforts toward decarbonization are eligible for transition finance when the company approaches them for funding.
Transition finance can be provided not only for a company to invest in becoming low-carbonization/decarbonization with in itself, but also for a wide range of other initiatives necessary for decarbonization, such as those that will contribute to other sectors' transitions, and to dismantling and removing existing facilities. This roadmap deals primarily with technologies for becoming low-carbonization/decarbonization in the chemical sector.
Division in Charge
Environmental Economy Office, Industrial Science and Technology Policy and Environment Bureau
Material Industries Division, Manufacturing Industries Bureau