The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

Ministry of the Environment Collaborates with World Bank to Build Carbon Market
On January 31, the Ministry of the Environment announced that it would start collaborating with the World Bank on expanding the Joint Crediting Mechanism (JCM) and implementing Article 6 of the Paris Agreement. The following five listed is the main initiatives to be implemented. 
1) Cooperation in the Paris Agreement Article 6 Implementation Partnership (A6IP), 2) Initiatives through the World Bank Market Mechanism Implementation Fund (PMI), 3) Collaboration through international events, 4) Carbon Pricing Leadership Coalition (CPLC), 5) Innovative climate measures. Among them, the World Bank Market Mechanism Implementation Fund (PMI) is supporting the design and introduction of market mechanisms (emissions trading schemes, carbon taxes, credit schemes including Article 6 of the Paris Agreement) as measures against global warming in emerging and developing countries. In the efforts through PMI, Japan will make use of its experience in the JCM, which it has been involved in, to provide human resources and expand the implementation of Article 6. The Japanese government will quantitatively evaluate Japan's contribution to the reduction and absorption of greenhouse gas emissions achieved through the transfer of excellent decarbonization technologies and the implementation of countermeasures to developing countries. 

MOE website: https://www.env.go.jp/content/000107848.pdf

Honda supplies renewable power to manned lunar exploration facility　
Honda Motor Co., Ltd. announced on January 19 that it has signed a research and development agreement with the Japan Aerospace Exploration Agency (JAXA) on power supply to the lunar exploration vehicle living space and system. This is a "recycling-type renewable energy system" that continuously produces oxygen, hydrogen, and electricity from solar energy and water. The recycling-type renewable energy system that Honda is aiming for is a combination of the company's unique "high-pressure water electrolysis system" and "fuel cell system." During the day, the electricity generated by solar power is used to electrolyze water with a high-pressure water electrolysis system to produce oxygen and hydrogen, and at night, oxygen and hydrogen are used to generate electricity to power living spaces. In November 2020, the company signed a joint research agreement with JAXA on a recycling-type renewable energy system, and has been conducting research for utilization on the moon. In 2002, it became the first company in the world to start leasing fuel cell vehicles. The company is also developing and installing a smart hydrogen station using a high-pressure water electrolysis system, and aims to realize the same system by utilizing these technologies.

Honda website: https://global.honda/topics/2023/c_2023-01 19eng.html?from=newsroom_headline_area

Nippon Steel, Mitsubishi Corporation and ExxonMobil to evaluate and establish CCS value chains in the Asia Pacific Region
On January 25, Nippon Steel, Mitsubishi Corporation and ExxonMobil announced that they signed a memorandum of understanding on joint studies for conducting CCS (CO2 capture and storage) overseas in Australia and other countries in the Asia-Pacific region and for building a chain which will store CO2 emitted in Japan overseas. In the future, the three companies will investigate the recovery of CO2 emitted from Nippon Steel's domestic steelworks and evaluate the necessary equipment development. ExxonMobil studies on CO2 storage overseas in the Asia-Pacific region, including Australia, Malaysia, and Indonesia. Mitsubishi Corporation will conduct the previous survey and evaluation for overseas CO2 transportation and CCS value chain construction.
Nippon Steel regards CCS as one of the important technologies to achieve carbon neutrality and in addition to this project, the company has actively started collaborating with other companies.

NIPPON STEEL CORPORATION website: https://www.nipponsteel.com/en/news/20230126_100.html

Toyota tops global sales for 3 consecutive years, 10.48 million units in 2022
Toyota announced on January 30 that global new car sales for the entire group in 2022 were 10.48 million units (10.49 million units in 2021), a slight decrease from the previous year. Germany's Volkswagen (VW) was suppressed, and it took the top spot for the third consecutive year. Although it fell below the previous year for the first time in two years, Southeast Asia, which has recovered from the COVID disaster, pushed up the whole. In Southeast Asia, many countries such as Indonesia, Thailand, and the Philippines recorded double-digit increases, and even China, which had a lockdown in Shanghai, saw only a slight decrease. However, production has stalled due to semiconductor shortages, casting a shadow over sales in North America and Japan. Global sales of electric vehicles such as hybrid vehicles (HV) and electric vehicles (EV) increased by 4% to 2.72 million units, and EV alone increased by 70% to 24,466 units, both of which were record highs. However, VW group sold 570,000 EVs in 2022, a 26% increase, and the gap between the two is so big.

TOYOTA website: https://global.toyota/en/company/profile/production-sales-figures/202212.html

VW group website: https://www.volkswagen-newsroom.com/en/press-releases/transformation-progressing-volkswagen-group-delivers-26-percent-more-all-electric-vehicles-in-2022-15412

Panasonic Automotive achieves net zero CO2 emissions at 14 sites worldwide
Panasonic Automotive Systems announced on January 27 that it has achieved virtually zero CO2 emissions at its 14 global sites, 6 in Japan and 8 overseas, by promoting the introduction of energy-saving and renewable energy. The Panasonic Group regards the reduction of CO2 emissions by the company and society and working toward solving global warming as the most important issue for the Group, and has set its own goal "Panasonic GREEN IMPACT" and is working to solve it. On the other hand, in the automobile industry, especially in Europe, laws and regulations to reduce CO2 emissions have been strengthened, and the customers, car manufacturers, are also requesting their business partners to reduce CO2 emissions and switch to renewable energy. This trend is expected to accelerate around the world, and there is a growing possibility that zero CO2 emissions will become a condition for doing business with automakers. In response to these demands, Panasonic Automotive has achieved zero CO2 emissions at all of its global sites. This initiative is the first operating company to achieve the goal of zero CO2 emissions by the Panasonic Group in 2030. Going forward, it will continue to honestly promote energy conservation centered on the site, aiming to reduce total energy consumption by 3% year-on-year every year. It also plans to reduce its external reliance on renewable energy to 50% by 2030.

Panasonic group website: https://news.panasonic.com/global/press/en230127-2

China's BYD starts EV sales in the Japanese market, price is JP\ 4.4 million
On January 31, BYD Auto Japan, the Japanese subsidiary of BYD, a major Chinese EV company, released the middle-sized e-SUV “BYD ATTO 3”. The battery capacity is 58.56 kWh and the cruising range (WLTC value in-house research) is 485 km. The price is JP\ 4.4 million (including consumption tax). From the same day, 20 stores nationwide began opening preparation rooms where business negotiations and test drives can be held. From February onwards, 12 more store opening preparation rooms will be opened in sequence. The ATTO 3, the first model released in Japan, was on sale in China in February 2022. Since then, it has been released in the Asia-Pacific region such as Australia and Thailand, and the cumulative global sales volume by the end of 2022 is 202,058 units. Furthermore, in Europe, sales in nine countries including Germany and France have also been decided. However, although Chinese-made commercial fleet vehicles have been sold in Japan, there has been no sales record of passenger cars for individuals, and attention is focused on whether Japanese consumers will accept them.

BYD Japan website: https://byd.co.jp/news/2023_0131_105.html