Regional Report to theManagement Committee

HoustonOctober 16, 2014

Masahiro Honda, JSIA

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Contents Sustainability 1. Commitment to a Low Carbon Society 　　 (The action plan to reduce carbon dioxide emissions in Japan) 2. The carbon tax in Japan

Safety Practice ・ IBC Code Registration by IMO

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Sustainability1. Commitment to a Low Carbon Society (The action plan to reduce carbon dioxide in Japan) Industry’s efforts on carbon dioxide emissions reduction in Japan are

aggregated and led by Keidanren.*) *) ・ Keidanren is Japan Business Federation.　　 ・ JSIA is a member of Keidanren.

(1)Outcome of the Voluntary Action Plan Keidanren developed the Environmental Voluntary Action Plan in

June 1997. It has achieved successful results on CO2 reduction and energy

saving in accordance with the first commitment period of the Kyoto Protocol from 1998 to 2012. It assured that the effectiveness and transparency of the plan by making thorough PDCA cycle of the Voluntary Action Plan.

　　　 In the Kyoto Protocol Target Achievement Plan by the cabinet decision, the Voluntary Action Plan is positioned as a pillar of the measures by industry. .

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CO2 emissions by the 34 industries in the industry and energy-conversion sectors that participated in the Voluntary Action Plan averaged 444.47 million t-CO2 over the five years from fiscal 2008 to 2012, a reduction of 12.1% from the fiscal 1990 level of 505.51 million t-CO2 .

■Actual emission

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Figure 2. CO2 Emissions from Energy Consumption by Sector in Japan

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Sustainability

1. Commitment to a Low Carbon Society (2) Promotion of the Low Carbon Society Action Plan

1) Phase Ⅰ

     ▪ Japan promotes global warming prevention measure by setting medium-term targets of their own without the participation in the second commitment period of the Kyoto Protocol (2013-2020).

▪ In December 2009 Keidanren announced the Low Carbon Society Action Plan (2013-2020) as a plan to follow the Voluntary Action Plan. It will continuously further strengthen its voluntary and aggressive measures against global warming beyond 2013.

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Sustainability

▪ Industries participated to the Low Carbon Society Action Plan

have developed the action plans based on the following four points:

(a) establishment of CO2 emissions reduction targets for

domestic business operations up to 2020 (b) strengthened cooperation with stakeholders including consumers and customers (c) international contribution including technology transfer to developing countries (d) development of innovative technologies

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Sustainability

2) Phase Ⅱ

　 ▪ In the international negotiations on climate change, it has been decided, before COP21 in December 2015, to agree on an international framework after 2020 to be applied to all countries. ▪ Keidanren is going to study the measures against global warming after 2020 in Japan.

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Sustainability

▪ Keidanren promotes the further expansion of efforts based on the Low Carbon Society Action Plan in order to make greater contribution to global warming in the long term.

▪ Keidanren sets the 2030 target besides the 2020 goal for emissions from business activities in Japan and strengthens its efforts as much as possible in the fields of the cooperation between entities, international contribution and innovative technology development.

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2. Carbon tax in Japan

[Exemption of petroleum and coal tax] For imported coal to be used for private power generation supplied for sodium hydroxide production, the coal tax is reduced to the current tax rate from 2012 to 2016.

It was decided that the Special Taxation Measures Law was revised as a special case of taxation for global warming, petroleum and coal tax is raised in stages.

Sustainability

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Safety Practice

IBC Code Registration by IMO We examined the requirements of IBC code for shipping caustic soda and hydrochloric acid defined by IMO. IBC will determined the required structure for a transport ship, based on the inhalation toxicity data owned by GESAMP. (Group of Experts on the Scientific Aspects of Marine Environmental Protection) GESAMP shows that the inhalation toxicity of caustic soda and hydrochloric acid are high enough to require the ships with a two-layer structure. Some companies in Japan have collected new data to prove that the two-layer structure is not needed.

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Safety Practice

IBC Code Registration by IMOSeveral companies in Japan carried out an acute inhalation toxicity study of caustic soda, and they submitted the test data to GESAMP.GESAMP will consider not only our acute inhalation toxicity data, but also the data of vapor pressure of caustic soda.The transport ship structure of caustic soda is under review by GESAMP.

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Thank you for your kind attention!