Activities in Japan) Recent Major Achievements (Activities overseas - focusing on environmental, health and safety issues)
Advocates chemical industry views, opinions, and policy recommendations to regulatory authorities.
Presents policy proposals and recommendations to other related parties.
Sits on or recommends individuals who should sit on government advisory councils and expert committees.
Communicates regulatory news and information to JCIA members.
1. Provided industry opinions in the government review of the regulations on chemical substances, the environment, and occupational health and safety.
2. Provided position papers in the proposed revision of Commercial Code and tax laws.
3. Provided opinions on various themes suche as climate change in the government advisory councils like industrial Structure Council and Central Environmental Council.
4. Worked on environmental and quality control standards, and promoted standardizing initiatives such as chemical laboratory accreditation system, including necessary education and training.
5. Continued to provide relevant information to e-mail news networks with elements such as "JCIA EHS Net", "REACH Net", "Trade Net", "Japan-China Net", "Finance & Economy net" and "PR Net" to members.
Participates in ICCA initiatives for the assessment of chemicals and promotes joint voluntary research initiatives as well as activities relating to Energy adn Climate Change Leadership Group (Japan is the chair country of the group).
Participates in various international conferences to present JCIA views and recommendations, and promotes information exchanges with the chemical industries of the United States, Europe and other parts of the world.
Works to achieve global harmonization of standards relating to the environment, health and safety.
Recent Major Achievements
1. Parricepate in ICCA voluntary activities relating to the management of chemicals including ICCA High Production Volume (HPV) Initiative (hazard assessment of high production volume chemical products).
2. Participated in ICCA Long-range Research Initiative (LRI): industry's voluntary and long-range research program on the safety of chemical products.
3. Response to SAICM: Strategic Approach to International Chemical Management.
4. Registration, Evaluation, Authorization of Chemicals (REACH): addressing the proposed new European regulations on chemical products.
5. Participated in activities relating to the management of chemicals organized by OECD and other bodies.
6. Worked for the Globally Harmonized System for the Classification and Labeling of Chemicals (GHS).
7. Promoted worldwide activities to cope with global warming issues as the leader and chair coutry of the ICCA Energy and Climate Change Leadership Group.
With the Copenhagen negotiations on climate change now underway, the European chemical industry wishes to reaffirm its support to their successful conclusion as a prerequisite to bring the global economy onto a path towards the desired global emission reductions. Some effective (efficient) international agreements must be made in that respect.
A successful, truly international agreement must:
- promote new climate friendly technologies
- disseminate climate friendly tools
- support responsible behaviours
The European chemical industry can contribute the decisive bricks and mortar to build such an international framework by enabling or providing concrete solutions.
1. An effective (efficient) agreement must promote the development of new climate friendly technologies
If they are to comply with current requirements from United Nations bodies limiting the global temperature increase to 2°C, the world’s economies must disseminate more technologies that save more greenhouse gas (GHG) emissions. This requires even newer innovative technologies for increased savings compatible with growing populations and modern needs. Many countries are developing low carbon transition plans to guide long- term global GHG reductions. They need such tools.
This need for innovation and investment implies the promotion of a highly competitive European chemical industry given its carbon abatement capacities and the importance of its downstream users. The EU chemical industry is an important contributor to socio-economic development. It comprises 27,000 companies, employing directly 1.2 million people and generating a trade surplus of 35.4 billion Euros in 2007.
Avoid unfair competition
This competitiveness requires a truly international agreement to avoid detrimental unfair competition. As long as important emerging economies do not make binding commitments, the value of the industrialised nations’ commitments - in terms of the global abatement effect - will not stop dangerous climate change as the International Energy Agency (IEA) and (Intergovernmental Panel on Climate Change (IPCC) show. Persisting global climate policy imbalances may lead to relocation of manufacturing to regions with a carbon-intensive energy mix, thereby accelerating global carbon emissions (=“carbon leakage”) even further.
Carbon leakage is to be avoided, by an effective international agreement where all nations commit to comparable greenhouse gas reductions. Such reductions are possible via the dissemination of efficient tools, mainly provided by the chemical industry (like insulation, modern plastics, new lighting, renewables….). Outside the EU, other industrialised countries are also making economy-wide emission reduction commitments. This development is greatly appreciated by the EU chemical industries as this will hopefully bring the global economy onto a path towards the desired global emission reductions and eventually reduce the competitive disadvantage for ‘early movers’ (=industries already operating under carbon constraint regimes).
2. An effective agreement must promote the dissemination of innovative climate products and technologies from the chemical industry throughout the world’s economies
Innovative solutions must be globally disseminated to reduce greenhouse gas emissions wherever there are consumers. National and global frameworks have to focus on the largest, most effective and lowest-cost abatement opportunities. These opportunities should be explored based on the full life cycle, not only on emissions during the manufacturing phase of products and activities. Incentives may support substantive adoption of such opportunities.
Protectionist trade policy measures are unacceptable and ineffective for enforcing climate protection targets. A successful climate policy depends on undistorted markets and free and fair trade: the climate solutions cannot remain where they have been created - they must be traded on an international basis. Intellectual Property rights must be protected as they stimulate research and technology deployment.
To ease further dissemination of low carbon tools, flexible mechanisms like CDM (Clean Development Mechanisms) must be reinforced: they provide incentives to business to invest in cost- effective emission reductions within developing countries, enabling technology dissemination.
Have proper climate incentives
Effective (Efficient) climate solutions should be designed to impose proper incentives only so as to drive capital flows to low carbon tools - not to create external markets more concerned by their own profitability than by the emissions reductions efficiency. The auctioning of allowances under the EU Emissions Trading Scheme is under development and must be designed in order to allow operators of installations to have direct access to the required allowances and to achieve emission reductions at the lowest cost. The auctioning share of total EU allowances must not be extended for the purpose of filling gaps for financing international climate protection measures. Instead, these resources are essential for EU companies to further deliver on research, development and low-carbon innovation. Generated revenues must be channelled back to industry to support breakthrough technology enabling climate change mitigation.
3. An effective agreement must promote committed behaviours for a sustainable economy
The European chemical industry is showing constructive commitments and sustainable performances. Between 1990 and 2005, chemical production in the EU rose by 60 percent, while total energy consumption was stable. This means that the chemical industry has cut its energy intensity by 3.6 percent annually. Absolute greenhouse gas emissions, meanwhile, were reduced by almost 30 percent. A global study of 2009 shows further significant minimization potentials outside the EU in emerging economies (see video and news), whilst the domestic potential is limited - often involving disproportionate costs. Such behaviour should be encouraged by the provisions of an international agreement.
The European Union has made legally binding economy-wide commitments (-20% by 2020 compared to 1990) that are being implemented mainly by specific economic sectors through the EU cap and trade system. Such commitments cannot deliver unless other countries commit in comparable directions. Sharing national commitments in an international agreement is in fact responsible - otherwise unfair competition is created and efficient technologies are prevented from being disseminated by companies that have invested heavily. The current EU strategy implies in fact an increasing cost burden on these EU sectors that until now has remained unilateral, thus weakening their international competitiveness. The EU chemical industry feels it is not appropriate for the EU to move in the negotiations at COP15 in Copenhagen to an even higher target putting further constraints on sectors. This would first require a proper in-depth peer-reviewed economic and analysis taking into account other countries commitments and economic effects.
A balanced climate burden for all regions
A responsible behaviour implies a well balanced burden for all regions, economies and sectors. Derived from the principle of "common but differentiated responsibilities" as agreed in the Framework Convention on Climate Change, some parties offer even further significant emission increases for emerging and developing countries. Moreover, concepts such as “sectoral crediting” and “no-lose targets” are being discussed - meant to integrate developing countries, i.e. emerging economies. However, as long as diverse treatment of sectors and companies resulting in no or lower carbon costs in different regions is allowed to continue or worsen, this will enable strong production growth - especially outside of the EU in the chemical industry's main competitor countries of the future (China, India and the Arabic region) - whilst growth perspectives in Europe are already restricted by the existing cap and trade rules. This policy will make the "carbon leakage" problem permanent, requiring effective measures such as performance-based free allocation of emission rights for sectors exposed to climate policy-induced competitive disadvantages.
