First Global GX Conference (GGX) Held

1. Outline

As part of Tokyo GX Week, which began on September 26, the Ministry of Economy, Trade and Industry (METI) held the First Global GX Conference (GGX) on October 7 (Fri.), the last day of the 2 week event. Speakers/panelists attended from five G7 countries, two international organizations, and twelve universities, research institutes, and private companies and discussed achieving green transformation (GX) globally.
At the Global GX Conference, Mr. NAKATANI Shinichi, State Minister of Economy, Trade and Industry, and Mr. Peter Bakker, President and CEO of the WBCSD, delivered wonderful speeches. These were followed by video messages from Mr. John Kerry, Special Presidential Envoy for Climate, United States; Mr. Frans Timmermans, Executive Vice-President of the European Commission; the Rt Hon. Lord Callanan, Parliamentary Under Secretary of State (Minister for Business, Energy and Corporate Responsibility), United Kingdom of Great Britain and Northern Ireland; Mr. Mathias Cormann, Secretary-General of the OECD, and Dr. Fatih Birol, Executive Director of the IEA. The following session was the first high-level ceremony in Asia of the First Movers Coalition (FMC) (*Reference 1), an initiative in which global companies such as Apple and Amazon commit themselves to procure a certain amount of green products to create initial demand. The event was titled FMC in Japan (*Reference 2). Three thematic panel discussions on "Designing a Green Market," "Standards and Evaluations Promoting Green Products/Services," and "International Cooperation for Developing a Green Society" were held afterwards to discuss prospects and challenges in realizing GX.
GX is to shift the economic, social, and industrial structure to be driven by clean
energy, and achieve both economic growth and emissions mitigation. Many participants at the conference also mentioned the importance of the concept of GX and their expectations for Japan.
Looking towards COP27, the G7, and other future meetings, Japan will continue to enhance international cooperation, and engage with developed countries, developing countries, major emitting countries, as well as other stakeholders such as the business sector—which has an important role regarding climate change— to pave the way towards realizing GX.
The "Summary of Discussion and Way Forward" was also compiled based on the conference.

Related file

• Summary of Discussion and Way Forward(PDF:388KB)PDF

2. Way Forward

Based on the discussions at the conference, METI, Japan, will accelerate the discussion on the following points.

• We recognized the importance of combining approaches from both demand side and supply side toward building a green market to achieve net-zero GHG emissions. We also recognized the importance of designing the transition market to facilitate a smooth transition, especially taking into consideration the timeframe related to the development and diffusion of innovative technologies of hard-to-abate sectors. To this end, from the financial perspective, we will work to build a green market, utilizing not only green finance and innovation finance but also transition finance. We will continue to deepen international discussions on how to promote effective mitigation measures in hard-to-abate sectors by recognizing the need for diverse approaches and combining various policies according to the circumstances of each country.
• The current climate change debate focuses on "how to reduce GHG emissions from a certain entity (e.g., a company, an organization) throughout their supply chains". To this end, methodologies such as the GHG Protocol (Scope 1-3) and discussions such as climate-related financial disclosures (TCFD) are being promoted. It is important to continue to accelerate these efforts. In addition to these efforts, in order to enhance positive climate action and the mitigation of greenhouse gases, it is important to acknowledge the perspective of "how much a certain entity (e.g., a company, an organization) contributes to mitigation throughout the society in total". If a mechanism can be created to appropriately value the contribution, and resources such as finance can be directed to entities that are promoting these efforts, it will encourage the diffusion of green products and services and promote achieving net-zero emissions through economic growth. Based on this notion, we will deepen the discussion on the concept of "Mitigation Contribution" with various organizations including governments, private companies, while keeping the following points in mind.
  • Deepening discussions in, what are the products and sectors to which the concept of "Mitigation Contribution" could or should be applied, the appropriate definition and methodology for evaluation, and what is the way in which transparency could be ensured.
  • Recognizing the intrinsic importance of the concept of "Mitigation Contribution", clearly differentiating this concept from GHG Protocol (Scope 1-3) and NDC.
  • Deepening discussions in, what are the methods and explanations to prevent this concept to be misunderstood as "greenwashing". More specifically, this concept should not be used in a way that will lead to inappropriate evaluation of countries, companies, etc. that take unambitious action.
• International cooperation will also become increasingly important in advancing climate change countermeasures. It will be extremely important to recognize each country's circumstances, strengths, and the role of business to enhance cooperation that is beneficial to both developed and developing countries. (e.g., adaptation business, expanding JCM cooperation, supporting technology and human resource development that support realistic transitions in developing countries, and the concept of Mitigation Contribution). It is also important to continue to discuss the role of trade policy in climate change.

Related Links

• First Global GX Conference (GGX) PageLink
• Tokyo GX Week
• About Transition Finance

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