Innovative technology

Japan has come up with the “beyond zero” concept, which seeks to reduce carbon dioxide already in the atmosphere, going beyond achieving carbon neutrality around the world. A key to achieving this is in the “historical shift in the concentration of carbon dioxide since the Earth’s creation to present day,” Yoshino said.

“Carbon dioxide concentration on the ancient Earth is believed to have been several tens of percent, but it has decreased to 400 parts per million presently,” Yoshino said. “As carbon dioxide is an acidic substance, it is immobilized by neutralization, but, unfortunately, neutralizing reactions created by substances existing on the ground have ended. One possible way to further neutralize carbon dioxide is to make alkaline substances in the soil that absorb carbon dioxide. Another is photosynthetic organisms. If a major innovation emerges in this area, we should be able to find new possibilities that are different from existing biomass technologies. Personally, I’m interested in algae with high rates of absorption.”

ICEF 2020 was held to promote a global-scale effort to develop such innovative technologies. In addition to discussions from a technological viewpoint, panelists discussed the role the financial industry can play in accelerating innovation. Fiona Reynolds, chief executive officer of the U.N.-supported Principles for Responsible Investment, said companies in not only Europe, but also Asia now commit to net zero (where carbon dioxide emissions and absorption is balanced out) as a comprehensive goal by 2050. This has been made possible by increasing investor engagement from the financial industry.

Tokyo ‘Beyond-Zero’ Week

There were a series of international conferences related to “beyond zero” organized by Japan in a period from late September to early October. The series, titled Tokyo “Beyond-Zero” Week, was aimed at showcasing Japan’s global efforts in tackling global warming.

The TCFD (Task Force on Climate-related Financial Disclosures)summit discussed promotion of climate-related financial disclosure as a basis for private-sector investment. At this summit , the Ministry of Economy, Trade and Industry announced 320 Japanese companies that were recognized for their active efforts in environmental innovation. Japan aims to encourage investors in Japan and overseas to provide funding based on TCFD disclosure information.

Research and Development 20 is a forum of leaders from research organizations in the area of clean energy. It provides a framework for discussion, mainly among the Group of 20 countries, which account for about 70 percent of global carbon dioxide emissions. In the second meeting this year, participants agreed to prepare for the formation of joint international research initiatives.

The plan was created by Fermenstation Co. The startup manufactures highly pure ethanol from organic rice grown on formerly unused rice paddies in Oshu, Iwate Prefecture, that is used to make final products such as materials for cosmetics and other items. The company’s technology traveled on the train through stations in the Tohoku region, as if to embody its name, a portmanteau combining “fermentation” and “station.”

Value of unused resources

Fermenstation operates on a business model in which unused resources from the production process are recycled. Through its business, byproducts from the ethanol production process are turned into chicken and cattle feed. In turn, their manure is used on the rice paddies and other farms. Rice is not the only material from which ethanol is extracted. The substance can come from the production processes of some other food and drinks. The restaurant train project symbolizes an aspect of Fermenstation’s business.

“What we’re trying to do is to put resources that remain unused in society to effective use by using them to produce ethanol and sediment left from fermentation,” Fermenstation CEO Lina Sakai said. “We want to develop an ultimate recycling model through this process.” She is not originally from Tohoku, nor did she initially have anything that linked her to the primary industry.

Sakai is from Tokyo, and she was working in the financial industry when she learned of a technology to turn compostable waste into fuel. To learn about fermentation technology, she enrolled in the Tokyo University of Agriculture while in her 30s. While there, she met a mentor who happened to be conducting a joint research project with the Oshu municipality in Iwate Prefecture, which gave her a chance to visit the region repeatedly, leading her to eventually start the business there. Although she successfully developed the technology to extract highly pure ethanol from rice, she gave up an idea of turning it into a commercial fuel product as this turned out be an unprofitable proposition. Still, she was determined to find widespread use for the technology that she put so much effort into developing. She launched the business in 2009 to take over the project with an aim to use the rice-derived ethanol as a material for cosmetics production. Behind her passion was a conviction that an age of circular economy was going to be here to stay.

Question: CLOMA has come out with an action plan, which serves as a road map for its activity. Could you give us some details of the plan?

Sawada: CLOMA has already started wide-ranging collaborative efforts between member companies to reduce the amount of plastic used in products. These efforts include sharing technological information that can contribute to developing alternative materials.

Needless to say, while we must give 100 percent for these efforts, this alone won’t lead to fundamentally solving the problem of plastic waste. We also need a vision to promote plastic recycling.

Question: For example, for polyethylene terephthalate (PET) bottles, a highly sophisticated recycling system has been established in Japan, correct?

Sawada: It has. But most other types of plastic waste are incinerated for thermal recovery.

If we aim to recycle all plastic containers and packaging, we need knowledge about materials, multifaceted collaboration between member companies and cooperative relationships with the manufacturing industry and the government. CLOMA’s role is to promote these things.

Strength of collaboration

Question: Japanese companies have implemented measures to address environmental issues through innovation in many areas, including materials development and promotion of recycling, not just for PET bottles. A structure for disposing of waste centered on local governments has also been established.

What kinds of efforts and viewpoints do you think are needed to develop these individual efforts into a society-wide structure and make them more efficient?

Also, one of CLOMA’s principles is to “optimize the combination of technology development and social systems to accelerate social implementation.” What actions will be needed to meet this principle?

Sawada: In my view, in order to develop individual efforts into a society-wide structure, it’s important to make all plastic containers and packaging recyclable and centralize recycling

PET bottles, typically used for drinks, do not have much content residue (when recycling), but many other plastic containers and packaging are often soiled with food residue. We need to make them recyclable while trying to reduce the burden on households.

As amounts of recyclable trash differ from region to region, it’s not efficient if different local governments recycle separately from each other. It is important for local governments to coordinate efforts and make it possible to transport recyclable waste to centralized recycling facilities.

To further advance recycling, technologies for cleaning and crushing waste materials are indispensable. Additionally, knowledge and technologies for materials other than plastics need to be linked. These are aspects where the strengths of CLOMA can be put to great use because multifaceted collaboration across industries is our forte.

Question: What’s your perspective on the policy package for the circular economy announced by the European Commission in 2015?

Hosoda: Frankly speaking, I saw some ideas that were familiar to me, while being surprised by some new aspects.

This policy package contains a wide range of concepts, including issues surrounding waste, recycling and a sharing economy. I found originality in that the policy places the economy and the environment in a win-win relationship since the initiative contributes not only to environmental protection, but also to economic rejuvenation.

Question: Japanese companies have remarkable technology and have also worked on methodically realizing a circular-based society.

Do you have any concerns that they would be swallowed up by the European-style business strategy?

Hosoda: Yes, this is definitely a possibility, so I think Japanese companies need to disseminate their positions and policies clearly.

Especially, regarding plastic waste issues that attract much social interest, major Western companies such as The Coca-Cola Co., Nestle SA and Unilever PLC have incorporated measures to reduce environmental burdens into their business strategies, declaring concrete targets.

I have to say Japanese companies, on the other hand, are slow to make such a move.