"Zero carbonization" has become a major trend in the world. As a result, changes are required for individuals, business entities, local life and social structures. In order to achieve zero carbon, it is essential to implement sustainable regional development. A smart city that promotes sustainable and progressive zero-carbon development will be realized by fostering zero-carbon industries that make use of the characteristics of the region and operating the infrastructure.
In this article, we will introduce Macnica 's efforts to realize a Zero Carbon Smart Zone based on current regional examples.
How can we achieve a zero-carbon region and develop it permanently?
"Zero carbonization" to reduce greenhouse gas emissions to virtually zero. What are the key points for its realization and continuation?
In order to achieve zero carbon, it is necessary to promote structural reforms in society and achieve both "renewable energy as the main power source" and "efficiency in energy utilization." It is important that we ourselves take the lead in planning and implementing energy utilization, not infrastructure operators. Concrete efforts and collaboration by individuals, households, communities, and organizations will create an optimal circular economy and create a sustainable zero-carbon zone.
So what are the benefits of zero carbon? Zero-carbon is not limited to simply reducing carbon dioxide emissions and promoting energy conservation, but also leads to the creation and development of new industries in the region. In Japan, where energy resources are scarce, the realization of self-sufficiency and local production for local consumption of electric power by businesses rooted in local communities is a mechanism that guarantees great security and safety from the perspective of stable power supply and disaster countermeasures. increase.
In order to achieve zero carbon, it is necessary to carry out regional infrastructure development, business development, and industrial development at the same time. This is not something that can be achieved with a temporary investment, but requires permanent cooperation and promotion. To that end, it is an absolute requirement that the applicable areas, related businesses, residents, and users are happy.
Now, Japan's economic development has stopped for more than 30 years, and the gap with other countries is widening. The number of Japanese companies ranked in the top 50 of the "World Market Capitalization Ranking" has decreased from 32 companies in 1989 to only 1 company today. Zero carbon is a business area that should be focused on in order to revive our country from the ground up.
An important point in realizing zero carbon is to clarify the benefits to be created and the mechanism for achieving it. We are required to do new business. Let's work on regional cooperation and continuous commercialization while making use of government subsidies and grants.
Examples of regions promoting zero carbon and their efforts
What kind of efforts are being made in Japan to promote zero carbon? I will introduce two cases.
The first is an initiative jointly proposed by 18 local governments in the Chikuho area, including Kitakyushu City, Fukuoka Prefecture.
Utilizing various technologies such as advanced energy management, mobility cooperation, and installation of storage batteries. Promote multiple decarbonized energies, such as solar power, wind power, and hydrogen, while promoting recycling. We will promote local energy circulation and create new local industries in collaboration with a wide range of local businesses. It is a very ambitious attempt to lead the creation and development of diverse new industries under the strong leadership of local governments. The size of the business announced by the city is 9.7 billion yen, but it is believed that the city is aiming to develop a new energy industry based on this.
Next is an initiative by Kamishihoro Town, Hokkaido. We clearly set out the town-wide micro-grid and the creation of new industries in the region.
The town has 20,000 cows for a population of 4,900. Taking advantage of the regional characteristics, we will introduce biogas power generation using methane gas generated in the process of treating livestock manure. It is said that this power alone can cover about one-third of the town's power consumption. The digestive fluid remaining after power generation is reused as bedding for cattle in the solid portion and as liquid fertilizer in the fields where cattle feed is raised. We also use surplus biogas heat to grow fruit in greenhouses. It is exactly the commercialization of a circular economy that utilizes local resources. We will also introduce solar power generation and promote zero carbon throughout the town. It seems that this business will be promoted by strengthening the system of "Kamishihoro Electric Power", which is the core of the local industry, and by regional cooperation.
Both of the above two examples are included in the "decarbonization advanced areas (1st)" selected by the Ministry of the Environment in April 2022. The 26 regions selected have the following characteristics in common. This can be said to be a key point for fostering regional businesses that take advantage of regional characteristics.
It is impossible to achieve zero carbon with only the national budget. It is required to use the subsidies and grants as a stimulus to operate a business that is dozens of times larger than that in the region.
Actions to realize a zero-carbon business that makes the most of its characteristics
So, what kind of actions are actually required to realize a zero-carbon business? Two positions are described here: the municipality and the business operator.
What actions are required of local governments?
The first is local government. The major difference between zero-carbon projects and conventional public projects is that they require the creation and development of local industries. The government is taking a proactive stance to support everything from business plan formulation to the cost of priming. Make good use of it and move on.
The purpose is to promote business by creating a model for regional industrial development and regional economic circulation. It is important to encourage participation in the project through explanations and make them happy, rather than asking local businesses to do so. Zero carbonization cannot be achieved unless regional economic circulation is promoted. The main players in zero carbon initiatives are local businesses and their affiliated business entities. Let's create a system with the chief as the top and realize a response in cooperation with the business operator. Local governments will be the biggest beneficiaries of the results, but the main management of the business entity will be the local business operator, and the role of the local government will be limited to selecting business operators and checking the results.
The points to check the results are the reduction of carbon dioxide emissions and the growth of regional GDP. It would be desirable to have a system in which mutual checks are carried out with collaborating business entities.
What actions are required of business operators?
So what actions should businesses take? Without fear of misunderstanding, SDGs-related measures should not be taken as CSR or corporate brand improvement measures, but rather should be linked with the company's core business with the stance that "the company's core business itself is zero carbonization." It's a theme that should be addressed. In any industry, promoting business based on the two basic themes of "zero-carbon products and services" and "zero-carbon business operations" will contribute to the realization of a zero-carbon society. It will be. With this in mind, let's formulate a strategy.
When formulating business strategies and business plans, utilizing the financial information disclosure items recommended by the TCFD (Task Force on Climate-related Financial Disclosure) will facilitate organization and consideration. TCFD is a task force for corporate financial disclosure regarding climate change initiatives and impacts. It is a global trend for companies to disclose financial information related to climate change.
The TCFD Recommendations recommend companies to disclose the following four items regarding climate change-related risks and opportunities.
(1) Governance: What kind of system is considered and reflected in corporate management?
(2) Strategy: How will it affect corporate management over the short, medium, and long term, and what kind of strategy is being developed?
(3) Risk management: How are you trying to identify, assess and manage it?
(4) Indicators and targets: What indicators to use and how to set targets for evaluating risks and opportunities
The TCFD recommendations have been aligned with various frameworks. Use it to check your company's zero carbon strategy. Zero carbonization entails changes from the current situation, but it is an action that must be taken without fail in the near future. Let's move forward and practice.
A configuration tool that strongly promotes zero carbonization
Macnica provides multifaceted support for the construction and operation of circular economy zones. We provide services in the areas of energy management, energy saving management, and waste management. We provide tools and services for ``creating energy,'' ``reducing energy consumption,'' and ``using energy wisely,'' which are necessary for achieving zero carbon.
Here, we will introduce business construction and operation support, energy management systems (EMS), and storage batteries from among the services provided by Macnica.
Macnica 's business construction and operation support covers a wide range of areas, from commercialization research to consulting, construction, and operation. We will provide proposals and support from a flat position towards achieving zero carbon by utilizing the world's cutting-edge technologies such as AI and IoT. For example, we have a rich track record of support both domestically and internationally, including the Ministry of Economy, Trade and Industry, the Ministry of the Environment, and the Japan International Cooperation Agency (JICA). Leveraging our strengths as a trading company that handles a wide variety of products, we provide the latest information on a wide range of markets and support the diverse requirements of the circular economy.
Next, we will introduce an EMS tool from Cleanwatts, a company based in Portugal, as a product in the energy management field that manages the status of energy usage. It is possible to monitor and control from a single unit, and the biggest feature is that it can be easily introduced while keeping the initial cost down because it is billed according to usage conditions. Energy other than electricity such as gas and water can also be monitored. The company's cloud-based energy management platform "Cleanwatts OS" integrates power management functions for buildings, factories, and homes, solar power generation and storage battery management functions, and VPP (virtual power plant) functions that enable microgrids. I'm here. The dashboard is easy to read and customizable. Because it can flexibly work with existing control systems and applications, a wide variety of data can be collected, analyzed, visualized, and used for prediction and control. There are many achievements in Europe and Brazil, and it is used for various data usage requirements in governments, local governments, schools, hospitals, airports, railways, hotels, shopping malls, manufacturing industries, etc.
Next is the battery. There have been major technological innovations in the storage battery area, and their implementation has progressed in the last year or two. In the past, it was often treated as an emergency power supply or a backup power supply, which was a factor in increasing costs. . Products with a long life of over 20 years have appeared, can be safely recycled, and are extremely low-cost when considering operating costs, disposal costs, and safety costs. It is a product that can be used differently from conventional storage batteries.
Summary
In this article, we introduced how we should tackle the realization of a zero-carbon city by taking advantage of regional characteristics, and the effects and methods of promoting zero-carbon. Although the business will be formed in the midst of global competition to create new industries, the region will play a leading role. Let's create a happy business model that takes advantage of local resources and characteristics and lead it to development.
Macnica provides multifaceted support for the construction and operation of circular economy zones. If you are interested in zero carbon solutions, please contact us.
