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  6. The Future of Emissions Reduction in the United States after its Withdrawal from the Paris Agreement – The Search for Business Opportunities as a New Driving Force –

The Future of Emissions Reduction in the United States after its Withdrawal from the Paris Agreement – The Search for Business Opportunities as a New Driving Force –

Nozomi Kato, Senior Research Associate
May 2018

ABSTRACT

The United States decided to withdraw from the Paris Agreement, an international framework of climate change countermeasures from 2020. Although this will have a great influence on diplomatic issues, it is likely that the achievement of reduction targets by major emitting countries will not be affected. Furthermore, in the United States, there is a high possibility that emissions reduction will be further promoted for the following two reasons. First, several states with large economies enforce their own measures to fill the void that has opened up at the level of national policy. Another reason is that from the viewpoint of economic rationality and the creation of business opportunities, renewable energy and its efficient use are chosen not only in states with a highly liberalized electricity sector but also in non-liberalized states. As a result, the decentralization of power generation and the diversification of power plant operators have further developed, and it has become apparent that directly connecting power suppliers, consumers and prosumers is indispensable and of significance. Technologies and services that are developed for these purposes create business opportunities and are becoming the driving force for emissions reduction in the US. The presence of US companies is particularly significant regarding digitalization in the energy sector—i.e., P2P platforms utilizing data analysis and blockchain technology, which has received increasing attention in recent years. They have started a number of pilot projects with local partners in various countries and regions, pursuing business opportunities both domestically and internationally. In Japan, meanwhile, economic incentives are not leading to a progress in decarbonization. Unlike the US, the direction at a national level to continuously work on emissions reduction will probably not change in Japan. Still, focusing on expanding business opportunities in considering climate change countermeasures is consistent with achieving long-term emissions reductions. It is expected that incorporation of steps that should be taken to expand domestic business opportunities into Japan’s long-term reduction strategies will enable drastic emissions reduction by companies.


The full version of this report is available in PDF format below. This report is only available in Japanese.
The Future of Emissions Reduction in the United States after its Withdrawal from the Paris Agreement – The Search for Business Opportunities as a New Driving Force –