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October 22, 2025 20 mins

Japan is emerging as a potential leader in carbon capture, utilization and storage (CCUS) — and is developing another next-generation decarbonization technology: CO2-absorbing concrete. In this episode of the ESG Currents podcast, Bloomberg Intelligence analyst Yasutake Homma speaks with Junichiro Miura, deputy director at Japan’s Ministry of Economy, Trade and Industry, about the current status of CCUS and CO2-absorbing concrete, as well as their future prospects. Why are these technologies critical for achieving a decarbonized society yet still not widely adopted? What are Japan’s plans for international expansion, and what implications could these developments have for industry? This episode was recorded on Oct. 15.

 

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Speaker 1 (00:10):
ESG is constantly evolving. Over the years, it has shifted
from socially responsible investing to impact to sustample finance. While
the terminology continues to change, what hasn't changed are the
underlying science market pressures, tangible, physical and the financial impact
of the climate crisis, as well as increasing regularly scrutiny
and rising consumer expectations. Were able to filter out the

(00:33):
noise by speaking with industry experts to identify what is
rarely driving value. Welcome to ESG Currents, brought to you
by Bloomberger Intelligence, the investment in research arm of Bloomberg
Ama Stakeholma ESG analyst in Japan. Today, we are honored
to be joined by mister Junichiro Miira, Deputy director from
Japan's Ministry of Economy, Trade and the Industry. We'll be

(00:56):
discussing next generation technologies that are helping drive with a
transition to a the KRBONI society both in Japan and globally. Mirasa,
thank you so much for joining us today my preserve.
To start, I'd like to talk about sikhs krbon capture
utilization in the storage. In our research, SICKUS stands out
as a critical technology for Japan, given that Thummer power

(01:18):
plants still accounts for more than seventy percent of total
electricity generation. If we can capture kabon emissions from these plants,
it is a greatly accelerate about the communization efforts. Japan
began testing sekas more than ten years ago. Miurasa, could
you work us through the current to status of sikas
in Japan and the government policies for turning this technology

(01:39):
into reality and.

Speaker 2 (01:40):
The fature of the climate change is an urgent challenge
thought to be or must address. Twenty twenty four was
the highest the temperature yere in history since observation began,
with global average temperature about one point five to five
degree ceresis about free industry reports it is a first
time to be above one point five degree. The world

(02:03):
is facing the frequent natural disaster and extremely weather, so
it is essential for country to accelerate their effort towards
achieving carbon neutrality. Japan is pushing forward with being transformation
toward GX strategy that aimed to simultaneously achieve energy security,
economic growth, and the carbonization towards carbon neutrality by twenty fifty.

(02:27):
In February of this year, we approved the GX twenty
forty division, which are autrying the medium to the long
terim direction of the GX strategy. We will implement this
plant to achieve the glub of GX. Japan has also
set a new greenhouse CUSS reduction targets that aimed to

(02:50):
use emissions by sixty percent in twenty thirty five and
by seventy three percent in twenty forty from its twenty
third in reverts. These targets are aligned with the GLOWER
one point five DELL goal as now and we can
reduce emissions on track toward twenty four to fifty carbon neutrality. However,

(03:13):
emission reductions primarily attributed are decreased in energy consumption and
resulting from reduced domestic production activities in the manufacturing sectors.
Considering the future economic growth of Japan, it is consulting
without the current trend of reduction will continue. Additionally, achieving

(03:36):
carbon neutrality will require decarbonization in sectors where emission reductions
are particularly challenging, such as Steube, chem clause and cement. Furthermore,
authority surrounding our energy policy have increased due to fractors
such as the Lucius invasion of Ukraine, escalating tensions in

(03:58):
the Middle East, and participated increases in electricity demands associated
with the progress of digital transformation. Therefore, new emissions reduction
targets is a highly ambitious goal and achieving it is
by no means an easy task. Schishi US she can

(04:19):
achieve the goalbanization in sectors that are difficult to decobanize
through electricification and achieft to non fossil sources using hydrogen
and its derivatives. Therefore, sishi US is indispensable for GX.
We are working towards a social implementation of shishi Us

(04:39):
technology by supporting technology development and improving the business environment
regarding to sihi US. Sishis Business Act was enacted in
May of this RUST year, which establishes a rising system
for strays projects. In February twenty twenty five, and based
on the Act, Minister of Meti designated its area of

(05:01):
the coast of Tomakumai in Focaido as a space part
Earlier in September granted permission a company called Japex to
conduct explorer to be enduring in that region, and Toma
Kumai is notable for having conducted Japan's first right scale
sishis demonstration project and now project is focussing towards the

(05:26):
commencement of the future Sishis project. Following Toma Kumai, certain
areas of the coast of Kujukuli in Chiba Prefecture have
also been designated as a spaceport area. We now consider
support system to encourage investment in shishi as projects and
developer technology to release costs and develop the suitable sites,

(05:51):
aiming for commercialization of domestic sishis by RI twenty thirty.
For shishi, we are particularly advancing carbon cycling technology. This
technology enables the use of captured shields as a material
or health through processes such as mineralization and artificial photosynthsis.

(06:15):
In twenty twenty three, we developed a carbon recycling roadmap
that outlines the direction for achieving our carbon recycling society.
Based on this roadmap, we are collaborating with the Needle
Public Organization to promote the development and demonstralation of new
shields separation and capture methods that read to costal reductions. Also,

(06:41):
we are the advancing technology development to stably speaks shields
captured from factory into concrete as well as as a
related technology development.

Speaker 1 (06:52):
Thank you for your comprehensive explanation. My follow up question
relates to industry implications. From your perspective, can companies to
sustainbly generate profits through seekers or will they require government
subsidies and support reach break weaving points.

Speaker 2 (07:08):
For sheishi US project to be sustainable. For other business
society needs to be willing to accept the additional costs
associated with implementing sishi US technologies in the future. If
carbon pricing rises to the point with where the prices
or products rugs made from fossil fuels exceed, and though

(07:30):
the projects produced through the sishi US environmental valuable products
will naturally be chosen, this would allow companies to secure
profits and enable the retable investment for cc US. On
the other plant, it's currently unclear when and how much
carbon pricing will rise. There's also a lot of uncertainty

(07:55):
as surrounding the supply and pricing of essential dissociates for
cg US, like hydrogen and denewble energy. Because of this,
the investment landscape for cgi US is quite unpredictable, which
makes it challenging for businesses to make investment decisions in
this area. So we aim to create a business environment

(08:20):
that encourages the risocial implementation of sigi US technology by
supporting technology development focused on cost reduction. If we can
establish sishi US technology ahead of the other countries, it
will not only contribute to glover the Carbanizational airport, but

(08:41):
also enhance the competitiveness of Japanese industries.

Speaker 1 (08:47):
Thank you, Let's shift another next generation technology, ce you two.
Absorbing concrete. Government reports, including those from the Ministry of Environment,
have emphasized the role of concrete in emissions, but so
far it seems that actual absorption levels remain almost nothings.
Why does Japanese government expect such COO to absorb in concrete?

Speaker 2 (09:11):
To achieve carbon neutrality is essential. However, there are not
necessarily many suitable sites for chiot straage in Japan. Therefore,
it's essential to implement carbon recycling and that uses two
in a circular way and helps reduce emissions into the atmosphere.

(09:34):
We think that one promising technology in this area is
shield to absorbing concrete, which can create a significant role
in our carbon recycling efforts. For instant concrete can fix
in its raw material such as aggregate and admixture or
capture shields during the curing process. The fundamental technology for

(09:59):
these to absorption methods be established itself and consortium made
up general general contractors, chemical manufacturers and uiversities currently collaborating
to deblop technology that reduces THEOTWO emissions and maximize the
amount of the shield fixed. They are also working on

(10:21):
methods to measure and evariate the amount of gioto fixed
in concrete. Additionally, for cement, which is our main row
material for concrete, we are also developing technology to capture
the shiodo generating during its manufacturing process and use it
for missing production and other applications. By combining these barriers technology,

(10:48):
we can anticipate even greater shields reduction across their entire
concrete and cement sectors. A complete structure may be considered
to have a act like SHE has because they do
not release you to under normal environmental conditions in their
long new time long term use which continue to climate

(11:11):
change education. In fact, in Japan's greenhouse gas Eventually report
submitted in twenty twenty four, she also fixed in concrete
was adapted for the first time in the world. Now
the amount is small, but we aim to increase it
through ongoing technology development. The amount the demand for concrete

(11:36):
and cement is Japan is expected to gradually decrease by
twenty fifty, while gloverery articularly in Asia and increase is anticipated.
Given the global trend towards political organization, is predicted that
the market side for shield abdorbing concrete products could expand

(11:57):
rapidly to around teen to forty three yea worldwide by
twenty thirty. And the related technology have already been put
into practical use in the regions like North America and Australia,
which indicates that inter technological competition is likely to an

(12:21):
intense white in the future in Japan. And to further
about the technologies that have already been successfully marshal rights
collaborating closs Lband ministry and academic society and industry, we
will also reverted licensing business models to aim for expansion

(12:44):
of market share both domestically and internationally.

Speaker 1 (12:50):
Wonderful and building on that, what do you see as
the bottlenecks in this market? The idea of reducing emissions
simply by constructing new buildings sounds transformative. Why hasn't it
been adopted more widely.

Speaker 2 (13:03):
Yet currentry and shields absorbing concrete has a high arm
manufacturing costs than conventional concrete, so costal reduction is an
urgent challenge that needs to be addressed. The several R
and D projects that Japanese governments financially support works on

(13:24):
developing technology aimed at lowering these costs. In addition, it
is essential to ensure economic viability through the expansion of
manufacturing scale, reduction requirement costs for the shield low material
and the streaming lining of the supply chain to lower

(13:45):
initial investment and operational costs. For example, automotive parts manufacturers
and gas propriers have studied initiative to establish middle sized
digional shield to supply chain. This initiative involve utilizing shield
two emitting from factory to produce synthetics missing, which is

(14:08):
then supplied to the local multi local, small and medium
sized enterprises as well as a concrete manufacturers. In addition,
to promote social implementation, it is also important to create
systems that visualize the environmental value of products. Large domestic
companies in Japan are obligated by law to calriculate and

(14:32):
report the green house housecast emissions annually. The government is
working on establishing counting loo for carbon recycling in this
reporting system. While the focus is initially on carbon recycled fuel,
they are plants to also consider counting lou for other

(14:53):
carbon recycling products such as shield absorbing concrete in the future.
But to absorbing concrete, discussions are also under way regarding
to their creation of check credit. By selling the credit
generated from shield to absorbing abdorption, businesses can secure findings

(15:15):
which will continue to their social implementation of these technologies.
And also Ministry of Round Infrastructure, Transport and Tourism is
considering a system to calculate a vary and evaluate the
environmental impact including shield emission throughout the entire life cycle

(15:36):
of buildings from planning to demolitions. Through such a system,
the aim is to promote behavior changes for shield to
emission reductions in the business and in the building sector,
which accounts for approximately forty percent of shield to emission
in Japan. Furthermore, the government will actively use environmentally variable

(16:03):
carbon recycling products in public procurement initiatives. For example, in
every of this year, the my history announced the de
carbonization action from for ship engineering projects regarding to shields
about absorbing concrete. The plants include verifying the supporace system

(16:25):
and cost effectiveness. After achieving certainly dark term verification, it
is intended to gradually expand the scope of its use
since twenty thirty. Japan's plan to gradually introduce carbon pricings
studying in twenty twenty six, but in the short to

(16:46):
midium terms, when carbon pricing is still in its developmental stages.
We aim to create a demand through such a policy
that promotes the usualization of environmental value and are related
in the initiative.

Speaker 1 (17:02):
Thank you great. Finally, looking ahead to COP thirty in
Brazil this November, do you think Japan is in a
position to lead on sikus and the CO two absorbing
concrete on the global stage and is there a plan
to showcase these technologies at any conferences which always draw
tremendous global media attention.

Speaker 2 (17:22):
In the g seventh summit held in Hyoshima in May
twenty twenty three, the importance of sishi Us technology was reorganized. Additionally,
the Governmental Panel on Crimate Change or IBG, has conducted
scientific assessments of sishi Us and carbon nuber technology among exports.

(17:46):
These progresses indicate a growing international movement towards the expansion
and adaptation of SIGH in US. On October tenth, we
held the International Conference on Corbon Recycling in Osaka. The
conference was attended by approximately six hundred and fifty articipants

(18:08):
including businesses, government agency and research institute from about twenty countries.
Active discussion to priests regarding various countries initiative on carbon
recycling and the race is trend in cobon recycling technologies
and business models for social implementation. We recognize against the

(18:32):
importance of technological development, apprecient shield supply chains and the
system that promotes amounts for carbon recycling products through the
visualization of environmental value or aimed at creating a carbon
recycling society. We hope that such initiative well progress in

(18:54):
various countries which let need to create a global market
for cobon recycling products. At the conference, there were presentation
on cutting edge carbon recycling technology developed by Japanese companies.
These presentations grammared significant interest from both domestic and international

(19:16):
artist Plants varias carbon recycling technology developed by Japanese companies
were also showcased at the Osaka Kansas Expo. We was
able to grint the future society where album recycling is
widely adopted. Through such an international conference, we aible to

(19:39):
share Japanese experience and the result of our technology development
and demonstration with the world. This will not only contribute
to the global reduction of greenhouse gas emissions, but also
the strengths the competitiveness of Japanese industry.

Speaker 1 (20:00):
Wonderful, Mira Sagan, Thank you so much for your percents timing. Today.
You can find more information by going to BI ESG
go on the Bloomberg terminal. If you have an ESG
queries for burning questions you'd like to ask bi's experts
or analysts, send us an email at ESG currents at
Bloomberg dot net. Thank you,
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