2nd oecd conference center room cc7, paris organized by ...2nd international workshop on sectoral...

2nd International Workshop on Sectoral Emission Reduction Potential2 International Workshop on Sectoral Emission Reduction PotentialOECD Conference Center Room CC7, Paris

organized by Government of JAPAN

Global Steel Sectoral ApproachNC (Bi-lateral, Nippon-Chugoku),

APP (Se en lateral Asia Pacific Partnership on Clean De elopment and Climate)APP (Seven-lateral, Asia-Pacific Partnership on Clean Development and Climate) and worldsteel (Further multi-lateral, World Steel Association)

Wednesday 22 October 2008y

Teruo OKAZAKI, PhD

Chair for International Environmental Strategic Committee

Japan Iron and Steel Federation General Manager, Global Environmental Affairs Departmentg ff p

Nippon Steel Corporation

2nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

1 O i f Gl b l St l S t l A h (GSSA)

0. Contents

1. Overview of Global Steel Sectoral Approach (GSSA)

2. Corporative(cooperative) industrial Action

GSSA : NC(nippon-chugoku), APP and worldsteel

3 Discussion points of “Session 3”3. Discussion points of Session 3“Cross-border analysis contributing to Measurable, Reportable and Verifiable

actions by developing countries”y p g

1) Measurability, Data Collection, Target setting and co-benefits.and co benefits.

2) Enhancing MRV actions (financial mechanism,

technology cooperation sectoral crediting mechanism)technology cooperation, sectoral crediting mechanism)

3) Leakage issues

4. Summary 22nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

World-wide crude steel production 1. Overview

13221323

●Rapid growth in China, last decade almost five times.

13221250

970904

850848789

11411069

1,000

1,200

(百万ｔ）＜世界計＞Million -t/year World-wide crude steel production1323

850848789777799750752725728719734769

400

600

800

＜各国の粗鋼生産＞(百万ｔ）

0

200

400

500

600＜各国の粗鋼生産＞

中国

423

489

京都議定書採択

China

1990

年

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

300

400

423

356

280

222

京都議定書採択

日本 1億t中国 1億t

Kyoto Protocol adoption

China=Japan=100million-t/y

100

200

120(日本)

176(EU15)124(CIS)

222EU15

Japan CIS

30

1990年1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 出所：ＩＩＳＩ

Japan CIS

2nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris2050

Overview of Steel’s Sector-based ApproachesWorld-wide crude steel production (2007)

1. Overview

13.2

1 5Others 8 4

World wide crude steel production (2007) 108ton/year, 2007Cy crude steel production

1.5Others

1 0USA

0.1Australia0.5 India0.5 Korea

8.4

6.16.11.0 USA 6.16.1

4.7Japan

China 4.9

1.2

0.3 Other EU 1.2 CIS

0.2Canada

●Sectoral approaches with

Kyoto 40%

World-wide

1.8EU15

APP 60%

China-Japan 50%

various levels.

40%100%Coverage 60%50%


Overview of APP 2. GSSA-APP

【Asia-Pacific 7 countries 】●Sectoral approach is ongoing with achieving milestones. 【Asia Pacific 7 countries 】

Australia, Canada, China, India, Japan, Korea, USA【Focusing on Energy and SOX/NOX issues】g gy【Government-Private Partnership with small number of nations】

• Huge potential for CO2 emissions reduction

Characteristics

Huge potential for CO2 emissions reduction– APP seven nations CO2 emissions are approx. 60% or a whole world.

• Technology oriented sector-based and bottom-of APP Technology oriented, sector based and bottomup approach

• Government-Private collaborationsGovernment Private collaborations– Non-legally binding– Dynamism of private sector and potential for R&D activated


APP Steel TF / Sectoral Approach by Seven Countries3- 1) APP-data&target

:High coverage / Over 60% of crude steel production:Technology oriented / Experts of steel industry participates

APP:Technology oriented / Experts of steel industry participates:Government – Private collaboration

Step Purpose ActionStep Purpose Action

General approach

Share state of the art save energy technology

SOACT handbookWorkshop

Review current status Diffusion Survey of SOACTEnergy intensity Survey by common boundaryBarrier Survey

Model project approach

Diagnosis on selected site Energy efficiency surveyPotential surveyProposal for improvement

Implement flagship project Flagship project selection

Set milestone Set ambitious and realistic milestone

Possible milestoneApplication of SOACTEnergy intensityEnergy intensityOthers


Flagship Project-2E t bli h f C M th d l

3- 1) APP-data&targetEstablish of Common Methodology to Identity Reduction Potential and Performance Benchmarking

Step 1: Status Review ●Step-by-step approach for target setting.Step-1: Status Review

Diffusion rate of technologiesDiffusion Survey

Selection of technologies for surveyfrom a common data base, SOACT handbook

S y

Barriers Survey

Intensity benchmarkingA common Methodology setting for benchmarking

Formula

Boundary Intensity Surveysetting for benchmarking

Conversion Factors

Step-2: Reduction potential

Step-3: Target setting7

2nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in P i

DH & EG for better quality and quantityData Collection 3- 1) APP-data&target

q y q y

●Data collection with higher coverage and credibility. Data hub and expert group play an important role with confidentiality

CompanyCompany

CCompanyCompany

and expert group play an important role with confidentiality.

Indian GCompany Company

Company Company

Canada

Expert Groupand Secretariat

AISICISA

Company

Company Data confidentiality

Data Hub

and Secretariat

JISF KOSA

Australia GCompany

Company Company

Company

Co p y CompanyCompany

Company Company

Pl t Pl Plant

Company

Plant

The third party

Steel Task Force

Plant Plant Plant PlantPlant

Plant Plant 82nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

A common methodology for target setting discussion has just started to be a

3- 1) APP-data&targettarget setting , discussion has just started, to be a main agenda in the 6th Steel Task Force in Beijing.

●Using collected data target setting will be issue A common●Using collected data, target setting will be issue. A common methodology for target setting should be discussed & shared.

Identifying Huge potential ?

Bseline-2: “Cap and Trade”

y potential ?

CO

2 排

出量

Inte

nsity

Baseline-1: “グローバル・トップランナー方式“

Ene

rgy

I

Worst Performer

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

E

9Best Performer Group

Challenging Target setting? Or grouping?


CO2 Mitigation in Steel Industry 3- 1) APP-data&target

Energy Efficiency CO2 / Energy Activity

CO2 Emission =Energy Consumption

Crude Steel Production Energy Consumption

CO2 Emission

X X Crude Steel Production

A h I E I t it E S C i St l C tiApproach Improve Energy Intensity Energy Source Conversion Steel Consumption

Short, Mid term

Deploy existing save energy technology

Change coal to natural gas,charcoal...Mid-term energy technology

(Large Potential)gas,charcoal...(Limited Potential)

Increase due to world economy

expansion at d l iLong term Develop Develop developing countries in particular

Long term Developnew technology for reduction process of i

Developnew technology for alternative reducing

tiron ore agent


Mid-term Target Setting Conceptual Image for Integrated Steel Plants (under preliminary discussion by the Expert Group)

3- 1) APP-data&target

◆Short / Medium-term target ◆Long term target

(under preliminary discussion by the Expert Group)

●A common? for longer-term and differentiated for mid-term?◆Short / Medium term target

-Deploy existing technology-Focused to the theoretical limit at the year of xx.-Different milestone for each producer

◆Long term target-CO2 Break through program

30 CO2 BT develop

BAT transfer[ Gj/t ]

cien

cy TheoreticalLimit ofBF/BOF

CO2 BT develop

ergy

Eff

ic

20BF/BOFSteel MakingProcess

Ene

CO2 Break through technology

2005Timeframe

2020 xxTime-scope for APP 112nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

Flagship Project-3Technology deployment based on performance diagnosis

3- 2) APP-cooperationTechnology deployment based on performance diagnosis

●Another step-by-step approach for acceleration/promotion of technology transfer/diffusion among APP seven nationsStep-1: Site visit (Project-4)

F t fi di

technology transfer/diffusion among APP seven nations.

Fact findings On-site evaluations, candidate technologies for improvement of a particular steelworks

Compilation of all sites data and list-up the candidateRecommendations

Appropriate and suitable implementations from SOACT for each steelworks

Energy saving

SOx, NOx etc.

the candidate projects

Step-2: Prioritization and selection of actual flagship projects using results of site visits

Evaluation and prioritization-Barriers for realization (financial, technological etc.)

-Cost-effectiveness etc.

Evaluation and prioritizationof all candidate projects

Step-3: Proposal to the Steel Task Force as actual model projects. 122nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

Site visit by the experts. 3- 2) APP-cooperation

●So far four site-visits, identifying a set of appropriate technologies for each site and also reduction potential.

Estimation of CO2 emissions reduction potential as results of sites visitEnergy saving CO2reduction

（TJ/y）（kt-CO2/y）

China TaiyuanTaiyuan - -

Site China yy

JinanJinan 18,544 2,080JiangyinJiangyin 2,308 279

China total 20,852 2,359

China: Visited December 2007

India: Visited January 2008India SAIL 9,209 1,019

M li

Two sites to be visited in December 2008.

Essar Steel Ltd (Hazira)

Tata Steel Ltd. (Jamshedpur)

SAIL (Rourkela)

Beijin

●China

Mongolia

China (3plants)Taiyu

an Essar Steel Ltd. (Hazira)

Ispat Industries Ltd. (Dolvi)

JSW Steel (Vijayanagar)

( )

Rashtriya Ispat Nigam Ltd.(Visakhapatnam)

g〇

●

①①Taiyuan(Taiyuan(太原太原))：：JFEJFE

②②Jinan(Jinan(済南済南)) ：：Nippon SteelNippon Steel、、KobeKobe

③③Jiangyin(Jiangyin(江陰江陰))：：SumitomoSumitomo

( p )(太原) ●

●

Jinan(済南)Jiangyin

(江陰)

113VisitedVisited：： Dec. 2007Dec. 2007

33～～44 Specialists/Experts (from Japan)Specialists/Experts (from Japan) at at each site each site

CDQ* installation in China *Coke Dry Quenching

3- 2) NC-cooperation●Accelerated diffusion

100

100 or more, still increasing number and diffusion rate

Barriers/accelerationInfo : SOACT

●Accelerated diffusion of CDQ in China.-NEDO model project.

Government of China, National Policy for

80

-Info.: SOACT

-Finance: lower interest rate, CDM? - - - -

IPR: appropriately!

p j

-Governmental policy.

-JV (domestic supplier) National Policy for CDQ implementation (“five year plan”etc.)

tion 60

-IPR: appropriately!

-Policy: crucial for acceleration.

JV (domestic supplier)

2基

of in

stal

lala

ted)40

-CMC(coal moisture control) is also another example for increasing installation in China.

4

14Russia 2

“ National(domestic) brand“

Num

ber

(acc

umul

20CDQ installation in Japan

04

1970 1980 1990 2000 2010 ~ 0

Established a JV between Japan and ChinaNSC h d CDQ Technical development

NEDO energy saving model project

p

14NSC purchased CDQ license from former soviet union, paying appropriate fee for IPR.

Competition between NSC and “National brand”

Technical development (enlargement, higher energy efficiency, patent 169）

JV for CDQ in Beijing 3- 2) NC-cooperation●JV i f th f t hi h h l t d diff i●JV is one of the factors which have accelerated diffusion.

Nippon Steel (engineering)

Beijing Capital

St lIntegrated

Engineering

･Experiences in CDQ

・Advanced technology

Steel (engineering)

Capital Steel

Capabilitygy

integration・Capacity building for operation (t i i )(training)

BEEE Established October 2003BEEE Established October 2003 Beijing JC Energy & Environment Engineering Co.,Ltd

Objectives: Objectives: Accelerating/promoting diffusion of CDQAccelerating/promoting diffusion of CDQ

Domestic brand for supplying CDQDomestic brand for supplying CDQ


Domestic brand for supplying CDQDomestic brand for supplying CDQ

Supplying advanced energySupplying advanced energy--saving/environmental technologies for steel industrysaving/environmental technologies for steel industry

15

CCCC (Co-benefit CDQ-CDM in China)

CDQ b fit & b i3- 2) NC-cooperation

CDQ co-benefits & barriers ●CDQ has co-benefits (water, SOX, dust and quality etc.).

Energy savingEnergy saving CO2 emissions reductionEnergy savingEnergy saving CO2 emissions reduction

CDMWater savingWater saving National

Government has

SOX, Dust decreaseSOX, Dust decrease

recognized validity of CDQ

■Financial BarriersGenerally production capacity > Energy saving

Better coke qualityBetter coke quality

■Regulations and National Policy

■Integrated Technologyf i dBetter coke qualityBetter coke quality Transfer required

Installation/Operation/Maintenance 162nd International Workshop on Sectoral Emission Reduction Potential 22 October 2008, OECD Conference Center Room CC7 in Paris

A Core of GSSA Global Steel Sectoral Approach 4. Summary

●Four commons（①・②・③・⑥） and two categories of technology（④・⑤）.

Emissions Trading

（IISI Policy Statement with a shared vision)GSSA Guideline

①A h l h db k?

③A common methodology

①A common technology handbook?②A common methodology for target- (CO2 intensity-) setting①SOACT handbook

APP Flagships

②Target-setting ③A common methodology CO2 intensity and energy intensity calculation

⑤

④ Technology diffusion/transfer and its acceleration mechanism

②Target setting

③Technology diffusion/transfer-Promoting Sectoral Approach at all levels⑤CO2 Breakthrough Program

and acceleration of technology establishment

⑥A common 2050 vision/scenarios

Approach at all levelsKeidanren Pledge & Review (commitment and progress)

● World-wide Comparable Effort s⇒ Establishing a global level playing field

p g


Why Global Steel Sectoral Approach? 4. Summary

● Global Solution required. Global issue requires a globally coordinated solution.

● Technologies required.S l i t l f th l b ll i i d d ithSupplying steel for the globally increasing demand with

minimized CO2 emissions worldwide.

- Diffusion of Best Efficient Technologies

Development of Breakthrough Technologies- Development of Breakthrough Technologies


Thank you for yourThank you for your kind attention!

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