Discussions on the first day of the G7 = Ministers' Meeting of Climate, Energy and Environment of the seven major countries held in Sapporo City have ended.

The draft joint statement by each country has been revealed, and while the timing of the phase-out of coal-fired power generation, which is the focus of the project, is not specified, it will be phased out if measures to reduce carbon dioxide emissions such as coal and natural gas cannot be taken.

The meeting, which began on the 15th with the themes of realizing a decarbonized society and strengthening economic security, was attended by METI Minister Nishimura and Environment Minister Nishimura, and the discussion on the first day came to an end.

Against this backdrop, a draft joint statement by each country, which is scheduled to be adopted on June 16, has been revealed, emphasizing that in the areas of climate and the environment, economic reform is required to achieve the target of limiting the global temperature rise to 1.5 degrees Celsius.

In addition, we emphasize the importance of realizing a "circular economy" through recycling and reuse, and will strengthen cooperation between the public and private sectors.

With regard to coal-fired power generation, which has been the focus of the project, while the timing of its phase-out, which was requested by European countries, has been postponed, a policy of phasing out coal, oil, and natural gas if measures cannot be taken to reduce carbon dioxide emissions has been included, and a certain compromise has been reached.

In addition, we will compile a new action plan for stable procurement of important minerals, for which competition with China and other countries is intensifying.

The seven major countries will make fiscal expenditures of 7 trillion yen for mine development and recycling of important minerals.

Furthermore, for the stable procurement of LNG = liquefied natural gas, we emphasize the importance of promoting development in each country.

On the other hand, with regard to the decarbonization of the automotive sector, while Western countries insist that introduction targets should be set, Japan with many hybrid vehicles are cautious and discussions continue.

However, with regard to synthetic fuels, which can synthesize carbon dioxide emitted from factories and other sources with hydrogen and reduce emissions to virtually zero, it seems that each country is in agreement to accelerate technological development.

The joint statement is scheduled to be adopted on the 1th, and the focus is on whether a unified message can be delivered amid the invasion of Ukraine and the confrontation between the United States and China.

"Important Minerals": Fierce competition for them

Demand for "important minerals" is increasing worldwide as materials for batteries and semiconductors for electric vehicles.

In particular, batteries are said to account for one-third of the body price of electric vehicles, and securing important minerals has a significant impact on automobile production and sales.

According to a survey by IEA = International Energy Agency, demand for important minerals in 3 is expected to increase in the future, with lithium 1.2040 times, nickel 2020.12 times, and cobalt 8.6 times compared to 5.

However, its production is limited to a few countries, with about half of lithium coming from Australia, cobalt accounting for about 6% from the Democratic Republic of the Congo in Africa, and nickel from Indonesia and Australia for half.

For this reason, competition for interests in mines in countries that produce important minerals is becoming more active with Chinese companies and other companies, and competition is expected to become even more intense in the future.

Japan companies are also acquiring interests in mines and developing recycling technology

As demand for important minerals increases worldwide, Japan companies are moving to acquire interests in mines and other areas and to develop recycling technologies.

JX Nippon Nippon Mining & Metals, a metal materials manufacturer, is strengthening its business related to important minerals and has invested in a company that operates a mine called "Tantalum" in Brazil and is embarking on production.

Tantalum is used in electronic components such as smartphones, but since the number of countries of production is limited, the company expects that it will lead to stable stability.

In addition, this company is working on a business to extract lithium and cobalt from the batteries of electric vehicles, which are expected to increase in supply in the future.

Ototoshikara is a subsidiary in Fukui Prefecture that is working on a demonstration experiment in which used batteries are burned and crushed, and then lithium and other materials are being extracted and reused.

The company has established a technology to recover large quantities of high-purity minerals and will make capital investments toward practical use in the 2030s.

"Procurement is getting tougher, we will strive to secure our interests"

Kazuhiko Iida, Managing Director of JX Nippon Mining & Metals, said, "The procurement of rare metals is becoming increasingly difficult, as seen in the movement of Chinese companies to secure their interests, and demand for semiconductors is expected to increase in the future, so we would like to diversify our supply chain while striving to secure upstream interests."

Decarbonization in the automotive sector What are the efforts of each country?

Countries around the world have set targets to reduce the number of engine-powered vehicles and expand the introduction of electric vehicles in order to reduce carbon dioxide emissions.

Japan has set a goal of increasing the ratio of electrified vehicles, including hybrid vehicles, to 2035% of new vehicle sales by 100.

In response, the United Kingdom will increase the proportion of electric vehicles in new car sales to 2030% to 50% by 70 and ban the sale of gasoline-powered vehicles.

In addition, sales of hybrid vehicles will be banned by 2035.

In the United States, the ratio of electric vehicles and fuel cell vehicles will be increased to 2030% of new car sales in 50, and some states will ban the sale of gasoline vehicles, including hybrid vehicles, by 2035.

On the other hand, the EU = European Union had been aiming to effectively ban the sale of new engine vehicles, including hybrid vehicles, by 2035, but last month it reached an agreement with Germany to allow the continuation of sales of engine vehicles on the condition that synthetic fuels are used.

Japan would like to promote decarbonization in the automotive sector, including hybrid vehicles, while developing and popularizing synthetic fuels that emit virtually zero carbon dioxide.

"Synthetic fuels" Current status and issues

"Synthetic fuel" is a fuel made by synthesizing carbon dioxide and hydrogen, and is characterized by its ability to be used in existing engine vehicles.

If carbon dioxide emitted from factories is used as a raw material, emissions can be reduced to virtually zero, so practical use is expected.

Porsche, a subsidiary of Volkswagen in Germany, began producing synthetic fuels using hydrogen generated by wind power generation as a raw material in Chile in South America last December.

In Japan, ENEOS, a major oil distributor, is developing technology at its research center in Yokohama City with the support of the government.

This laboratory has experimental production equipment, and since the manufacturing technology has already been established, we will start operating a facility that can produce one barrel of synthetic fuel per day on the same site from next fiscal year.

However, the current manufacturing cost is about 12 yen per liter, which is more than four times the retail price of gasoline, and issues such as improving production efficiency and procuring hydrogen, which is the raw material, at a low price are issues.

"We would like to proceed with development with the aim of early commercialization."

Kazuaki Hayasaka, Director of the ENEOS Sustainable Technology Research Institute, says, "The development of technologies to turn raw materials into synthetic fuels is an issue, but as the needs of society are increasing, we would like to proceed with development with the aim of commercialization as soon as possible."