October 8th. Vice Chairman, KEIDANREN

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1 Technology The Key to Tackle Climate Change and Energy Issues October 8th Norio Sasaki Vice Chairman, KEIDANREN Vice Chairman, Toshiba Corporation

2 Viewpoint on Global Warming Countermeasures Technological innovation is key to reconcile economic growth and emission reduction. Energy Demand Side Energy Supply Side = Energy Efficiency Carbon Intensity to Energy Energy CO2 CO2 emission Consumption Emission Energy GDP Consumption GDP Technological innovation and dissemination 1

3 KEIDANREN s Commitment to a Low Carbon Society 1. Participating industries and companies set their own targets. 2. The plan consists of 4 pillars (shown bellow) industries made their plans as for the Phase 1 toward Endeavor to expand our efforts for the Phase 2 toward Phase 1 toward industries participate Phase 2 toward 2030 Inviting industries to make their plan 1st 2nd 3rd 4th Emission Reduction from Domestic Business Operation Targets for 2020 Targets for 2030 Contribution Reduction from through energy saving Domestic Business products Operations International Contribution Development of Innovative Technology Further contribution to long term measures against global warming. Halving GHG emission by

4 KEIDANREN s Commitment to a Low Carbon Society Phase 1 Toward industries participate Phase 2 Toward 2030 Inviting industries to make their plan 1st Emission Reduction from Domestic Business Operation Targets for 2020 Targets for nd 3rd Contribution through Reduction from energy saving products Domestic Business Operations International Contribution Further contribution to long term measures against global warming. Halving GHG emission by th Development of Innovative Technology 3

5 1st : Reduction from Domestic Business Operations 12.1% reduction Kyoto Protocol first commitment period Factors Contributing to Reduction (Average of ) Comparison to FY 1990 Change in production activity +2.0% Change in CO2 emission i factor +0.0% 00% Change in CO2 emissions per unit of output (efficiency improvement) 14.0% Total 12.1% Efficiency improvement was the driving force to reduce CO2 emissions in KEIDANREN's plan. 4

6 KEIDANREN s Commitment to a Low Carbon Society Phase 1 toward industries participate Phase 2 toward 2030 Inviting industries to make their plan 1st Emission Reduction from Domestic Business Operation Targets for 2020 Targets for nd 3rd Contribution Further Reduction from Halving through energy contribution Domestic Business saving products to long term GHG Operations International Contribution measures against global warming. emission by th Development of Innovative Technology 5

7 2nd : Contribution Through Energy Saving Products Reduce emission through world-leading leading products and services (FY ) By Toshiba's products (home appliance, digital products, etc.) 6

8 KEIDANREN s Commitment to a Low Carbon Society Phase 1 toward industries participate Phase 2 toward 2030 Inviting industries to make their plan 1st Emission Reduction from Domestic Business Operation Targets for 2020 Targets for nd 3rd Contribution through energy saving Reduction from products Domestic Business Operations International Contribution Further contribution to long term measures against global warming. Halving GHG emission by th Development of Innovative Technology 7

9 3rd : International Contributions Japanese technologies have large potential to reduce CO2 emission worldwide. Nuclear 395 million t CO2 426 Total 426 million t CO2 (FY2013) Hydroelectric 16 million t CO2 Thermal 10 million t CO2 Geothermal 5 million t CO2 By Toshiba's low carbon technologies 8

10 KEIDANREN s Commitment to a Low Carbon Society Phase 1 toward industries participate Phase 2 toward 2030 Inviting industries to make their plan 1st Emission Reduction from Domestic Business Operation Targets for 2020 Targets for nd 3rd 4th Contribution through energy saving products Reduction from Domestic Business International Operations Contribution Development of Innovative Technology Further contribution to long term measures against global warming. Halving GHG emission by

11 4th : Development of Innovative Technologies Innovative technology plays a key role to reduce GHG drastically. Oxygen Generator Cooling Tower Moisture Separator CO 2 Compr essor A USC(Advanced Ultra Super Critical) thermal plant CO 2 Turbine Generator Reheater CO 2 Pump Super Critical CO2 Cycle Thermal Power Generating System Toshiba is developing new technology for higher efficiency and lower carbon emission. 10

12 Policies What Governments SHOULD 1. Establish Effective International Framework All major emitters, both developed and developing countries, should participate. 2. Promote Diffusion of Low-Carbon Technologies 1 To developing counties through financial support. 2 We are ready to contribute in GHG reduction worldwide through Japanese technologies. 3. Promote Innovation 1 Invest in priority areas. 2 Enhance R&D tax incentive system. 3 Promote global interaction through public, private, and academia. 11

13 Policies What Governments SHOULD NOT Adopt Policies with Opposite Effect Policies below deprive companies resources devoted to R&D to promote innovative technologies. 1 Emission Trading Scheme 2Carbon Tax 3Feed in d i Tariff scheme for renewable energy 12