Press Release: Patent Granted for Technology to Quantitatively Assess the Amount of CO2 Reduction Value Created by Transition Financing
Press Release: Patent Granted for Technology to Quantitatively Assess the Amount of CO2 Reduction Value Created by Transition Financing
~ Supporting the Transition to Decarbonization by Intercomparing the Effectiveness of Global Decarbonization Technologies and Investments Using a Unified Standard
April 1, 2023
D-Sharing Co., Ltd (Shinagawa-ku, Tokyo; CEO: Naoki Sakai) Japanese Climate Tech Start-up announced today that it has patented an innovative technology that objectively and quantitatively calculates the CO2 reduction value created by advanced technologies and projects eligible for transition finance in the energy sector using transparent criteria based on scientific evidence, and that enables the comparison of the amount and cost of value created by multiple projects across geographic regions and technology boundaries.
The technology and method that enables the analysis and evaluation of the amount of value created and cost-effectiveness of multiple projects, intercomparison, scoring, and verification of their comparative superiority have been independently developed, and we are pleased to announce that we have obtained a basic patent for it (we are currently applying for three additional application patents in addition to this).
This technology and method will enable, for example, the calculation of CO2 reduction value of electricity generated by technologies that use hydrogen and ammonia as fuels and co-fire them in existing thermal power generation infrastructure or by high-efficiency LNG power generation technology, and the comparison of the amount of reduction from existing technologies or from other new technologies.
Not all countries, regions, and industries can decarbonize in a single step, and it is important to achieve net-zero emissions as early as possible on a realistic path by adopting transitional technologies.
In this context, transition finance to support the transition to decarbonization is attracting global attention, and in October 2022, the Organization for Economic Cooperation and Development (OECD) released a "Guide for Transition Finance".
Also in Japan, the Ministry of Economy, Trade and Industry (METI), the Financial Services Agency (FSA), and the Ministry of the Environment (MOE) formulated the "Basic Guidelines for Climate Transition Finance (Basic Guidelines)" in May 2021.
However, many companies are hesitant to invest in or finance such investments because of the difficulty of ensuring sufficient transparency in the evaluation process, and some NGOs have expressed their opposition.
The OECD's guidance lists "monitoring progress through numerical indicators and KPIs" and "verification of plans and progress by a third party" as important items to address the current situation. The Japanese government's basic guidelines also summarize the four elements of information disclosure and third-party review (strategy and governance, materiality, scientific basis, and transparency). However, until now, no concrete method has been fully published.
Our patented technology will solve this problem, enabling objective calculations of the amount of CO2 value created by investments in the energy sector based on scientific evidence, and proving the effectiveness of such calculations beyond regional and technological boundaries. By promoting the use of this method, we will contribute to the smooth implementation of transition financing around the world.