Climate Change Forum 2009 | Forum Summary Report : Hitachi in U.S.A.

Meeting Energy Needs,
Reducing Environmental Impact

A climate change forum sponsored by Hitachi
and featuring panels organized by
the American Association for the Advancement of Science
and The Brookings Institution




Forum Summary Report



Thursday, March 5, 2009
Ronald Reagan Building and International Trade Center
Washington, D.C.

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AAAS
The American Association for the Advancement of Science (AAAS) is the world's largest general
scientific society and publisher of the journal, Science (www.sciencemag.org). AAAS was founded in
1848, and serves 262 affiliated societies and academies of science, reaching 10 million individuals.
Science has the largest paid circulation of any peer-reviewed general science journal in the world, with an
estimated total readership of 1 million. The non-profit AAAS (www.aaas.org) is open to all and fulfills its
mission to "advance science and serve society" through initiatives in science policy; international
programs; science education; and more. For the latest research news, log onto EurekAlert!,
www.eurekalert.org, the premier science-news Web site, a service of AAAS.

The Brookings Institution
The Brookings Institution is a nonprofit public policy organization based in Washington, DC. Our
mission is to conduct high-quality, independent research and, based on that research, to provide
innovative, practical recommendations that advance three broad goals:
* Strengthen American democracy;
* Foster the economic and social welfare, security and opportunity of all Americans and
* Secure a more open, safe, prosperous and cooperative international system.
Brookings is proud to be consistently ranked as the most influential, most quoted and most trusted think
tank.

Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT/TSE: 6501) headquartered in Tokyo, Japan, is a leading global electronics
company with approximately 390,000 employees worldwide. Fiscal 2007 (ended March 31, 2008)
consolidated revenues totaled 11,226 billion yen ($112.2 billion). The company offers a wide range of
systems, products and services in market sectors including information systems, electronic devices, power
and industrial systems, consumer products, materials and financial services. For more information on
Hitachi, please visit the company's website at hitachi.com.

1 | Meeting Energy Needs, Reducing Environmental Impact

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Meeting Energy Needs, Reducing Environmental Impact
A climate change forum sponsored by Hitachi and featuring panels organized by the
American Association for the Advancement of Science and The Brookings Institution
March 5, 2009
Ronald Reagan Building and International Trade Center
Washington, DC

Table of Contents

Foreword........................................................................................................................................ 3


Opening Remarks by Co-Organizers.......................................................................................... 4


Panel Discussion One:
"U.S. Climate Change Policy and Its International Implications" .......................................... 5


Panel Discussion Two:
"Energy Revolution: Identifying the Gaps in R&D and Beyond" ........................................... 7


Luncheon Keynote Presentation:
The Honorable John F. Kerry, U.S. Senator (D-MA) ............................................................... 9


Panel Discussion Three:
"Conserving Energy Through Policy, Technology and Lifestyle" ......................................... 10


Wrap-Up Session with Panel Moderators ................................................................................ 12


Appendix: Speaker Biographies ................................................................................................ 14


March 5, 2009 Washington, D.C. | 2

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Foreword

The topic of Climate Change is a critically important issue that must be
addressed on a global basis. It is particularly important for our society to
embrace and find ways to improve the condition of our climate and the
responsibility rests on all of us to bear. We must realize and understand
that we are all accountable for the climate changes occurring around us in
all parts of the world.

It has been said time and time again that climate change represents one of the greatest threats
facing the planet, so how can we reverse the damage that has been done, or can we? How can we
move forward and become energy efficient, yet do so in a responsible way? How can we ensure
the preservation of our planet for years to come and for future generations?
Fortunately, we are living in a world where technological advances and breakthroughs are
occurring every minute, so the answer to improving our climate lies in creating a collaborative
partnership with academia, policy makers and multinational and global corporations in a diverse
array of industries and working together.
Given Hitachi's long standing corporate philosophy to help address the needs of society by
leveraging our expertise and utilization of technology, we decided to collaborate on a Forum
focused on "Meeting Energy Needs, Reducing Environmental Impact."
We worked jointly with the American Association for the Advancement of Science and The
Brookings Institution--two of the most prestigious institutions in the area of climate change. We
explored and examined energy usage, energy security and the direct correlation to climate
change, as well as numerous global issues impacting our nation and nations around the world.
I invite you to share our findings, perspectives and insights outlined in this summary report with
others, so together we can build a more sustainable future for generations to come!


Sincerely,

Tadahiko Ishigaki
Senior Vice President and Executive Officer,
Chief Executive for the Americas
Hitachi, Ltd.

3 | Meeting Energy Needs, Reducing Environmental Impact

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Opening Remarks by Co-Organizers
Tadahiko Ishigaki, Chief Executive for the Americas, Hitachi, Ltd.
Dr. Alan Leshner, CEO, American Association for the Advancement of Science
Strobe Talbott, President, The Brookings Institution
Ambassador Carlos Pascual, Vice President, The Brookings Institution

In his welcoming statement, Tadahiko Ishigaki,
with the United States and other countries to help
Chief Executive for the Americas of Hitachi, Ltd.,
end the current economic crisis and to ensure a
set the theme for the forum by remarking that
brighter future. Hitachi, which celebrates its 100th
energy needs and their environmental impact
anniversary as a company next year, has
represent some of the most important and
announced a long-term environmental plan aimed
consequential issues the world faces today.
at contributing to the reduction of 100 metric tons
Climate change requires our immediate attention
of carbon dioxide emissions through its products
as it is a problem that impacts not only us, the
by 2025. The company is truly trying to follow the
current residents of our planet, but also our
ancient Chinese proverb: "Though we can live
children and generations to come. Hitachi's
only 100 years, we should think ahead 1,000
interest in these issues stem not only from
years."
concerns about humanity and the future of this
planet, but also from the perspective of a global
technology company with expertise that can
contribute to solutions for energy and
environmental problems. While a recognized
leader in consumer electronics, the company is
also a world leader in nuclear energy and cleaner
coal power generation technologies. In addition,
Hitachi excels in making turbines and generators
that produce electric power, and is a leader in
advanced battery technology for storing energy.
The current global economic crisis, which affects

Japan as badly as the United States and other
In keeping with this theme, Dr. Alan Leshner,
industrialized countries, has resulted in Hitachi
chief executive officer of the American
experiencing unprecedented financial losses. Association for the Advancement of Science and
However, the company views the way out of this
Strobe Talbott, President of the Brookings
predicament, as being similar to the approach
Institution both offered thoughts on not only the
suggested by U.S. President Barack Obama:
urgency to address climate change, but also
through investment and innovation in the fields of
pathways forward. Economic, Energy and
energy saving and green technologies. Japan
Environmental issues are integrally linked, but
responded to the energy crisis of the 1970's by
Policy makers have yet to agree on the plan to
making a strong and sustained commitment to
achieve the goal of balancing these at times
energy savings at every level, resulting in it
competing issues. To provide answers, more
becoming the most energy efficient country in the
research is needed, such as what could result from
world measured by the ratio of energy use to GNP.
a U.S. proposal to create an Advanced Research
Indeed, energy efficiency has been a major
Project Agency for Energy that would examine
contributor to Japan's economic competitiveness
unconventional new approaches. International
over the past 30 years and provides lessons from
cooperation will be required as well, such as the
which the United States could learn. Japan has a
close contact on these issues being developed
responsibility to share its expertise and technology
between the United States and Japan.

March 5, 2009 Washington, D.C. | 4

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Panel Discussion One: "U.S. Climate Change Policy and Its International Implications"
Organized by The Brookings Institution
Moderator: Dr. Charles Ebinger, Director of the Energy Security Initiative, The Brookings Institution.
Panelists:
Jason Bordoff, Policy Director, the Hamilton Project, The Brookings Institution

Hajime Ito, President, Japan External Trade Organization/New York

Dr. William Moomaw, Ctr for International Environment and Resource Policy, Tufts University

Prof. Jose Roberto Moreira, Chairman, Brazilian Reference Center on Biomass (CENBIO)

Panelists for this session represented three key
issues such as whether to auction permits or give
nations that will be critical to addressing climate
them away and how to offset the regressive effects
change--the United States, Japan and Brazil.
of higher costs on the poor. A market mechanism
Conference participants benefited from hearing
to manage the program can work, but it will need
perspectives on Japan's experience with regulation and government investment. There
technology development and prioritizing must be policies in place to minimize the cost of
efficiency, models for developing country growth,
responding to climate change.
and the prospects for the international climate
In addition to domestic action, the United States
negotiations under a new U.S. Administration.
will also need to work to engage other developed
countries to make reduction commitments, but
according to President Obama, developing
countries like China, Brazil and India should also
take on reduction requirements. The new proposed
U.S. target for reduction of carbon dioxide
emissions--dropping 14 percent below 2005
levels by 2020--is challenging and requires
reduced energy use, more energy efficiency and
use of clean energy sources. It is likely that the
United States would have to buy carbon credits
from abroad to reach this goal, but there are still

issues to be worked out with making carbon
President Obama has committed the United States
offsets measurable, reportable and verifiable.
to re-engagement on climate change and to taking
While we see reduced energy demand as a result
a leadership role in reducing greenhouse gas
of the economic crisis, reducing growth is not a
emissions. The President wants to go to
desirable way to meet emissions reductions. The
Copenhagen at the end of the year for the next
real solution to reducing carbon dioxide emissions
climate treaty meeting showing it has done
is developing new technology and ways to export
something. The administration has to persuade
it. The U.S. and Japan have agreed to take
Congress and the American people on its cap-and-
leadership roles in energy research and
trade proposal, which could result in higher
development, with Japan already having more
energy costs for consumers during an economic
than 20 technologies for reducing carbon
downturn. Price signals are an effective tool for
emissions and accelerating energy efficiency that
changing energy consumption, but can be
could be adapted elsewhere.
challenging to accomplish politically. Balancing
Developed countries could follow the example of
these issues of energy price signals and
Germany, which reduced carbon emissions by 20
affordability will be necessary in formulating a
percent by developing a portfolio of policies
cap-and-trade bill together. Such a bill must be
involving regulations, taxes and subsidies. The
based on good science and economic principles.
international community should seek to encourage
Congress will additionally have to decide on
developing countries to follow a different model

5 | Meeting Energy Needs, Reducing Environmental Impact

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for growth than that used in the past, which
including the United States and the nations of
involved massive energy use to build industries
Europe, so to address climate change the focus
and infrastructure before tapering off to sustain
should be on worldwide development. Most
the economy once built. Exploring ways to
abatement plans for greenhouse gases have
"leapfrog" this process with shortcuts to achieve
focused on not letting global temperature increase
development through using less or cleaner
more than two degrees Celsius, but new evidence
energy--such as we saw with the growth of
suggest this may not be enough. The carbon
mobile phones in countries that had limited wired
dioxide absorption making the oceans more acidic
telephone capability that expanded service by
than earlier thought, which could decimate coral
going directly to mobile. A key to cleaner, more
and other sea life, may require more drastic action
efficient development is technology transfer from
than currently planned. China is now slightly
developed countries. We must find means to
ahead of the U.S. in carbon dioxide emissions,
transfer technology in more ways than selling
with each nation producing about 20 percent of
equipment, while at the same time protecting
the annual world total. So both nations must be
intellectual property rights. Developing countries
involved in future abatement plans. Coal is a
can help by easing restrictions in foreign
critical element to the climate issues in both
investment. Countries, such as China that depend
countries, but to date, carbon capture and
on coal to fire power plants, could reduce their
sequestration technology remains unproven.
overall carbon emissions by 30 percent by using
Nuclear energy is another promising technology,
advanced technology now available in Japan and
but has its share of unsolved issues as well, such
other developed countries. Another example of
as non-proliferation and waste management.
technology transfer that could help the
environment is in agriculture. Using modern
farming methods, nations can have larger crop
yields without major increases in land expansion
and forest cutting. These methods also can help in
introducing biofuel crops to produce energy with
minimal environmental consequences.
The panel also explored the framing of the climate
dilemma, as well as questions about specific
technologies. Climate change was formerly
defined as a pollution problem when it is actually
a development problem. Every economy and
every country continues to develop and evolve,

Question and Answers:
Question: Nuclear power--what is its role?
Question: Carbon capture--will it work?
"It takes 10 years to build a nuclear reactor and
the costs are very high. The problems of nuclear
"Theoretically, it will work, but it must be proven
proliferation and nuclear wastes are still big issues.
first. The technology still has to be demonstrated
If we were to go forward with nuclear, it is time to
and it is doubtful that the private sector will do it
look at second and third generation designs."
alone because of time and costs involved. It may
(Moomaw)
be a decade before we have the answer."
(Moomaw)
"In the U.S., there are 104 nuclear reactors in
more than 40 locations. If the U.S. were to build

new nuclear reactors, it would be 2016 or 2017

before the first could produce electricity." (Ito)

March 5, 2009 Washington, D.C. | 6

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Panel Discussion Two: "Energy Revolution: Identifying the Gaps in R&D and Beyond"
Organized by the American Association for the Advancement of Science
Moderator: Eli Kintisch, Reporter, Science Magazine
Panelists:
Stephen Eule, Vice President, 21st Century Energy, U.S. Chamber of Commerce

Dr. Kelly Sims Gallagher, Director, Energy Technology Innovation Project, Harvard University

Dr. Martin Hoffert, Professor Emeritus of Physics, New York University

Revis James, Director, Energy Technology Assessment Ctr, Electric Power Research Institute

President Obama's budget includes substantial
for alternative energy. Here, government could
funding for new energy, environment and climate
play a particularly critical role in research
research. The President has made energy a priority
investment.
and assembled a team of experts in cabinet
The government was also seen to have a role in
departments and agencies to direct the effort.
producing new technology and affecting costs.
During this session, panelists focused on how this
One problem that was identified is the lack of a
funding could best be directed and discussed the
coordinated strategy through the whole innovation
prospects for current technologies that are
chain of research, development and deployment.
receiving much attention at the moment--carbon
Concerning carbon capture and storage, there is
capture and sequestration (CCS) and nuclear.
considerable knowledge on the process of
The United Stats needs a broad portfolio of
capturing carbon from coal burning and storing it,
research and development programs, as well as
but no one has done large scale demonstrations to
large demonstration projects, to investigate new
see if it is practical. Currently, CCS looks like it
ideas and to have alternatives if some of them fail.
will be very costly, much more than previously
A priority should be work in energy efficiency,
thought. CCS is at heart of real cooperation with
which is the easiest way to reduce emissions.
China, which relies on coal for 80 percent of its
Transportation is another important sector, energy. This is an opportunity for U.S. to work
particularly new research in alternative fuels and
with China on coal research, including
batteries for storing energy. Work is also needed
demonstration projects
on "energy enablers," things such as storage for
renewable power and new types of transmission
grids to deal with renewable power.
Since World War II, most of the major innovation
that has powered the U.S. economy has come
from a massive investment in government
research. But, the time it takes for investments to
pay off determines to some extent who should
best carry out the research and when it might
produce useful results. Venture capitalists that
sponsor work in energy usually want results
within three years and expect to make 10 times

their investment. This approach heavily influences
Much energy is lost capturing and storing the
the kind of R&D work they do. On the opposite
excess carbon, with estimates indicating the
end, there is traditional government research that
process takes from 20 percent to 40 percent of a
doesn't look for short-term results, sometimes not
coal plant's power output. This efficiency would
to conflict with private industry, and has time
have to be improved. China and Korea were
scales that stretch into decades and cost billions of
interested in "FutureGen," the proposed U.S. CCS
dollars. In between those time scales of three to
demonstration plant that was cancelled by the
five years and 20 to 25 years is an investment gap

7 | Meeting Energy Needs, Reducing Environmental Impact

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Bush administration when its cost rose to more
Regarding costs, it was noted that every energy
than $1 billion.
source is expensive compared to coal, which is
abundant and cheap. When doing research on
In addition, half of U.S. power is generated by
energy, policy-makers should be careful about
coal, and people need to know if carbon capture
giving too much consideration to cost. It may be
and storage works as a way to generate clean
unrealistic to focus on cost effectiveness at the
energy and at what cost. If CCS is proven not to
beginning when developing and demonstrating
work, then we need to go to Plan B. One Plan B
new energy technology. This was not true in the
mentioned was nuclear power.
past, when the U.S. was developing nuclear
Nuclear power could be more viable if they are
reactors for submarines and later for commercial
built in a more modern, streamlined way with
power plants. The United States should emphasize
standard modular designs that are more research and development, even at high costs,
maintainable. Japan is ahead with nuclear power
because better solutions are needed to deal with
because it invested in it and advanced the
energy and environment problems. For 200 years,
technology, this because Japan does not have coal
the United States has been the most innovative
or natural gas and needed alternatives.
technology driver in the world, and it must
continue to look for new approaches to problems,
even if they are risky. Some research will not pay
off, but the country has to take chances even if it
is costly. Vision is more important than
economics.
The panel also briefly discussed the concept of
geo-engineering, which involves altering the
environment itself to reduce the impact of carbon
emissions. Overall there was not much enthusiasm,
but panelists agreed that work in this field could
produce something useful to mitigate climate

change.

March 5, 2009 Washington, D.C. | 8

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Luncheon Keynote Presentation
The Honorable John F. Kerry, United States Senator (D-MA)

Senator Kerry, chairman of the Senate Foreign
"Five nations--the United States, China, India,
Relations Committee, noted that any the Russian Federation and Japan--are
environmental treaty on global warming would
responsible for 60 percent of these emissions," he
come through his committee for approval. The
said.
United States has to end the procrastination on
There is little time to wait on international
this subject that has existed for several years and
agreements as global temperature moves toward a
make decisions driven by the best science
tipping point with irreversible effects. If other
available.
countries say they will not take action until the
In 1988, he co-chaired the first Congressional
United States does, it is the equivalent of entering
hearing on global warming, which featured
a suicide pact, he said.
testimony by Dr. James Hansen. In the subsequent
The senator said the nation can achieve 40 percent
20 years, he said, the U.S. has not moved far on
of its needed carbon dioxide reduction through
the issue but that was going to change.
conservation and energy reduction alone, and
The senator reminded the audience that he chaired
must continue advancement in these areas.
a task force on acid rain during the 1980's, and
Mr. Kerry said the United States, after years of
measures to counter this problem became part of
hesitancy, is ready to take part in international
the Clean Air Act. Acid rain abatement took half
action. "I'm excited about the possibilities."
the time and cost half as much as many people
predicted at the time, and the same could be true

in dealing with problems of carbon dioxide
remission and climate change.
"This doesn't have to be as hard as some people
say," he remarked.
Mr. Kerry said any action the United States takes
will be based on the best scientific facts available.
The latest data indicates that since the year 2000,
carbon dioxide emissions have grown at a rate
four times faster than in the 1990s.


9 | Meeting Energy Needs, Reducing Environmental Impact

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