Author name: Codo Team

Codo's Insights, Renewable Energy

Is Carbon Capture, Utilization, and Storage (CCUS) Worth Pursuing?

Carbon Capture, Utilization, and Storage (CCUS) encompasses a range of technologies for capturing carbon dioxide (CO₂) emissions at their source—power plants, industrial facilities, and other major emitters—and either reusing the CO₂ or storing it so it does not enter the atmosphere. Although various forms of CO₂ capture have existed for decades, CCUS has gained renewed prominence as governments and industries strive to meet the increasingly stringent climate goals set under the Paris Agreement. This article begins by explaining CCUS, why it matters, and how it works in practice. It then explores several global case studies to illustrate CCUS’s real-world evolution and challenges. It concludes by examining Japan’s emerging CCUS strategy, weighing both the advantages and drawbacks of deploying CCUS at scale.

Codo's Insights, ESG Regulations, ESG Reporting

CSRD Compliance in Practice: Insights from Corporate Preparations

The Corporate Sustainability Reporting Directive (CSRD), which mandates sustainability reporting for companies, requires applicable organizations to begin collecting data in 2024, with the first official disclosures expected in early 2025. The CSRD revises the existing Non-Financial Reporting Directive (NFRD 2014) and expands on the concept of double materiality by requiring companies to disclose both how sustainability factors financially affect the company (“financial materiality”) and how the company’s activities impact the environment and society (“impact materiality”). Under the CSRD, companies must report under the European Sustainability Reporting Standards (ESRS)—encompassing 12 items (ESRS 1–2, ESRS E1–5, ESRS S1–4, ESRS G1)—and the scope will extend to companies outside of Europe over time. As companies look ahead to the first disclosure requirements in early 2025, many in Europe are already making significant preparations. This article will explain the current efforts by these companies and highlight the key characteristics of the CSRD.

Codo's Insights

Equating Value across Borders: Carbon Credits and Japan’s Joint Crediting Mechanism (JCM) Explained

The Japanese carbon market is gradually developing, taking a cautious approach compared to more established markets like those in Europe and the US. As Japan works towards its 2030 emission reduction targets, companies are increasingly engaging in carbon crediting and emissions trading. The Green Transformation – Emission Trading System (GX-ETS) and the Joint Crediting Mechanism (JCM) play pivotal roles in Japan’s carbon reduction efforts. JCM, in particular, allows Japanese companies to implement decarbonization projects in developing countries, generating carbon credits that contribute to Japan’s national targets. This article explores the intricacies of the JCM, the motivations for companies and partner countries, and the challenges and opportunities presented by this scheme

Codo's Insights, Renewable Energy

A review of METI’s GX Energy Plan

Japan is facing a dilemma. Fifteen years ago, when Japan was the world’s greatest proponent of safe nuclear energy, Japan led the world with increasingly ambitious emission reduction targets long before the Paris Climate Accords pushed countries to achieve net zero carbon emissions by 2050. Scarcely more than a year following that commitment, however, expansion of nuclear power, and with it Japan’s most viable carbon neutral energy source, was taken off the table. After years of various investments and fears of grid instability, Japan’s renewable mix is still flagging behind other developed nations.

Codo's Insights, ESG Reporting

Demystifying Double Materiality: What is it and why does it matter?

In the world of corporate finance and sustainability reporting, the concept of “double materiality” has gained increasing prominence in recent years. While the term may sound complex, its core principles are surprisingly straightforward. In this article, we will delve into the concept of double materiality, cutting through the jargon to reveal its significance and implications for your company.

Codo's Insights, ESG Reporting

Reporting Right: How to Choose a Sustainability Reporting Framework for your Organization  

Reporting frameworks are established frameworks or guidelines that provide a structured and standardized approach for organizations and businesses to measure, disclose, and report their environmental, social, and governance (ESG) performance. In this blog post, we at Codo summarize the main environmental and sustainability reporting framework to help you choose the one most relevant for your organization.

Codo's Insights, ESG Regulations

The EU Green Taxonomy: An ambitious framework to redirect financial flows towards sustainability

As the world grapples with the urgent need for sustainable practices, the European Union has spearheaded the development of the EU Green Taxonomy — an instrumental tool in promoting sustainable finance. Following the Green Deal passed in 2019, the regulation was adopted in June 2020 and entered into force in July 2021, with a roll-out plan in several phases. Codo summarizes the potential consequences it holds for Japanese companies operating in the global markets with input from Tatjana Gerling, an ESG Expert based in Europe. For our readers that are not familiar with the EU Green Taxonomy, we recommend checking out the annex at the bottom of the page where we introduce the fundamentals of the taxonomy.