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12th Asia Pacific Seminar on Climate Change, Bangkok, Thailand30 July – 2 August 2002

Japan’ Policy towards the Implementation of

Kyoto Protocol

Yasuo TakahashiDirector

Office of International Strategy on Climate ChangeGlobal Environment Bureau

Ministry of the Environment, Japan

July 30, 2002

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Contents

Ratification of the Kyoto ProtocolClimate Change Policy LawClimate Change Policy ProgramInternational Cooperation

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USA24%

China14%

0%0%0%0%0%0%0%0%6%

5%

5%

2%

2%

30%

EU13.4%

Others29.6%

USA24%

China14%

Mexico2%Canad

2%India5%

Japan5%

Russia6%

Germany3.6%

UK2.4%Italy

1.8%Belgium

0.4% France1.6%

Netherlan0.7%

Spain1.1%

Total２２９

(10^8 t

CO2 Emissions from each country (1998)

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The Kyoto Protocol (cont’d)

Japan - 6 %USA - 7 %EU - 8 %

Reduction Target

2008~2012Commitment Period

1990 (or 1995 for HFCs, PFCs, SF6)Base Year

CO2, CH4, N2O, HFCs, PFCs, SF6Target Gases

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The Kyoto Protocol (cont’d)

The Protocol will enter into force afterAt least 55 Parties ratified(75 Parties ratified as of July, 2002)Ratified Parties include developed countries representing at least 55% of the total 1990 CO2 emissions from this group

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Japan Ratified the Kyoto Protocol

Process to the ratification - The House of Representatives approved on May 21.- The House of Councillors approved on May 31.- Cabinet made the final decision on the ratification of

the Protocol on June 4.- Japan ratified the Protocol on June 4. (74th Party)

The ratification is a significant milestone in Japan’s environmental policy.

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Trends of GHGs Emissions in Japan

0

200

400

600

800

1,000

1,200

1,400ba

se y

ear

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

（Fiscal Year）

unit:

Mt-

CO

2 eq

uiva

lent

SF6PFCsHFCsN2OCH4CO2

※Base YearCO2, CH4, N2O ：1990 (F.Y.)HFCs, PFCs, SF6： 1995 (F.Y.)

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1999 CO2 Emissions by Sectors in Japan

Total CO2 Emissions

1,225 Mt

Energy Industries（e.g. Public Electricity）

7.0％（30.3％）

Residential13.0％

（5.7％）

Manufacturing Industries& Constructions

40.3％（31.6％）

Commercial /Institutional

12.2％（5.4％）

Transportation21.2％

（20.7％）

Waste1.9％

（1.9％）

Other （ statistical error etc. ）－0.1％

（－ 0.1％）Industrial Processes4.3％

（4.3％）

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Trends of CO2 Emissions by Sector in Japan

0

100

200

300

400

50019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

（Fiscal Year）

unit

Mt-

CO

2

CO2 Emissions from 1990 to 1999（growth rate from 1990(F.Y.) )

Manufacturing Industries& Construction

　 490 Mｔ → 494 Mｔ　（ +0.8％）

Transportation　 211 Mｔ → 260 Mｔ　（ +23.0％）

Residential　 138 Mｔ → 159 Mｔ　（ +15.0％）Commercial / Institutional

125 Mｔ → 150 Mｔ　（ +20.1％）

Energy Industries　 77 Mｔ → 86 Mｔ　（ +11.7％）

Industrial Processes　 59 Mｔ → 53 Mｔ （ -9.5％）

Waste　 13 Mｔ → 24 Mｔ　（ +86.3％）

note: CO2 Emissions from public electricity is allocated to each sector by consumption of electricity.

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Trends of Electric Power Generation in Japan

0

200

400

600

800

1000

1985 1995

(F.Y)

TW

h

New Energy

Nuclear

Coal

Oil

LNG

Hydro(Pumped Storage)

Hydro(General)

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CO2 Intensity of Industries in Japan

79.4

75.7

54.0

46.6

22.1

0

20

40

60

80

100

120

1401965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

CO2 E

mis

sion

ratio

(CO

2/pro

duct

)（

1965＝

100）

Ceramics

Iron and Steel

Paper and Pulp

ManufacturingIndustries

Chemicals

Crude Oil Price(1985=100)

1st.OilCrisis

2nd.OilCrisis

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Japan’s Trends of Mileage

0

100

200

300

400

500

600

700

800

900

1,000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

FY

Tota

l M

ileag

e （bill

ion ｋ

ｍ）

Truck Passenger total

Increased Mileage in Passenger Cars

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Comparison of Energy Consumption per Household

0 20,000 40,000 60,000 80,000 100,000 120,000

HOKKAIDO

JAPAN

GER

FRA

ITALY

UK

USA

(MJ/Household/Year)

Space Heating Water Cooking Lighting/Motive Power/Other

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CO2 emissions per GDP (1995)

2.75

3.12

3.08

8.21

2.31

2.38

1.69

2.09

5.76

2.38

10.56

2.57

1.54

6.82

1.25

1.87

3.37

1.25

2.68

0.00 2.00 4.00 6.00 8.00 10.00 12.00

total

USA

canad

russian federation

germany

belgium

japan

UK

poland

netherlan

ukraine

south korea

italy

south africa

france

mexico

china(mainland)

indonesia

india

t-C/1000US$

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Analysis of Japan’s Trends

Increase：Transport Sector ← Increase with the number of Passenger Transports

　　 Commercial/Institutional Sector ← Increase with the Floor Space

Residential Sector ← Increase of Households

Decrease：Industry Sector ← Structural Change in the Industry Sector　

Transsectoral Factor Increase：Increase in the Energy Intensity　　　　　　Transportation（Big & Heavy Cars、and Traffic Congestion）

　　　　　　Residential Sector(the Number of Electrical Appliances &Size Enlargement)

Decrease：Improvement of CO2 Emission Coefficient for Electricity (For Industry and Residential)

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Transport

Industry

Commercial/Residential

Measures on Distribution

Introduction of Low-Emission-VehiclesModal Shift

Spread of Energy-saving Appliances

Diagnosis of Households

Agriculture

Energy IndustryRenewable Energy

Improvement of Efficiency

Energy Conversion (Tax on Coal）

Measures on Sewage Waste

Waste

HFC,PFC,SF6

Recovery, Destruction, Substitution

Reduction Measures

Measures against Congestion

Spread of Energy-saving Equipment

Traffic Assessment

Environmental AssessmentSystem on Trading Electricity

Afforestation

Quota System

Reform of Tax System

Climate Change Policy

ＥＳＣＯUtilization of Solar Energy

Recycle

Utilization of Waste Plastics

Introduction of Combined Generation

Improvement of Productivity

Measures on Disposal of Excrement

Voluntary Action Plan

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Breakdown of 6% Target

-1.6%Kyoto Mechanism

-3.9%Sink

2%HFCs, PFCs, SF6

-0.5%CH4, N2O etc.

-2%Others

+5%Utilities

+17%Transport

±0%Commercial/ Residential ± 0%

-7%Industry

Breakdown of 6% Target

Within Sector

Breakdown

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Targets and Actual Emissions

＋９．０％±０％Total

＋２３．０％＋１７％Transport Sector

＋１７．４％±０％Commercial,Institutional and Residential Sector

＋０．８％　 ー７％Industry Sector

Actual Emissions in 1999

Targets

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Japan’s Climate Change Policy

To achieve the Kyoto targetClimate Change Policy Law

A framework legislation to promote measures

Climate Change Policy ProgramGovernment-wide action program to promote measures

Energy Conservation LawMandatory energy efficiency standards under the best available technologiesEnergy efficiency requirements in factories.

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Climate Change Policy Law

The Kyoto Target Achievement PlanAdoption of the Plan, the review of its implementation and the revision of the Plan.

Corporations with a great amount of emissions

Making a plan on measures for reducing emissions is encouraged.

Centers for the Promotion of Activities to Prevent Global Warming

The establishment of Centers are stipulated.

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Climate Change Policy Law (cont’d)

The Global Warming Prevention HeadquartersEnhancing the national effort

“Climate Action Advice” for citizens.“Local Partnership Council” for the promotion of actions at local level.

etc.

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Climate Change Policy Program

Cabinet Headquarters decided “the New Climate Change Policy Program”. (March 19）

Serve as the basis for implementing measures to achieve the 6% emissions reduction commitment under the Kyoto Protocol.Upgrading the New Climate Change Policy Program into the Kyoto Target Achievement Plan under the Climate Change Policy Law.

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Climate Change Policy Program (cont’d)

The integration of the environment and economyStep by step approach (Check the progress and implement additional measures if necessaryAll sectors (national and local governments, business and industry and civil society organizations) should make their utmost to take actions.International cooperation

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Climate Change Policy Program (cont’d)

A package of more than 100 individual measures to be taken by all relevant government agenciesSpecifies emission reduction goals by sectorsIdentifies estimated reductions by individual measuresInclude measures to enhance forest management and other sink activities, to use the Kyoto Mechanisms and to promote technological innovation

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Energy Conservation（22mt-CO2)

Industry sectorImplementation of voluntary action plans by industriesR&D of high efficient boilers, etc.

Household and commercial sectorApplication of energy management system to large commercial buildingsApplication of the best available technology

Transport sectorIntroduction of vehicles achieving high energy-efficient standardsEfficient logistics systems such as shift of transport modes

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Renewable and New Energy(34mt-CO2)

Expansion of new markets for electricity generated from new energySubsidies to promote introduction of photovoltaic power, wind power, biomass energy, etc.Strengthen R&D and demonstration tests on fuel cell, photovoltaic power, biomass energy, etc

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Law on Rational Use of Energy

Energy efficiency regulation for energy-intensive manufacturing industriesEnergy efficiency standards for some consumer productsEnergy efficiency standards for housing and buildings

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Financial Assistance Measures

Subsidies for the purchase of low-emissions-vehicleLoans at preferential interest rates for the construction of energy-efficient houses and buildings Subsidies to promote the development of renewable energySubsidies for the purchase of home-operated photovoltaic systems

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Other Related Laws

Amendment of Energy Conservation Law- Application of energy management system to

large commercial buildings etc.- Promote appropriate energy conservation

measures for buildings at the construction stage.

The Law Concerning the Use of New Energy by Electric Utilities

Mandate electric utilities to achieve the fixed level of the electric power generated from new energy.

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Use of the Kyoto Mechanisms

Cost-efficient measures to achieve the 6% reduction commitment

Supplemental to domestic actionCDM/JI Feasibility Study (MOE, from 1999)Establish “The Advisory Panel on the Kyoto Mechanisms” (April 2002)Establish a　liaison committee by relevant ministries to utilize the Kyoto Mechanisms(July 2002)

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Project Profiles of Project Profiles of CDM/JI Feasibility Studies (2002)CDM/JI Feasibility Studies (2002)

　　　　　　　ThailandObayashi Co.,Ltd.「Power Generation Using Methane from Landfill Sites」

　　　　　　　ThailandObayashi Co.,Ltd.「Power Generation Using Methane from Landfill Sites」

　　　　　　　IndiaJapan Energy Research Center Co.,Ltd.「Study on Production of Ethanol Gasoline from sugar cane refuse」

　　　　　　　IndiaJapan Energy Research Center Co.,Ltd.「Study on Production of Ethanol Gasoline from sugar cane refuse」

　　　　 　　　　　　MalaysiaEX Corporation「Reducing Methane Emissions from Anaerobic Lagoons Treating Effluents from Palm Oil Production Ⅱ」

　　　　 　　　　　　MalaysiaEX Corporation「Reducing Methane Emissions from Anaerobic Lagoons Treating Effluents from Palm Oil Production Ⅱ」

　　　　　　　MalaysiaTokyo-Mitsubishi Securities Co.,Ltd.「Practical Steps in Obtaining Carbon Credits Through a Biomass(Palm Shell) Electricity Generation Project]

　　　　　　　MalaysiaTokyo-Mitsubishi Securities Co.,Ltd.「Practical Steps in Obtaining Carbon Credits Through a Biomass(Palm Shell) Electricity Generation Project]

　　　　　　BulgariaOECC「Biomass use for Regional Air-conditioning System」

　　　　　　BulgariaOECC「Biomass use for Regional Air-conditioning System」

Biomass Use（ＣＤＭ）

Landfill Sites(ＣＤＭ）

Biomass Use（ＪＩ）

Biomass Use（ＣＤＭ）

Biomass Use（ＣＤＭ）

　　　　　　　VietnamNissho-Iwai Research Institute「Forestry CDM Project Utilizing Private Finance」

　　　　　　　VietnamNissho-Iwai Research Institute「Forestry CDM Project Utilizing Private Finance」

Forestation（ＣＤＭ）

　　　　　　　　　IndonesiaSumitomo Forestry Co.,Ltd.「Feasibility Study on Forestry CDM Project」

　　　　　　　　　IndonesiaSumitomo Forestry Co.,Ltd.「Feasibility Study on Forestry CDM Project」

Forestation（ＣＤＭ）

South Pacific Islands Pacific Consultants Co., Ltd「Small Scale CDM Projects in South Pacific Island Countries」

South Pacific Islands Pacific Consultants Co., Ltd「Small Scale CDM Projects in South Pacific Island Countries」

Others（ＣＤＭ）

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International Cooperation

To be truly effective, all countries need to act under a common rule.With a view to eventually achieving this goal, Japan intends

to further continue policy dialogue with the US.to work with other countries so that effective global regime will be established.

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International Cooperation(cont’d)

Environmental Congress for Asia and the Pacific(Eco Asia)Asia Pacific Seminar on Climate Change Asia-Pacific Network on Climate Change (APNET)Feasibility Study for CDM and JIAsia-Pacific Network for Global Change Research (APN)Eco-Frontier Fellowship Program