NEDO 1 TEXT

Global Warming and Japan’s Energy Conservation Policy: 

Global Warming and Japan’s Energy Conservation Policy SHIGETOMI Norio Project Coordinator Global Environment Technology Development Dept. NEW ENERGY AND INDUSTRIAL TECHNOLOGY DEVELOPOMENT ORGANIZATION (NEDO)

GHG Emissions Trend and Kyoto Target in Japan: 

GHG Emissions Trend and Kyoto Target in Japan June 2002: Japan’s ratification of the Kyoto Protocol GHG emissions reduction target: 6% below 1990 levels GHG emissions as of 2000: 8 % above 1990 levels Base year (1,233) －6%(1,159) 1,332 2000 74 Base year 1990 Mt (CO2 equivalent) Fiscal year

Current Status of Global GHG Emissions: 

Japan Source: Ministry of the Environment (2000) Current Status of Global GHG Emissions

Changes in Japan’s CO2 Emissions by Sector: 

Amount of energy-derived CO2 emissions accounts for 93.4% of total emissions amount in 2000. Industry: 495 MtCO2 (0.9% increase from 1990) Transportation: 256 MtCO2 (20.6% increase from 1990) Business/Home: 318 MtCO2 (21.3% increase from 1990) Fuel conversion: 86 MtCO2 (11.4% increase from 1990) <Ref. Non-energy derived CO2 emissions> Industrial process: 53 MtCO2 (6.1% decrease from 1990) Wastes (plastic and waste oil disposal): 24 MtCO2 (57.5% increase from 1990) Changes in Japan’s CO2 Emissions by Sector Emissions (MtCO2) Source: Ministry of the Environment

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1995 1996 1997 1998 1999 2000 2001 1994 2002 UNFCCC Kyoto Protocol Japan’s ratification of Kyoto Protocol RPS Law concerning Promotion of the Use of New Energy 1979～　Energy Conservation Law Revised Individual policy Global Warming Prevention Initiative Keidanren’s voluntary action plans R&D policy Actions by industry Outline of Global Warming Prevention Revised Climate Change Policy Law Revised Basic policy Revised Global Warming Policy in Japan

Current Status of GHG Emissions in Japan: 

Source: Ministry of the Environment 1159 1332 1233 1990 2000 2010 Reduction of energy-derived CO2 emissions Further reduction by additional GHG emissions reduction measures Base year Current First commitment Unit: MtCO2 14% 8% 6% Current Status of GHG Emissions in Japan

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Source: Outline of Global Warming Prevention (March 2002) Note: Decrease/increase from 1990. Strategies for the Kyoto Target: 6 % GHG Emissions Reduction

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Reduction by additional measures: Approx. 74 MtCO2 Sources: Ministry of the Environment, Outline of Global Warming Prevention (March 2002), etc. Japan’s Measures to Decrease Energy-derived CO2 Emissions to 1990 Levels 1000 1050 1100 1150 1200 1250 1990: 1,053 MtCO2 2000: 1,155 MtCO2 Target in 2010: 1,053 MtCO2 Emissions by existing measures defined in the former Outline of Global Warming Prevention: Approx. 1,126 MtCO2 2000 Reductions measures for energy-derived CO2 emissions Energy-derived CO2 emissions

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Source: National Inventory, IPCC Secretariat Energy-derived CO2 Emissions per GDP in Major Developed Countries

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Source: National Inventory Given its low per capita CO2 emission level, Japan has already achieved the highest level of energy efficiency. Comparison of per capita CO2 Emissions

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Cost estimation for target reduction (IPCC Third Assessment Report) 0 200 400 600 800 1000 Japan EU USA Marginal reduction cost (US$ ) 97 1074 20 966 76 410 Approx. 400 Approx. 300 Approx. 200 Note: The arrow indicate the range of various cost estimation results. The marginal reduction cost is higher in Japan than in the EU and USA. Comparison of CO2 Emissions Reduction Cost

Additional Emissions Reduction Measures: 1. Energy Conservation: 

Additional Emissions Reduction Measures: 1. Energy Conservation Unit: kl, crude oil equivalent Source: Outline of Global Warming Prevention (March 2002)

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Unit: kl, crude oil equivalent 1. New energy on the supply-side Source: Advisory Committee on Energy and Natural Resources (July 2001) Additional Emissions Reduction Measures: 2. Target of New Energy Utilization -1 (July 2001)

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2. Renewable energy Unit: million kl, crude oil equivalent 3. New energy on demand-side Source: Advisory Committee on Energy and Natural Resources (July 2001) Additional Emissions Reduction Measures: 2. Target of New Energy Utilization -2 (July 2001)

Additional Emissions Reduction Measures: 3. Fuel Conversion, etc.: 

Additional Emissions Reduction Measures: 3. Fuel Conversion, etc. Source: Outline of Global Warming Prevention (March 2002)

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Photovoltaic and wind power generation　 　　Silicon membranes, fuel cells using chemical compound Fuel cells and hydrogen power generation 　　Solid polymer membranes, production/transportation/storage supply of hydrogen Biomass energy Clean coal technology High performance industrial furnaces, reduction of standby power, automobiles using high efficiency clean energy, etc. NEDO’s Technology Development Activities in New Energy and Energy Conservation

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Grant projects for full-scale introduction Cooperative projects for development of introduction plans Field test projects for experimental introduction To introduce new technologies to end users experimentally, and to demonstrate the effectiveness of such technologies, in order to establish a basis for full-scale introduction and dissemination Ex: Photovoltaics, wind power generation, biomass power generation, etc. To provide subsidies as a part of project budget for full-scale introduction in order to accelerate the dissemination　 Ex: Clean energy automobiles, photovoltaics, wind power generation, high performance industrial furnaces, high efficiency hot water supply, cogeneration, etc. -To cooperate with local authorities for the purpose of developing technology introduction plans -To seek smooth introduction and dissemination through advisory activities at plants NEDO’s Supportive Activities for Dissemination of New Energy and Energy Conservation Technology

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-Large-scale wind power plant in Tomakomai, Hokkaido -Duration: FY 1999 to 2000 -NEDO grant: 1/3 of total project budget -Capacity: 30,600kw (1,650 kw x 14 units, 1,500 kw x 5 units) Example of New Energy Utilization: Wind Power Generation

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-Photovoltaic field test project (World Trade Center in Tokyo, Japan) -Duration: FY 2000 -NEDO grant: ½ of total project budget -Capacity: 80 kw Example of New Energy Utilization: Photovoltaics

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Investment and energy conservation (heating furnaces) NEDO grant: 1/3 of total project budget Industrial furnaces 40% Industrial furnace energy consumption share of total industrial energy consumption Others Example of Energy Conservation Technology Introduction: High Performance Industrial Furnaces

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Coal bed 　 CH 4 　 CH 4 CO2 CH4 CO 2 CO2 fixation Substitution Contribution to IPCC Special Report Ocean sequestration From 2002 (KANSO, J-COAL) Sequestration in a coal bed From 2000 (RITE) Nagaoka-shi, Niigata Prefecture From 1997 (NEDO, RITE) Joint project by Japan, US, Canada and Norway Sequestration in an aquifer CO2 Sequestration Projects in Japan

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Purpose: Implementation of model projects that transfer and disseminate effective energy conservation and new energy technologies in Japan Budget in FY2002: Total : JPY 20 billion Energy conservation model projects (including fundamental research projects) 　　　　 JPY 14 billion Coal model projects　　　　　　　　　　　　　　　　　　　　　　　　 JPY 2 billion International cooperative projects for photovoltaic demonstration JPY 1 billion International joint research projects 　　　　　　　 JPY 3 billion NEDO’s International Cooperation Program

NEDO’s Model Project -1: 

NEDO’s Model Project -1 Purpose: To introduce Japan’s energy conservation technology to developing countries. Budget (FY 2002): JPY 14 billion Projects:

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NEDO’s Model Project -2 On-going projects and completed projects by sector

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FY1998-FY2001 June 2002: NEDO’s first obtaining of CO2 credit utilizing the Kyoto mechanism resulted from a project in Kazakhstan Feasibility study for the purpose of exploring JI/CDM projects that introduce Japanese energy conservation and fuel conversion technologies: 183 projects have been carried out in 38 countries by 2001. Fundamental Research Project for the Promotion of JI/CDM

CTI Workshop in Japan: 

CTI Workshop in Japan -Four workshops have been held in Japan since 1998 -Workshop theme: Introduction of laws and policies relating to global warming prevention and energy conservation technologies (including plant visits) -Total number of participants by 2001: 58 Government/Industry

CTI Workshop Overseas: 

CTI Workshop Overseas

“CTI/Industry Joint Seminar on Technology Diffusion” Series: 

“CTI/Industry Joint Seminar on Technology Diffusion” Series ( Sep 2002 ) BRASTISLAVA ( July 1999 ) WARSAW ( May 2000 ) MADRID ( May 1999 ) SAN SALVADOR ( Mar 2000 ) VICTORIA FALLS ( Mar 1999 ) BEIJING ( May 1998 ) CEBU ( Jan 2000 )

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Short-term target: Development, introduction, and dissemination of energy conservation and new energy technologies will be pursued in Japan to achieve the Kyoto target. Mid- to long-term target: Development of innovative technologies such as CO2 sequestration technology will be carried out. Global activities, in which the US and developing countries participate, are important. To achieve desirable and balanced 3E (energy saving, environmental protection, economic development), in order to develop a sustainable economic society with environmental consideration. Summary

Technology Needs in China for GHG Emissions Reduction -1: 

Technology Needs in China for GHG Emissions Reduction -1

Technology Needs in China for GHG Emissions Reduction -2: 

Sources: -Methods for Climate Change Technology Transfer Needs Assessments and Implementing Activities, Developing and Transition Country Approaches and Experiences, Climate Technology Initiative, March 2002. -The Study on the Methodologies and its Application of Clean Development Mechanism in China (March 2002), National Strategy Studies Program (NSS) -People’s Republic of China, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998) Technology Needs in China for GHG Emissions Reduction -2

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Technology Needs in India for GHG Emissions Reduction Sources: Cooperative Technology Implementation Plan (CTIP) for India, March 2002 India, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998)

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Technology Needs in Thailand for GHG Emissions Reduction Sources: National CDM Strategy Study for The Kingdom of Thailand, National Strategy Studies Program (NSS) Thailand, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998)

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Technology Needs in Indonesia for GHG Emissions Reduction Sources: National CDM Strategy Study for The Kingdom of Thailand, National Strategy Studies Program (NSS) Thailand, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998)

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Technology Needs in Philippines for GHG Emissions Reduction Sources: -Draft Framework for Climate Change Technology Cooperation in the Philippines (August 1999), Technology Cooperation Agreement Pilot Project (TCAPP). The program in the Philippines was initiated under the TCAPP, and continued under the Cooperative Technology Partnership (CTP). -Philippines, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998)

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Technology Needs in Vietnam for GHG Emissions Reduction Source: Vietnam, Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS, October 1998)

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Contact Information: Global Environment Technology Development Department NEDO http://www. nedo.go.jp/get/index.html kankyo@nedo.go.jp SHIGETOMI Norio Email: shigetominro@nedo.go.jp Tel: +81 3 3987-9368