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ENERGY CONSERVATION

MEASURES IN JAPAN

Trinity College Dublin

JANUARY 2011

Authors : Patrick Shiel, Nick Jeffers, Mark Dyar

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EXECUTIVE SUMMARY

In Japan, energy efficiency was once primarily a matter of energy security, initially it included only the

energy intensive industry. Today, energy efficiency is also a matter of mitigating climate change and

the Japanese government tries to make energy efficiency everyone’s business. The Japanese

government believes that energy efficiency policies for each sector should be complemented with

policies to promote lifestyle changes and that the general awareness about why energy efficiency is

necessary has to be increased. Japan has achieved a lot of success regarding nationwide energy

efficiency improvements over the last 30 years; however substantial improvements are still required.

Other nations use Japan’s effective energy conservation laws as examples or guidelines to form their

own.

The Energy Conservation Act (law concerning the rational use of energy) was enacted in 1979 and has

subsequently been revised several times. It has contributing to the sound development of Japan’s

economy by setting up necessary measures for the rational use of energy by factories, buildings,

transport, and machinery and equipment. It also strives to reduce Japan’s CO2 emissions and ensure

the effective use of fuel resources. These measures have successfully reduced Japan’s energy

consumption per GDP to just one while the EU consumes 1.8 times more energy per GDP in

comparison. However, between 1990 - 2005 Japan’s green house gas emissions have increased by

7.7% (1). This presents a substantial problem as Japan has committed to a 6% reduction in

greenhouse gas emissions by 2012 from the levels produced in 1990. As a result the government has

heightened efforts regarding green house gas emissions and energy conservation including: voluntary

action plans; public awareness programmes; promotion of energy service companies; and other

campaigns. . The 1979 Act should be seen as a landmark piece of legislation as it has guided energy

policy legislation in many countries since its introduction in Japan. The Act however has resulted in a

one-sided success from the Industrial sector while energy use has increased in the Building and

Transport sectors. Very sharp focus was placed on the Industrial sector from 1979 onward and the

excellent results of these efforts are evident today.

The Tokyo Metropolitan Government (TMG) has taken an even more aggressive stance towards

energy conservation compared to the National government. The TMG established an Environmental

master plan in January 2002. Since the formulation of the plan, the TMG has taken several measures

in addition to the national government to deal with energy conservation. These include: the cap and

trade program; green energy efficient buildings program; automobiles and transportation reduction

in CO2 emissions program; and other emissions reduction programs with a target of 25% reduction in

Green House Gases (GHG) from 2000 levels by 2020. In Sept. 2009, the Prime Minister announced a

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commitment to reduce GHG by 25% for 1990 levels by 2020. The contrast could not be clearer

between the TMG and National Government targets.

Beyond the Kyoto protocol the Japanese government is looking to create a low carbon society by

2050. The proposed measures to achieve this low carbon society are guided by a scenarios team

whose primary objective is to transform the conventional technological society that depends on huge

resources and energy, into a society in which little energy and resources are used. With this in mind

twelve actions are presented that will enable Japan to reduce CO2 emissions by 70% by 2050 from the

level in 1990.

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INTRODUCTION

Energy conservation measures have been implemented in Japan since 1947. Japan’s dependence on

oil in 1973 amounted to 80% of its total primary energy use (2). In 1973 and 1979 two global oil crises

resulted in detrimental effects to the Japanese economy. The oil crises revealed the fragility of

Japan’s energy supply and as a result the national government built a more robust supply and

demand structure. The supply side aimed to reduce the dependence on oil through the diversification

of energy sources between alternatives such as natural gas or nuclear power (3). These efforts

coupled with schemes aimed at reducing energy demand have resulted in a reduction in oil

dependence from 80% to just 48% between 1973 – 2007, during which Japan’s Gross Domestic

Product (GDP) has increased by 2.3 times (2). This is largely due to the energy conservation measures

employed in the industrial sector which have not shown any increase in energy consumption between

1973-2007, as shown in Figure 1 . However, both the Commercial/Residential and the Transportation

sectors have shown increases in energy consumption of 2.5 and 2.1 times respectively between these

dates.

Figure 1: Japan’s energy consumption separated into three sectors and compared to the national GDP

The energy use reduction within the Industrial sector has been achieved by sharp focus on that sector

within the 1979 Act. Specific policy actions were taken to ensure a deep understanding of energy use

within individual industries and factories with the mandatory appointment of an Energy Manager.

This level of intervention is not apparent within the other sectors, particularly within the residential

sector, where resident’s rational use of energy is encouraged rather than mandated as it is within the

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Industrial sector. The Industrial sector has a very clear roadmap within the legislation whereas the

other sectors must rely on good cooperation from industry and business. The imbalance is clear from

the Figure 3.

Figure 2 shows the primary energy consumption per unit GDP for different countries around the

world. The graph was prepared by the international energy agency in 2009 and is normalized with

Japan’s energy consumption per unit GDP. This plot illustrates that Japan’s energy consumption per

unit GDP is approximately 80% and 110% less than the equivalent EU and US figures respectively. This

graph also demonstrates the success of existing energy efficient policies and schemes already in place

in Japan, relative to measures implemented by other countries. Japan’s energy consumption

curtailment is primarily as a result of the Energy Conservation Act 1979.

Figure 2: Primary energy consumption per unit of GDP of countries

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In 1979 “The Energy Conservation Act” or “Law Concerning the Rational Use of Energy” was

established, as a result of the first and second oil crises (4). Various programmes and policies are

encapsulated within this act, through which the national government objective is to promote energy

conservation measures across all economic sectors. The act applies to four sectors: industry

(factories/workplaces); commercial/residential buildings; machinery/equipment; and transportation.

The act has been amended several times as of the end of April 2010. The primary objective of the Act

is to contribute to the development of Japan’s national economy through the implementation of

energy saving and CO2 reducing measures within these four sectors. The legislation from 1979 and the

subsequent amendments represent a substantial step forward in global energy policy and the

Japanese model has been duplicated in other countries particularly in Asia. However, the pace of

change has been slow, particularly within certain sectors such as Residential. As shown later in this

report, this slow pace has been picked up by the Tokyo Metropolitan Government (TMG) where more

stringent policy is being enacted to reduce energy use and GHG emissions. These actions seem to

have applied some policy pressure to the national Government to do likewise.

The energy conservation policies to date have achieved high levels of success relative to the global

community; however energy consumption rates in Japan still need to be decreased (2). Decreasing

national energy consumption costs coupled with a reduction of green house gas (GHG) emissions are

the key motivating factors behind Japan’s stringent energy conservation policies. In support of this,

the Japanese government ratified the Kyoto Protocol in June 2002 and commits to reduce GHG

emissions by 6% compared to the levels produced in 1990 (5). Japan’s national government provides

various financial support measures to promote and subsidise energy conservation measures including

laws and energy reform taxation systems.

The governmental organisations in charge of energy conservation matters are the: Ministry of

Economy, Trade and Industry (METI); Ministry of Land, Infrastructure and Transport (MLIT); and

Ministry of the Environment. To help support these governmental bodies the following organisations

have been set up to promote energy conservation: Energy Conservation Centre, JAPAN (ECCJ); Japan

Centre for Climate Change Action (JCCCA) and the Institute for Global Environmental Strategies

(IGES).

This report consists of four sections covering:

Japan’s energy conservation laws and policies

Kyoto achievement plan

Energy conservation measures in Tokyo

Japan’s roadmap towards a low carbon society by 2050

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Japan’s energy conservation laws and policies

ENERGY CONSERVATION ACT

Following two oil crises during the 1970s, Japan introduced a ground-breaking piece of legislation

called the Energy Conservation Act in 1979. The Act was intended to regulate the Rational Use of

Energy in four major sectors – Industry (Factories/Workplaces), Buildings (Commercial/Residential),

Transportation and Machinery/Equipment. Six revisions of the Act have occurred in 1983, 1993,

1998, 2002, 2005 and 2008 as indicated in Figure 3 below.

Figure 3 : Time line of Energy Conservation Act with amendments up to 2009

(Japan Energy Conservation Handbook 2010, ECCJ publication, pp. 3)

Legislative Review

It is worthwhile reviewing the original legislation to determine how the regulatory framework was

intended to be imposed over the four major sectors. It is clear that a common approach was adopted

and each of the four sectors had Standards of Judgement assigned to them. Separating these

Standards of Judgement from the Act allowed a rolling review over time and ever more stringent

regulations to be applied, which is precisely what has happened. It is also worth noting that

application of the regulatory framework is very uneven when the Industrial sector is compared to the

Residential sector. This fact may go some way to explaining why the Industrial sector has performed

very much better than either Transportation or Buildings. The following tabulated summary of how

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the Act applies to the four major sectors shows the initial imbalance of intense focus on the Industrial

sector versus lack of focus on the Residential sector.

Figure 4 : Summary of Energy Sector Regulations to April 2010

(Japan Energy Conservation Handbook 2010, ECCJ publication, pp. 8-9)

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The Act of 1979 places obligations on Residential Construction Clients who are building more than

150 units per annum. Below this level of construction, the Act does not apply. Furthermore, it is only

in April 2010 that Orders may be found against these Residential Construction Clients where they are

not complying with the relevant Standards of Judgement. The thinking appears to be that by

imposing ever increasing efficiency standards on equipment and constructors, the residential home

owner would therefore lower energy use. This was purposely chosen as policy rather than placing

direct energy reduction obligations on homeowners of all sizes. There is nothing in the Act to

dissuade the rogue home-owner or occupier from wholesale waste of energy if that is the path

chosen.

The table below gives an overview of how the Act has evolved over the past 30 years and it is

interesting to note the success in the Industrial Sector where much more prescriptive controls were

put in place from the beginning particularly considering the very precisely described role of the

Energy Manager.

Promulgation

Date

Effective

Date

Summary of Legislation and Measure Revision Note

Legislation June 1979 Oct 1979 Provides specific criteria for energy conservation re.

factories, buildings, equipment

Obliges designated factories whose energy consumption

is very large to appoint energy managers and record

energy utilization

Establishes a new test scheme to qualify energy

managers

Thorough energy

conservation initiatives

were required after oil

crisis

Designated factories

count 3,000

Revision (1) Dec 1983 Dec 1983 Streamlines the process of license approval and license

issuance (transfer clerical work to private sector)

ECCJ starts the

examination and training

scheme for energy

managers in 1984

Revision (2) March 1993 Apr 1993 Guarantees the implementation of energy conservation

efforts

Adopts a mandatory periodic report to be made by the

designated energy management factories

The ’92 Earth Summit

raised concerns over

global environmental

issues

Revision (3) June 1998 Apr 1999 Adopts the Top Runner program (to strengthen

measures for the residential and commercial sector)

Obliges the Type I designated Factories to submit a

medium to long term energy plan

Creates a new category as to Type II designated

factories

The amendment of long-

term prospect on energy

supply and demand

(1994)

Revision (4) June 2002 Apr 2003 The category of Type I designated energy management

factory that had targeted five manufacturing industries

was expanded to all industries

Obliges the Type II designated factory to make periodic

reports

Obliges the designated buildings to report energy

conservation measures

Strengthens measures for

the commercial sector as

a result of remarkable

increases in energy

demand trends

Revision (5) August 2005 Apr 2006 The regulatory divisions of heat and electricity for

factories and offices are abolished and integrated into

one energy measure thus expanding the number of

Additional measures are

necessary to achieve the

GHG reduction target

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designated factories

Strengthens energy conservation measures for

residential buildings and construction sector

Additional three products of the Top Runner program

were designated

New obligations were imposed on consigners and

carriers (both cargo and passengers) for the

transportation sector

Obliges energy suppliers and equipment retailers to

make efforts to promote and disseminate energy saving

information

required by the Kyoto

Protocol

Revision (6) May 2008 Apr 09/Apr 10 Industry and Commercial Sectors

Introduces a system for energy management obligation

per whole enterprise

Treats a franchise chain such as convenience stores as a

single enterprise

Buildings and House Sector

Strengthens measures for large residences and buildings

(introduction of orders in addition instructions and

notices)

Adopts a report on energy-saving methods by owners of

small to medium sized residences and buildings above a

certain size

Adopts energy-saving measures by businesses engaged

in the construction and sales of residences

(recommendations and Orders for those engaged in

construction and sales of a large number of residences)

Promotion of indication of the energy saving

performance of residences and buildings

Strengthens measures for

the commercial sector

including offices,

convenience stores, etc.

and household sector

Figure 5 : Chronicles of Revisions of Energy Conservation Law (1979 to 2010)

(Japan Energy Conservation Handbook 2010, ECCJ publication, pp. 18-20)

Current Financial Incentives

The entire programme of energy reduction in Japan has been underpinned with financial incentives

from the earliest introduction of the Energy Conservation Act 1979.

Support measures for the specific factories or workplaces are in place and include low-interest loans,

tax breaks and grants available from the Japan Finance Corporation (JFC) (26).

The most recent financial incentive programmes are broken into the following –

Loan programme with special interest rates

Tax incentives programme

Subsidy programme

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Loan programme with special interest rates (FY2010)

This programme is based on the “Law for Energy Conservation and Recycling Support 2008”.

Energy Conservation Facilities - Financing is available from the Japan Finance Corporation for

three categories including –

Enterprises installing energy conservation equipment (including the rental of this equipment)

– up to 270M yen (at special interest rate II) and over 270M yen – standard interest rate

Enterprises offering to lease energy conservation equipment by first purchasing such

equipment - – up to 270M yen (at special interest rate II) and over 270M yen – standard

interest rate

Enterprises planning to install specific high-performance energy consumption equipment

such as large furnaces or boilers – – up to 270M yen (at special energy conservation interest

rate B) and over 270M yen – standard interest rate

Interest rates are changed from time to time and applied by the Japan Finance Corp and are primarily

aimed at small and medium enterprises. Conditions apply to qualifying equipment which include

energy efficiency should improve by 25% over existing average equipment (26), replacement

equipment should increase efficiency by over 40% compared to the replaced equipment (26).

Finance Conditions (26) –

Financing Limit – Direct Loan 720M Yen, Alternate Loan 120M Yen

Financing Percentage is a predefined rate based on credit risk and loan period

Financing Period – Less than 15 years of which first 2 years are a grace period

Tax Incentive programme (FY2010)

This programme is based on the “Tax System Promoting Investment in the Reform of the Energy

Supply and Demand Structure”. When business operators purchase equipment which contributes to

efficient energy use and utilise it for business activities within that same year, they can choose one of

the following options –

(1) Tax exemption equivalent to 7% of the equipment acquisition cost (applies only to SMEs).

However, if the tax exemption is equivalent to 20% or more of the annual corporation tax,

the limit of exemption is 20% (26).

(2) Special depreciation of 30% of the equipment acquisition cost in the year of acquisition in

addition to ordinary depreciation rules. This applies to all companies (26).

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Subsidy Programme (FY2010)

A very comprehensive range of subsidies exist to cover the spectrum of clients from large

corporations to individual householders. Five implementing organisations have been designated by

Government. These include –

New Energy and Industrial Technology Development Organisation (NEDO) – promoting projects for

energy efficiency by improved equipment installation for both industrial and households.

Japan Electro-Heat Centre – promoting energy efficiency in both water heating and air-conditioning

for all types of industry and households.

Toshi-gas Shinko Centre – promoting use of natural gas for energy intensive projects and the

installation of gas networks.

Conference of LP Gas Associated Organisations – promoting the installation of high efficiency water

heating in both industry and households.

Petroleum Association of Japan (PAJ) – promoting installation of high efficiency water heaters (Eco

Feel).

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ENERGY CONSERVATION ACT RELATING TO INDUSTRY/COMMERCIAL SECTORS

Japan’s energy consumption in the industrial, commercial, and residential sector amounts to 75% of

the total national energy consumption (2). Figure 66 shows the energy consumed in the industrial

sector between 1973 and 2007. The energy used to produce ceramics, iron and steel; non ferrous

metals; paper/pulp; and textiles have continuously reduced since 1973. However the production of,

food, chemicals, machinery/metals and others has increased, and as a result the total energy

consumed in the industrial sector has increased since 1973.

Figure 6: 1016

Joules of energy consumed between 1973 and 2007

Under the Energy Conservation Act, if a factory or workplace in the industrial sector consumes over

1500kL of crude oil or equivalent within a year it is designated as a high energy consumer. According

to the Energy Conservation Act, business types above this threshold, are subjected to the Standards

of Judgment (6) and are assessed annually by the Minster for Enterprise, Trade and Industry.

Figure7 shows the energy consumed by commercial workplaces for 1973, 1982, and 2007. The total

energy consumed has decreased since the levels used in 1973. This was somewhat motivated by the

oil crises Japan experienced in 1973 and 1979 resulting in a 40% drop between 1973 and 1982.

However only a 4% drop in total energy consumption has occurred between 1982 and 2007, although

the energy consuming percentages are somewhat different. In 2007 the dominant energy consumer

was machinery/equipment within the building, for example: computer servers and lighting. Heating

and hot water supply are no longer the dominant energy consumer from modern commercial

buildings.

The following is stipulated for the Industrial sector within the Act –

Improvement in the methods for use of energy, and choice of machinery and equipment in light of

rational use of energy for office use as specified within the Standards of Judgements as mandated

from time to time by the Cabinet.

(a) Rationalisation of combustion of fuels

(b) Rationalisation of heating and cooling and heat transfer

(c) Recovery and utilisation of waste heat

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(d) Rationalisation of conversion of heat into power

(e) Prevention of electrical heat loss

(f) Rationalisation of conversion of electricity into power and heat

METI shall provide advice on the rational use of energy. Factory sizes are discussed (Type I and II) and

provision is made for various categories of energy users depending on scale and scope of annual

energy use.

Provision is made for the appointment of an Energy Management Control Officer. Appointment or

removal of these individuals must be notified to the Minister (METI). The further appointment of an

Energy Management Planning Promoter along with a licensed Energy Manager in each Type I factory

is also required. The Act calls out specific duties of these individuals along with details of the

individual’s required training and qualifications. Type II Energy Managers are required in Type II

factories. Failure to comply with recommendations or orders arising from reports issued by METI may

result in adverse publicity. Compliance, training, standards for registration, investigative procedures

are all of a similar structure to the Commercial/Residential section below.

Figure 7: 106 Joules per m

2 of energy consumed between 1973 and 2007

The Energy Conservation Act refers to Standards of Judgment which are applicable to factories and

workplaces (25). They are targeted at all those who conduct business activities and consume energy

in their factories, offices, or other workplaces. They ensure that the use of energy is done so

effectively and efficiently. It states that all business operators should appropriately manage their

energy consumption and comply with the various standards for their specific factories/workplaces.

These Standards of Judgement related to factories and workplaces are monitored by the Minister of

Economy Trade and Industry (METI) (7).

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Certain business types which have been designated high energy consumers are required to prepare

and submit periodic reports regarding the status of their energy consumption to the METI (25). The

factory/workplace can be split into two types depending on their energy consumption (2).

Type 1- factories or workplaces that consume a large quantity of energy (>3000kL). Type 1

designated energy management factories are required to hire a type 1 energy manager who

is fully qualified and certified to be an energy manager. Also in addition to the periodical

reports type 1 factories or workplaces are required to submit medium to long term energy

conservation plans (25).

Type 2 - factories or workplaces that consume a medium quantity of energy (>1500kL). The

law prescribes that a type 2 factory shall appoint a type 2 energy manager. A type 2 energy

manager must complete a designated energy management training course or be a fully

qualified energy manager.

Based on the periodical reports submitted by factories/workplaces and field inspections, the METI

decides the compliance status of the Standards of Judgment at the specific factory or workplace. The

METI evaluates the changes in energy consumption intensity to determine if guidance is necessary or

not. If the rational use of energy is significantly insufficient, instructions about

preparation/submission of rationalisation plans and implementation of the rationalisation plan are

given. If the instructions are not obeyed, a public announcement is made in relation to the companies

noncompliance and an order can be issued with a possible fine attached.

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ENERGY CONSERVATION ACT RELATED TO TRANSPORTATION

In the transportation sector a significant increase in energy consumption has occurred in recent years.

Table 1 shows the majority of energy consumed is in the passenger sector in particular the private car

while the motor truck consumes the majority of freight sector energy. This reiterates the importance

of the energy conservation act influencing these trends and decreasing consumption rates in the

transportation sector.

Table 1: Energy consumption in the transportation sector in terms of 105 Joules, between 1975 and 2007

Up until recently (April 2006) the Energy Conservation Act only monitored automobile fuel

consumption alone. The transportation sector is required to take the following energy conservation

measures and is split into two groups: carriers and consigners (2).

Within the 1979 Act, provision is made for METI and the Ministry of Land, Transport, Infrastructure

and Tourism to publish Standards of Judgement for Freight Carriers and Consigners in light of the

rational use of energy alongside the following –

(a) Use of Transportation machinery and Equipment with high performance

(b) Operation or control of Transportation machinery or equipment that contributes to the

rational use of power

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(c) Use of transportation equipment and machinery with high transportation capacity

(d) Efficient utilisation of transportation capacity of transportation equipment and machinery

Carriers including both freight and passenger

For a carrier business (including business operators having their own physical distribution) to be

designated under the regulations of the energy conservation act, its fleet must exceed 200

trucks/buses or 300 rolling stock cars (2). These specific carriers are obliged to submit the following

reports to the Minister of Land Infrastructure and Transportation: energy conservation plans; energy

consumption report; and the status of efforts related to energy conservation measures (25).

The non-binding energy conservation target for carrier operations as outlined by the energy

conservation act is a 1% annual reduction in energy consumption intensity (25). The following energy

conservations measures can be employed in order to achieve this reduction:

Introduction of fuel efficient cars

Promotion of eco-driving

Improvement of freight loading efficiency

Reduction of air transportation

As of the end of March 2008, 643 companies in the transport sector have been designated in Japan

and submit their annual reports by the end of June every year (2).

Consigners

Consigners who order freight transportation over 30 million ton-kilometres ([freight weight (ton)] x

[transportation distance (km)]) in a year also shall have obligations to prepare the following reports

and submit them annually to the Minister of Economy, Trade and Industry (2): energy conservation

plans; energy consumption report; status of efforts related to energy conservation measures. As of

the end of June 2008, 866 companies have been designated and submit annual reports by the end of

June every year (2).

Monitoring by the Minister of Economy Trade and Industry and Minster of Land Infrastructure and

Transportation

If efforts in energy conservation are deemed to be significantly insufficient, a recommendation,

publication, an order and a penalty (a fine not more than one million yen) are imposed. However the

following support measures are in place:

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Minister of Land, Transport, Infrastructure and Tourism will provide advice on all aspects of the

rational use of energy.

Spreading and promotion of automobiles which use clean energy as fuel. Preferential tax

measures for purchasing low-fuel-consumption cars and low-air-pollution cars

Financial aid will be offered to help promote the purchase of clean-energy-automobiles and low-

air-pollution cars, and low-fuel-consumption cars, and for the development of the related

technology.

Improvement of energy efficiency of individual transportation equipment. Implementation of

investment and financing, etc. to introduce energy efficient equipment.

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ENERGY CONSERVATION ACT RELATED TO BUILDINGS/RESIDENCES

Figure8 shows the energy consumed by the residential sector in 1979 and 2007. A marked increase in

consumption of approximately 44% is seen between 1979 and 2007. Lighting, electric appliances, and

others show the biggest increase in terms of energy consumed. This increasing trend reinforces the

importance to curtail the energy consumption rates in Japan.

Figure 8: 106 Joules per Household consumed between 1973 - 2007

According to the Energy Conservation Act construction clients and building owners are required to

take appropriate measures to reduce the heat loss through the building and effectively and efficiently

utilise energy for the operation of building facilities such as heating, ventilation, cooling, lighting and

various other building systems (8). Under the revision of the Energy Conservation Act in May 2008

two types of buildings were segregated:

Type 1 –specified buildings having a total floor area of >2000m2

Type 2 –specified buildings having a total floor area of between 300m2 < 2000m

2

Construction clients and owners who intend to construct or extensively modify “Type 1 Specified

Buildings” or “Type 2 Specified Buildings” shall submit notification of energy-saving measures to the

relevant governmental authorities before the start of construction. In addition, after the completion

of construction or modification, the construction clients or owners who submitted the above

mentioned notification shall submit periodical reports on buildings maintenance with respect to

energy-saving measures.

The energy conservation act related to building/residences is monitored by the Minister of Economy,

Trade and Industry and the Minister of Land, Infrastructure and Transportation. When the authorities

find energy-saving measures for “Type 1 Specified Buildings” to be significantly insufficient in

consideration of the criteria, the authority shall instruct them for improvement. If the construction

clients or owners do not follow the authority’s instruction for improvement on the measures

described in the notification, the authority shall announce to the public the name of the construction

client or owner in question and order them to follow the instructions; otherwise a fine will be issued.

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Also, when the competent authority finds energy-saving measures for “Type 2 Specified Buildings” to

be significantly insufficient in consideration of the criteria, the authority shall advise them for

improvement, but not take the matter any further. Financial support is available in the form of low-

interest rate loans, tax breaks, and grants.

The following is stipulated for Buildings (Commercial/Residential) within the 1979 Act -

Commercial Buildings falling under this law are referred to “Specified Building”. Residential buildings

falling under this law are referred to “Specified Residence”.

Four categories of construction clients are listed (1) persons intending to construct a building, (2)

Building owners or managers, (3) Persons intending to repair/remodel the building envelope and (4)

Persons intending to install Air Conditioning equipment. The Standards of Judgements only apply to

(1), (3) and (4) and also to owners of buildings beyond a certain size as mandated by Cabinet. A

Special exclusion clause was inserted for home builders whose construction volume is below 150

units per annum (Energy Conservation Act 1979 - Art 73.1).

The Standards of Judgement (or Rational energy use levels) for Specified Buildings are issued from

time to time by the Minister of Energy, Trade and Industry and the Minister of Land, Transport,

Infrastructure and Tourism.

Jurisdiction for Specified Buildings (excluding residences) falls to the local Mayor or Governor and

specifically to the District Building Surveyor. Advice to the design team is available on design,

construction and maintenance from the District Building Surveyor.

The Minister of Land, Transport, Infrastructure and Tourism is specifically responsible for providing

guidelines on energy use in residential buildings.

Notification of any design, construction or changes to existing buildings must go to the relevant local

authority who may issue instructions if the Standards of Judgement are not being met for that

building type. If deemed necessary, the relevant authority may instruct changes to design,

construction or indeed maintenance. If failure to comply with these instructions results, publication

of this fact may ensue. This policy of naming and shaming would appear to be particularly effective in

Japan.

Commercial buildings are split into Type I and II depending on energy use as prescribed by the Cabinet

from time to time. Provision is made for the creation and existence of Registered Investigation bodies

whose function is to ensure examination, reporting and subsequent adherence to the Standards of

Judgements.

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The Ministry of Land, Transport, Infrastructure and Tourism must provide advice on the design and

construction of new buildings regarding adherence to the Standards of Judgement while the Ministry

of Energy, Trade and Industry must provide advice to manufacturers, processors and importers of the

relevant thermal insulation building materials.

The Standards of Judgement (or Rational energy use levels) for new Specified Residential Buildings are

issued from time to time by the Minister of Energy, Trade and Industry and the Minister of Land,

Transport, Infrastructure and Tourism.

All notification, reporting, inspection and adherence procedures apply to the constructor rather

than the owner of the new residence.

The expert investigator and the experience required are both outlined in some detail within the Act.

Finally the Act places very substantial powers in the hands of the respective Ministries to co-ordinate,

change and revoke permissions to perform, permissions to practice, etc. as required.

Building Energy Regulations for Commercial and Residential Buildings in Japan

Japan has three building energy regulation codes, one covers commercial buildings and the other two

cover residential buildings (9).

Criteria for the Rationalisation of Energy Use for Buildings (CCREUB), is a mixture of

performance and prescriptive energy codes for commercial buildings. It covers insulation of

the building envelope as well as heating, ventilation and air conditioning (HVAC), lighting,

water heating, and vertical transport or lifting equipment

Japan has two building energy codes for residential buildings or houses:

o Firstly the Design and Construction Guidelines on the Rationalisation of Energy Use

for Houses (DCGREUH) includes: insulation of the building; HVAC; water heating; as

well as guidance on maintenance and operations.

o Secondly the Criteria for Clients on the Rationalisation of Energy Use for Houses

(CCREUH) is a mixture of performance and prescriptive based building energy codes.

It also provides performance-based annual heating and cooling loads by building

type.

In addition to the mandatory building standards, Japan also has implemented voluntary programmes

to stimulate building energy conservation. The first two of the following are directed at residential

buildings, while the last is directed at commercial buildings:

The Housing Quality Assurance Law is a voluntary housing performance labelling system for

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the protection of consumers. It contains standardised criteria for evaluating a wide variety of

housing performance, including the building’s structural stability, fire safety, indoor air

quality, acoustics, lighting, and thermal performance.

Environmentally Symbiotic Housing Model Project, supports the installation of

“environmentally symbiotic facilities,” including permeable pavement or facilities that utilize

natural energy sources, and skeleton infill systems or those that use recycled materials. The

Minister of Land Infrastructure and Transportation subsidizes one third of the costs for

implementation of such products.

CASBEE (2001). CASBEE stands for “Comprehensive Assessment System for Building

Environmental Efficiency”, a green building rating system developed by the Japan

Sustainable Building Consortium to assess the “environmental efficiency” of buildings. The

CASBEE compares the environmental quality and performance delivered by the building

envelope, against its environmental loading in terms of energy used in construction, and the

resources/materials used. CASBEE is a voluntary program being implemented by local

governments, with training for the assessors and third party assessment.

As a brief means of comparison, the assessment methods used in the UK and US are summarised

below. These standards are being adopted in various forms worldwide.

Building energy regulations for Commercial and Residential Buildings in the UK

The UK established a building energy rating system for the commercial sector in 1990 known as

BREEAM (Building Research Establishment Environmental Assessment Method) (10). The method

produces a certificate based on a straightforward scoring system that maintains a robust technical

standard with rigorous quality assurance, which is easy to understand, transparent and supported by

actual performance data from the building. This results in a positive effect on the building design,

construction and lifecycle management. Today, BREEAM is the leading and most widely used building

energy rating system in the UK. It motivates developers and designers to find innovative solutions

that minimize the environmental impact to achieve a higher performance than the benchmark

regulation to give their specific buildings an advantage in a competitive marketplace. It also assures

clients and potential clients that the best environmental practices are incorporated into the building

including: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental

quality, and others.

EcoHomes is a version of BREEAM for domestic residences. It provides a performance rating for new,

converted or renovated homes, and covers houses, flats and apartments. It works on a similar

principle to the standard BREEAM method and it balances environmental performance with the need

for a high quality of life and a safe and healthy internal environment.

23

Building energy regulations for Commercial and Residential Buildings in the US

The U.S. Green Building Council developed a green building certificate system known as LEED

(Leadership in Energy and Environmental Design) (11). This methodology provides a framework for

identifying and implementing green building practices. It is an internationally recognized green

building certification system, and provides third-party verification that the best energy efficient and

environmental practices are incorporated into the building. LEED is flexible enough to apply to all

building types - commercial as well as residential. Its implementation carries through the entire life

cycle of the design and construction of the building.

Both BREEAM and LEED have been criticised for cost of implementation (both construction and

consultancy) but perhaps more telling, buildings not performing to low energy use post-occupancy.

This operational view of energy use in buildings is being addressed in revised versions of both

BREEAM and LEED but unlike Japan, there is no regulatory enforcement of energy efficiency once the

BREEAM or LEED rating has been applied to the building. There is nothing to stop an office worker

from running the local Air Conditioner with the windows open.

24

ENERGY CONSERVATION ACT RELATED TO ENERGY CONSUMPTION OF EQUIPMENT & MACHINERY

Large quantities of energy are required for the operation of automobiles, air-conditioners, and other

high energy consumption equipment. In order to reduce the energy consumption of these products

both the usage levels by the individual customer and the efficiency of the product itself needs to be

addressed.

Obligation of Manufacturers: Top Runner Program

According to the Energy Conservation Act those who produce or import high energy consuming

products are responsible for the efficiency of the equipment. The efficiency standards of the

equipment are dictated by the “Top Runner Program” (12). The “Top Runner Program” values are set

to exceed the efficiencies of the most efficient product of the same group on the market. The time

frame for these standards to be reached is usually 4-8 years. If a significant gap appears in efficiency

levels between products the Minister of Economy, Trade and Industry and the Minster of Land,

Infrastructure, and Transport will provide necessary advice and recommendations to reduce this gap.

If this advice is not followed, the company and recommendations will be made public and the

manufacturer may also be ordered to implement them.

As of July 2009, the number of target appliances and automobiles reached 23 which include:

passenger vehicles, freight vehicles, air conditioners, TV sets, video recorders, fluorescent lights,

copying machines, computers, magnetic disc units, electric refrigerators, electric freezers, space

heaters, gas cooking appliances, gas water heaters, oil water heaters, electric toilet seats, vending

machines, transformers, microwave oven, electric rice cookers, DVD recorders, routers and switches.

The table below shows the improvement already achieved by the top runner program. More details

regarding specific regulations for each of the target appliances can be found in the top runner

documentation (12).

25

Target

Fiscal Year

Base Fiscal

Year

Efficiency

Improvement

(Projected)

Efficiency

Improvement

(Actual)

Gasoline Passenger Vehicles 2010 1995 22.8% 26.0%

Diesel Freight Vehicles 2005 1995 6.5% 21.7%

Air Conditioners 2004 1997 66.1% 67.8%

Fluorescent Lamps 2005 1997 16.6% 35.6%

TV Sets (CRT) 2003 1997 16.4% 25.7%

Video Cassette Recorders 2003 1997 58.7% 73.6%

Copying Machines 2006 1997 30.0% 72.5%

Computers 2005 1997 83.0% 99.1%

Magnetic Disc Units 2005 1997 78.0% 98.2%

Electric Refrigerators 2004 1998 30.5% 55.2%

Electric Freezers 2004 1998 22.9% 29.6%

Vending Machines 2005 2000 33.9% 37.3%

Table 2: Presents the projected and actual efficiency improvements as a result of the Top Runner Program

Prepared from EDMC Handbook of Energy & Economic Statistics in Japan 2009

Labelling

Appliance Labelling: Equipment described above shall be labelled with a five-star rating system. This

label indicates the energy efficiency of the product and provides running cost information to

consumers to help them select highly efficient products (12). Figure 99 shows the energy saving label

used to display the energy efficiency of the product.

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Figure 9: The energy efficient product labelling system with the different sections explained (12)

Retailer Assessment Program: This label is used to recognise retailers who provide energy saving

information to their customers and sells/stock high quantities of energy efficient equipment (12).

Figure10 shows the logo that selected retailers who excel at promoting energy efficient products are

allowed to display in their store.

Figure 10: Label given to retailers who excel at promoting and distributing energy efficient products

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Error! Reference source not found.11 shows the flow chart for energy efficient products cycle.

The cycle is based on simple principles: by providing the consumer with the necessary information,

through advertising, it is possible to increase the popularity of energy efficient products which in-turn

will drive manufacturers to produce better more efficient product that the retailers can easily sell to

the customers.

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Kyoto Achievement Plan

Since Japan ratified the Kyoto Protocol in June 2002, the country has been actively promoting the

implementation of measures to reduce green house gas (GHG) emissions, including measures for

energy conservation and new forms of energy. Japan pledged a 6% reduction in greenhouse gas

emissions from the 1990 levels by 2012. However Japan’s GHG emissions in 2005 totalled 1359

million tons of CO2 or equivalent, up 7.7% from the 1261 million tons of CO2 or equivalent in 1990 (1).

Moreover the 2005 emissions were 13.7% more than the Kyoto Protocol target at 1186 million tons of

CO2 or equivalent. Factors causing these increases in energy related CO2 emissions include:

The commercial sector, which accounts for more than 20% of Japan’s total energy-related

CO2 emissions, expanding by 45.4% from 1990 (1).

The residential sector, which accounts for some 10% of Japan’s total energy-related CO2

emissions, also expanded by 36.4% (1).

NIPPON KEIDANREN VOLUNTARY CO2 REDUCTION PLAN

The Keidanren Voluntary Action Plan was set up by the Japanese business federation in 1997 to

stabilise the CO2 emissions as a result of energy consumption by 2010. The plan aims to stabilise the

CO2 emissions from fuel combustion and industrial processes. It is an alternative to policies such as

emissions trading or carbon tax, however the impact of the plan is unknown as of yet. The expected

reduction is 21 million tons of CO2 or equivalent (1).

The plan consists of 35 industries including: energy; mining; manufacturing; and construction. These

industries select their own target indices such as gross CO2 emissions, CO2 per unit, energy

consumption; and energy efficiency. The CO2 reduction plan is part of the national Kyoto achievement

plan, however there is no agreement with the government to assure the targets are reached. The

voluntary CO2 reduction plan has the following substantial shortcomings (13):

Industries choose convenient indices (CO2 emissions, CO2 per unit, energy consumption; and

energy efficiency) to easily achieve their proposed targets. To date only 10% of the industries

in the voluntary program have achieved the enhanced efficiency required by the national

commitments to the Kyoto protocol.

Japan has shown an increase of 10% since 1990 in the utilization of coal fired power plants

and as a result the Japanese industry uses more coal than industries in Europe and US. The

Keidanren Voluntary CO2 Reduction Plan allows the practice of increased coal usage, which

could be avoided.

After the oil crises Japan became one of the most energy efficient countries in the world, in

1980 consuming 75% less energy per product unit compared to the UK and US, but have

shown little improvement in efficiencies since then, as shown in Figure3. However, in recent

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years the UK and US have reached the same consumption levels as the Japanese. This lack of

improvement is not helped by the fact that the Keidanren Voluntary CO2 Reduction Plan

target is to increase efficiencies by 0%.

There is little chance that the Keidanren Voluntary CO2 Reduction Plan will achieve its targets

because no assurances for achieving them have been given. Yet the Japanese government’s

Kyoto Protocol Target Achievement Plan is predicting that 85% of the total CO2 reduction

from the industrial sector (factories and workplaces) will result from the implementation of it

and have suspended the implementation of more efficient policies such as carbon tax and

emission trading.

ENERGY CONSUMPTION REDUCTION MEASURES AIMED AT THE GENERAL PUBLIC

The Japanese government has implemented a series of national information campaigns to increase

public awareness regarding energy consumption. The objective of the campaigns are to somewhat

change the general public’s habits, lifestyle and opinion regarding energy use. These national

information campaigns were contained within the Team Minus 6 project which was launched in 2005

(14) (15). Some of the campaigns within this project are as follows:

Cool Biz: this campaign advises people to save energy by limiting air condition during

summer and instead adjust their clothes. This campaign is estimated to have reduced CO2

emissions by 1.14 million tons in the summer of 2006 (14).

Warm Biz: this is the winter counterpart to cool biz and encourages people to dress

appropriate instead of using too much heat and electricity and has an estimated emissions

saving of 1.41 million tons of CO2 in autumn/winter 2005 (14). These CO2 savings need to be

put into context as Japan produced 1.38 billion tons of CO2 in 2005 (Ministry of

Environment, 2007 a; Ministry of Environment, 2007 b)

Uchi-Eco (home-eco): This campaign was launched in 2006 and advises people to make daily

efforts to purchase and use environmentally friendly locally produced food products,

clothing, and housing (14).

Energy Conservation Promotion throughout the Year: The Japanese government has

declared the first day of every month as "Energy Conservation Day", and February as "Energy

Conservation Month" and the first day of August and December every year as "General

Check-up Day for Energy Conservation", in order to promote energy conservation efforts

across the nation and throughout the year.

In January 2010, the Minus 6 Project has evolved into the Challenge 25 Campaign.

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ENERGY SERVICE COMPANY (ESCO)

ESCO companies assess existing buildings energy consumption levels and determines where savings

can be made. The company usually takes its payment as a percentage of the energy savings achieve

over a predefined period of time ultimately saving energy costs and/or reduced utility costs. ESCO’s

usually introduce various energy-saving equipment and systems, monitoring practices and efficient

operation controls. The purpose of the system is to achieve comprehensive energy saving for an

entire building by monitoring the energy supply and demand in the entire building in order to be able

to integrate efficient operation of equipment and facilities inside the building (15).

EXPECTED IMPROVEMENT OF ENERGY-SAVING PERFORMANCES

The energy-related CO2 emissions reduction measures for each sector given below and are

accompanied by the expected reduction of crude oil or equivalent by 2010 as of May 2007 (16).

Factories and Workplaces (Industry)

Implementation of the Keidanren Voluntary Action Plan on the Environment. - expected

reduction of 15000 million litres of crude oil or equivalent

Introduction of energy conservation equipment such as high performance furnaces, boilers -

expected reduction of 1080-1600 million litres of crude oil or equivalent

Energy conservation by coordination among adjacent factories - expected reduction of 450-

1000 million litres of crude oil or equivalent

Reinforcement of energy management - expected reduction of 400 million litres of crude oil

or equivalent

Dissemination of fuel-efficient construction machines - expected reduction of 100 million

litres of crude oil or equivalent

Buildings and Residences

Efficient improvement of equipment by top runner standards - expected reduction of 6100

million litres of crude oil or equivalent

Reduction of standby power consumption - expected reduction of 400 million litres of crude

oil or equivalent

Improvement of energy saving performance in building/houses - expected reduction of

11300 million litres of crude oil or equivalent

Dissemination of energy saving equipment such as high efficient water heater, lighting (LED),

air-conditioner, and refrigerator - expected reduction of 2600-3100 million litres of crude oil

or equivalent

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Provision of energy information to consumers by energy supplier - expected reduction of

500-1000 million litres of crude oil or equivalent

Promotion of more efficient equipment - expected reduction of 1800 million litres of crude

oil or equivalent

Promotion of Building Management Systems - expected reduction of 1600-2200 million litres

of crude oil or equivalent

Reinforcement of energy management - expected reduction of 700 million litres of crude oil

or equivalent

Transportation

Improvement of fuel efficiency of vehicles by top runner standards - expected reduction of

8700 million litres of crude oil or equivalent

Dissemination of clean energy vehicles - expected reduction of 200-900 million litres of crude

oil or equivalent

Introduction of sulphur-free fuel and vehicles that can run on the fuel - expected reduction

of 0-100 million litres of crude oil or equivalent

Support the introduction of ideal stopping of vehicles - expected reduction of 10-20 million

litres of crude oil or equivalent

Energy saving measures concerning transportation systems such as promotion of use of

public transportation, modal shift to rail freight, and improvement of energy efficiency of rail

and air - expected reduction of 11200-12200 million litres of crude oil or equivalent

Energy Supply

Renewable energies - expected reduction of 1504-19100 million litres of crude oil or

equivalent

Promotion of introduction of cogeneration with natural gas - expected reduction of 4980-

5030 million litres of crude oil or equivalent

Promotion of introduction of fuel cells - expected reduction of 20-2200 million litres of crude

oil or equivalent

Reduction of CO2 emissions intensity in electricity sector by promoting Nuclear Power -

expected reduction of 20% compared to 1990

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ENERGY CONSERVATION MEASURES IN TOKYO

The Tokyo Metropolitan Government (TMG) is seen as a pioneer regarding energy conservation

measures and has undertaken policies beyond that of the national government and other

municipalities (17). The TMG is seen to develop novel initiatives relating to energy efficient policies to

spearhead not just nationally but global schemes. As a result the TMG adopt far more aggressive

energy conservation measures compared to the national government.

The TMG has taken measures to deal with energy conservation and climate change across all sectors

including: industrial/commercial; buildings/residences; and transportation. The TMG is actively

tackling the environmental crises represented by climate change, and is taking effective measures,

aiming at the realisation of an advanced environmental city with the lowest possible environmental

burdens. The principle energy conservation initiatives implemented locally by the TMG are as follows:

the cap and trade program; green energy efficient buildings program; automobiles and transportation

reduction in CO2 emissions program; and other emissions reduction programmes. The following

energy conservation measures are currently implemented by the TMG.

THE CAP AND TRADE PROGRAM (INDUSTRIAL AND COMMERCIAL SECTORS)

In December 2006 the TMG announced its target of reducing Green House Gas (GHG) emissions by

25% below the 2000 levels by 2020. The TMG believes this is Asia’s first Urban scale Cap and Trade

scheme. It is estimated that over 50% of domestic GHG emissions will be covered by the scheme and

it is the TMG’s stated wish that this scheme be rolled out nationally throughout Japan (17). The

implementation of the programme is to start in 2010, and covers both the industrial and commercial

sectors. These sectors produce approximately 40% of the total GHG emissions of Tokyo (17). This 25%

reduction target applies to large-scale facilities (buildings / factories) that have total consumption of

fuels, heating and electricity of at least 1500kl per year of crude oil or equivalent (17).

About 1400 large CO2 emitting facilities such as specific office buildings and factories come under this

classification. Tokyo’s commercial sector comprises of many facilities, including office buildings. The

cap applies to slightly less than 80% of these facilities including almost all major skyscrapers in Tokyo.

The GHG emitted by the 1400 facilities (buildings/factories) are estimated to total approximately 13

million tons CO2 or equivalent annually.

The 25% reduction in GHG emissions is planned to be achieved over two five year compliance periods.

The first compliance period runs between 2010 until 2014 and the second will run from 2015 until

2019. The reductions for each facility will be compared to its base year’s emissions. This base year

figure is calculated from the average actual emissions of the facilities over the past three years (i.e.

average emissions between 2007 and 2009). The reduction target for the first compliance period

33

(2010 – 2014) has been set at a level of 6% below the base year emission and applies to factories and

buildings receiving energy from district heating and cooling plants. The reduction target for the other

relevant buildings has been set at 8% below the base year emissions. The reduction target for the

second compliance period is set at a level of approximately 17% below the base year emission. The

base year for the second compliance period is adjusted to the average emissions between 2012 and

2014. Facilities that make substantial progress with regard to measures against global warming are

recognised as top-level energy efficient facilities.

Allowances for the respective facilities (buildings/factories) are calculated by multiplying the base-

year emissions by the compliance factor by the compliance period. For example: base year emissions

equals 10,000 ton; compliance factor for first compliance period is 8%; and the compliance period is 5

years. As a result the allowance over the first compliance period is a reduction in emissions as follows:

4,000 ton = 10,000 x 8% (0.08) x 5. Basically, by the end of the first compliance period (end of 2014)

this specific facility must have reduced its emissions by 4000 tons.

These cap obligations are mandatory and penalties apply to any breach or non-compliance. The

penalties consist of fines (up to ¥500,000), publication of the breach, and a type of surcharge

collected in proportion to the failure to fulfil the obligation. The specific facility or company cannot

evade the obligation to reduce CO2 emissions even after the payment of fines. In addition to the fine

the facility must then reduce emissions by 1.3 times the original reduction target. There are two

methods of reducing emissions to abide by the first compliance period: Method 1, Self Reduction;

Method 2, Emission Trading.

Facilities whose GHG emissions reduction exceeds their yearly obligation may trade the surplus to

companies struggling to comply with their allocated emissions. Essentially this system allows facilities

that took excessive reduction measures to sell the reduced amount before the end of the compliance

period.

Proposal for Nationwide Introduction of Cap-and-Trade Program Japan

In September 2009, Japan’s Prime Minister committed to reduce the countries GHG emissions 25%

below the 1990 levels by 2020. In response to this the TMG proposed a nationwide cap-and-trade

program for the entire country of Japan. The following points were included in the proposal:

Introduction of a mandatory cap-and-trade program with an absolute cap not a voluntary

program like the Keidanren Voluntary Action Plan.

The proposed program corresponds to the global standards for future possible links with

other national carbon markets for international carbon trading.

The proposed nationwide cap-and trade program consisted of two sub programs that cover

at least 60% of the total domestic CO2 emissions. These sub programs are based on the

34

national law and are as follows: national cap-and-trade program (NLCTP); and regional cap

and trade programs (RLCTP).

o The NLCTP targets very large scale energy and resource suppliers such as power

plants and steel plants. There are approximately 500 of these types of industries in

Japan.

o The RLCTP targets large scale facilities such as factories, office buildings and public

facilities. There are approximately 14000 of these types of facilities and the

programmes will be managed locally by region.

GREEN BUILDING PROGRAM (BUILDING AND RESIDENTIAL SECTOR)

The TMG Green Building Program covers both new builds and expansion of existing buildings (18).

The program is designed to promote energy efficient building practises in the construction sector.

Building owners covered by the ordinance are those who intend to newly construct or expand

buildings with total floor space exceeding 10,000m2. The green building program can be split into two

subsections covering: the use of energy throughout the buildings existence; and the materials used to

construct the building.

Measures to reduce energy consumed by buildings are as follows:

Effective measures of reducing the buildings thermal loads as a result of solar and other heat

sources. These loads result in an increase in energy consumption by HVAC systems which

attempt to control the building’s internal environment. These effective measures include:

insulating the exterior of the building; installing pent roofs; verandas; louvers and blinds to

shield against sunlight; and the placement of non-air-conditioned room on the western side

of the building that is exposed to large solar thermal loads.

Use of natural energy in the form of solar, wind and natural light is an effective energy

conservation measure that does not rely on mechanical equipment.

Energy-saving mechanical systems and optimised energy management of: HVAC systems;

lighting equipment; hot water supply systems; and elevators.

Energy conservation measures in local communities including district heating and cooling

plants.

The optimum use of natural resources

The use of eco-friendly materials including: recycled aggregates and steel materials; mixed

cement; and other eco friendly materials.

Extension of building life through careful maintenance, management and modification

results in a reduction in the consumption of materials and supplies in the construction and

demolition of buildings.

35

The utilisation of rainwater for secondary water supply systems.

The implementation of the green building program helps mitigate the “heat island phenomenon” in

Tokyo. This phenomenon is caused by the waste heat of buildings facilities causing the temperature in

urban areas to be substantially higher than the surrounding rural areas.

Source) Tokyo Metropolitan Government – Outline of the Tokyo Green building program under the

Tokyo Metropolitan environmental security ordinance

TRANSPORT SECTOR ENERGY / CO2 REDUCTION PROGRAMS

The automobile and transport sector accounts for about 20% of the total CO2 emissions in Tokyo. In

an effort to reduce this environmental load the TMG have started to promote the widespread use of

electric (EV) and plug in hybrid vehicles (PHV). The TMG objective is to have 15000 electric and plug in

hybrid vehicles and 80 quick charge stations in widespread use within five years (19). The following

approaches are taken to create the movement:

Governmental financial subsidies promoting the introduction of both EV’s and PHV’s.

Table 3: Flow chart presenting the procedure associated with the Green building program

36

Promotion of installation of charging facilities through tax breaks and financial assistance

Encouraging activates in cooperation with companies to help promote the implementation

of both EV’s and PHV’s

Test ride events to show that both EV’s and PHV’s can be used as everyday cars.

In addition to the introduction of EV’s and PHV’s the TMG is currently regulating harmful emissions

from Diesel engines (20). Diesel engines represent a mobile pollution source that travel across

administrative boundaries of various local governments. It should therefore be the task of the

national government to introduce anti-pollution measures, such as controls on automotive

emissions. The TMG launched a campaign to raise awareness on the reality of air pollution and

actions against diesel powered vehicles. This is what was called the "Say No to Diesel Vehicles"

campaign. The tide of Tokyo-initiated reforms, which started with the "Say No to Diesel Vehicles"

campaign has progressed ahead of the somewhat reluctant national government, and achieved

significant results in various areas, thereby transforming the way Japan deals with automotive

pollution.

Six oversights regarding the CO2 emissions from diesel vehicles by the national government

1. The National Government’s regulation to control the particulate matter (PM) emitted from

diesel engines is lagging behind that of the U.S. and E.U.

2. Failure to ensure early distribution of low sulphur diesel fuel, essential for PM reduction.

3. Turning its back on in-use diesel vehicles, a primary source of air pollution.

4. Postponement of the finally revised automotive NOX and PM Law, letting off old diesel

vehicles.

5. Preferential excise on diesel fuel increasing diesel-powered vehicles.

6. Lack of action on "illicit diesel fuel", which threatens the health of Tokyo’s citizens.

Six achievements of the TMG regarding CO2 emissions from diesel vehicles

1. Partnership of eight major jurisdictions and cities to implement diesel vehicle control.

2. Partnership with the Petroleum Association of Japan for early distribution of low sulphur

diesel fuel.

3. Practical application particulate matter reduction devices.

4. Collaboration with the industrial circle to accelerate the "New Long-Term Regulation" by two

years.

5. Promoting of clean and low-pollution trucks.

6. Coordinating with local governments across the nation to implement the "Illicit Diesel fuel

Eradication" campaign.

37

OTHER ENERGY / CO2 REDUCTION MEASURES IN TOKYO

The TMG are pursuing additional avenues to reduce the cities CO2 emissions and help negate the hot

island phenomenon which is apparent within the city. The TMG are working on these problems with

the utilisation of renewable energies, and increasing the greenery in the city.

Renewable Energy Utilisation

The utilisation of renewable energies is a significant component of energy conservation and global

warming. TMG promotes the introduction of renewable energy through the installation of wind

power generation facilities in coastal areas and large-scale photovoltaic power generation plants (21).

In 2003 the amount of renewable energies used in Tokyo amounted to 2.7% of the total amount of

energy consumed by the city. However by 2020 the TMG is seeking to increase this ratio to

approximately 20% of the total energy consumed. This target is similar to other countries and cities

like Germany and Britain 20%; EU 20%; and the state of California 33%. TMG’s 20% increase is built

not only on the premise of increasing renewable energy production but also reducing current energy

consumption rated in Tokyo. In order to drive the increase in production of renewable energies the

TMG must also implement schemes and mechanisms to increase the demand for such energies. The

mechanisms used to enhance the utilisation of renewable include: the disclosure of data on the use of

renewable energies by different corporations; and the introduction of regulations dictating a certain

percentage of energy supplied to large scale development projects must be from a renewable source.

The TMG is embarking on a series of projects to help enhance the demand for renewable energy

utilization:

Setting of clear rules on green power purchasing and promotion of its use

Projects with participation of citizens and communities to be introduced, to help renewable

energy use.

Promote energy conservation in conjunction with other national and local policies and

schemes.

Measures to enhance the utilization of household power generation for example solar

powered photovoltaic panels on the roof, etc.

Greenery

The preservation of the natural environment is of great importance in Tokyo as it is experiencing a

continued decrease of its greeneries with the progress of urbanisation. Securing a large amount of

quality greeneries contributes to mitigation of the “heat island effect” as well as the purification of

the air quality and storage of rainwater.

38

The TMG aims at restoring Tokyo to a city of lush greenery by encouraging each resident to take an

active interest in nurturing and protecting its greenery (22). For this scheme to be successful the

maintenance of the greenery must be tended to by its residents and companies in order to generate a

sense of nostalgia and gratitude towards their area within the city. There are three projects currently

operating to help enhance the greenery levels in Tokyo. These are:

Enhancing the green network by doubling roadside trees throughout the city. The number of

roadside trees in 2005 was 480,000 this number will be increased to about 700,000 by the

end of 2010 and then 1,000,000 by the end of 2015 (22)

Establishing community green hubs by intensive use of the school ground grassing project.

The TMG will promote turfing the grounds of public elementary and secondary schools as

well as kindergarten, nursery schools and private schools to create greenery close to the

children. The top level objective is to add more than 150 hectares of parkland to the city by

the end of 2010 which will be designed to function as green hubs, and to increase this

parkland to more than 300 hectares by the end of 2015 (22).

Use the ingenuity of Tokyo’s citizens to create and conserve greenery. For citizens to

recognise greenery as part of their lives and to enjoy its benefits, it is necessary to increase

the number of well-designed green areas that people can be around on a daily basis

wherever possible. Two projects which have been proposed to help instigate this greenery

movement are: the establishment of new green fund-raising schemes that would foster a

“donation culture” in Tokyo; and voluntary greening activities by private businesses and

organizations.

39

JAPAN’S LOW CARBON SOCIETY BY 2050

In 2007 the Cool Earth 50 initiative was presented. The initiative strives to make Japan a low carbon

society by 2050. Subsequently a “2050 Japan Low-Carbon Society” scenario team was formed (23).

The scenario team undertook a low-carbon society feasibility study and found that a reduction of 70%

CO2 emissions by 2050 from the emission levels in 1990 was achievable. Both urban and rural

scenarios were considered in the study. To achieve the proposed 70% reduction in CO2 emissions

both energy demand and supply need to be reduced. A 40% energy demand reduction is proposed

with the use of efficient appliances, insulated buildings, compact cities etc. A 30% energy supply

reduction is proposed with the utilization of nuclear, renewable and carbon capture and storage (CCS)

systems. In order to achieve these reductions technological innovations and social reform

programmes will need to be developed and coupled with policies and financial measures used to

support them.

Strategies for achieving Japan’s low-carbon society require not only short-to-medium-term views but

also approaches based on long-term and broad perspective back-casting views, which may involve

thorough use of energy efficient and environmental-friendly technologies and structural changes such

as switching to low-carbon infrastructure. Early actions are more likely to achieve a low-carbon

society than delayed actions because of the learning-by-doing effects of spreading technologies, the

necessary lead time for switching from the current infrastructure to low-carbon one, and

uncertainties that may cause delays in technology, research, and development (24). To achieve a low-

carbon society with cost-minimization, investments should be focused first on those actions that have

large rooms for future improvements in energy efficiency and costs reduction, such as energy

efficient devices in homes and offices, well-insulated houses and next-generation automobiles in the

transportation sector. It is essential for achieving Japan’s low-carbon society in 2050, to draw up the

target vision and take the first step in the correct direction by political leadership based on

quantitative analyses and long-term broad-ranging scientific knowledge. The following twelve actions

have been proposed to achieve this 70% reduction and have been labelled as “A Dozen Actions

Towards Low-Carbon Societies” (23).

Building/Residential Sector (Expected reduction 48-56 million tons of carbon (MtC))

1. Comfortable and green built environment

Efficient use of sunlight and energy efficient built environment design

Intelligent Buildings

2. Anytime, anywhere appropriate appliances:

Use of Top-runner and Appropriate appliances

Initial cost reduction by rent and release system resulting in improved availability

40

Industrial Sector (Expected reduction 30-35MtC)

3. Promoting seasonal local food

Supply of seasonal and safe local foods for local cuisine

4. Sustainable building materials

Using local and renewable building materials, for example timber

5. Corporate social responsibility for people and earth

Businesses aiming at creating and operating in low carbon market

Supplying low carbon and high value-added goods and services through energy efficient

production systems

Transportation Sector (Expected reduction 44-45MtC)

6. Swift and smooth logistics

Networking seamless logistics systems with supply chain management, using both

transportation and information communication technologies infrastructure

7. Pedestrian friendly city design

City design requiring short trips

Pedestrian and bike friendly transportation

Efficient and effective public transport

Energy Conservation Sector (Expected reduction 81-95MtC)

8. Low-carbon electricity

Supplying low-carbon electricity by large scale renewable, nuclear energy, and thermal

power with carbon capture and storage.

9. Local renewable resources for local demand

Enhanced local renewable use, such as solar, wind, biomass and others.

10. Next generation fuels

Development of carbon free hydrogen and biomass based energy supply systems with the

required infrastructure

Cross-Sectional (Expected reduction included in above estimates)

11. Labelling to encourage smart and rational choices

Publicising of energy use and CO2 costs information for smart choices of low carbon goods

12. Low carbon society leadership

Human resource development for building “Low-Carbon Society”

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Japan’s Low-Carbon scenario team have compiled cost predictions to achieve this 70% CO2 reduction

by 2050. They have found a large investment is needed at the initial stage to achieve a low-carbon

society in 2050 by taking early actions. Particularly, the residential and commercial sector needs

an annual investment of 2.5 trillion JPY (22 billion EUR) a year from 2010 to 2025, and the

transportation sector needs 2.5 trillion from 2010 to 2015 (24). To put these figures in

perspective Japan’s GDP for 2007 was approximately 550 trillion JPY. It is believed that prompt

investment now for a low carbon society in 2050 will promote technological innovations as a

result of increased domestic demand. This will enhance international competitiveness of

domestic industries, because a low-carbon society is a global trend. If actions are delayed, other

nations, not only developed countries but also developing countries like China and India, are

likely to invest in low-carbon technologies, which will mature there and could adversely affect

Japanese industries. By 2050 the initial investments will have expanded Japan’s market,

improved efficiency and reduced costs and CO2 emissions. Table 4 shows a Gantt chart of the

proposed timeline for the implementation of the “Dozen Actions Towards Low-Carbon Society”.

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Table 4: Gantt chart displaying the implementation times for the various economic sectors

Source) Japan low carbon society 2050 (24)

43

SUMMARY

Japan’s energy consumption improvement has come from governmental measures that

support energy conservation through the development of regulatory frameworks that

provide guidelines and set standards as well as by promoting R&D. Japan’s industrial sector

to date has achieved improved energy efficiency by optimizing their energy use, developing

innovative technologies and by voluntary action plans.

Still, Japan has a serious problem in fulfilling their commitment within the Kyoto Protocol.

The government finds that improving energy efficiency can contribute substantially to

reductions of carbon dioxide emissions in the short term. In order to achieve further

improvements the government tries to involve everybody. Therefore Japan wants to

increase the general awareness level, for example through extensive use of labels and

national campaigns. This also means that the government is demanding more and more not

only from industry but the entire society. Political reality has however would suggest that

like many Western countries, setting energy efficiency standards for industry, transport and

commercial buildings is far easier than imposing energy use limits on individual

householders. Having said that however, Japan has moved very far forward from the

introduction of the first Energy Conservation Act in 1979 and many of the its policies and

schemes could be directly transposed to other countries in urgent need of energy efficiency

legislation.

Japanese environmental policy has always been technologically driven; the policies to date

have been based on agreements between industry and government and the focus has been

to make business out of R&D. Technology has thus been the key to the development of

Japan’s economy and will also form a corner stone for Japan’s future.

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