Tokyo Cap-and-Trade. Driver for a Low Carbon City. Yuki Arata Bureau of Environment Tokyo Metropolitan Government

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1 Tokyo Cap-and-Trade Driver for a Low Carbon City Yuki Arata Bureau of Environment Tokyo Metropolitan Government

2 Tokyo Cap-and-Trade 1.Results 2.Outline 3.Challenges 4.Lessons 1. Remarkable results! 2 nd Year Report Green Buildings Era in Tokyo

3 The results of the second year report 1 In total 23% Reduction from the base-year emissions Cf. Their obligated reduction: 6 % or 8% 93% of the covered facilities reduced more than the obligations 1. Remarkable results!

4 The results of the second year report 2 About 5,500 reduction measures in 5 years 826,700t-CO2 will be reduced by these measures 1. Remarkable results!

5 Green Buildings Era in Tokyo Low Emission Buildings TOP 30 in Tokyo Existing Buildings Section Retrofits Sony City Sony Corporation 1. Remarkable results! Roppongi Hills Mori Building Co., Ltd. Tokyo Midtown Mitsui Fudosan Co., Ltd. East Japan Railway Company Mitsubishi Estate Co., Ltd.

6 Low Emission Buildings TOP 30 in Tokyo New Building Section - Green Building Design Techno-Station Obayashi Corporation 1. Remarkable results! New Headquarters Construction Project Shimizu Corporation Marunouchi Park Building Mitsubishi Estate Co., Ltd. JP Tower Japan Post Network Co., Ltd. East Japan Railway Company Mitsubishi Estate Co., Ltd.

7 Tokyo Cap-and-Trade 1.Results 2.Outline 3.Challenges 4.Lessons 2. Development & Outline of Tokyo s Cap-and-Trade Program

8 Tokyo s GHG Emission Reduction Target 25% below 2000 levels by 2020

9 Tokyo Carbon Dioxide Footprint Total CO2 Emissions: 59 million tonnes (FY2010) Emissions Number of Facilities Transportation 23% Households 28% Commercial & Industrial 47% 40% 60% Large CO 2 emitting facilities Small & medium CO 2 emitting facilities 1,400 facilities =0.2% More than 700,000 facilities =99.8% 2. Program Development & Outline

10 Program Development Reporting program (CO 2 Emission Reporting Program) *Not mandatory reduction program Reduction target averaged only 2% Mandatory Education program: Tokyo Cap-and-Trade Program Accumulation of data helped to design a tailor-made C&T 2. Program Development & Outline

11 Cap Setting Base-year emissions 1 st period ( ) A Compliance Period: 5 years 2 nd period ( ) 6% reduction 5yr average 15% reduction 5yr average Program Development & Outline

12 Allowance Allocation Emission Allowance = ( 100%- Compliance ) 5 years Base-year emissions factor Compliance factor by category Ⅰ-1 Commercial buildings, District cooling & heating facilities (plants) 8% Ⅰ-2 Commercial buildings using DHC 6% Ⅱ Factories, etc. 6% Top level Certified facilities as: Top Level / Near-top level Facility 1/2 or 3/4 of the compliance factor 2. Program Development & Outline

13 Tokyo Cap-and-Trade 1.Results 2.Outline 3.Challenges 4.Lessons 3. Challenges Stakeholder Engagement

14 2013 ICAP Training Stakeholder Meetings Associate Participants: Business Groups Companies with interests Environmental NGOs Tokyo Metropolitan Government Open to the public About 200 audience members every time 3. Challenges

15 2013 ICAP Training Discussion Points at the Meetings 1 Major Objections 1 Fair allowance allocation is impossible! For some facilities, further reductions are impossible TMG: Show reduction potential by data "Top Level Facility Certification" 3. Challenges

16 Top Level Facility Certification A facility already achieving high energy efficiency is certified as a: Top Level Facility Near-top level Facility Assessment category Required General I. General Management Establishment of cooperative structures for energy conservation, energy management status, etc. II. Energy Performance (Envelopes and equipment) Energy efficiency of air conditioning, lighting, and other facilities, equipment efficiency (COP), etc. III. Operations Indoor temperature and humidity management, facility maintenance and management, etc. Total : 1/2 of the compliance factor : 3/4 of the compliance factor Extra credit items 3. Challenges

17 Discussion Points at the Meetings 2 Major Objections 2 Difficulties in Tenant Buildings Controlling emissions from tenants is impossible! TMG: Establish a mechanism for tenant issues 3. Challenges Tenant Obligation and Participation System Rules for Tenant Shifts

18 Tenants Obligation & Participation Building Owners Reduction obligation Obligation to enhance the system to promote saving of energy in the building Obligation to submit/publish a Carbon Reduction Plan Carbon Reduction Plan for Compliance Tenants Submit plans to TMG, including the plans submitted from Compliance Tenants. Submission of Plan Tenant-Owner Joint Organization Submission of Plans Guidance Tokyo Metropolitan Government All Tenants Obligation to grasp the emission levels and cooperate with the owner to fulfill reduction obligations Obligation to cooperate with the measures implemented by Building Owner Compliance Tenants* (Tenants of the specified size or larger) Obligation to submit its energy-saving plan, etc. and promote energy-saving measures. TMG will provide guidance and advice when necessary. Carbon Reduction Plan for Compliance Tenants

19 Tokyo Cap-and-Trade 1.Results 2.Outline 3.Challenges 4.Lessons 4. What we learned: Important factors Three misunderstandings for energy efficiency Key factors for success

20 Need to break misunderstandings on building energy efficiency Typical complaints from building owners 1. We have already done a lot! 2. We know our buildings well; there s nothing else we can do! 3. It s costly to retrofit. We can not afford it! 4. Lessons

21 Overcoming the Power Crisis after the Fukushima accident 60GW Peak Power Consumption (from 1 July to 31 Aug.) 50GW Demand in 2010 Peak load in GW 40GW 30GW Demand in 2012 Peak load in GW 20GW 1 July 8 July 15 July 22 July 29 July 5 Aug. 12 Aug. 9 Aug. 25 Aug. 31Aug. 4. Lessons

22 Preparedness for the Power Crisis 1. Already did energy audits 2. Already have action plans 3. Already have communication 4. Lessons

23 The Importance of Cities Role

24 Thank you! TMG Website Contact