Toward E & E Cooperation in East Asia. March 4, 2009 Gen Ito President JETRO New York Center

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1 1 Toward E & E Cooperation in East Asia March 4, 2009 Gen Ito President JETRO New York Center

2 World s s CO2 Emissions Indonesia 335Mt Thailand 217Mt US (20%) 5,697Mt Malaysia 154Mt Vietnam 83Mt Philippines 67Mt Singapore 43Mt Myanmar 10Mt Brunei 6Mt Cambodia 4Mt Others (44%) CO2 emission from fuel combustion 28,003Mt (As of 2006) China (20%) 5,607Mt * ASEAN excludes Lao PDR due to lack of applicable data. New Zealand 37 Mt Australia (1%) 394 Mt India Japan (4%) * (4%) 1,250Mt ASEAN 1,213Mt (3%) (Source) IEA 918Mt S. Korea (2%) 476 Mt 2

3 CO2 Emission Forecast Reference case (based on current policies) (Gt) US China India Japan Source: IEA World Energy Outlook

4 Total Primary Energy Supply per GDP (2006) (toe/thousand 2000 US$) Japan US S.Korea India China Singapore Phillipines Brunei Malaysia Thailand Cambodia Myanmar Indonesia Vietnam Source: IEA A S E A N (excluding Lao PDR) 4

5 5 Toward E&E Cooperation Promote energy conservation Accelerate RD&D of E&E technologies Contribute to building a future international framework

6 International Fora on Energy and Environment with Asian Countries Bilateral Multilateral General ASEAN+3 (JP, CH, ASEAN etc) East Asian Summit (US, JP,CH, IN, ASEAN etc) APEC (US, JP, CH, ASEAN-7 etc) Japan-India Energy Dialogue APP (US, JP,CH, IN etc) IEF (US, JP,CH, IN etc) More Specific Japan-China Energy Conservation Environment Forum International Partnership for the Hydrogen Economy (IPHE) (US, JP, CH, IN etc) Generation IV International Forum (US,JP,CH etc) Carbon Sequestration Leadership Forum (CSLF) (US, JP, CH, IN etc) Global Nuclear Energy Partnership (GNEP) (US,JP,CH etc) = Forum focuses on energy and/or environment 6

7 Asia-Pacific Partnership on Clean Development and Climate (APP) (1) Established in 2005 at the initiative of the U.S. 7 partners: Australia, Canada*, China, India, Japan, South Korea, U.S. representing about 54% of the world s CO2 emission *Canada joined at the 2nd Ministerial Meeting on Oct 15, 2007 Private-public partnership Task Forces in 8 sectoral areas To promote practical technology cooperation for GHG reduction through sharing of effective technologies and practices for reduction, analysis of reduction potentials, setting of intensity target, etc. Ministerial Meeting Policy Implementation Committee <USA> (PIC) <Chair> <Vice Chair> Cleaner Fossil Energy <Australia> <China> Renewable Energy and Distributed Generation <S. Korea> <Australia> Power Generation and Transmission <USA> <China> Steel <Japan> <India> Aluminum <Australia> <USA> Cement <Japan> <Canada> Coal mining <USA> <India> Buildings and Appliances <S. Korea> <USA> These sectors account for about 60% of CO 2 emissions by the participating countries 64.4% Business and others 5.4% Power 発電 generation 鉄鋼 Steel Automobile 自動車その他 Others 41.9% 7.4% 16.0% 22.0% Households Cement 6.1% 3.6% These activities facilitate understanding on what technologies to adopt, what effects certain measures would bring, enabling highly cost-effective technological cooperation. 7

8 Asia-Pacific Partnership on Clean Development and Climate (APP) (2) The seven partner countries represent more than half of the global economy and the world s CO2 emission Significant emissions-reduction potential in APP countries by energy saving Actual GDP (2004) Japan AustraliaIndiaCanada U.S. Others 55.3% China S. Korea Primary energy consumption (2004) Japan U.S. Australia China 51.7% CO2 emissions (2004) India Canada Others S. Korea Japan Australia India Canada U.S. China Others 54.5% S. Korea Power (kwh) (2004) Japan U.S. Australia 53.2% China Steel (ton) (2005) Japan U.S. Australia China(30. 9%) 58.8% Cement(ton) (2005) Japan USA China(44.9%) India Canada S. Korea India Australia 61.8% Aluminum (ton) (2005) U.S. Australia China India Canada S.Korea India Canada S. Korea Others Others Canada Others Others 48.5% 8

9 9 Japan-China Energy Conservation Environment Forum (1) Promote bilateral projects through public-private partnerships. 1 st Forum: May 2006 Tokyo ( 850 participants) 2 nd Forum: September 2007 Beijing (1,000 participants) 3 rd Forum: November 2008 Tokyo (1,100 participants) At the third Forum, both countries agreed to cooperate in 19 projects. Examples of projects Model project for commercial (building) energy-saving JP side: Japan Facility Solutions, Inc. CH side: Garden Hotel Shanghai Project to improve energy efficiency of industrial boilers in Dalian JP side: Miura Co., Ltd. CH side: Dalian Boiler and Pressure Vessel Inspection Institute Technology cooperation project for the promotion of energy saving and environmental projection in the Chinese industrial boiler industry JP side: Miura Co., Ltd. CH side: China Special Equipment Inspection and Research Institute

10 Japan-China Energy Conservation Environment Forum (2) Examples of projects Cooperation project for energy-saving and emission reduction among SMEs in Ningbo JP side: Hitachi, Ltd., Hitachi (China), Ltd. CH side: China Center for Business Cooperation Coordination Ningbo Municipal People s Government Project to introduce a total energy-saving system for building-wide electricity management in China JP side: Panasonic Electric Works Co., Ltd. Mitsui & Co., Ltd. CH side: Beijing Tellhow Intelligence Tech. LTD. Project for energy-saving promotion in the textile and apparel industry JP side: Kyushu Electric Power Co., Inc CH side: China National Textile and Apparel Council Greenensign (Beijing) New Energy & Technology Co., LTD Project to conduct energy-saving and environmental diagnoses and renovation of coal-fired power plants JP side: Japan Coal Energy Center Japan Bank for International Cooperation, Japan Finance Corporation CH side: China Electricity Council Joint project to design facilities to improve the energy efficiency and productivity of cement plants JP side: Mitsubishi Corporation CH side: China Triumph International Engineering Co., Ltd. 10

11 Mid-term Strategy and Long-term Strategy Global CO2 Emission Global Efforts in Energy Conservation Stop and reverse global emissions via a framework that all major economies participates in. Future Estimates (BAU) Mid-term strategy Innovative Technology RD&D Halve current global emissions (Cool Earth 50 proposal) Mid-term Strategy and Long-term Strategy Long-term Strategy Achievement of the ultimate Goal Current level

12 12 Cool-Earth Innovative Energy Technology Program (1) To achieve the long-term target of halving the world s emissions by 2050, - development of innovative energy technologies is indispensable. - Japan should lead with its world s top level energy technologies. To this end, this program identifies technologies which should be tackled by priority, creates road maps and considers international cooperation. Supply side Power Power Generation Generation /transmission /transmission 1. High-Efficiency Natural Gas Fired Power Generation Transportation Transportation - 21 Technologies Efficiency improvement 2. High-Efficiency Coal Fired Power Generation 7. Intelligent Transport System 6. High-Efficiency Superconducting Power Transmission 8. Fuel Cell Vehicle to be Prioritized- 3. Carbon Dioxide Capture and Storage (CCS) 9. Plug-in Hybrid Vehicle /Electric Vehicle Low carbonization 4.Innovative Photovoltaic power Generation 5. Advanced nuclear Power Generation 10.Production of Transport Biofuel Demand side Industry Industry Commercial Commercial 16. Ultra High- Efficiency Heat pumps 11. Innovative m aterials, Production/Processing 13. High-Efficient house and building Cross-cutting Cross-cutting 19. High-Performance Power storage 17. High-Efficiency Information Device and System 14.Next-Generation High Efficiency lighting 20. Power Electronics 12. Innovative Iron and Steel making process 15. Stationary Fuel Cell 18. HEM S/BEM S/Local-level EM S 21. Hydrogen Production, 1 Transport and Storage 3. CCS (restated)

13 Cool-Earth Innovative Energy Technology Program (2) -Promotion of International Cooperation- Sharing Technology Road Maps Work with IEA to check the current progress of technology development, sharing road maps, to create a framework for cooperation. Acceleration in R&D by Cooperation Work with foreign research institutions to conduct R&D efficiently while complementing research resources. Notes for promoting cooperation Consider the protection of IPR and the prevention of unintended leaks of technology. Consider IPR on a government basis to ensure smooth transfer of technology. Promotion of New International Cooperation Carbon dioxide capture and Storage(CCS) Innovative PV power generation High-performance power storage High-efficiency superconducting power transmission Innovative iron and steel making process High-efficiency information device and system -Maximum Use of Current International Cooperation Framework - IEA Implementing Agreement / General / Developed & developing countries including China & India APP / General / US, Japan, China, India, S. Korea, Australia, Canada Carbon Sequestration Leadership Forum (CSLF) / CCS/ US, Japan, China, India etc International Partnership for the Hydrogen Economy (IPHE) / Hydrogen / US, Japan, China, India etc Generation IV International Forum / Nuclear / US, Japan, China etc Global Nuclear Energy Partnership (GNEP) / Nuclear / US, Japan, China etc 13

14 Make the U.S. a Leader on Climate Change Only real solution to climate change requires all major emitting nations to join in the solution. Developing nations like China and Brazil must not be far behind in making their own binding commitments. To develop an effective and equitable global program, US will reengage with UNFCCC. US will invigorate the MEM effort and bring all the major emitting nations together to develop effective emissions reduction efforts. We will make it clear that America is ready to lead. (excerpts from New Energy for America ) To protect our climate, we must call together a truly global coalition. We will ensure that nations like China and India are doing their part, just as we are now willing to do ours. (excerpts from the speech on Energy Independence and Auto Efficiency Standards Jan 26,2009) 14

15 15 Key Concept of Commitment of Future Framework Bali Action Plan b(i) b(ii), mitigation b(i) Developed Countries Measurable, reportable and verifiable (MRV) nationally appropriate mitigation commitments or actions, including quantified emission limitation and reduction objectives (QELROs) b(ii) Developing Countries Nationally appropriate mitigation actions in the context of sustainable development, in a measurable, reportable and verifiable (MRV) manner Supported and enabled by technology, financing and capacity-building

16 2009 Schedule 18 Feb Informal Ministerial (Nairobi; hosted by Denmark) March Workshop on Sectoral Approach (Bonn) 29 March-8 April AWG/KP, AWG/LCA (Bonn) 1-12 June AWG/KP, AWG/LCA (Bonn) June-July Greenland Dialogue (Greenland; hosted by Denmark) 8-10 July G8 Summit/MEM (Maddalena) Aug-Sept AWG/KP, AWG/LCA September UN General Assembly/ Summit on Climate Change (NY) Autumn APP Ministerial (China) October Informal Ministerial? Another Session of AWG/KP, AWG/LCA? November APEC Summit (Singapore) East Asia Summit (Thailand) 7-18 December AWG/KP, AWG/LCA, COP 15 (Copenhagen) 16

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