Updates on Climate Change Policy Measures

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1 Partnership for Market Readiness 17 th Meeting of the Partnership Assembly (PA17) October 24-26, 2017, Hilton Hotel Tokyo, Tokyo, Japan Updates on Climate Change Policy Measures Dr. Akio Takemoto Director for International Strategy on Climate Change, Global Environmental Bureau, Ministry of the Environment 24 Oct. 2017

2 GHG Emissions Trends ( ) Emissions by sector in FY 2015 (excluding LULUCF) 1, % or more from FY2005 Iindustrial Processes and Product Use (IPPU) 7.1% Agriculture Waste 2.5% 1.6% -26% from FY2013 Energy 88.7% (Source) National Greenhouse Gas Inventory Report of Japan (April, 2017), Global Warming Countermeasures Plan Note: The values of GHG emissions are based on the 2017 GHG inventory submission, which were revised from the values reported in the BR2. In the right pie chart, total is not equal 100% due to rounding. 2

3 Final energy consumption (PJ) Index (FY1990=100) Trends of Energy Consumption and GHG Intensity 17,000 Final energy consumption 130 GHG intensity of GDP 16, ,000 14,000 13,000 12,000 11, GDP GHG emissions GHG intensity of GDP 10, Fiscal Year Fiscal Year (Source) General Energy Statistics of Japan (April, 2017) (Source) National Greenhouse Gas Inventory Report of Japan (April, 2017), Annual Report on National Accounts Note: The values of GHG emissions are based on the 2017 GHG inventory submission, which were revised from the values reported in the BR2. 3

4 Japan s Emissions Reduction Target 2020 target: 3.8% or more emission reduction by 2020 compared to 2005 (Updated on May, 2016) 2030 target (Japan s NDC): 26.0% reduction by 2030 compared to 2013 (25.4% reduction by 2030 compared to 2005) Emissions reduction target 3.8% or more reduction 26.0% reduction (25.4%) Base year FY2005 FY2013 (FY2005) Target year FY2020 FY2030 Covered gases CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3 GWP IPCC AR4 IPCC AR4 Covered sector Removals from the LULUCF Energy, Transport, IPPU, Agriculture, LULUCF and Waste Included (Activity-based approach) CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3 Energy, Transport, IPPU, Agriculture, LULUCF and Waste Included (Activity-based approach) 4

5 Plan for Global Warming Countermeasures (May 2016) Purpose of the Plan Promote Japan s global warming countermeasures in a comprehensive and a wellplanned manner Contents Basic direction regarding the promotion of global warming countermeasures pursuing actions toward: National mid-term target : 26% reduction by 2030 National long-term goal : aim for 80% reduction by 2050 Global GHG reduction GHG reduction target BY FY2030 : 26% (25.4%) reduction compared to FY2013 (FY2005) BY FY2020 : 3.8% or more reduction compared to FY2005 Progress Management of the Plan Progress review : every year Revision consideration : every 3 years Polices and measures for achieving targets 5

6 Examples of Policies and Measures (1) Industry s Action Plans GHG emissions reduction plans for 2020 and/or 2030: 114 industry groups cover 80% of energy related CO 2 Based on Pledge & Reviews and Public Private Partnership Low-Carbonization of Electricity 44% of non-fossil fuel power supply in 2030 (renewable and nuclear). Reform and operation of FIT (feed-in-tariff) scheme for renewable energies Utilizing nuclear power generation whose safety is confirmed Improving the Efficiency of Thermal Power Generation 6

7 Examples of Policies and Measures (2) The Act on the Rational Use of Energy Measurement and reporting of energy consumption by business operators Improving energy-efficiency: more than 1% annually for major factories and offices Top Runner program for household appliances, equipment and automobiles Top Runner Program Mandatory program for manufacturers and importers to fulfill energy efficiency targets, encouraging competition and innovation Improvement in energy efficiency Air-conditioners 30.7% (FY2001 FY2014) Passenger cars 96.7% (FY1996 FY2014) 7

8 Examples of Policies and Measures (3) Highly Energy-Efficient Vehicles Share of next-generation vehicles: 50 to 70% by FY2030 Electric vehicles (EV) Plug-in Hybrid vehicles (PHV) Fuel cell vehicles (FCV) EV charger Low-Carbonization of Houses and Buildings Mandatory energy efficiency standards for newly constructed houses and buildings: gradual introduction by 2020 ZEH/ZEB: Net annual energy consumption in the house/building is around zero or below Promoting ZEH (Net-zero-energy houses)/zeb (Net-zero-energy buildings) 8

9 Examples of Policies and Measures (4) COOL CHOICE campaign Choose now for our future Develop a sense of urgency on global warming crisis Help people to relate global warming issues with their personal lives Encourage their voluntary actions as individuals e.g. : Production of effective content for crisis education (1) Replacement to low-carbon products e.g. : LED and energy efficient appliances (2) Low-carbon services e.g. : Promote use of public transport (3) Low-carbon lifestyle e.g. : Public relations activities on campaigns such as COOL BIZ, WARM BIZ, Eco-drive 9

10 Joint Crediting Mechanism (JCM) Progress: 17 partner countries with 122 projects in the pipeline Credits already issued from 6 projects 44 MRV* methodologies JAPAN Achieve reduction target Low carbon technologies, etc Mitigation actions Operation and Management Credits Partner Country JCM Projects MRV* GHG emission reductions/ removals (Example of pipeline projects) MRV: measurement, reporting and verification Waste heat recovery in cement industry (Indonesia) 122,000tCO2/y. Start operation: Sep Waste to Energy plant (Myanmar) 4,732tCO2/y. Start operation: Apr Energy-efficient data center (Laos) 1,074tCO2/y. Start operation Jan Low carbon hotel by development of BEMS (Viet Nam) 605tCO2/y. Start operation: Jan

11 The Joint Crediting Mechanism Facilitating diffusion of leading low carbon technologies through contributions from Japan and evaluating realized GHG emission reductions or removals in a quantitative manner to use them for achieving Japan s emission reduction target. Japan will address the high initial cost barrier of introducing advanced low-carbon technologies in developing countries through the JCM (GoJ implements several supporting schemes) Waste heat recovery in Cement Industry, JFE engineering, Indonesia Eco-driving with Digital Tachographs, NITTSU, Vietnam Energy saving at convenience stores, Panasonic, Indonesia High efficiency airconditioning and process cooling, Ebara refrigeration equipment & systems, Indonesia High-efficiency Heat only Boilers, Suuri-Keikaku, Mongolia Upgrading air-saving loom at textile factory, TORAY etc., Indonesia, Thai, Bangladesh Installing solar PV system, PCKK, Palau Maldives Amorphous transformers in power distribution, Hitachi Materials, Vietnam Co-generation system at factory, Toyota, Nippon Steel & Sumikin Engineering, Indonesia, Thai High efficiency airconditioning system, Hitachi, Vietnam High efficiency airconditioning system, Daikin, Vietnam Waste to Energy Plant, JFE engineering, Myanmar High efficient refrigerator, Mayekawa MFG, Indonesia Regenerative Burners in industries, Toyotsu Machinery, Indonesia LED street lighting system with wireless network control, MinebeaMitsumi Cambodia 11

12 JCM Financing Programme by MOEJ (FY ) Renewable Energy Solar Micro hydro Biomass Wind Renewable Energy/Energy Efficiency Co-generation System PV and Refrigerating PV and Production line Transport Digital Tachographs Waste Waste to Energy REDD+ Total of 110 projects in 17 partner countries Renewable Transport Energy/Energy 1% (1) Efficiency 2% Renewable Energy 35% REDD+ 2% Controlling Slush and burn As of June 26, 2017 Waste 2% Energy Efficiency 58% (26) Energy efficiency Looms Equipment Boiler Burner Electrolysis tank LED Production line Optimization Pump Water heater Air-conditioning Refrigerating Transmission/Transformer LED Streetlights Smart Grid 12

13 (Reference)Schedule regarding the Paris Agreement Conclusion and entry into force of the Paris Agreement COP21 Adoption Entry into force on November 4( ) Conclusion procedures Signing ceremony (April 22 in New York) Japan took the procedure for the conclusion on November 8 Negotiations to develop the implementation guidelines of the Paris Agreement Ad Hoc Working Group (semiannual) and COP COP22 Marrakesh, Morocco (November 7~18) The first session of the Conference of the Parties serving as the meeting of the Paris Agreement(CMA1) was held as well Preparation of Special Report on 1.5 target (IPCC) Facilitative dialogue to evaluate progress UNFCCC Secretariat etc Target of each Party Until 2020 Submission of long-term low emission development strategy To adopt the implementation guidelines etc Until 2020 Update and/or communicate of Nationally Determined Contributions (NDCs) 13

14 JCM and Article 6 of the Paris Agreement 14 Use of market mechanisms, including the JCM, is articulated under Article 6 which prescribes for the use of emission reductions realized oversees towards national emission reduction targets. The amount of emission reductions and removals acquired by Japan under the JCM will be appropriately counted as Japan s reduction in accordance with the Paris Agreement. Japan is going to contribute to the development of the guidance for robust accounting including for avoidance of double counting to be adopted by the CMA *. *the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement

15 Formulation of long-term low-carbon vision All Parties should strive to formulate and communicate long-term low greenhouse gas emission development strategies (Art 4. 19, Paris Agreement) The G7 Ise-Shima Sumit s leaders committed to formulate and communicate ambitions mid-century long-term low GHG emission development strategies well ahead of the 2020 deadline. In March 2017, MOEJ formulated the long-term low-carbon vision to develop Japan s long-term strategy submitted to the UNFCCC. Low carbon development requires Innovation, i.e., innovation of social structure and technology, transformation of life-style and economic society system. Policy approach for the long-term low carbon development Carbon pricing Promotion of environmental finance Support of regionally-initiated energy projects Research and Development Infrastructure development 15

16 (New) National Strategy on International Cooperation for mitigation actions in developing countries Background All parties should promote domestic mitigation actions and enhance transparency, while developing countries require support Japan will formulate the long-term low GHG emission development strategy. The strategy requires context of international cooperation. Structures of economy, energy and society are changing globally and drastically Disparity of economy between countries will decrease, while the world is going to be more diversified.. 16

17 (New) National Strategy on International Cooperation for mitigation actions in developing countries In October 2017, MOEJ established Working Group to develop strategy, to discuss the following elements Realigning international cooperation measures for climate actions based on the long-term vision Shifting from one-way support to partnership approach thorough twoway communication Pursuing opportunity of co-innovation to realize emission reduction both in Japan and partnering countries Pursuing co-benefits throughout cooperation for emission reduction, and contributing to SDGs Developing a new business model to provide partnering countries with package of support measures including the portfolio of multiple public and private finances, formulation of policy framework, capacity building and outreach Supporting developing countries to improve transparency 17