Japanese Coalition's View on Green Trade in WTO

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1 Japanese Coalition's View on Green Trade in WTO Oct, 2016 Genichiro Shimada Chair Japanese Coalition for WTO EGA negotiations International Trade and Investment Committee Japan Machinery Center for Trade and Investment

2 JCEGA Overview What is JCEGA? Name: Japanese Coalition for Environmental Goods Agreement Establishment: 20 October, 2014 Mission: Members: Secretariat: To support the negotiations on the Environmental Goods Agreement (EGA) initiated in July associations and 5 companies (Please refer to the next slide) Japan Machinery Center for Trade and Investment (JMC) 2

3 JCEGA Overview JCEGA Members 8 associations: Communications and Information network Association of Japan (CIAJ), Japan Automobile Manufacturers Association, Inc, (JAMA), Japan Business Machine and Information System Industries Association (JBMIA), Japan Electric Measuring Instruments Manufacturers Association (JEMIMA), Japan Electronics & Information Technology Industries Association (JEITA), Japan Machinery Center for Trade and Investment (JMC), Japan Photovoltaic Energy Association (JPEA), The Japan Electrical Manufacturers Association (JEMA) 5 companies: Hitachi Ltd., JEOL Ltd., Mitsubishi Hitachi Power Systems Ltd., Nippon Steel & Sumikin Engineering Co., Ltd. and Toshiba Corporation 3

4 Panasonic Operation in China 1978: Chinese Vice-Primer Deng Xiaoping visits Matsushita Electric Industrial co. ltd (Currently Panasonic Corporation), Osaka Meeting with Founder Konosuke Matsushita Promised to contribute to the modernization of China through electronics technology 1979: Founder visited China. Panasonic started technical cooperation with Chinese companies 1987: Beijin/Matsushita Color CRT Co.,Ltd. (BMCC) was founded Company s first joint venture in China (Closed in 2009) 1994: Matsushita Electric China Co., Ltd was founded Industry s first company for providing total operation support 2008: Chinese President Hu Jintao visits Panasonic, Osaka. 2018: 100th anniversary of Panasonic s founding 40th anniversary of China business 4

5 Panasonic Overview in China <Overview> Sales (Bil Yen) 963 Employee 59,814 Regional HQ 1 Manufacturing 64 Beijing 8 companies Tianjin 2 Companies Liaoning 11 Companies Hebei 1 Company Sales 6 R&D 6 Henan 1 Company Others 11 Company Total 88 As of March 2016 Shandong 3 Companies Jiangsu 13 Companies Shanghai 17 Companies Hong Kong 7 Companies Chongqing 1 Company Guangdong 16 Companies Fujian 2 Companies Zhejiang 6 Companies 5

6 Support for Expanding the APEC List of 54 Environmental Goods WTO EGA Negotiations are based on APEC 54 environmental goods and discussions are held to decide what products to be added to the list of 54 goods 1. Renewable energy Photovoltaic panels, modules and panels Wind-powered electric generating sets and wind turbine blades and hubs etc. 4. Water treatment Filtering or purifying machinery and apparatus for liquids and parts thereof Sludge driers etc. 2. Stabilization of renewable energy system, Cogeneration Gas turbines of a power exceeding 5,000kW AC generators of an output exceeding 750 kva Parts for boilers etc. 5. Prevention of air pollution Filtering or purifying machinery and apparatus for gas etc. 3. Recycle Crushing or grinding machines for recycling Incinerators and parts thereof etc. 6. Environmental monitoring Air pollution emission monitoring systems and parts thereof Exhaust gas measuring systems etc. 6

7 Technologies for Reducing CO2 Emissions under IEA s Scenario* Energy efficiency: technology making biggest contribution to the creation of low-carbon society 7 *IEA Energy Technology Perspectives 2014

8 Examples of Energy-Efficient Electronic Products Energy-Efficient products that we recommend as part of group of eco-friendly goods LED Lighting Equipment Inverter Air Conditioner Inverter Refrigerator Silica bulb LED lighting equipment Non-inverter Inverter Non-inverter Inverter HS: (applied others category) HS: and others HS: and others Heat Pump Water Heater Household Fuel Cell Energy-Storage Systems Using aerothermal energy New hydrogen energy technology Efficient Energy- Storage technology HS: and others HS: HS: and others 8

9 Advantages of Inverter Technology Inverter technology can optimize compressor motor speed by applying fine-tuned electric power of any frequency or voltage Electronic products with inverter technology can effeiciently achieve both comfortable and optimal conditions Temperature Uncomfortable Non-optimal Comfortable/ Ideal zone Adjusts accelerator and thus runs more economically Reaches ideal zone quickly R Accelerator cannot be adjusted, so it takes a long time to reach comfort zone, then it soon becomes uncomfortable Keeps temperature comfortable all the time Uncomfortable Non-optimal Runs at a fixed speed, so it takes longer to reach comfort zone Temperature gets too high, then too low inverter non-inverter 9

10 Advantages of Heat Pump Technology Heat pump water heater does not burn fuel: Necessary heat is taken from ambient air ( aerothermal energy ) Emits much less CO2 than combustion water heater Aerothermal energy: a renewable energy 10 Source: Heat Pump & Thermal Storage Technology Center of Japan

11 Advantages of Fuel Cell Technology Fuel cells generate electrical energy using electrochemical reaction between hydrogen and oxygen; direct conversion of chemical energy into electrical energy is highly efficient Additional benefit: No toxic waste because reaction between hydrogen and oxygen produces only water Hydrogen Heat Electricity Electrochemical reaction Oxygen 2 H2 + O2 2 H2O + 4e Water 11

12 Advantages of Energy Storage System Power-storing technology: Steady and efficient energy output from fluctuating renewable power (e.g. solar or wind) Power stored during off-peak/late-night hours by battery storage system is discharged during daytime peak, effectively shifting peak demand Stable Power Output Peak Demand Shift 12

13 Export volume for EGA related goods (Main countries) This data base include Argentina, Australia, Brazil, Canada, China, EU, Hong Kong, India, Indonesia, Japan, Malaysia, Mexico, Philippines, Russia, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, UK, USA. Lithium iron battery Air-Conditioner Others Korea Japan China 40% Others China 28% Thailand 10% 12% 13% Mexico 6% Refrigerator 23% China Others Mexico 22% Thailand 10% Heat Pump Others France 19% Germany 9% China 6% Japan 4% (Source) JETRO Global Trade Atlas 13

14 Summary 1. A Speedy conclusion and producing immediate outcome of the WTO EGA will contribute to the progress of environmental technology and expansion of the market. 2. We are sincerely expecting China to lead the WTO EGA negotiations since China is the main R&D and manufacturing base for many Japanese companies. 3. JCEGA would like to cooperate with Chinese, US, and EU industries to accelerate high level WTO EGA negotiations! 14

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