ENERGY EFFICIENCY AND CARBON TRADING INITIATIVES IN JAPAN

Transcription

1 ENERGY EFFICIENCY AND CARBON TRADING INITIATIVES IN JAPAN SWITCH-Asia Thematic Networking Conference on: Advancing energy efficiency in Asia through SCP and green finance, Jakarta, 7 July 2015 JICA-CMEA Technical Cooperation Project Noriko Hase 1

2 Source: Tokyo Metropolitan Government (presentation) Tokyo Cap and Trade Driver for a Low Carbon City (presentation at C40 & Siemens Climate Leadership Award) 2

3 National (figure 2005 = 100) Tokyo Metropolitan whole area Tokyo Metropolitan Source: Figure: energy consumption in Industry and Office sectors 3

4 OUTLINE 1. Energy efficiency - Carbon reduction and its trading 2. Existing initiatives 3. Japanese experience 3.1 Tokyo ETS 3.2 J-Credit 4. Challenges 4

5 1. ENERGY EFFICIENCY - CARBON REDUCTION AND ITS TRADING Higher energy efficiency Cost saving Energy 5

6 1. ENERGY EFFICIENCY - CARBON REDUCTION AND ITS TRADING GHG (carbon) reduction Tradable Carbon units activity = Could be sold GHG 6

7 1. ENERGY EFFICIENCY - CARBON REDUCTION AND ITS TRADING SIMILARITY 1. Economic Incentive 2. Energy saving GHG reduction 3. Measures for Climate Change Photos By NASA 7

8 1. ENERGY EFFICIENCY - CARBON REDUCTION AND ITS TRADING DIFFERENCE 1) Can we feel it Real? Importance of energy ---? Risk of climate change ---? motivation for action 2) Calculation Energy = consumed / unused energy amount Carbon = energy amount emission factor 8

9 2. EXISTING INITIATIVES (EXAMPLES) Name Clean Development Mechanism (CDM) EU Emissions Trading Scheme (ETS) Joint Crediting Mechanism New Zealand ETS Tokyo ETS Level International Multinational Region Bilateral National Local 9

10 2. EXISTING INITIATIVES (EXAMPLES) CAP and Trade Name Clean Development Mechanism (CDM) EU Emissions Trading Scheme (ETS) Joint Crediting Mechanism New Zealand ETS Tokyo ETS Level International Multinational Region Bilateral National Local 10

11 2. EXISTING INITIATIVES - CAP AND TRADE TYPE AREA Sectors CAP= upper limit of emissions 11

12 2. EXISTING INITIATIVES - CAP AND TRADE TYPE Legally binding obligation A B C CAP= upper limit of emissions Allowances 20 t Allowances 80 t Allowances 50 t 12

13 2. EXISTING INITIATIVES - CAP AND TRADE TYPE obligation B 100 t 80 t Credit revenue Cost saving Allowances 80 t 60 t Emissions Year

14 3.1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) Tokyo Metropolitan Government (2010) Tokyo Cap and Trade Program 14

15 3.1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) Office Building Major measure is Energy saving Source: Tokyo Metropolitan Government (2010) Tokyo Cap and Trade Program Owner (and a tenant in specific conditions) 15

16 3. 1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) Legally binding obligation Source: Tokyo Metropolitan Government (2010) Tokyo Cap and Trade Program 16

17 3. 1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) Tradable Unit Reduction exceeding the obligation Emission reductions from small and midsize facilities within the Tokyo area Renewable Energy Certificates Emission reductions outside the Tokyo area May be traded from the 2 nd year OFFSET Credit OFFSET Credit OFFSET Credit Saitama ETS credits Scheme collaboration Source: Tokyo Metropolitan Government (2010) Tokyo Cap and Trade Program 17

18 3.1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) (10,000 t-co2) 3 Mill. t- CO2 / Year Reduction ( ) (Base year) Figure: Emissions from the regulated facilities Source: Tokyo Metropolitan Government (2015) 大規模事業所への温室効果ガス排出量削減義務と排出量取引制度 ( 概要 )(In Japanese only) 18

19 3.1 TOKYO CAP AND TRADE PROGRAM (TOKYO-ETS) National (figure 2005 = 100) Tokyo Metropolitan whole area Tokyo Metropolitan ETS regulated facilities Figure: energy consumption in Industry and Office sectors Source: Tokyo Metropolitan Government (2015) 大規模事業所への温室効果ガス排出量削減義務と排出量取引制度 ( 概要 )(In Japanese only) 19

20 3.1 TOKYO ETS - FOR BETTER OUTCOME Energy conservation carte 20

21 3.1 TOKYO ETS - FOR BETTER OUTCOME Green Building Program Obligation to the building owners covered by the ordinance are building owners who intend to newly construct or expand buildings with total floor space exceeding 10,000 m2. Plan Do Check Confirmation Building Owners Tokyo MG 21

22 3. 1 TOKYO ETS - FOR BETTER OUTCOME Energy saving standards - National as well as Local Reductions in thermal loads of buildings: Law Concerning the Rational Use of Energy (for the categories of uses excluding residential buildings) Housing Quality Assurance Law (for residential buildings) Energy conservation in facilities and systems: Law Concerning the Rational Use of Energy Use of mixed cement, etc.: Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities Maintenance, management, renewal and modification, etc.: Housing Quality Assurance Law (for residential buildings) Measures against degradation of main structures: Housing Quality Assurance Law (for residential buildings) Water circulation (use of rainwater and reclaimed water): Tokyo Metropolitan Effective Water Use Promotion Guidance Water circulation (rainwater infiltration): Tokyo Metropolitan Effective Water Use Promotion Guidance Greening: Tokyo Metropolitan Nature Conservation Ordinance 22

23 3. 2 J CREDIT SCHEME - BASELINE AND CREDIT TYPE Voluntary 60 As of May 2015, approved methodologies 39 Energy saving = (65%) Source: 23

24 3. 2 J CREDIT SCHEME - BASELINE AND CREDIT TYPE Methodologies for energy saving Source: nglish/credit_english_001_5.pdf 24

25 3. 2 J CREDIT SCHEME - BASELINE AND CREDIT TYPE Methodologies for energy saving Source: 25

26 3. 2 J CREDIT SCHEME - BASELINE AND CREDIT TYPE Methodology The Third Party validation / verification Project Registration and Credit Certification by the scheme owner (GOJ) Transparent MRV* system *Measurable Reportable Verifiable The number of project registration: 115 (Expected emission reduction by 2020: 1,913,262 t-co2) Source: 26

27 4. CHALLENGES AND RECOMMENDATIONS Political Difficulty - feel it real Technical Difficulty - transparent and streamlined MRV* system Total Cost long term perspective *Measurable Reportable Verifiable 27

28 TERIMA KASIH! 28