Carbon Footprint of Products in Japan METI. November 2010

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Roderick Barker
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1 Carbon Footprint of Products in Japan METI November 2010

2 Topic 1. What is CFP? 2. CFP in Japan 3. What we have done so far? 4. What we are going to do

Indicator of the greenhouse gases emitted throughout the life cycle of a

Providing information labels on products (visualization), companies can

Promote reduction of corporate CO 2 emission throughout the supply chain.

Circulation and sales Company will find the point of GHG reduction

3 What is CFP? Carbon footprint of products = (LCA + Type3 environmental declaration) GHG Indicator of the greenhouse gases emitted throughout the life cycle of a product (from the extraction of natural resources to disposal). Providing information labels on products (visualization), companies can appeal to consumers their efforts to combat global warming. Promote reduction of corporate CO 2 emission throughout the supply chain. Example of canned beverage Procurement of raw materials Manufacturing Circulation and sales Company will find the point of GHG reduction Consumption, use, and maintenance Abandonment and recycling beverage 15% 25% 35% 15% 10% All figures are assumptions. CO 2 emissions:123g Consumers will find how mush their purchasing causes GHG emission

4 CFP History in the World 2006 Dec.; Tesco s Declaration 2007 Jan.; Walker s Chips with CFP in UK 2007 June; ISO/TC207/SC7(Beijing) Started Discussion 2008 June; Japan As a Low-Carbon Society METI started the pilot project June; SC7(Bogota) NWIP, Endorsed in Nov Jan.; SC7-WG2(Kota Kinabal), June (Cairo), Oct.(Vienna) 2010 Feb.; SC7-WG2(Tokyo), June (Leon, Mexico) fall; WRI/WBCSD s product carbon footprint standard Jan.; SC7/WG2(Italy) ? publish of ISO CFP standard

5 Topic 1. What is CFP? 2. CFP in Japan 3. What we have done so far? 4. What we are going to do

6 CFP timeline in Japan 2008 June; Cabinet decision Japan As a Low-Carbon Society METI started the pilot project 2009 National Pilot Project has started (June) Basic Guideline of the Carbon Footprint of Products Guide of Establishing Product Category Rules were established nd year of the Pilot Project. revision of the general instructions Final year of the Pilot Project.

7 Action Plan for Achieving a Low-carbon Society On July 29th, 2008, the Japanese government decided on an action plan for the creation of a low-carbon society, outlining the country s goal of transitioning to such a society, including specific measures. Action Plan for Achieving a Low-carbon Society 1. Japan s long term and mid term goal. 2. Developing innovative technologies while disseminating existing advanced technologies. -installing solar power, zero-emission/low-energy electronics -promoting energy-efficient housing and offices etc. 3. Framework-building to move the entire country to lower carbon emissions. -emission trading, tax system reform, visualization 4. Support for regional and citizen s initiatives. -reducing carbon through agriculture, forestry and others -urging changes to business styles and lifestyles Source: Action Plan for Achieving a Low-carbon Society

8 Topic 1. What is CFP? 2. CFP in Japan 3. What we have done so far? Experiment and experience from pilot project in FY 2008 and General instructions for the project. Established the system for certifying PCR and verifying CFP. 4. What we are going to do

The system of CFP related documents Basic concept LCA: ISO 14040 and ISO 14044 Environmental

Footprint of Products The Guideline provides basic frameworks (General Principle) for GHG

concept of PCR Guide of Establishing Product Category Rules (complement rules) JIS to be issued

establishing PCRs in accordance with the Guideline Establish PCRs according to the Guideline &

9 The system of CFP related documents Basic concept LCA: ISO and ISO Environmental labels and declaration: ISO Japanese Pilot Project Basic Guideline of the Carbon Footprint of Products The Guideline provides basic frameworks (General Principle) for GHG calculation, communication methods and other schemes regarding CFP, attaching importance to the concept of PCR Guide of Establishing Product Category Rules (complement rules) JIS to be issued after ISO standard discussion The Guide provides principles, criteria & process for establishing PCRs in accordance with the Guideline Establish PCRs according to the Guideline & the Guide PCR PCR PCR PCR PCR A B C D E Calculates Carbon Footprint of Product and put label on the product according to PCR

10 The point of the Basic Guideline 1. PCR (product category rule) approach Calculation rules are transparent. Fair comparability is kept. Data quality is ensured. 2. Program basis Responsible for ensuring credibility and transparency Establishing a procedure to safeguard the consistency of data within a program Maintaining publicly available lists and records of PCR and CFP documents Ensuring the selection of competent independent verifiers and PCR review panel members 3. Independent verification Cost effective based on Speedy Credible

PCR Approach Why we need PCR? Environment and/or greenhouse gas performances are different between each product category. This shall be considered in the calculation rules.

11 PCR Approach Why we need PCR? Environment and/or greenhouse gas performances are different between each product category. This shall be considered in the calculation rules. For external use of LCA/CFP study result, the scope and rule of the calculation shall be the transparant. Common and harmonized calculation rules shall be established for fair communication.

2009 result Number of certified PCRs: 42 (+3

CV-AA-01 04 Rice (japonica rice) AEON Co., Ltd.

CV-AC-01 02 Washing powder AEON Co., Ltd.

CV-AG-01 02 Raw Potato Chips Calbee Foods Co., Ltd.

CV-AI-01 05 Ham and Sausage Nippon Meat Packers,

CV-AN-01 03 Organic liquid fertilizer Earth

12 2009 result Number of certified PCRs: 42 (+3 revised) Number of authorized CFP labels: 94 CV-AA Rice (japonica rice) AEON Co., Ltd. CV-AA-05 Rice (japonica rice) Ritsumeikan University, AEON Co., Ltd. CV-AB Rapeseed oil AEON Co., Ltd. CV-AC Washing powder AEON Co., Ltd. CV-AE-01 Candy (soy sauce flavor) KANRO Co., Ltd. CV-AG Raw Potato Chips Calbee Foods Co., Ltd. CV-AH Pouch-packed rice AEON Co., Ltd. CV-AI Ham and Sausage Nippon Meat Packers, Inc. CV-AJ-01 Rice biscuit Kameda Seika Co., Ltd. CV-AN Organic liquid fertilizer Earth Support Corporation * AEON Co., Ltd. sold these products for year-end gifts. Reference: * Nippon Meat Packers, Inc. plans to sell the products labeled CFP from Feb. 1st.

Eco-Product Fair 2009 Products carrying CFP label were displayed at the

Displays were classified into three situations, HOME, OFFICE and SCHOOL.

participated (+ 8593 last year)) -Carbon Footprint exhibition corner sponsored

13 Eco-Product Fair 2009 Products carrying CFP label were displayed at the ECO-PRODUCT Displays were classified into three situations, HOME, OFFICE and SCHOOL. -Eco Product , December 2009 at Tokyo big site over people participated ( last year)) -Carbon Footprint exhibition corner sponsored by METI 62 products (including unverified products) from 27 companies were displayed (NHK news program reporting from the CFP booth) At home At office At school

14 Eco-Product 2009 (Dec )

15 Eco-Product 2009 (Dec )

16 Eco-Product 2009 (Dec )

17 Eco-Product 2009 (Dec )

18 Eco-Product 2009 (Dec )

19 Eco-Product 2009 (Dec )

20 Eco-Product 2009 (Dec )

21 Japan s activity Eco-Product 2009 (Dec ) in Tokyo Coffee Chocolate

22 Topic 1. What is CFP? 2. CFP in Japan 3. What we have done so far 4. What we are going to do

23 2010; 2 nd year of the Pilot Project Many committees and projects for CFP pilot project in Japan Theme Operational Management for the overall CFP Pilot Project Study of the rules related to the CFP system The CFP Calculation and Labeling Pilot Program The CFP Introduction Support Program Improvement of tools and data for CFP calculation Efforts to raise awareness of CFP The CFP Pilot Project steering committee The CFP rules study committee Action Item The verification scheme study committee Test demonstration for verification schemes Registration of draft PCR development plan Approval of PCR (PCR prior review, the PCR accreditation committee) Verification of CFP (CFP prior verification, the CFP verification panel) Support for developing draft PCR Support for CFP calculation Study and improvement of support tools such as for CFP calculation Management of reference data necessary for CFP calculation CFP liaison organization CFP liaison conference of local bases Providing information (on the CFP website, etc.) for businesses and consumers Eco-Products 2010 Promotion of understanding of consumers and elementary, junior high and high school students on CFP

24 Summary of the Rule Revision in July 2010 * July 16, 2010, the basic rules were revised according to the last year experience. * The followings are the major point of revision: - Various communication methods are permitted, on a trial basis, as a tentative measure, - Pre calculation is recommended to analyze the contribution of each process by - Principle for primary data collection is relaxed, regarding a process which has small contribution to the entire life cycle of a product. - Sales stage is excluded, as a tentative measure,

25 Items to be continuously considered * Major challenges which need to take enough time to be considered are as follows: - Comparative conditions such as reduction rate and comparative display - Intermediate goods - Service - Capital goods - Land use change and Carbon storage - Etc.

26 PCR Optimizing a range of each PCR. Introducing proper size for product classification -> "Small classification" or "Detailed classification" specified by the Japan Standard Commodity Classification (JSCC) new PCR format FY2009 s PCR are really difficult to read and understand. We changed the format so that participants are easily use it.

27 Discussion on future CFP verification scheme Experiment for deciding the proper CFP verification scheme, comparing; cost, time, transparency and credibility. Certification on Process (System) Certification organization 3 rd party verificatio n Calculation department Calculator Calculation results Verification department Internal verifier Sampling Verification Verification results (on calculation results and declaration) Third-party certification on CFP calculation process (system) of an organization Independent verification Pattern 1: Certification of calculator Calculation department Calculator Calculation results Verification department Internal verifier Sampling Verification Certification on Personnel Certification organization for Calculator 3 rd party verification Verification results (on calculation results and declaration) Certification on personnel who conducts calculation within an organization Pattern 2: Certification of verifier Calculation department Calculator Calculation results Verification department Internal verifier Sampling Verification 3 rd party verificatio n Verification results (on calculation results and declaration) Certification on personnel who conducts verification within an organization Certification organization for Verifier Verification on Each product Calculation department Calculator Calculation results Verification department Internal verifier Calculation 3 rd party results verificatio Third-party verification n organization (or Outside verifier) Verification results (on calculation results and declaration) Third party verifies the results individually

28 Efforts for dissemination and education i) Event for elementary, junior high and high school students ii) Event for consumers and leader education

29 Development of Database For fair CFP calculation, the common unit data for basic materials are essential. Sept. 2010, we had prepared over 800 unit data, and will continue providing it to the participants. It covers, agriculture, forestry, fishery, mining, food, chemical, oil industry, ceramics, machinery, utility supply, transportation and etc.. Detail info (Japanese only)

30 Future Plans and Prospects - Further revision of "Guidelines" and the "Standards - Study on desirable verification scheme - Demonstration project on wide-range PCRs - Further dissemination and the education of CFP - Consumer acceptability survey. - GHG emission factor database improvement - International standardization of CFP

31 More information, see website below English web site of Carbon footprint Pilot Project in Japan

Product Category Rules (PCR) (Approved PCR ID: PA-AA-01)

(Provisional Translation) Product Category Rules (PCR) (Approved PCR ID: PA-AA-01) PCR Name: Nonglutinous Rice (Japonica) Release Date: September 4, 2009 CFP Calculation and Labeling Pilot Program *The