Climate Change Policy Target Setting and Implementation Process in Japan and China

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Japan-China Policy Research Workshop in 2017 Climate Change Policy Target Setting and Implementation Process in Japan and China Jin Zhen, Ph.D. Institute for Global Environmental Strategies(IGES)

Table of Contents Target Setting and Implementation Process in China Target Setting and Implementation Process in Japan Future discussion topics 2

TARGET SETTING AND IMPLEMENTATION PROCESS IN CHINA 3

Main targets in 13 th FYP Period (by 2020, compare to 2015) Energy efficiency target (energy intensity target) : Reduce the energy consumption per unit of GDP by 15% CO2 reduction target: Reduce the CO2 emissions per unit of GDP by 18% Targets for phasing-out of backward production capacity Non-fossil fuels targets: Increase the share of non-fossil fuels in total energy consumption to 15% 4

National Five Year Plan (FYP) The National Five Year Plan (FYP) played an important role as regulatory scheme in China The targets set by the plan are legally binding Regarding implementation of the plan, the State Council has the authority to introduce administrative measures, enact administrative rules and regulations, and issue decisions and orders (Constitution, Article 89,Clause 1; Legislative Law, Article 56, Clause 2) 5

Target Responsibility System (TRS) A legal scheme to clarify the responsibility of local governments, i.e., the concrete legally binding targets allocated by the central government, through National Target Allocating Processes. Under the TRS, the provincial governments are required to achieve the allocated targets and shall take joint liability with the lower levels of local governments under their direct control. In order to ensure the effectiveness of TRS, the law is set to ensure the achievement of targets. Target achievement status is linked to personnel evaluation, with possible punishment measures. 6

How is TRS working? China's Constitution gives the State Council the comprehensive authority to draw up the FYP for national economic and social development and to implement it (Constitution, Article 89,Clause 5) Regarding implementation of the plan, the State Council has the comprehensive authority to adopt administrative measures, enact administrative rules and regulations, and issue decisions and orders (Constitution, Article 89,Clause 1; Legislative Law, Article 56, Clause 2) The local governments are responsible for implementing the National FYP (Article 59, Clause 5 of the Organization Law). Moreover, higher branches of government can reprimand local government heads for refusing to carry out their orders 7

Target responsibility system(trs) energy efficiency policy Authorisation Provincial level target Prefecture level target County level target Township level target Local government targets Supervision & management Target allocation Supervision & Management State Council State-run enterprises: under the jurisdiction of the state Other enterprises: under the jurisdiction of local governments Target allocation Specification Closure of Small Plant and Outdated Capacity (CSPOC) Program Cement: 370Mt Iron : 48Mt Steel-making: 42Mt Cox: 42Gt Alcohol: 1.0Mt etc. Top-10,000 Program: 1. Support local governments achieving their allocated targets 2. Introduction of Energy- Saving Equipment and management systems as main measure Scheme of TRS State council sets National targets (energy intensity target, Controlling Total Energy Consumption to 4 billion tce by 2015), and distributed to local governments as mandatory targets. Target achievement status is linked to personnel evaluation, with possible punishment measures. The allocated target distributes to the enterprises in the cooperation of a country and the local government Provincial governments need to build regional FYP based on allocated target 8

Energy efficiency target setting process 9

TRS on PM2.5 Target: Atmospheric Pollution Prevention Action Plan To reduce the urban concentration of Particulate Matters (PM10) by at 10% in all cities greater than or equal to prefecture-level, and to gradually increase the annual number of days with fairly good air quality; To reduce PM2.5 concentration lever in Beijing-Tianjin-Hebei by 25%, in Yangtze River Delta in 20% and in Pearl River Delta region by15%; and To control the annual average concentration of PM2.5 in Beijing to below 60 micrograms per cubic meter. Annual average decline of PM2.5 (%) Annual average decline of PM10 (%) Air Quality Improvement Target (by 2017 compare to 2013) Region -25% Beijing, Tianjin, Hebei -20% Shanxi, Shandong, Shanghai, Jiangsu, Zhejiang -15% Guangdong, Chongqing -10% Inner Mongolia -15% Henan, Shaanxi, Qinghai, Xinjiang -12% Gansu, Hubei -10% Sichuan, Liaoning, Jilin, Hunan, Anhui, 17 Ningxia -5% Guangxi, Fujian, Jiangxi, Guizhou, Heilongjiang Continuous improvement Hainan, Tibet, Yunnan 3 Source: MWP(2013)The MEP has signed target responsibility agreements for preventing and combating air pollution with 31 provinces http://www.gov.cn/gzdt/2014-01/07/content_2561650.htm 11 10

Rate of Achievement for Annual Targets PM2.5 Air Quality Improvement Target (by 2017 compare to 2013) Annual Targets (Rate of Achievement) Annual Target (Rate of Achievement) 2014 2015 2016 2017 10% of all 35% of all 65% of all 100% Total Score: 100 Score for achievement of annual target: 60 Achieved 60 Non achievement with a little improvement on the Annual average Air Quality comparison with last year 60 (Actually achieved target % / Annual Improvement target %) Non improvement and the Annual Average Air Quality worsen in comparison with last year The Over achieved at or above 30% 0 40 Score for over achievement: 40 The over achieved less than 30% 40 (Over achieved rate% / 30%) 11

Score for out put of TRF No. Indicator Score of Indicator 1 Optimize the Industrial Structure 12 2 Environment-Friendly production 6 3 4 5 Coal Management and vehicle fuel supply Rectification of coal-fired boilers in small size Air Pollution Control for Industrial Sector 6 Dust control in urban 8 7 8 9 10 Vehicle emission prevention and control Advancing the contraction of Energy Saving Building with Heating Metering Investment for Air Pollution Prevention and Control Environmental Management for Air Pollution 10 10 15 12 5 6 16 Total Score 100 Sub-indicator Score of Subindicator New capacity control for overcapacity sectors 2 Rectification of the illegal construction project in overcapacity sectors 2 Elimination of backward production capacity 6 Relocation of highly polluting factories 2 Assessment to Environment-Friendly production and upgrade the related technology for key sectors 6 Coal consumption cap 0 or 6 or 8 Coal cleaning treatment 4 or 0 Clean coal supply for residential use 0 or 2 Diesel and gasoline fuel supply under China IV and V standards 6 or 2 Elimination of small coal-fire boiler 8 Permit regulation for new coal-fire boiler 2 Industrial dust (PM) control 8 Industrial VOCs control 7 Dust control from construction site 4 Permit regulation for new coal-fire boiler 4 Out of using for yellow label vehicle 7 Environmental labeling management for vehicles 2 or 1 Promote the new vehicle using 0 or 1 Capacity building for environmental supervision of vehicles 1 Transportation system building for the pedestrians and cyclists 2 Advancing the construction of energy saving building 5 or 2 Advancing the heating metering 0 or 3 Investment in air pollution prevention and control by local governments, enterprises and society 6 Annual work plan formulation 2 Advancement of ledger management scheme 1 Quality management monitoring for atmospheric environment 125 Agricultural waste incineration control 3 Controlling the agricultural waste incinerating 1

TARGET SETTING AND IMPLEMENTATION PROCESS IN JAPAN 13

Legal Obligation for Plan Making and Target Setting Act on Promotion of Global Warming Counter-measures (1998) National Government Local Governments Action Plan (limited to its own administration and undertakings) National plan for Global Warming Countermeasures Action Plan (limited to its own administration and undertakings) Regional Countermeasures for Global Warming The national government shall establish Government Action Plan (Action Plan) and Plan for Global Warming Countermeasures (National Plan). National Plan shall prescribe targets regarding greenhouse gas emissions and sinks for each class and category of greenhouse gases. National government shall support the programs of local government bodies for the control of greenhouse gases. In view of the National Plan, local governments(1789) shall establish its Action Plan. Prefectures(47),designated cities and core cities(149) shall prescribe the countermeasures for global warming in its Action Plan. No request for setting the regional GHG reduction targets, but many local governments established regional Plan for Global Warming Countermeasures with Mid/Long-term target.

National Government Target Setting Process Cabinet Global Warming Prevention Headquarters(GWPH) Chairman: Prime Minister 3 Vice Chairman: Chief Cabinet secretary, Minister of the Environment, the Minister of Economy, Trade and Industry Members: Other ministers The advisory body of MOE: Central Environment Council (including Members form industry) Joint Experts Meeting (JEM) The advisory body of METI: Central Industrial Structure Council (including Members form industry) After October 2014 Starting JEM Associations and Unions April 2015 Submit Draft of Japan s INDC to JEM June 2016 Summarized as Government plan of INDC at GWPH July 2016(After Public comment) 15 the INDC confirmed by GWPH

Targets of Emission Reductions for 2030 16

Type of Main Targets Industrial sector Commercial and other sectors Residential sector Transpo rt sector Energy conversion sector Other GHG and removals by LULUCF Emission reduction Targets for associations and Unions (102) Targets for Introduction of highly energyefficient equipment/devices (7 equipment for all sector, 32 equipment and technologies for industry sector) Other targets 17

Targets for associations and Unions Consists of National Target FY2005 (actual) (Mt) FY2013 (actual) (Mt) Estimated emission in FY2030 by sector (Mt) Targets for associations and Unions Energy-originated C O2 1,219 1,235 927 Industrial sector 457 429 401 49(53) Commercial and others 239 279 168 33(45) Residential sector 180 201 122 Transport sector 240 225 163 15(19) Energy transformation 104 101 73 5 18

Thank you 19