Japan s INDC and current climate change policies

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Japan s Second Biennial Report

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Japan India Policy Research Workshop Session 2: Update of climate change policies and measures among major countries Japan s INDC and current climate change policies 29 th September, 2015 Akiko URAKAMI (Ms) Ministry of the Environment, Japan

Agenda 1. Japan s INDC 2. Current climate change policy 2

Process for the INDC development in Japan Preparation Oct. 2014 Apr. 2015 Open discussion by the Joint Experts Meeting of the Central Environment Council and the Industrial Structure. (7 sessions). Energy policies and the energy mix were also discussed by the Advisory Committee for Natural Resources and Energy. 30 April 2015 Draft Outline of the INDC was discussed. Draft energy mix was also discussed on 28 April. 2 June Draft INDC was discussed and approved by the Ministerial Headquarter for Global Warming. 3 June Public comment procedure (for 1 month) Submission and implementation Submitted the INDC on 17 th July after the public comment procedure for the draft INDC was completed. Will Revise the Plan for Global Warming Countermeasures based on the Act on Promotion of Global Warming Countermeasures to implement the INDC. 3

Emission reduction target for 2030 (1) Emission of 1.042 Billion t-co2 in FY 2030 = 26% reduction from FT2013 and 25.4% reduction from FY2005 achieved by domestic emission reduction and removals. supported by bottom-up calculation of policies, measures and technologies, taking into account possible challenges including technical limitations and cost issues to ensure consistency with the energy mix. Scope Assumptions and Methodologies 100 % Coverage of emission in Japan: all sectors and GHGs CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6 and NF 3 in accordance with the latest IPCC GHG Inventory Guideline Net removals by forest and other carbon sinks are to be accounted by methodologies under the Kyoto Protocol. The Joint Crediting Mechanism (JCM) is not included as a basis of the bottom-up calculation of above numbers, but emission reductions and removals acquired by Japan will be appropriately counted as Japans reduction. These methodologies are subject to future international negotiations on accounting rules. 4

Target for 2030 (2) Gas by gas emissions Expected Emissions in FY2030 (Approx.) Reduction Compared to FY 2013 and FY2005 Energy-related CO 2 927 Mt- CO 2-25% - 24 % Non-energyoriginated 70.8 Mt- CO 2-6.7% - 17.0% CO 2 Methane 31.6 Mt- CO 2-12.3% - 18.8% Nitrous Oxide 21.1 Mt- CO 2-6.1% - 17.4% Fluorinated gases 28.9 Mt- CO 2-25.1% + 4.5% Removals by carbon sink 37 Mt-CO2 (2.6% of emission in FY2013 and FY2013) 5

Target for 2030 (3) International Contributions Although it is not counted in the calculation of the reduction target, Japan will continue to implement the JCM. Apart from contributions achieved through private-sector based projects, accumulated emission reductions or removals by FY 2030 through governmental JCM programs to be undertaken within the government s annual budget are estimated to be ranging from 50 to 100 million t-co2. Basic Concept of the JCM Japan establishes and implements the JCM in order both to appropriately evaluate contributions from Japan to GHG emission reductions or removals in a quantitative manner achieved through the diffusion of low carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions in developing countries, and to use them to achieve Japan s emission reduction target. 6

(Reference) JCM Partner Countries Japan has held consultations for the JCM with developing countries since 2011 and has established the JCM with Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile and Myanmar. Mongolia Jan. 8, 2013 Ulaanbaatar Bangladesh Mar. 19, 2013 (Dhaka) Ethiopia May 27, 2013 (Addis Ababa) Kenya Jun. 12,2013 (Nairobi) Maldives Jun. 29, 2013 (Okinawa) Viet Nam Jul. 2, 2013 (Hanoi) Lao PDR Aug. 7, 2013 (Vientiane) Saudi Arabia May 13, 2015 Indonesia Aug. 26, 2013 (Jakarta) Chile May 26, 2015 (Santiago) Costa Rica Dec. 9, 2013 (Tokyo) Myanmar Sep. 16, 2015 (Nay Pyi Taw) Palau Jan. 13, 2014 (Ngerulmud) Cambodia Apr. 11, 2014 (Phnom Penh) Mexico Jul. 25, 2014 (Mexico City) Three (3) JCM projects between Indonesia and Japan, one (1) JCM project between Palau and Japan, two (2) JCM projects between Mongolia and Japan and one (1) JCM project between Viet Nam and Japan have been registered respectively. 7

Energy mix used for the emission reduction target FY2030 Final energy consumption 326 M kl (Energy efficiency measures) 50 M kl Total power generation approx. 1065 M kwh Renewables approx. 22-24% Nuclear power approx. 22-20% Coal approx. 26% LNG approx. 27% Oil approx. 3% (within renewables) Solar approx. 7% Wind power approx. 1.7% Geothermal approx. 1.0-1.1% Hydro power approx. 8.8-9.2% Biomass approx. 3.7-4.6% 8

Trend of GHG emissions per GDP and GHG emissions per capita Japan s GHG emissions per gross domestic product (GDP) are 0.29 kg-co2eq./u.s. dollar in 2013 and per capita are 11t-CO2eq./person in 2013, all of which are already at the leading level among developed countries. The indicators noted above are projected to improve by around 20 to 40% by 2030 with further measures to reduce emissions. kg/usd GHG emissions per GDP t/capita GHG emissions per capita 0.5 0.4 0.3 0.2 0.39 0.29 0.16 20 15 10 15.6 11.1 8.9 0.1 5 0 G7average* Japan Japan 0 G7average* Japan Japan 2012 FY 2013 FY2030 2012 FY 2013 FY 2030 * average of the other G7 nations (excluding Japan) * average of the other G7 nations (excluding Japan) Sources Compiled from Japan s INDC, Long-term Energy Supply and Demand Outlook and related materials, GHG Inventories, IEA estimates and UN World Population Prospects 9

Agenda 1. Japan s INDC 2. Current climate change policy 10

2020 Emissions Reduction Target (submitted in 2013) Emissions reduction target Base year Target year Covered gases GWP Covered sector Removals from the LULUCF Market based mechanisms Nature of the target Plan for achieving the target 3.8 % below the base year FY2005 FY2020 CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3 IPCC Fourth Assessment Report (AR4) Energy, Transport, Industrial Processes, Agriculture, LULUCF and Waste Included (Activity-based approach) Joint Crediting Mechanism (JCM) This is a target at this point, which has not yet taken into account the emission reduction effect resulting from nuclear power, given that the energy policy and energy mix, including the utilization of nuclear power, are still under consideration. A firm target, based on further review of the energy policy and energy mix, will eventually be set at a later stage. The Plan for Global Warming Prevention, as replacement of the 11 Kyoto Protocol Target Achievement Plan, will be developed. 11

Toward Achievement of the 2020 Target The target will be achieved by implementing the following measures, while attaining the economic growth goal set by the government: 20% improvement in energy intensity, which is at the world leading level Improvement of emission factor of electricity by introducing renewable energy Strengthening fluorocarbons countermeasures based on amended law on fluorocarbons Application of the Joint Crediting Mechanism (JCM) Enhancement of forest management and other sinks activities 12

Framework of Policies and Measures Japan is implementing a variety of policies and measures and strictly reviewing their progress. Basic Environment Law Basic Environment Plan Act on Promoting of Global Warming Countermeasures Plan for Global Warming Prevention (To be developed) National and Local Government Action Plan Guidelines for Controlling Emissions GHG Emissions Accounting, Reporting and Disclosure System Center for Climate Change Action Emissions Trading in Kyoto Mechanisms (Registry) Global Warming Prevention Headquarters 13

Key Policies and Measures (Energy Conversion & Industry) Feed-in Tariff Operation of a feed-in-tariff scheme for renewable energies Low-Carbonization of Electricity To call on the power sector to develop a sector-wide framework for reducing CO 2 emissions To require new fossil fuel-fired power plants to adopt best available technologies 14 Industry s Action Plans GHG emissions reduction plans including 2020 targets by 95 industry groups, covering 80% of energy related CO 2 Being strictly assessed and verified by the government in a transparent way Challenging aggressive targets is encouraged Energy Conservation Law Measurement and reporting of energy consumption by business operators Energy efficiency standards for buildings and houses Top Runner program applied to household appliances, equipment and automobiles 14

Key Policies and Measures (Transport, Highly Energy-Efficient Vehicles To increase highly energy-efficient nextgeneration vehicles in the new car sales by creating initial demand, supporting R&D, etc. Hybrid vehicles (HEV) Electric vehicles (EV) Fuel cell vehicles (FCV) Share of next-generation vehicles 50 ~ 70 % (by FY2030) Top Runner Program Mandatory program for manufacturers and importers to fulfill energy efficiency targets within 3 to 10 years, encouraging competition and innovation Commercial & Residential) Improvement of energy efficiency Air-conditioners 32.3 % (FY1997 FY2007) Low-Carbonization of Houses and Buildings To comply with energy efficiency standards for newly constructed houses and buildings by 2020 National Campaign for Low- Carbon Society A variety of initiatives and activities to involve citizens for GHG reductions Electric refrigerators 43.0 % (FY2005 FY2010) 15

Other Key Policies and Measures Act on Rational Use & Proper Management of Fluorocarbons To promote low-gwp/non-fluorocarbons in refrigeration and air-conditioning To prevent leakage during operation To promote recovery and destruction Actions in the Waste Management Sector To promoting waste reduction and recycling To reduce direct landfill disposal of organic waste To upgrade combustion technology at waste and sewage sludge incineration facilities Tax for Climate Change Mitigation Tax rate corresponding to the amount of CO 2 emissions for all fossil fuels Enforced from Oct. 2012 and increases in the tax rate gradually over 3 and a half years All the tax revenue are allocated for curbing energy-originated CO 2 emissions 16

Thank you for your attention 17