Tokyo Initiative to Promote Renewable Energy

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20120420-21 Osaka Tokyo Initiative to Promote Renewable Energy Yuko Nishida Bureau of Environment Tokyo Metropolitan Government

Agenda 1. Tokyo Climate Change Strategy 2. Major Programs Tokyo Cap & Trade Program Tokyo Green Building Program Subsidy Programs for Solar Power & Heat System 3. Green Buildings Era in Tokyo 4. Some Comments TokyoMetroplitanGovernment

Tokyo Climate Change Strategy Target 25% Reduction in GHG Emissions By 2020 from the 2000 level

1. Tokyo Climate Change Strategy TokyoMetroplitanGovernment

Tokyo Climate Change Strategy Basic Policy 1 Importance to approach the demand side of energy As a large energy consumer, Tokyo has a responsibility to reduce emissions from the demand side of energy 2 Importance to reduce emissions from urban facilities (buildings) Promoting measures in the buildings sector is the key to reduce emissions from urban areas 3 Enable Tokyo to grow in the coming carbon restrain age Taking an advantage of the early shift to a low carbon city to realize sustainable growth of Tokyo TokyoMetroplitanGovernment

Tokyo Climate Change Strategy Framework of Measures for the Buildings Sector Larger New buildings Existing buildings Building Size District Plan for Energy Efficiency Developments w. incentive bonus Green Building Program Cap & Trade Program CO 2 Emission Reporting Program Smaller Planning/Operation Stage Planning Design Construction Operation Tuning Retrofit TokyoMetroplitanGovernment

Tokyo Climate Change Strategy Policy Development Plans The 10-yr plan Setting the target TMG environmental master plan Setting sectoral targets & programs 2000 2005 2006 2008 2010 2012 Programs Climate Change Strategy Basic policy for the10yr project Carbon Minus 10yr project Action plan CO 2 Emission Reporting program 2002 Start 2005 Introduce Disclosure system Tokyo Cap& Trade 2008 Reporting Program for smaller facilities Enact 2010 Start Green Building Program 2002 Start 2005 Revise 2008 Revise Green Labeling Program for Condominiums District Plan for Energy Efficiency

Tokyo Climate Change Strategy Basic Policy to Promote Renewable Energy 1 Expand the supply in Tokyo Promoting the introduction of renewables in Tokyo --Subsidy Program for installing solar energy system --Feasibility study requirement for large new developments to install renewable energy systems 2 Utilize Tokyo s vast energy consumption to promote the renewable energy supply outside Tokyo -- Renewable energy certificate as a offset credit in Tokyo cap and trade program --Local partnership project between renewable energy supplier and energy consumer in Tokyo TokyoMetroplitanGovernment

2. Major Programs to Promote Renewables Tokyo Cap and Trade Program Tokyo Green Building Program Subsidy Programs for Solar Energy TokyoMetroplitanGovernment

T okyo Cap & Trade: Program Outline 1 The urban cap and trade program to cover commercial sector buildings including office buildings Target facilities: 1,300 facilities Facilities with annual energy consumption of 1,500 kl or more (crude oil equivalent) Approx. 1000 commercial & institutional buildings Approx. 300 industrial facilities Covers approx.40% of commercial & industrial sectors emissions

T okyo Cap & Trade: Program Outline 2 Cap Setting To achieve the Tokyo s emission reduction target By 2020 25% reduction from 2000, the necessary reduction in industry & commercial sector is 17% reduction 1 st compliance period 2 nd compliance period Base-year emissions (2010-2014) (2015-2019) 2020 About 17% * reduction 6% reduction 5yrs average * Current estimation. The Cap for the 2nd compliance period will be fixed by the end of the 1st compliance period

T okyo Cap & Trade: Program Outline 3 Mandatory emission reductions Obligation Reductions = Base-year emissions Compliance factor 5 years Base-year emissions :Average emissions of three consecutive years between 2002 to 2007 Category Ⅰ-1 Compliance factor Commercial buildings, District cooling & heating facilities (plants) 8% Ⅰ-2 Commercial buildings using EHC 6% Ⅱ Factories, etc. 6% Top level A facility already achieved high energy efficiency is certified as a: Top Level / Near-top level Facility 1/2 or 3/4 of the compliance factor

E mission Trading: Creating a New Local Carbon Market Tradable allowance: Reductions exceeding the obligation Emission reduction exceeding the yearly obligation is allowed to be traded from the 2nd year. Creation of Emission Reduction Registry System: Every Facility has account in a registry Creation of a MRV system: Guidelines on MRV Requirements of verification by a registered verification agency

T okyo Cap & Trade: Program Outline 4 Trade and Offset Credits 1. Emission reductions from small and midsize facilities within the Tokyo area * Emission reductions through energy-saving measures in smaller facilities not covered by the TC&T 2. Renewable Energy Certificates * Solar energy (heat and power), wind energy, etc. * No limit for offsetting * Premium incentive (1.5 times) 3. Emission reductions outside the Tokyo area * Sellers will be assumed to be covered under the Tokyo Cap-and-Trade Program, and reduction exceeding the reduction obligation would be counted as offset credit * Can only buy up to 1/3 of base year emissions

T okyo Cap & Trade: Offset Credits Creation 215,000 t-co2 Offset Credits are expected to be created Offset Credits Types Number of Application As of September 30, 2011 Projected Reduction Amount (t-co2) Emission reductions from Small and Midsize Facilities 289 54,094 Renewable Energy Certificates 7 65,000 Emission reductions Outside the Tokyo area 11 96,317 Total 307 215,411

T okyo Green Building Program Program Outline 1 Rating and Disclosure System To improve environmental performance of new buildings Coverage: Newly planed buildings over 5,000 sq. meters Purpose: To create a real estate market where greener buildings are valued more Requirement: Building owner is required to employ eco-friendly design and to submit a Building Environmental Plan outlining the building s environmental performance Disclosure: Plan with rated result with 3 ratings are displayed on TMG website Covers about 40% of new buildings

T okyo Green Building Program Program Outline2 Items assessed:12 Items Category Energy Resources Material Natural environment Heat-Island subject Items Heat load resistance of the building shell Use of renewable energy Energy Performance (Shells and equipments) Efficient operation systems Usage of eco-materials Protection of ozone Layers Longer building life expectancy Hydrological cycle Greening (vegetation, landscape, etc.)bio-diversity Atmospheric heat waste Surface of ground and buildings Wind environment Disclosure @ TMG website Plan with ratings are displayed Charts display the rated results in 3 ratings 建築物環境計画書制度 Find buildings from a location map

T okyo Green Building Program Program Development Green Labeling Program for Condominiums (2005-) Energy performance Certificate Program (2010-) Requirement of higher energy standards for large urban developments (2009~) Requirement of feasibility studies on renewables (2010~) Energy performance certificate

S ubsidy Programs for Solar Energy Current Program (After 2011) Subsidy program to accelerate the introductions of solar energy system at residential facilities (Budget; 14 billion yen by the end of FY2012) PV: 100 thousand yen/kw Solar heat ; 70 thousand yen/kw (Replacement from electric water heater)

Subsidy Programs for Solar Energy Increased Applications for the Subsidy Program after 3.11 Applications from 2003 to 2010 件 5,000 太陽光発電補助申請受付件数 4,269 2003 (H15) 2004 (H16) 2008 (H20) 2009 (H21) 2010 (H22) 1,358 1,554 1,572 7,470 11,364 4,000 3,000 2,000 2,997 1.4 倍 1,000 0 2010(H22) 年 8~11 月 2011(H23) 年 8~11 月

3. Green Buildings Era in Tokyo TokyoMetroplitanGovernment

Methodologies from local / urban perspective to Promote Renewable Energy Two methodologies to promote renewable use in the buildings sector 1. Regulations on emissions from urban facilities ex.) Cap & Trade scheme Retrofit projects for energy efficiency & renewables Need incentive system for renewables 2 Energy standards/ Energy code regulations Set the goal to ZEB/ZEH Integrate a offsetting scheme in energy standards Schedule setting to tighten the standard is the key TokyoMetroplitanGovernment

Issues in Japan Deregulation of Electricity utility World Green Building Council Government Leadership Award Most Groundbreaking Policy To Tokyo Is the Key TokyoMetroplitanGovernment