Transcript Policies of Japanese Government to Facilitate the Use

Kyoto Mechanism and
Technology Transfer
Shigetaka SEKI
Director for Environmental Affairs
Ministry of Economy, Trade and Industry, Japan
April 9-10, 2003
UNFCCC WS
on Technology Transfer
1
The new climate change program
In the “New Climate Change Program”, domestic quantitative targets were
established to achieve 6% reduction commitment.
CO2 emissions from energy use
CO2 emissions from non-energy use, methane emissions, and nitrous
±0%
－0.5%
oxide emissions
Emissions of HFCs, PFCs and SF6
+2.0%
Reductions by innovative technologies and change of lifestely
－2.0%
The use of Sinks
－3.9%
Note:Japan shall study the utilization of the Kyoto
mechanisms while taking account of international situation
and bearing in mind the commitment achievement
responsibility and the general rule that Kyoto mechanisms
stipulated in the Kyoto Protocol are supplementary to
domestic measures.
2
GHGs emissions in 2000 is 8% higher than the base year.
14 % reduction needed to meet the Kyoto Target of -6% from 1990
1400
1,333(+8%)
1350
1300
1250
1,235
1200
1150
1100
SF6
PFCs
HFCs
N2O
CH4
CO2
1050
Ye
ar
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
1000
Ba
se
Million tons of C02 equivalent
Japan's GHGs emissions (1990-2000)
(Source):Japan’s Inventory
3
Energy Efficiency Indicators(1)
- energy consumption/GDP 0.4
tons of Oil eauivalent/1billionUS$（1995）
1990
※Figures are index where Japan's level of 2000 as 100
2000
0.3
447
0.2
245
203
210
206
179
157
149
0.1
273
260
195
119
100
(Source):OECD/IEA, Energy Balances of OECD countries
Ja
pa
n
US
A
Au
st
ra
li
a
Ca
na
da
No
rw
ay
It
al
Ne
y
th
er
la
nd
s
Fr
an
ce
De
nm
ar
k
Fi
nl
an
d
Sw
ed
en
UK
Ge
rm
an
y
0.0
4
Energy Efficiency Indicators(2)
- energy consumption/GDP tons of oilequivalent/1000U S$(1995)
1.2
1222 1200
※Figures are index where Japan’s level of 2000 as 100
1.0
0.8
778
700
0.6
344
0.4
478
456
256
0.2
100
0.0
na
i
Ch
ia
d
In
ea
r
Ko
co
i
x
Me
th
u
So
ca
i
r
Af
il
z
a
Br
nd
ia
a
s
il
ne
a
o
d
Th
In
(Source):OECD/IEA, Energy Balances of Non-OECD countries
an
p
Ja
5
Energy Efficiency Indicators (4)
- Cement industries 2,500
Mcal／Cement ton
2,000
1,500
1,000
100
200
161
157
151
151
1,322
1,288
1,241
1,241
100
820
500
-
0
Japan
USA
Western
Europe
Average
Asia
Average
Central and
South
America
Average
Energy Consumption/1 ton cement production
Japan＝100（right Y axes）
(Source):CEMBUREAU, World Cement Directory
6
Establishment of ‘Liaison Committee
for the Use of the Kyoto Mechanisms’

Established on July 19, 2002
 Major Task
- Approval of project applications for
JI/CDM
 Consists of relevant government agencies
- Cabinet Secretariat
- Ministry of Economy, Trade and Industry
- Ministry of Environment
- Ministry of Foreign Affairs
- Ministry of Agriculture, Forestry and Fisheries
- Ministry of Land, Infrastructure and transport
7
Establishment of
‘JI/CDM Project Approval Guidelines’



Established on October 16, 2002
Established by the Liaison Committee
Procedures Described in the Guidelines
– Application should be submitted to one of the member
ministries of the Liaison Committee
– The ministry designated to support the candidate
projects examines the application pursuant to the
approval criteria and reports the result to the Liaison
Committee
– The Liaison Committee decides whether to approve the
application based on the report from the ministry
8
CDM Project Application Already Received
CDM Project in Brazil
Project Participant : Toyota Tsusho Corporation
Name of the Project : Vallourec & Mannesmann Tubes do
Brazil Fuel Switch Project
Outline of the Project :
Use charcoal for the production of steel instead of using cokes
Alter the design of existing carbonization kilns
Targeted Gas : CO2, N2O, CH4
Expected Emission Reduction : 1.13 million t-CO2／Year
9
JI Project Application Already Received
JI Project in Kazakhstan
– Project Participant : NEDO
– Name of the Project : The Model Project for Increasing
the Efficient Use of Energy Using a Gas Turbine
Cogeneration System
– Outline of the Project : Replace the existing low
efficiency boiler and steam turbine with a Gas Turbine
Cogeneration System (GTCS)
– Targeted Gas : CO2
– Expected Emission Reduction : 62,000 t-CO2／Year
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Policies of METI to Facilitate CDM projects

Help Desk for Kyoto Mechanism in METI
 Kyoto Mechanism Guidebook (in Japanese)
 Development of Japan’s National Registry System
 Financial supports
 Model projects, FS, needs assessment
 Asia CDM Capacity Building Initiative
 Cooperation through Climate Technology Initiative
(CTI)
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# of Inquiries Received
As of March 31, 2003
Category
Number of Inquiries
General Questions on KP
About 150
On Projects
About 80
CDM
（about 60）
JI
（about 20）
Operational Entity
TOTAL
About 20
About 240
Note: Sum of breakdown is not equal to the total because of rounding.
12
CDM/JI Candidates Projects
by Credit Scale
12
10
8
6
4
2
0
10-
100-
500- 1000- 1500- 2000- 50001,000 tons(CO2)/year
Note: The Volume of credit is based on the estimations by project
participants.
13
CDM/JI Candidates Projects
by Project Type
Energy Efficiency
11%
0%
3%
28%
6%
Afforastration,
Reforestration
Methane Recovery
6%
Renewable
Generation
Sequestration
8%
Hydro
HFCs
18%
10%
10%
As of the end of February, 2003
Fuel Switch
Others
セグメント 10
14
CDM/JI Candidates Projects
by Region
Asia(CDM)
4%
4%
3%
Middle East(CDM)
Central and South
America(CDM)
Africa(CDM)
7%
9%
49%
Europe(CDM)
Middle and East
Europe(JI)
Australia(JI)
1%
3%
Russia(JI)
10%
10%
As of the end of February, 2003
Europe(JI)
Cenrtral Asia(JI)
15
Major Barriers to CDM, JI

Uncertainties associated with institutional
settings, rules and procedures in the host
countries (incl. interpretation of SD)
 Uncertainties associated with rules and
procedures of UNFCC/CDM process
 Difficulties in baseline setting
 Barriers to investment
– Protection of intellectual property rights
– Non cost reflective energy pricing
– Insufficient enforcement of laws, etc.
16
Asia CDM Capacity Building Initiatives
Agreed to start the initiatives in 2002
 This seminar is the first activity of the
initiatives in Thailand.
 Drafting and distributing the CDM
manual in Thai language
 Further program will be discussed with
Thai government

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Cooperation through CTI
with JI countries
- Technology needs assessments
Collaboration with the UNDP in the development and
dissemination of technology needs assessment
methodologies
- Seminars
Seminars involving industry sector in collaboration with
UNFCCC and other relevant international organisations
Training courses
- Information dissemination
-
Participation & financial contribution to UNFCCC WS etc.
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