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Japan’s Strategy to meet its Kyoto Target

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Japan’s Strategy to meet its Kyoto Target September 5, 2003 Yasuhiro SHIMIZU Director, Climate Change Policy Division Ministry of the Environment, Japan 1 Challenges Ahead: Our Kyoto Target G H G E m is s io n s ( M illio n to n -C O 2 ) 1, 400 1323 5.2% above Base year 1339 1302 1324 1333 1299 1344 1, 300 1, 200 1, 100 1, 000 900 800 700 600 1235 6 % R e d u c tio n 1161 B ase Ye a r 1995 1996 1997 1998 1999 2000 2001 Ta rg e t Ye a r (Source) Ministry of the Environment, Japan 2 Japan’s CO2 Emissions by Sectors CO2 Emissions (Million ton-CO2) 550 500 450 400 350 300 250 200 150 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 476 Manufacturing Industries 452 R esi dent al+ i C om m er al nst t i ci /I i ut onal 273 342 Transport 217 267 (Note) Emissions from public utility are allocated to each sector according to its electricity consumption. (Source) Ministry of the Environment, Japan 3 History of Japan’s Climate Change Policy UN Framework Convention on Climate Change (1992) Action Program to Arrest Global Warming (1990) Kyoto Protocol (1997) Climate Change Action Program (1998) Marrakesh Accords (2001) New Climate Change Action Program (2002) Ratification of the Kyoto Protocol (2002) 4 New Climate Change Policy Program 1. Integration of the environment and economy 2. Step by step approach 3. All sectors should make their utmost efforts to take actions. 4. International cooperation 5 Breakdown of the 6% Reduction Targets Total Emissions as a Percentage of Base Year Sector CO2 from energy sources CO2 from non-energy sources, CH4, N2O Development of innovative technology and further extensive efforts by public HFCs, PFCs, SF6 Sinks by forests management (Note) Target ±0.0% ▲0.5% ▲2.0% +2.0% ▲3.9% 1.In attaining these targets, the Government shall continue its emission reduction efforts beyond these targets where possible. 2.The Government shall also study the way to use the Kyoto Mechanisms. 6 GHG Reduction in Energy Demand and Supply Sectors Amendment of Energy Conservation Law   Application of energy management system to large commercial buildings etc. Promote appropriate energy conservation measures for buildings at the construction stage. Law Concerning the Use of New Energy by Electric Utilities (RPS law)   Mandate electric utilities to achieve the fixed level of the electric power generated from new energy. RPS: renewable energy portfolio standards 7 Climate Change Policy Law The Kyoto Target Achievement Plan Large Emitters are encouraged to make a plan on measures for reducing GHG emissions. Centers for the Promotion of Activities to Prevent Global Warming The Global Warming Prevention Headquarters 8 GHG Reduction through Economic Incentives Taxation on Environmentally-friendly Cars  In FY 2001, 2 million environmentally-friendly cars were purchased under reduced taxation. Reform of Existing Energy Tax Scheme   Taxation on coal Expenditures focusing on GHG reduction measures 9 Stakeholders’ Involvement in GHG Reduction Measures National and Local Government Initiatives   Green procurement Official vehicles will be switched entirely to low-emission vehicles, such as hybrid cars, no later than FY 2004 Voluntary Action Plan by Nippon Keidanren   Voluntary commitment to limit CO2 emissions in 2010 below its 1990 level Checked up on by the government A unique conference to discuss environmentally-friendly lifestyles (“Wa-no-Kuni Kurashi Kaigi”) Environmental Education Law 10 Promotion of Public Involvement   Development of Technology The first fuel-cell vehicles sold on the market at large were made in Japan. A Fuel-cell Vehicle Leased to the Ministry of the Environment 11 Making Our Country More Environment-friendly Biomass Nippon Strategy  Nationwide utilization targets: 80% or higher for waste biomass; 25% or higher for unused biomass Ten-year Forest Sink Measures to Prevent Global Warming  Strong and systematic promotion of forest management based on the Basic Plan on Forest and Forestry Basic Plan for Establishing a Recycling-based Society  Target: By FY 2010, 40% improvement in Resource Productivity (GDP divided by Direct Material Input) compared with FY 2000 12 Step-by-Step Approach The First Step Step One Assessment and Review 2002~2004 The Second Step Step Two Assessment and Review 2005~2007 Step Three The Third Step 2008~2012 (The First Commitment Period) Achievement of 6% Reduction Commitment 13 Assessment and Review of Policies and Measures Assessment and review of policies and measures will be implemented in 2004 and 2007. Based on the assessment and review, additional measures will be implemented, if necessary.   Discussions on GHG Reduction Tax as one of possible policy options Test of Domestic GHG Emissions Trading 14 Early Entry into Force of the Kyoto Protocol Kyoto Protocol A significant step to address climate change Kyoto Mechanism   Start of a market to enable cost-efficient reductions in GHG emissions CDM: contribution to sustainable development in developing countries 15 Post-Kyoto Discussions Berlin Mandate (COP1)  Kyoto Protocol (COP3) Do we need a new mandate? If yes, when and how? Related Articles     Kyoto Protocol Article 3.9 (Commitments for subsequent periods) Kyoto Protocol Article 9.2 (Review of the Protocol) FCCC Article 4.2 (d) (Review of the adequacy of the commitments) FCCC Article 7.2 (a) (Periodical examination of the obligations of the Parties) 16 Post-Kyoto Discussions (cont’d) What elements should be considered?       Movement towards the achievement of the ultimate objective of the UNFCCC Coherence between the Kyoto Protocol and future regime Equity Market flexibility Comprehensive approach vs sectoral approach And what ? 17 Conclusions The Key word is “Incentive.” How can we give incentives to reduce domestic GHG emissions? How can we establish future international regime to give incentives to participant countries?  Research project focused on “Incentive” has just started in Japan. 18

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