For Environmentally Sustainable Economy

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					For Environmentally
Sustainable Economy
          Shigetaka SEKI
Director for Environmental Affairs
           METI/Japan
        11 December 2002
                                     1
               Evolution of Issues

Policy Issues
    Local Pollution
    Domestic Environmental Problems
    Global Environmental Problems


Policy Approach
     Addressing Pollution
     Prevention of Environmental Problems
     Integration of Environmental Consideration into
      Economy
                                                        2
  History of Environmental Issues in Japan #1


Late 19c-   Water and air pollution increased
            - mining and refinement
            - combustion of coals

‘50-        Pollution by heavy metals, SOX, NOX

‘60-        Smoke-Emissions Regulation Law ‘62
            Environmental Pollution Prevention
            Framework Law ‘67
            Air Pollution Control Law ‘68
            Water Pollution Control Law ‘69
                                                  3
   History of Environmental Issues in Japan #2

‘70-    Noxious sludge in ponds and bays
        White smog in cities
        PCB, Pollution of soils by heavy metals
        Eutrophication of ponds, etc. (e.g., red tide)

      Environmental Protection Agency ‘71
      Assessment and Control of Newly Produced Chemicals
       Law ‘73
      Environmental Protection Law for the Inland Sea ‘1973




                                                           4
 History of Environmental Issues in Japan #3

’80        Eutrophication remained, Organic halides in water
           Waste disposal became a serious problem
           NOX from automobile remained a problem
           Ozone hole

         Environmental Assessment Ordinances (Tokyo,
          Kanagawa) ’80
         Quantitative control of total NOX emissions ’81
         NOX emissions control to cover gas turbine and diesel
          engines ‘87
         Control of tri and tetra chloro-ethanes in water ’87
         Ozone Layer Protection Law ’88

                                                                  5
                      ‘90 - Today

   Mass production/consumption and disposal
   Natural resources consumed in mass
   Disposal of noxious substances increased
   Capacity for waste treatment limited and illegal dumping
    increased
   Significant negative impacts on ecosystem

    Still not on a sustainable path!


                                                               6
               Current Situation of Wastes

1. Wastes from Industry(400mt/year)                                  mining 7%

                                                                           paper & pulp 7%
                                                                             chemicals 5%

                                                        Iron &
       Public utilities   construction    agriculture                             others
                                                         steel
            20%              19%.            19%                                   13%
                                                          7%
                                                                                  food 3%



2.Wastes from General Sources(50mt/year)
                                                                                     electric appliances Est.2%
                                                                     automobile
                                                                     Est.10%            apparel Est.2%

                                                                                           furniture Est.2%


              Garbage                containers             papers
              Est. 30%                Est.25%              Est.25%


                                                                                              others Est.4%


                                                                                                              7
          Future should be ...
Recycle-oriented economy
-   Reduce the use of resources
-   Increased use of wastes as resources
-   Reduction of waste disposal
Prevention of damages by hazardous substances
-   Reduction of chemical use
-   Improved safety use of chemical products
Fully controlled flows of wastes and chemicals
-   Life cycle monitoring & assessments

                                                 8
               Path for the Future

-   Rigorously pursue efficient use of resources

-   Change products and manufacturing to be recyclable

-   See the wastes as reusable resources

-   Use the functions instead of possess the goods

-   Actively take ex ante measures

          => 3Rs x 3 Areas

                                                         9
#1 Recycle oriented Products and Services

Reduce the use of resources by


      Increased efficiency of process

      Switching to recyclable materials

      Designing easy-to-recycle (reuse) products

      Greening industrial processes to reduce wastes




                                                        10
#1 Recycle oriented Products and Services
                continued

Reuse the products and/or parts by

   Efficient disassembling of products into parts

   Decomposition of polymers to monomers

   Improved assessment of quality and reliability of used parts

   Improved repair of products and parts

   Extensive standardisation of parts and materials


                                                              11
#1 Recycle oriented Products and Services
                continued
Recycle the products, parts and/or energy by

   Improved recovery of reusable materials from waste

   Efficient use of wastes as energy sources

   Distribution network for recyclable goods and materials

   Markets for recyclable goods and material

   Expansion of facilities for recycling of and recovering from

    wastes

                                                              12
    #2 Mitigation of Climate Change

Reduce GHG emissions by

   Efficient use of energy

   Conversion to less GHG emitting fuels

   Efficient energy (and heat) supply systems such as fuel cell

   Improved city infrastructure for efficient transportation


                                                                13
    #2 Mitigation of Climate Change
                continued
Replace GHG emitting fuels/substances by
   Renewable sources of energy (PV, winds. etc)
   Nuclear
   Alternative gases for HFH, PFC and SF6


Recovery (plus sequestration) of GHG by
   Carbon sequestration
   Efficient use of biomass
   Use of CO2 as chemical materials

                                                   14
 #3 Environmentally friendly use of
            Chemicals
Reduce the use of chemicals by
    Conversion to biotechnology

    Conversion to recyclable materials

Replace the chemicals and products by
    Environmentally no-affecting substances

    Hazardous-metals free substances

    Bio-degradable substances

Re-mediation of environment by
    Improved technology

    Detoxification of chemicals

    Biotechnology



                                               15
Strengthening the base for environment
          oriented economy

    Through LCA (Life Cycle Assessment)


    Strengthening knowledge and technology base


    Disclosure of Information




                                                   16
         LCA (Life Cycle Assessment)

   Development of methodologies

   Monitoring and assessment of distribution and use and the
    environmental impacts of products and wastes

   Assessment of environmental performance of economy by
    LCA criteria

   Eco-labelling



                                                                17
           Strengthening knowledge
            and technology base by
   Fundamental principles for environment-oriented design

   Development of hazard assessment measures

   DB for PRTR(pollutant release and transfer registry)

   R&D for 3x3R Technologies

   Standardisation



                                                             18
           Disclosure of Information


   Collection and publication of data
     (e.g., CO2 emissions, PRTR, MSDS)

   Environmental labelling




                                         19
Opportunities for the Business Sector
 Environment means business
 (200mUSD or 2%GDP in ’97 to 360mUSD in ‘10)
 - Recycling
 - Waste treatment to resources
 - Environmental assessment
 - Environmental consultants/ESCO
 - Environmental consideration as a source of
   competitiveness
 New products & technologies
 - Additional value on environment-friendly products
 - Improved corporate image
 - New system technology (e.g., HEMS, BEMS)
 - Repair, reuse, recycle business
 - Improved productivity

                                                       20
                  Public Policies
          for recycle-oriented economy
Promotion of Reuse of Resources Law ‘91
    Environmental consideration in product design

    Selective collection of used resources (Waste Separation)

    Labelling, etc.

Framework Law for Recycle Oriented Economy ‘01
      Basic principles,
      Responsibilities of government, business and citizens
      National Plan, etc




                                                                 21
      Laws for Wastes and Recycle

For wastes: Wastes Treatment Law (amended in ‘01)
 Proper waste management

 Regulation on facilities and business

 Standard Setting



For recycle: Effective Use of Resources Law ‘01
 Promotion of recycle

 Improved design and materials for recycle

 Separation of recyclable goods

 Effective use of byproducts


                                                    22
              Recycle and Green Purchase

-   Recycle Law for Containers ‘00
-   Recycle Law for Electric Appliances ‘01
-   Recycle Law for Construction Materials ‘02
-   Recycle Law for Foods ‘01
-   Recycle Law for Used Automobile ‘02
    -   Preceded by Used Automobile Recycle Initiative ‘97

Plus sectoral guidelines (35 product areas, 18 industrial sectors)

-   The Law for Green Purchasing ‘01
-   Regional initiative: Eco-towns, 16 areas (‘02/5)

                                                                     23
                                                                                       Scheme under the Used Automobile Recycle Law
                                                                                                                  ※1
authorisation                                                                                                      First owner                     ※1 or current owner
                                                                                                                                                                                Flows of used car/parts
                                                                                        Fee for
                                                                                       recycling                Used car                                                       Money flows

                                                                                Request for
                                                                                payment             Fund
                                                                                                                       Final Owner
                                                                                                   manger




                                                                                                                                                                                         ※ The third parties can take the responsibility in the absence of persons with duty
                                                                                  payment                                                                   Delegation of
                                          Automobile manufacturers/ importers




                                                                                                                                                                                              2
                                                                                                                                                            car registration
                                                                                                            Used car         Transfer obligation
                                                                                                                                     licence
                                                                                                             Dealers

                                                                                hand over,
                                                                                take back of                Used car        Transfer obligation
 Recycle for themselves or by commision




                                                                                freon (obligation)
                                                                                                                                   licence
                                                                                                             recovery of freon gas
                                                                                    Fee for recovery
                                                                                                                 Used car  Transfer obligation
                                                                                 Had over, take back of
                                                                                 air-bugs (obligation)                                       Parts for
                                                                                                                                  licence    reuse
                                                                                                              disassembling                                  Markets
                                                                                   Fee for disassembling                                                     for
                                                                                                                             Transfer obligation             used parts,
                                                                                 Hand over, take back of
                                                                                                                                                   metals    metals, etc
                                                                                 shredder dusts                                      licence
                                                                                                              shredder


                                             ※2
                                                                                                                                                                                                                                                                               24
                Public Policies for
            Climate Change Mitigation
The Framework Law to Address Global Warming (revised in ‘02)

   Comprehensive Policy Package of 2002

      Dual goals of environment and economic growth
      Step-wise approach
      Contribution by all sectors
      Efforts by all countries
        => Policy performance to be reviewed in 2004


                                                          25
           GHG reduction targets

1. CO2 from Energy Use (+0%)

2. Non CO2 GHG reduction (-0.5%)

3.Innovative Technology and Behavioral Approach (-2%)

4. HFC, PFC, SF6 (+2%)

5. Sinks (-3.9%)




                                                        26
Breakdown of Targets for Energy Use/Production

 End Use Energy Efficiency Improvement (22mtCO2/y)
       Industrial Sector
              Voluntary Programmes
              Introduction of energy efficient technologies
       Commercial and Households Sector
                      Energy Management
                      Bench-Marking to Top-Runners (products)
       Transport Sector
                      Bench-Marking to Top-Runners
                      ITS, modal shift to sea shipment, etc.
 New and Renewables Energy Sources (34mtCO2/y)
       Biomass, PV, solar thermal, wind, fuel cells, etc.
 Fuel Conversion (18mtCO2/y)
       Conversion to natural gas
       Extension of gas pipeline and grids
 Nuclear

                                                                 27
                   Limitations

For industry
  Objectivity of criteria for environment-friendliness

  Incremental costs > added value

  Prisoners’ dilemma

  Conflicts between the laws for waste and recycling

  Boundary between local governments

For nation
  Impacts on competition (absence of equal-footing
   market)
  Incomplete loop for recycling due to international trade



                                                              28
              Solutions (domestic)

   Solidify environmental values for environment-oriented
    market
     => standards, SRI, disclosure,
   Green Purchase
   Regulations
   Co-ordination with local governments
       e.g., Environment-friendly industry complex
   Economic instruments


                                                             29
           Solutions (International)

   International rules, guidelines, standardisation


    Fair, coherent and consistent efforts by all countries


    Compatibility of products and materials




                                                              30
        For Global Collaboration

Technology transfer to and Information Sharing with
developing countries
  Capacity Building (including sharing experiences)

  Technology and needs assessment

  Business sector involvement



New Opportunities
  Growing awareness of environmental issues in developing
   countries
  Kyoto Mechanisms: CDM, JI



                                                        31
                         Closing
   For Sustainable Development

       Environment and Economic Growth: Dual Targets
       Environment should mean Opportunity
       Environment should mean Business
       Environment should be dealt with globally




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