For Environmentally Sustainable Economy

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					For Environmentally
Sustainable Economy
          Shigetaka SEKI
Director for Environmental Affairs
        11 December 2002
               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
  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
   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

 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

                      ‘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
   Significant negative impacts on ecosystem

    Still not on a sustainable path!

               Current Situation of Wastes

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

                                                                           paper & pulp 7%
                                                                             chemicals 5%

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

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

                                                                                           furniture Est.2%

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

                                                                                              others Est.4%

          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

               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

#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

#1 Recycle oriented Products and Services

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

#1 Recycle oriented Products and Services
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


    #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

    #2 Mitigation of Climate Change
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

 #3 Environmentally friendly use of
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

Strengthening the base for environment
          oriented economy

    Through LCA (Life Cycle Assessment)

    Strengthening knowledge and technology base

    Disclosure of Information

         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

           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

           Disclosure of Information

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

   Environmental labelling

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
 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

                  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

      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

              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)

                                                                                       Scheme under the Used Automobile Recycle Law
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

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

                                                                                                                                                            car registration
                                                                                                            Used car         Transfer obligation

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

                                                                                freon (obligation)
                                                                                                             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

                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

           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%)

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


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
  Incomplete loop for recycling due to international trade

              Solutions (domestic)

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

           Solutions (International)

   International rules, guidelines, standardisation

    Fair, coherent and consistent efforts by all countries

    Compatibility of products and materials

        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
  Kyoto Mechanisms: CDM, JI

   For Sustainable Development

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