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Energy Efficiency Policy Development and Planning in Japan

The Energy Conservation Center, Japan

ECCJECCJ

ContentsContents1. Outline of Energy Conservation Promotion in Japan

2. Promotion of Energy Conservation in the Industry Sector

3. Promotion of Energy Conservation in the Consumer Sector

4. Promotion of Energy Conservation in the Transportation Sector

5. Energy Conservation Activities of ECCJ

“Future Energy Scenarios toward Sustainable Energy Policies and Practice in Thailand” Workshop

28th August 2006, Bangkok/Thailand

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1. Outline of Energy Conservation Promotion in Japan * Trend of energy consumption & efficiency * Energy Conservation Law * Supportive Measures * Organizational Framework

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0

50

100

150

200

250

300

350

400

450

Fiscal year

0

100

200

300

400

500

600

Industrial

Transportation

Consumer

Japanese General Production （ GDP)

24.9%

24.4%

26.9%

48.7%

GDP(trillions of yen at 1990 values)Crude Oil Conversion

(million Kl)

Source: General Energy Statistics

16.2%

16.4%

67.4%

17.9%

57.1%

Changes in Final Energy Consumption

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0

50

100

150

200

250

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Fiscal year

Index (1973=100) Source: General Energy Statistics

209.8

105.0

Industrial sector

Transportation sector

Consumer sector221.9

Changes in Final Energy Consumption by Sector

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1,327

1,273

1,192

1,101 1,101

1,059 1,059 1,036

1,013

1,013

985

1,0491,091

1,051

1,0701,077

1,037

1,0441,021

1,059

1,036

1,038

1,050

1,1311,142

1,345

1,405

1,467

1,566

1,573

1,438

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

Fiscal Year

Pri

ma

ry e

ne

rgy

co

ns

um

pti

on

/ G

DP

Changes in Primary Energy Intensity per GDP in Changes in Primary Energy Intensity per GDP in JapanJapan

Changes in Primary Energy Intensity per GDP in Changes in Primary Energy Intensity per GDP in JapanJapan

Ton oil eq. / Billion yen

Source: METI/General Energy Statistics

2nd Oil Crisis

1st Oil Crisis

Improvement by 37%

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Effect of Measures and Dissemination Rate of TypicalEquipment for Energy Conservation

Effect of Measures and Dissemination Rate of TypicalEffect of Measures and Dissemination Rate of TypicalEquipment for Energy ConservationEquipment for Energy Conservation

　 　 　 　　 　Improved　Energy　　　　　　Typical　Energy　　　　　　　　　Dissemination　RateIndustry　　　Intensity(94/73)　 　　Conservation　Equipment　 　　　　　as　of　1998

Iron　&Steel

Continuous caster (CC) 　 100 %81 % Blast furnace top gas pressure　 100 % recovery equipment (TRT) Coke dry quenching equipment 　 91 % (CDQ)

Petrochemical High-efficiency naphtha　 100 %58 % cracking reactor High efficiency compressor 100 % Gas turbine 　 　 　 　 　 　 　 100 %

Cement 65 % SP, NSP kiln (Heat recovery) 100 %

Paper　&Pulp 61 % Continuous digester 100 %

Source : ECCJECCJECCJ

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Primary Energy Intensity per GDP

629

570

494

106

221

340

184152

200 201

317

0

100

200

300

400

500

600

700

toe/

mill

ion

US

$

(2003 by IEA statistics) Currency rate to US$ as of 2000

2,086

1,0251,018 963

1,157

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Chronological Changes in Energy Conservation in Japan Chronological Changes in Energy Conservation in Japan (1)(1)

From postwar to 1950s:

With the energy use structure focusing on coal, energy efficiency was promoted from a viewpoint of the domestic coal resource preservation, and the heat management rule on using coal was enforced in ‘47.

From 1960s to 1973:

Switch from coal to oil was carried out so that it led Japan changing to an import energy dependence country.

From 1973 to 1978:

Just after the first oil crisis in ‘73, the industry as one body, focusing on the urgent countermeasures and the measures against panic situation, strived to promote improvement in plant operation and energy management with low or zero investment for curtailment of energy usage, such as air ratio optimization in a combustion furnace, exhaust-heat recovery use, heat insulation improvement, operation improvement of a boiler system, improvement of power factor on use of electricity, etc.

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Chronological Changes in Energy Conservation in Japan Chronological Changes in Energy Conservation in Japan (2)(2)

From 1979 to 1990:

The oil shocks two times triggered a great concern nationwide to need promoting more energy efficiency and conservation. The Energy Conservation Law was enacted in ’79, and under the collaborative efforts between the Government and industries, retrofits and addition in facilities for improvement of energy efficiency, and occasionally the improvement of production process for cost reduction and improvement in productivity including improvement of energy efficiency, were implemented especially in energy-intensive industries making effective use of the various financial support systems.

 

From 1990 to present:

Then, after early 1990s, it was shifting the major emphasis with energy conservation issues toward the measures in the residential & commercial sector in addition to the measures in the industry sector.

Moreover, global environment problems turned into a new subject, and became an important theme with the curtailment of CO2 emission. In connection with that, many varieties of technologies effective not only for energy conservation but also for the curtailment of CO2 emission has been developing.

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Legislation & Amendment of the Energy Conservation Law “The Law concerning the Rational Use of

Energy”

1979 : Legislation of The Law (enforced in Oct. 1979)

1983 : The 1st amendment of the Law (enforced in Dec. 1983)

1993 : The 2nd amendment of the Law (enforced in Apr. 1993)

1998 : The 3rd amendment of the Law (enforced in Apr. 1999)

2002 : The 4th amendment of the Law (enforced in Apr. 2003)

2005 : The 5th amendment of the Law (enforced in Apr. 2006)

<Basic Objective of the Law>

Enhancing energy efficiency in order to achieve 3E’s harmonization.

• The Law stipulates the energy conservation measures regarding

Factories & Workplaces, Buildings and Machinery & Equipment.

• The Law has been amended and reinforced for increasing and stringent

requirements to energy efficiency and conservation.

Economic growth

Energy security

3‘E’ 3‘E’ harmonizationharmonization

Environment

protection

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Floor space of 2,000 ㎡ or more

Annual increase of energy efficiency by 1% or more Report on Energy Saving Measures

Energy Conservation LawEnergy Conservation Law 【【 enacted in 1979, amended in 1983/1993/1998/2002/2005 enacted in 1979, amended in 1983/1993/1998/2002/2005 】】

[Ⅰ] Standards

[Ⅱ] Objectives and Measures

Measures for Machineries & Equipment

Measures for Buildings

Appointment of Energy Manager(Management Officer for Office Buildings)

Periodical Report

Medium-to-long Term Plan

In case of a rational use of energy to be insufficient

Direction for Rationalization Plan

Measures for Factories & Workplaces

Standards for Judgement

Public Disclosure and Order

On-site Inspection

Appointment of Energy Management Officer

Periodical Training of Energy Management Officer

Periodical Report

On-site Inspection

Top Runner Standards

Penalty

In case of a rational use of energy to be insufficient

Scope

Fundamental

Policies

Definition

1st Class Designated Energy Management Factory1st Class Designated Energy Management Factory 2nd Class Designated Energy Management Factory2nd Class Designated Energy Management Factory

3,000 kL-Oil eq. or more (heat & electricity) 1,500 kL-Oil eq. or more (heat & electricity)

Budgetary, Financial and Tax Measures

Advice and Recommendation

In case of disobedience to direction

Amended in ’98/’05Amended in ’02/‘05

Amended in ’02Amended in ’98

Amended in ’98

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* Project plan should be approved by the ministry based on the Law

Approval condition: 1. To be satisfied with “Judgment Standards (guidance for introduction of high energy

efficiency equipments)” in Energy Conservation Law.

2. Total energy saving in the plant is 100kL or more per year.

Supportive Measures (1)

Energy Conservation & Recycling Assistance Law

Energy Conservation Recycling Etc.

Factory Building R&D

Low- interest loan Tax incentives

Preferential interest rate loan: (for example) interest rate: 2.2%, loan period: 1~30years, loan coverage: 50%

through Development Bank of Japan, through Japan Finance Corporation for Small and Medium Enterprise, etc.

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Tax IncentivesTax Incentivesfor Investment of Energy Conservation for Investment of Energy Conservation

FacilitiesFacilities( 74 facilities only for S&M enterprises )( 74 facilities only for S&M enterprises )

*as of June 2005*as of June 2005

"Tax Incentive System for Promotion of Investment in Reformation of Energy Supply and Demand Structure" was established in 1978.

1. Deduction for corporate tax or income tax

7% of acquisition cost of equipment ( Upper limit : 20% of corporate tax or income tax)

2. Special depreciation

Up to 30% of acquisition cost of equipment in addition to ordinary depreciation

OR

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Trend of Energy Conservation Investments under the Financial Support of Tax Incentives

Source : ECCJ

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Fiscal Year

Nu

mb

er o

f A

pp

lica

tion

Number of Application

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1) Projects for installation of advanced energy efficiency facilities / systems

<i.e. High-temperature air combustion / Regenerative burner >

2) Projects for introduction of co-generation systems3) Building / extending high heat insulation houses and buildings4) Introduction of HEMS, BEMS (ENERGY MANAGEMENT SYSTEM )

5) Supporting ESCO enterprises6) Purchasing low CO2 emission auto mobiles

7) R&D Projects for high energy efficient technologies and systems <others>

Subsidy

Supportive Measures (2)

Many subsidy schemes are handled by NEDO and other organizations

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Regional Bureaus of Economy, Trade and Industry

Smart-life Promotion

Dept.

ECCJ

Administration Dept.

Energy Environment Technology

Dept.

Energy Management

Examination & Training Center

International Energy &

Environment Cooperation

Center

ECCJ BranchesHokkaido, Tohoku, Tokai-Hokuriku, Kinki, Chugoku,

Shikoku, Kyushu ( 7 regions)

Regional BureausHokkaido, Tohoku, Kanto, Chubu, Kinki, Chugoku,

Shikoku, Kyushu, Okinawa　 ( 9 regions)

Collaboration

NEDO

METI and the Related Organizations in Japan for the Energy Conservation

METI(Ministry of

Economic, Trading and Industry)

Agency for NaturalResources & Energy

Secretariat

Energy Conservation &

Renewable Energy Dept.

Natural Resources &

Fuel Dept.

Electricity & Gas Industry

Dept.

International Cooperation

Office

Energy Conser-

vation Div.

New Energy & Renewable Energy Div.

Policy Planning

Div.

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< Energy conservation Law >

Role of ECCJ ECCJ is the core organization responsible for promotion of energy conservation. Its activities

were authorized by the Diet when the Energy Conservation Law was enacted.

Government (METI)

* Regulation & Support

ECCJ* The bridge over both sides for implementing energy

conservation measures

Enterprises* Self-help efforts Energy management (TQM, Kaizen sho-shudan) R&D and Investment

OrderSupervise

Supportive measures

Periodical report

Service offering * Information (technology, law/regulation) * Training * Dissemination

Support Information offering

Support

Supervise

Civil sector

Information

Supportive measures

Information

Dissemination

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2. Promotion of Energy Conservation in the Industry Sector * Energy Manager System * Self-help Efforts in Enterprises * Voluntary Environmental Action Plan of KEIDANREN

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Why did the manufacturing industry of Japan succeed in the energy conservation after the Oil Crisis?

1. Regulation measures by Government （ Energy Conservation Law ）2. Support and subsidy system by Government （ finance, tax, subsidiary aid ）3. Cost reduction (enforcement of international competitiveness) and Self-help

efforts by companies --- investment, ZD,QC activity, Kaizen by Sho-shudan, TQM, etc.

Japan became the first class in energy conservation technology with the rapid progress of energy conservation.

Mutual effect, Synergy effect

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Energy Manager System

<Historical back ground --- authorized by the Law>

1948 :Regulations concerning heat management and

license of heat manager

1951 :Law concerning heat management

1979 :Energy Conservation Law --- reinforcement of the managers’ power

<Role of Energy Managers under the Law>

* To maintain energy-using facilities in sound conditions following the Guidance (Judgement Standards) by the Law.

* To recommend energy efficiency improvement of the facilities. (the management has to respect the recommendation in high regard)

Energy managers system have contributed greatly to

carry out the energy conservation in industrial sector.

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Qualification of EnergyQualification of Energy 　　ManagerManager （ Heat/Electricity)

1. National examination Once a year 1 day, 4 subjects

2. Training seminar Once a year 6 day training 　 & 1 day examination Background : education + experience

Applicant 10,538

Succeeded 3,167

(in FY2004)

ECCJ is a body assigned by the government to carry out national examinations & training seminars for qualification of Energy Manager.

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Applicant 2,575

Succeeded 1,700

(in FY2004)

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The 1st-class Designated Energy Management Factories for Mining, Electricity/Gas/Heat Supply :

Annual consumption of fuels & electricity Number of EM required3,000 or less than 100,000 kl-oe 1100,000 kl-oe or more 2

The 1st-class Designated Energy Management Factories for Manufacturing :

Annual consumption of fuels & electricity Number of EM required3.000 or less than 20,000 kl-oe 120,000 or less than 50,000 kl-oe 250,000 or less than 100,000 kl-oe 3100,000 kl-oe or more 4

Energy managers must be selected from persons qualified by national examinations or training seminars for qualification of energy managers.

Annual consumption of fuels and electricity is evaluated as numeric figure of crude oil equivalent by using conversion factors based on actual figures. (e.g. Crude oil:38.2 GJ/kL, Day-time grid electricity:9.97 GJ/MWh)

Number of Energy Managers Required by the Law

Top Management GovernmentSubmission of

・ Periodical report on energy consumption

・ Medium-to-long term improvement plan

employees

<Energy Conservation Law>

Authorization of the competency and

position of the Energy Manager

Advising on・ Improvement plan of Energy Efficient equipment and facilities・ Organization for Energy Efficiency and conservation

・ Instruction to the employees for energy conservation activities・ Technical advice for energy efficient operation of the facilities

Engineers (middle management)

Registered Energy Manager

＜ Energy Conservation Activities＞

Energy Manager is “Key Person” for achieving the E-C activityin a factory/building

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Energy Management　 Observation (fact finding) 　　　 Control 　　　 improvement

High level

(Investment level)

<Top management>

Middle level

(Technological level)

<Engineers>

Low (easy) level

(operational & facility management level)

<Workers>

Task force

Project

Kaizen by Sho-shudan

　　 Every departments / Every parsons should be participating to the activities. < T Q M >

keeping the operation standard, small maintenance,

tuning up the operational conditions,

a small amount of investment

a large amount of

investment

Large effect

Small effect

< Minimum requirement: observation system or measuring tools of energy consumption >

Self–help efforts in Enterprises

< T

Q M

>

Introduction of newest technology & facilities

Technological improvement ,

Adoption of high efficiency equipment

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TQM and Sho-shudan activity

•TQM and Kaizen by Sho-shudan activity are very popular in Japanese enterprises/factories. Sho-shudan activity is generally included in TQM.

•All subjects concerning cost down and quality up including energy conservation can be objectives for Kaizen. However generally speaking, the theme being adopted are led to be suitable for the TQM policy (the company’s management strategy).

•In some case, Kaizen will be expanding to the technological improving project of the factory/company.

The position of Sho-shudan in TQM organization:

TQM headquarter (leader:the factory manager) secretariat

Blanch A (blanch leader: the general manager of A department)

Blanch B (blanch leader: the general manager of B department)

Blanch C (blanch leader: the general manager of C department)

Sho-shudan Sho-shudan Sho-shudan Sho-shudan

In many cases energy managers play the role of secretaries, advisers, instructors.

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Voluntary Environmental Action Plan of KEIDANREN (Japan Federation of Economic

Organizations)* Participants : 35 industries (Coverage Ratio : 82%) as of Nov. 2005

* Implementation of Energy Conservation Measures aiming at the Target by each Industry

Overall Target in FY2010: ☆ To reduce CO2 emission from Industrial and Energy-Converting Sector below the amount in 1990 :

• Steel Industry: ▲10% Energy Consumption below 1990 by 2010

• Chemical Industry: ▲10% Energy Intensity below 1990 by 2010

• Paper and Pulp Industry: ▲10% Energy Intensity below 1990 by 2010

☆ Trend of CO2 emission in the industry sector :FY1990 FY2001 FY2002 FY2003 FY2004 FY2010 FY2010Actual -------------------------------------------------------------> Target BAU

CO2 emission (Mt) 504.7 487.3 496.6 501.5 502.0 < 504.7 538.0

% to FY1990 100.0 96.6 98.4 99.4 99.5 < 100.0 105.9Ｓｏｕｒｃｅ：ＫＥＩＤＡＮＲＥＮ ( Ｊａｐａｎ Ｆｅｄｅｒａｔｉｏn Ｅｃｏｎｏｍｉｃ Ｏｒｇａｎｉｚａｔｉｏｎｓ )

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Points of Concern on Energy Conservation Points of Concern on Energy Conservation

Promotion in the Industry SectorPromotion in the Industry Sector

• Firm Commitment to Energy Saving : Key Point : to focus on Good Energy Management and

to make Patient Self-help Efforts practically and steadily Spurred by : The Government Policies with combination of Supportive

Measures and Regulations come along with Judgment Standards

• The Results will be :– Improvement in Productivity– Cost Reduction– Increase of International Competitiveness– Environmentally Friendly, Waste Reduction– Contribution to Prevention of Global Warming – Enhancement of Technology Development, etc.

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1. Thorough implementation of energy efficiency required by the regulations in all designated factories & workplaces through

energy audit & Follow up under severer administrative set-up

2. Tighter regulations for expanding the number of designated factories & workplaces (by integrated regulation of heat & electricity)

3. Higher efficient energy utilization in a coordinated mannerin multiple factories & workplaces

4. Voluntary Environmental Action Plan of KEIDANREN

5. Supportive measures (Tax, Loan, Subsidy) for introducing energy efficient equipment and facilities

6. Capacity building (Energy Manager)

7. Commendation of excellent energy managing factories

Energy Conservation Programs towards Energy Conservation Programs towards 2010 in the Industrial Sector2010 in the Industrial Sector

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3. Promotion of Energy Conservation in the Consumer Sector * Top Runner Program for Machineries & Equipment * Energy Saving Labeling Program * ESCO Activities

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Concept for setting target standardConcept for setting target standard

Fuel efficiency(km/L)

Energy efficiency standard ((A)is the top runner.)

Designated productsDesignated products

11 products designated in 1999 1. Air conditioners 2. Fluorescent lights 3. Television sets 4. Copying machines 5. Computers 6. Magnetic disk units 7. Video cassette recorders 8. Passenger vehicles 9. Freight vehicles10. Electric refrigerators 11. Electric freezers

7 more products designated in 2002 1. Space heaters 2. Gas cooking appliances 3. Gas water heaters 4. Oil water heaters 5. Electric toilet seats 6. Vending machines 7. Transformers

Total 21 products designated(13 products in Voluntary Labeling Program)

as of April 2006ECCJECCJ

3 more products designated in 2006 1. Electric rice cookers 2. Microwave ovens 3. DVD recorders

“Top Runner Program”

Energy Conservation Measures for Machineries & Equipment

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Method of IndicationVoluntary Energy Saving Labeling Program

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13 products have been designatedin the Labeling Program

as of April 2006

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• In order to promote energy efficient products, it is essential to introduce incentive measures for “retailers”, who act as a contact point between manufacturers and consumers.

• Recognition should be extended to retailers that actively promote energy efficient products or provide appropriate energy conservation information.

• The energy efficient product retailer assessment system was launched in FY2003.

LogoLogo

Energy Efficient Product Retailer Assessment Energy Efficient Product Retailer Assessment SystemSystem

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Targeted Retailers:All home appliance retailers whose sales coming from home appliances account for 50% or more

of total sales “Retail shops that excel at promoting energy-

efficient products” are selected each year and publicized along with their rankings.

Selected retail shops are awarded by the Governments as well as authorized to carry a special logo as shown left on their business activities.

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Simple average value of representative units of energy efficient models of wall-type

models with both cooling and heating function in the 2.8kW class. Source: The Japan Refrigeration and Air Conditioning Industry Association

0% 20% 40% 60% 80% 100% 120%

2005 model

2003 model

1998 model

1995 model

Power consumption volume during cooling Power consumption volume during heating

Items in ( ) is a standard with 1995 models as 100

Total period1,492 KWh

(100)

Total period1,159 KWh

(78)

Total period963 KWh

(65)

Total period919 KWh

(62)

412 1,080

300 859

242 721

227 692

Effects of Top Runner Program (Performance Trend of Air conditioners)

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Effects of Top Runner Program (Performance Trend of Electric refrigerators)

Average values of annual power consumption per liter of representative electric refrigerator units

Source: The Japan Electrical Manufacturers Association

0

0.5

1

1.5

2

2.5

1995 m odel 1998 m odel 2000 m odel 2003 m odel 2004 m odel

2.25KWh/L(100)

Items in ( ) is a standard with 1995 models as 100 Electricity consumption

per year per liter (kWh/L)

1.02KWh/L

(45)

0.88KWh/L

(39)0.53

KWh/L(24)

0.38KWh/L

(17)

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Fundamental Considerations about Top Runner Program

★ Energy conservation of equipment is being 　　 advanced steadily by the introduction of Top Runner Program.

★ Top Runner Program is an effective government policy tool in the consumer & transportation sectors.

★ It is necessary to expand the scope of Top Runner Program to include energy intensive products, as well as new models of already targeted products.

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ESCO-related markets have shown rapid growth in recent years. Although the market size went down temporarily in FY2004 due to the decreased number of large-scale projects (mainly for installing cogeneration to replace grid-power) in the industrial sector. Yet chances will be so high that market size will further expand in the future.

Research estimates its potential market size at 2,470 billion yen.(Source: The ECCJ’s ESCO Introduction Promotion Study Group Report)

The market scale of ESCO business in the US in 2000 is approximately US$2 billion.

Promotion of ESCO BUSINESSPromotion of ESCO BUSINESSESCO-Related Market ScaleESCO-Related Market Scale

Source: JAESCO (Japan Association of Energy Service Companies) survey

部門別省エネルギー改修工事の推移（受注額）

79 92 107

223 246 222 24091 95

158

226

269 335

134

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 2004

産業部門

業務部門

( )億円

年度

170186

265

449

515

557

374

36%

64%

Trends of Order Amount of Retrofitting Work(100 million yen)

Industrial sector

Commercial/residential sector

Fiscal Year

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1. Top Runner Program expanding to other energy-intensive products

2. Spread of highly efficient water heaters with aid of subsidy

3. Tighter regulations for owners of designated housings & buildings to take sufficient energy efficient measures during new construction and large-scale repair, etc.

4. Dissemination of HEMS & BEMS

5. Promotion of ESCO Activities with aid of subsidy

6. Information service about energy-efficient products (Clothing, Food, Living), ex: Ranking Catalogue for Energy Efficient Appliances

7. Change of Life Style “Smart Life” a) Campaign & Advertisement to disseminate “Smart Life”

b) Support to Grass-root people’s activities for energy conservation

c) Support to schools for energy conservation education to school children

Energy Conservation Programs towards Energy Conservation Programs towards 2010 in the Consumer Sector2010 in the Consumer Sector

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4. Promotion of Energy Conservation in the Transportation Sector * Top Runner Program for Automobiles * Promotion of Idling-stop

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355.8446.2

479.8461.9 459.9

90.0

235.0

163.3

77%

50.9%

20.2%

34.0%

0

100

200

300

400

500

1999 2000 2001 20030%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Number of TR standard achieved units

Total number of shipped units

TR achieved percentage%

Effects of Top Runner Program(Performance Trend of Gasoline Passenger Vehicles)

Unit : 10,000

12.312.1

12.4

12.913.2

13.5

14.0

14.7

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

1995 1996 1997 1998 1999 2000 2001 2003

Fiscal year

Fuel efficiency (Km/L)

Fiscal year

Trends in Shipment of Gasoline Passenger Vehicles that Have Achieved FY2010 Fuel Efficiency Standards

Trends in Average Fuel Efficiency of Gasoline Passenger Vehicles

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- The system was introduced in January 2004 to deepen consumer interest/ understanding on fuel economy and promote cars with high fuel performance. - Disclose Fuel Economy Performance The disclosure is targeted for cars of which fuel economy standards are set based on the energy conservation

law. Either the status of “fully compliant”or “plus 5% of the fuel economy standard” will be publicly displayed.

- Label a Fuel Economy Identifiable Sticker Label a sticker on the body of a car that conforms either to “fully compliant with the fuel economy standard” or “plus 5% of the fuel economy standard”.

（省エネ法目標年度） 平成２２年度 平成１７年度

（省エネ法対象車） ガソリン乗用･貨物自動車 ディーゼル乗用・貨物自動車

ＬＰガス乗用自動車

燃費基準＋５％達成車

燃費基準達成車

Energy conservation law target year

Vehicles subject to the energy conservation law

Models plus 5% of the fuel economy standard

Models compliant with the fuel economy standard

FY2010 FY2005Gasoline passenger/freight vehicles/ LP gas passenger vehicles Diesel passenger/freight vehicles

Fuel Economy Disclosure and Labeling Fuel Economy Disclosure and Labeling SystemSystem

for Vehiclesfor Vehicles

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42Source: Organization for Road System Enhancement (What is ETC?)Source: Organization for Road System Enhancement (What is ETC?)

- Adjusting automotive traffic demands through the promotion of TDM (Transportation Demand Management) measures.- Promoting ITS (Intelligent Transport System) by promoting ETC (Electronic Toll Collection) and VICS (Vehicle Information and Communication System)

Serious traffic congestion in city areasSerious traffic congestion in city areas　○ 　○ 12 trillion yen in economic loss each 12 trillion yen in economic loss each yearyear　○ 　○ Limitations to road development Limitations to road development aimed aimed for transport capacity increasefor transport capacity increase

Road ManagementRoad ManagementRoad ManagementRoad Management Local PoliceLocal PoliceLocal PoliceLocal Police

Control on illegal Control on illegal parkingparking

Park & Ride, etc.

One-coin bus (\100 per ride), etc.National Police National Police

Agency/Ministry of Land, Agency/Ministry of Land, Infrastructure and Transport Infrastructure and Transport

certify and partially subsidize certify and partially subsidize (1/3 of costs) for verification (1/3 of costs) for verification

trials expected to gain trials expected to gain effectiveness on congestion effectiveness on congestion

alleviating measures.alleviating measures.

Verification Verification TrialTrial

Experimental measures for Experimental measures for alleviating congestion in alleviating congestion in partnership between local partnership between local governments, the police governments, the police

and transportation and transportation businessesbusinesses

Experimental measures for Experimental measures for alleviating congestion in alleviating congestion in partnership between local partnership between local governments, the police governments, the police

and transportation and transportation businessesbusinesses

CombinationCombination ＝ＴＤＭ＝ＴＤＭ

Government Government SupportSupport

Raise the ETC usage rate to around 70% by the end of FY2007 to alleviate congestions at toll gates.

Promotion of TDM (Transportation demand Promotion of TDM (Transportation demand management) trialsmanagement) trials

ETC promotion measuresETC promotion measures

Roadside aerial

Two-way Radio

Current Current StatusStatus

Measures for Measures for managing managing

traffic traffic demanddemand

Measures for improving the Measures for improving the convenience of public transportsconvenience of public transports

Transportation BusinessTransportation BusinessTransportation BusinessTransportation Business

Traffic Management Measures

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1. Improvement in Fuel Efficiency of cars (Accelerated introduction of Top Runner Program)

2. Spread of Clean Energy cars (hybrid & fuel-cell models)

3. Pervasion of Idling Stop cars

4. Tighter regulations for transportation companies and cargo owners to be obliged to draw up energy conservation plans

and report the amount of energy consumption to the government

5. Energy saving measures related to Traffic Systems - Developing PTPS (Public Transportation System) utilizing IT

- Information service about Road Traffic Data to private sectors

- Promotion of TDM (Traffic Demand Management)

ECCJECCJ

Energy Conservation Programs towards Energy Conservation Programs towards 2010 in the Transportation Sector2010 in the Transportation Sector

44

5. Energy Conservation Activities of ECCJ * Profile of ECCJ

* Main Activities of ECCJ * International Cooperation

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45

Legal status : * NPO under the supervision of

METI

Establishment : * 1978 (just after the 2nd oil crisis)

Purpose of establishment : * Core organization responsible

for

promotion of energy

conservation

Office location : * Tokyo Head office & 8 branches

Supporting member : * 2,834 companies (as of April

2005)

Staff : * 123 persons (as of April 2006)

Budget : * 4,857 million yen in 2006FY

(44 million U$)

Fields of activity : * Industrial,

Residential/Commercial

Transportation and Cross

sectors

ECCJECCJ

Profile of ECCJ

46

ECCJ Organization Chart (outline) as of August 2006

Board of Directors

Bored of Councilors

Chairman President

Managing Directors &Directors

Auditors

Administration dept. branches (Sapporo, Sendai, Nagoya, Toyama, Osaka, Hiroshima,

Takamatsu, Fukuoka)

Management evaluation div.

Smart-life Promotion dept. Public relations div.

Dissemination div.

Research & Planning div.

ESCO promotion div.

Energy Environment Technology dept.

International Energy & Environment Cooperation Center

(other departments) Energy Management Examination & Training Center

< established Oct. 16, 1978 >

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47

Hokkaido Branch

Tohoku Branch

Head Office

Tokai BranchShikoku Branch

Chugoku Branch

Kyushu Branch

Osaka Branch

Hokuriku Branch

Sapporo

Sendai

TokyoOsakaNagoya

HiroshimaKanazawa

TakamatsuFukuoka

Head OfficeHead Office & &

88 Branches Branches

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48

① Energy conservation audits services for factories② Education & training on energy conservation③ State examination for energy managers (assigned by the

Gov.) ④ Dissemination (conference for successful cases of E-C　　 activities, excellent energy conserving equipment, etc.)⑤ Technological development and spillover

① Energy conservation audits services for buildings② Ranking catalogue for energy efficient appliances　 ( dissemination of Top Runner Program )③ Promotion of Energy labeling system④ International Energy Star Program implementation⑤ Energy efficiency product retailer assessment system⑥ Dissemination of Energy conservation indicator “E-Co

Navigator”⑦ Energy efficiency education at elementary and middle

schools⑧ ESCO research and development

① Energy conservation campaign & exhibition (ENEX)② Commendation (grand energy conservation prize)③ Information & data base, Publicity and publishing④ Survey and monitoring⑤ International cooperation & Communications

Industrialsector

Consumer &Transportatio

nsector

Cross sector

Main Activities of ECCJMain Activities of ECCJ

ECCJECCJ

Program Applicable factory Overview Funded by

Medium sizedfactories

(Free-of-charge)

Buildings

(Free-of-charge)

(Free-of-charge)

METI / NEDO

METI

METI

EnergyConservationAuditing for

Factories

EnergyConservationAuditing for

Buildings

Large sizedfactories

EnergyConservationAuditing for

Factories

100 factories/year

350 buildings/year

70 factories/year

1 day 1 day

Report of findings → Proposals on improvement

Report of findings → Proposals on improvement

1day 1day

Report of findings →Proposals on improvement

Report of findings →Proposals on improvement

3 days

3 days

Report of findings →Proposals on improvement & introduction of new technologies

Report of findings →Proposals on improvement & introduction of new technologies

On-site discussionsDocument reviewOn-site inspections

On-site discussionsDocument reviewOn-site inspections

On-site discussionsDocument reviewOn-site inspections

On-site discussionsDocument reviewOn-site inspections

Document reviewOn-site inspections with measuring devices

Document reviewOn-site inspections with measuring devices

Public Programs on Energy Conservation Auditing Performed by ECCJ (FY2004)

Public Programs on Energy Conservation Auditing Performed by ECCJ (FY2004)

We have made public the proposed measures & expected effects for other factories’ reference.

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Energy-saving effect by 1 day-audit (Average energy-saving rate by industry)

12.1

11.3

11.1

10.9

10.3

9.1

8.9

8.5

8.4

8.3

7.7

7.5

0 2 4 6 8 10 12 14

Audit effect Energy-saving rate (%)

Printing & publishing

Machinery manufacturing

Wood product manufacturing

Apparel manufacturing

Rubber product manufacturing

Water treatment & supply works

Chemical industry

Textile industry Furniture manufacturing

Fur manufacturing & processing

Petrochemical manufacturing

Waste disposal

Sample No.: 1,524

Average:7.4%

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ECCJ organizes and implements every year

the National Convention of Excellent Successful Cases from 1976

Mass meetings for announcement of excellent cases to disseminate and promote them . <4,000~5,000 participants at 11 venues every year>

6-7February, 2003 Tokyo

52

Number of successful cases presented at

the National Convention of Excellent Successful Cases in Energy Conservation Activities

0

50

100

150

200

250

300

No.

of ca

ses

pres

ente

d

Year (FY)

You can see details of these Successful Cases on the ECCJ’s Web-Site.

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Grand prize at the National Convention of Excellent Successful Cases

In Energy Conservation Activities

<2003 FY, Central & 9 Regional Conventions>

1. Grand prize of Minister of Economy, Trade and Industry (3)

* Daikin Industries, Ltd.

“Integrated energy-efficiency unit of freezing, refrigerating and air-conditioning”

* Mitsubishi Heavy Industries, Ltd.

“Highly efficient inverter-driving turbo chiller”

* Toyota Motor Corporation

“Toyota intelligent Idling-stop system”

2. Prize of Director General of Agency for Natural Resources and Energy (5)

3. Prize of the Chairman of ECCJ (15)

You can see details of these Successful Cases on the ECCJ’s Web-Site.

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Promotion toward “Smart Life”Promotion toward “Smart Life” -- -- Change of lifestyle in Residential & Commercial Sectorin Residential & Commercial Sector

First oil crisis (1973)Second oil crisis (1979)

First oil crisis (1973)Second oil crisis (1979)

Imminently promoted energy conservation measures

Imminently promoted energy conservation measures

Perpetual energy conservation measures

Perpetual energy conservation measures

Promotion and enlightenment of energy conservation

Sustained awareness of energy conservation

Change of lifestyle Action¶ Summer and winter campaigns (PR activities through mass-media, Commendation ceremonies )¶ ENEX exhibitions¶ Education (posters contests, textbooks, seminars)¶ Grass roots activities (Ene. con. Republic )¶ Disclosure of information on internet

Equipment¶ Ranking catalogs for high energy efficiency (TV, Refrigerator, Air-conditioner, etc.), Labeling system ¶ Energy conservation Indicator (Ene-Con “Navi”)¶ Grand prize for energy conservation (activities, equipments)¶ International Energy Star logo displayed on energy-saving OA equipments

House reformingHigh energy

quality

House reformingHigh energy

quality

Checklist of lifestyleChecklist

of lifestyle

Energy efficient

equipment

Energy efficient

equipment

“Car Idling-Stop”

activity

“Car Idling-Stop”

activity

“Energy Conservation

Navi”

“Energy Conservation

Navi”

Change of Change of lifestylelifestyle

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Education Programs at primary/middle model schools

Appointment of Model Schools (FY2001~2003)

540 Primary schools 90 Middle schools

ECCJ’s Supports (3 years) for :

① Construction of network among schools, homes and communities.

- Supply and use of “Energy Conservation Navi”

Promotion of education for energy conservation in classwork.②

- Contests of advertisement poster and essay

- Supply of text-books, brochure and VCR for energy

conservation Capacity building for spread of energy conservation ③

activities. - Training seminars for school teachers and

community inhabitants Publicity of energy conservation activities.④

- Upload in ECCJ homepage

- appearing in “Ambassador News”

Role of Model Schools: 1) Carry out education and build up system

for energy conservation to match school characteristics.

2) Establish leadership in community

through keeping interactive collaboration.

ECCJECCJ

ENEX exhibition is one of the biggest comprehensive exhibitions in Japan regarding energy efficiency and conservation to be held in Tokyo and Osaka every February which is the Energy Conservation Month. It is an exhibition organized by ECCJ under the support of METI, featuring various kinds of energy conservation measures and new energy technologies to provide the public with a broad range of information concerning energy-saving subjects across the sectors.

ENEX 2006Number of Visitors; Tokyo site 50,148

Osaka site 23,523

ENEX Exhibition

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Fundamental Framework of ECCJ’s Activities for International Cooperation

<Policy Proposal>*Investigation of policy regarding energy and energy conservation.*Potential survey and feasibility study on energy conservation and

reduction of GHG emission.

<Capacity-Building>*Training course in Japan and abroad.*Dispatching experts to overseas for seminars, workshops, etc.

<Technical Cooperation>*Factory audit and improving advise through field activities

including plant survey, energy conservation audit, etc.*Cooperation and support for establishment and operation of

EE&C Centers or such organizations.

ECCJECCJ

2000,03,04

Thailand Malaysia

China Rep. Argentina

Hungary Bulgaria

Iran Philippines

Poland Korea

Thailand Indonesia Egypt

Malaysia India Kenya

China Rep. Romania Bangladesh

Argentine Sri Lanka Turkey

Philippines Taiwan Pakistan

Korea Mexico Brazil

India Tunisia Saudi Arabia

Kenya Bahrain Jordan

Sri Lanka Chile Cuba

Turkey Guatemala Peru

Mexico Venezuela

Tanzania

Brazil Vanuatu Czech

Nigeria Slovak

Training in Japan and/or Dispatching Experts

Seminars in countries

Plants SurveyPolicy Study

Energy Conservation Center, Japan

Malaysia83,00,03,04

Vietnam94,95,01,02,04

Philippines95,01,02,04

Korea1997

Indonesia94,95,00,01,04

JICA’s Project-Type Technical Cooperation

Cambodia

Colombia

Croatia

Dominica

Ethiopia

Fiji

Honduras

Lithuania

Mongolia

Morocco

Oman

Paraguay

Uruguay

Viet Nam

Palestine

China Rep. 1999 - 2002

May 2006 Revised

g

Serbia and Montenegro

Syria

Cote d’IvoireCambodia

Myanmar

Thailand

Lao PDR

Singapore

Brunei 01,03,0400,03,,04

00,03,04

01,02,04

01,02,04

India

01 & 04

Overview of ECCJ’s Activities for International Cooperation

Other Countries

China Rep.ECTC

1992/7 – 1999/1

ArgentinaCIPURE

1995/7 – 2000/6

BulgariaEEC

1995/11 – 2000/10

TurkeyNECC

2000/8 – 2005/7

ThailandECCT

2002/4 – 2005/4

IranNTCEM

2003/4 – 2007/3

PolandECTC

2004/7 – 2008/6

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60

ECCJ

METI(Ministry of

Economy, Trade and Industry)

Agency for NaturalResources & Energy

Secretariat

Energy Conservation &

Renewable Energy Dept.

Natural Resources &

Fuel Dept.

Electricity & Gas Industry

Dept.

International Cooperation

Office

Energy Conser-

vation Div.

New Energy & Renewable Energy Div.

Smart-life Promotion

Dept.

Administration Dept.

Energy Environment Technology

Dept.

Energy Management

Examination & Training Center

International Energy &

Environment Cooperation

Center

ECCJ Branches

Hokkaido, Tohoku, Tokai-Hokuriku, Kinki,

Chugoku, Shikoku, Kyushu

( 7 regions)

Regional Bureaus

Hokkaido, Tohoku, Kanto, Chubu, Kinki, Chugoku, Shikoku, Kyushu, Okinawa

( 9 regions)

MOFA(Ministry of

Foreign Affairs)

JICA(Japan

International Cooperation

Agency

JETRO(Japan External

Trade Organization)

NEDO(New Energy

and Industrial Technology

Development Organization)

Incorporated Government Agency

International Affairs Section

AOTS(The

Association for Overseas

Technical Scholarship)

Trade and Economic

Cooperation Bureau

Technical Cooperation

Division

METI and the Related Organizations in Japan for International Cooperation in Energy Efficiency & Conservation

Policy Planning

Div.

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61

Your Government’s Proposal to Japanese Government

Jap

anes

e G

ove

rnm

ent

ODA Scheme: JICA ECCJCapacity building (Training in Japan, Dispatch of experts, etc.) Project–type Technical Cooperation (ex. establishment of EE&C Center)

Assignments

METI Scheme: METI 　　 ECCJ Capacity-Building (Training course in Japan, Dispatch of experts, etc.)

Technical Corporation (Dispatch of experts for survey, Energy audit, Seminar, etc)

Subsidies

METI Scheme: NEDO, JETRO, etc. ECCJ Capacity Building & Technical Transfer(energy audit, seminar, potential survey on energy conservation and GHG reducing )

Assignments

Political Dialogue for GAP/GPP

SOME-METI Meeting

JICA country office

MO

FA

ME

TI

Japanese Embassy

JET

RO

International Cooperation Schemes of ECCJ

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Japanese government’s (METI’s) scheme to provide financial supports and dispatch of experts to ASEAN countries (10 countries) for the Energy Audits and Seminar/Workshop, which are jointly organized by ACE (ASEAN Center of Energy) and ECCJ.

Promotion of EE&C in Industry & Building 1. Follow-up investigation for awareness and dissemination of existing

recommendations and consultation for further improvement 2. Development of Database/Benchmark/Guideline of EE&C 3. Development of Directory of EE&C Technologies

(Including introduction of the successful cases)

Energy Management (New)Activities to establish Energy Management System for ASEAN through co-work of ASEAN Working Team and Japanese Experts 1. Analyzing recommendations (Industry / Building) related to the Energy

Management 2. Information Exchange and Identification of Barriers / Countermeasures in each

Country 3. Building Concept of ASEAN Energy Management System for ASEAN countries 4. Development of ASEAN Energy Management System

(Utilizing The Existing Facilities in ASEAN)

METI Scheme

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ASEAN PROMEEC (Promotion for Energy Efficiency and Conservation) Project - Details of Activities -

63

<Example of Training Course in Japan>

Duration: September 27, 2004 – October 8, 2004 (10 days)

Number of Participants: 15 Objectives: (1) To enable the participants from government and public sectors to acquire better capabilities to enforce the energy conservation decree in Vietnam.(2) To provide more opportunities to enhance their understanding for energy manager/officer system in Japan for practical application of the system in Vietnam.(3) To learn Japanese methodologies for energy management as well as energy conservation such as small group activity and TPM (total productive maintenance), as well as the qualified person for energy management system in Japan. Program: Lecture, Plant tour to study excellent energy management and Workshop (discussion and presentation of action plan for EE&C).

<METI / ECCJ> ASEAN Training Program on EE&C <METI / ECCJ> ASEAN Training Program on EE&C for Vietnamfor Vietnam

METI Scheme

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ECC : The Energy Conservation CenterECTC : Dalian China Energy Conservation Training CenterCIPURE : The Rational Use of Energy CenterNECC : The National Energy Conservation CenterECCT : The Energy Conservation Center ,ThailandNTCEM : The National Training Center for Energy Management

Dispatch ofexperts

Dispatch ofexperts

Provision ofequipment

Provision ofequipment

Training inJapan

Training inJapan

MasterPlan

MasterPlan

THAILAND : ECCT (2002.4~05.4)

IRAN : NTCEM (2003.4~07.3)

TURKEY : NECC (2000.8~05.7)

BULGARIA : EEC (1995.11~00.10)

ARGENTINA : CIPURE (1995.7~00.6)

CHINA : ECTC (1992.7~99.1)

POLAND : ECTC (2004.7 ～ 08.6)

In progress

ECCJECCJ

JICA-project type International CooperationJICA-project type International Cooperation

Establishment of Energy Conservation Establishment of Energy Conservation CenterCenter

JICA-project type International CooperationJICA-project type International Cooperation

Establishment of Energy Conservation Establishment of Energy Conservation CenterCenter

JICA Scheme

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Duration: April 2002 – April 2005Duration: April 2002 – April 2005Counter part: Counter part: Department of Alternative Energy Development and Efficiency (DEDE)

Object:

Establishment of the National Training and Examination System for Qualification of the Certified Energy Manager(EM)

Program: ・ ・ Cooperation to establishment of the NationalCooperation to establishment of the National Training and Examination System.

・ Preparation of texts and instruments & facilities for the training.

・ Cooperation to start up the training course and national examination of EM.Cooperation to start up the training course and national examination of EM.

・ ・ Cooperation to establishment of the system to support the activities of the Cooperation to establishment of the system to support the activities of the Certified Certified Energy Managers.

・ Training of the counter parts in Japan.

・ Seminar in Thailand.Seminar in Thailand.

<Example of Establishment and Management of EE&C Center - EEC Project>

JICA Scheme

JICA/ECCJ Thailand Energy Conservation ProjectJICA/ECCJ Thailand Energy Conservation Project

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66

Thank You

Very Much

The Energy Conservation Center, JapanThe Energy Conservation Center, Japan

More information is available by accessingECCJ’s Internet Home Page at:

http://www.eccj.or.jp/index_e.html

ECCJECCJ