Global CO2 Reduction Potential:Global CO2 Reduction Potential:Approach from Energy Efficiency Approach from Energy Efficiency

Agency of Natural Resources and Energy,Ministry of Economy, Trade and Industry, Japan

Toshiyuki SHIRAI

1

Why is energy efficiency important?Why is energy efficiency important?“Energy efficiency is a domestic energy resource for all countries.”- Cost-saving effects - Prompt effect expected through use of prevailing technologies

Source: IEA World Energy Outlook 2004

Energy efficiencyEnergy efficiencyFFuel conversionuel conversion (end(end--use sectoruse sector））RRenewable energenewable energyyAAtomic energytomic energyFuel conversion Fuel conversion (power(power sectorsector）） 49%49%

1010%%

21%21%

12%12%

8%8%

OECDOECD

63%63%

1%1%

21%21%

15%15%

EconomiesEconomiesin transition in transition

67%67%

7%7%

17%17%

5%5%4%4%

DevelopingDevelopingcountriescountries

58%58%

WorldWorld

7%7%

20%20%

10%10%5%5%

0%

20%

40%

60%

80%

100%

CO2 reduction potential (from 2002 to 2030)- Roughly 60% of reduction is attributable to energy efficiency- More effective indeveloping countries

2

Primary energy supply per GDP in 2004 by country

1.0

1.9 2.0

3.2 3.2

8.18.7

9.2

-

2.0

4.0

6.0

8.0

10.0

Japan

EU27

US Canada

Korea

Indonesia

China

India

Source: IEA Energy Balance 2006

Japan has achieved the highest level of Japan has achieved the highest level of energy efficiencyenergy efficiency

3

Energy efficiency standards for domestic appliances and vehicles. Manufacturers obligated to meet the standards.

Target products （Example ）

1. Passenger vehicles （*1）

2. Freight vehicles （*1）

3. Air conditioners

4. TV sets （*2）

5. Fluorescent lights

6. Copiers

7. Computers

8. Electric refrigerators*1: Heavy vehicles weighing over 3.5 tons (buses, trucks) were added to the applicable products in April 2006.

*2: LCDs and plasma display TVs were added to the applicable products in April 2006.

Fuel Efficiency (km/L)

At the time of standard setting

Target Fiscal Year

19km/L

18km/L

17km/L

15km/L

13km/L

16km/L (Top runner standard)

Top Runner Program

Top Runner Program promotes Top Runner Program promotes innovation and energy efficiency innovation and energy efficiency

14km/L (Current standard)

4

Better energy efficiency realized under Better energy efficiency realized under the top runner programthe top runner program

Efficiency improvement achieved

22.8%(FY1995-

2005)

55.2%(FY1998-

2004)

67.8%(FY1997-

2004)

Improved efficiency(actual)

23.0%(FT1995-

2010)

30.5%

66.1%

Improved efficiency(planned)

Gasoline passenger vehicles*

Electric refrigerators

Air conditioners*

Equipment

*Note that the effects of reducing energy consumption are indicated as inverse numbers because COP or fuel economy (km/l) is used as an energy efficiency index

0

1

2

3

4

5

6

7

US ＥＵ China JapanC

OP

Air Conditioner Efficiency

Source: The Energy Conservation Center, Japan

5

• Laid down by industrial sector to foster voluntary CO2 reduction.

• 35 industries such as steel and chemical pledge their targets.

• Achieved its target for six years in a row since fiscal year 2000.

• 10 industries have revised their targets to a higher level.

• Laid down by industrial sector to foster voluntary CO2 reduction.

• 35 industries such as steel and chemical pledge their targets.

• Achieved its target for six years in a row since fiscal year 2000.

• 10 industries have revised their targets to a higher level.

Pledge & review by industrial sector:Pledge & review by industrial sector:Steady implementation of Steady implementation of ““Voluntary Action PlanVoluntary Action Plan””

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1990 1997 1998 1999 2000 2001 2002 2003 2004 2005

100

mill

ion

yen

84

86

88

90

92

94

96

98

100

Ene

rgy

inte

nsiti

es(in

dice

s)

Investments in energy conservation(cumulative amount)Energy intensities(indices)

Investments and Intensities of Chemical Industry

Source: Compiled by the Japan Chemical Industry Association (JCIA)

6

The highest level of efficiency was The highest level of efficiency was achieved by a achieved by a sectoralsectoral approachapproach

Energy intensity of major sectors

Iron and steel production(per 1t steel production) (2003)

(Source: ECOFYS)

0

40

80

120

Japan UK NorthEurope

US India

100 99 103117 110 123 129

160

Germany France China

135

50

100

150

200

Japan Europe Korea Latin America

China US Russia

（Source: Battelle Institute）

100

130 131145 152

177 178

0

Power generation(per 1kwh production) (2003)

0

40

80

120

Japan Korea EU China(largescale)

US Russia

100105 110 110 120 120

125160

China(nation-wide) (Source: The Japan Iron and Steel Federation )

Cement production (per 1t Clinker production) (2003)

7

CO2 reduction potential in steel CO2 reduction potential in steel industry through use of BATindustry through use of BAT

Source: NEDO

About 300Mt CO2 emission reduction potential was identified in the steel industry through using BAT such as CDQ and TRT.

0

20

40

60

80

100

120

140

160

NorthAmerica

Europe Soviet SouthKorea

China India Otherdevelopingcountries

Am

ount

of C

O2 e

mis

sion

s th

at ca

nbe

redu

ced

(Mt-C

O2)

Recovery of converter gasContinuous castingTRTCDQ

Russia

8

• Supports the capacity building of Asian countries. • Conducts energy-saving model programs for high-energy

consumption industries such as iron and steel, cement, etc.

Dispatch of experts & acceptance of trainees

Business-based technology transfer promoted under the program

1. Coke Dry Quenching (CDQ) Equipment: 33 units

2. Top Pressure Recovery Turbine (TRT) : 4 units

3. Cement Waste Heat Power Generation System: 21 units

JapanJapan‘‘s International Energy Efficiency s International Energy Efficiency Cooperation in Asia Cooperation in Asia

Accepted about 300 trainees Sent about 200 experts from 2000 to 2005.

9Sources:ＩＥＡ,CO2 Emissions From Fuel Combustion, 2006

ＩＥＡ,Energy Balance of OECD, non-OECD countries, 2006

• Aimed at promoting regional cooperation for the development, permeation and transfer of clean and efficient technologies.

• Member countries (AP6): Japan, the U.S., Australia, South Korea,China and India.

• 8 sectors targeted such as power generation, steel and cement

Asia-Pacific Partnership on Clean Development and Climate (APP)

Cement (tons)

49.1%

57.5%

Steel (ton)A P 6 Others

60.5%

Others

Power (kWh)

A P 6

Actual GDP (2003)

54.7%Others

Japan

CO2 emissions (2003)

50.5%

Others

A P 6

A P 6

A P 6

Others

10

East Asia Summit East Asia Summit

• The leaders signed the Cebu Declaration on East Asian Energy Security.

• Each country agreed to promote energy efficiency by voluntarily formulating an action plan and setting its own target.

Take concrete actions toward improving efficiency and conservation, while enhancing international cooperation through intensified energy efficiency and conservation programs. Set individual goals and formulate action plans voluntarily to improve energy efficiency.

CEBU DECLARATION ON EAST ASIAN ENERGY SECURITY

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ConclusionsConclusionsEnergy efficiency is a key to substantial CO2 reduction and thus an important policy target for all countries.

Reduction potential can be identified by a sectoral approach.

To realize the potential, the transfer of BAT as well as R&D for successful future is necessary.

Bilateral and multilateral activities are important.

APP is taking an effective bottom-up approach for the realization of the potential.