Kyoto Mechanism and Technology Transfer

1
Kyoto Mechanism and Technology Transfer
Shigetaka SEKI Director for Environmental
Affairs Ministry of Economy, Trade and Industry,
Japan

• April 9-10, 2003
• UNFCCC WS
• on Technology Transfer

2
The new climate change program
In the New Climate Change Program, domestic
quantitative targets were established to achieve
6 reduction commitment.
NoteJapan shall study the utilization of the
Kyoto mechanisms while taking account of
international situation and bearing in mind the
commitment achievement responsibility and the
general rule that Kyoto mechanisms stipulated in
the Kyoto Protocol are supplementary to domestic
measures.
3
GHGs emissions in 2000 is 8 higher than the base
year.
14 reduction needed to meet the Kyoto Target of
-6 from 1990
(Source)Japans Inventory
4
Energy Efficiency Indicators(1)- energy
consumption/GDP -
(Source)OECD/IEA, Energy Balances of OECD
countries
5
Energy Efficiency Indicators(2) - energy
consumption/GDP -
?Figures are index where Japans level of 2000 as
100
(Source)OECD/IEA, Energy Balances of Non-OECD
countries
6
Energy Efficiency Indicators (4) - Cement
industries -
(Source)CEMBUREAU, World Cement Directory
7
Establishment of Liaison Committee for the Use
of the Kyoto Mechanisms

• Established on July 19, 2002
• Major Task
• - Approval of project applications for
• JI/CDM
• Consists of relevant government agencies
• - Cabinet Secretariat
• - Ministry of Economy, Trade and Industry
• - Ministry of Environment
• - Ministry of Foreign Affairs
• - Ministry of Agriculture, Forestry and
  Fisheries
• - Ministry of Land, Infrastructure and
  transport

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Establishment of JI/CDM Project Approval
Guidelines

• Established on October 16, 2002
• Established by the Liaison Committee
• Procedures Described in the Guidelines
• Application should be submitted to one of the
  member ministries of the Liaison Committee
• The ministry designated to support the candidate
  projects examines the application pursuant to the
  approval criteria and reports the result to the
  Liaison Committee
• The Liaison Committee decides whether to approve
  the application based on the report from the
  ministry

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CDM Project Application Already Received
CDM Project in Brazil Project Participant
Toyota Tsusho Corporation Name of the Project
Vallourec Mannesmann Tubes do Brazil Fuel
Switch Project Outline of the Project Use
charcoal for the production of steel instead of
using cokes Alter the design of existing
carbonization kilns Targeted Gas CO2, N2O,
CH4 Expected Emission Reduction 1.13 million
t-CO2/Year
10
JI Project Application Already Received

• JI Project in Kazakhstan
• Project Participant NEDO
• Name of the Project The Model Project for
  Increasing the Efficient Use of Energy Using a
  Gas Turbine Cogeneration System
• Outline of the Project Replace the existing low
  efficiency boiler and steam turbine with a Gas
  Turbine Cogeneration System (GTCS)
• Targeted Gas CO2
• Expected Emission Reduction 62,000 t-CO2/Year

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Policies of METI to Facilitate CDM projects

• Help Desk for Kyoto Mechanism in METI
• Kyoto Mechanism Guidebook (in Japanese)
• Development of Japans National Registry System
• Financial supports
• Model projects, FS, needs assessment
• Asia CDM Capacity Building Initiative
• Cooperation through Climate Technology Initiative
  (CTI)

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of Inquiries Received
As of March 31, 2003
Note Sum of breakdown is not equal to the total
because of rounding.
13
CDM/JI Candidates Projectsby Credit Scale
1,000 tons(CO2)/year
Note The Volume of credit is based on the
estimations by project participants.
14
CDM/JI Candidates Projectsby Project Type
As of the end of February, 2003
15
CDM/JI Candidates Projectsby Region
As of the end of February, 2003
16
Major Barriers to CDM, JI

• Uncertainties associated with institutional
  settings, rules and procedures in the host
  countries (incl. interpretation of SD)
• Uncertainties associated with rules and
  procedures of UNFCC/CDM process
• Difficulties in baseline setting
• Barriers to investment
• Protection of intellectual property rights
• Non cost reflective energy pricing
• Insufficient enforcement of laws, etc.

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Asia CDM Capacity Building Initiatives

• Agreed to start the initiatives in 2002
• This seminar is the first activity of the
  initiatives in Thailand.
• Drafting and distributing the CDM manual in Thai
  language
• Further program will be discussed with Thai
  government

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Cooperation through CTI with JI countries

• - Technology needs assessments
• Collaboration with the UNDP in the
  development and dissemination of technology needs
  assessment methodologies
• - Seminars
• Seminars involving industry sector in
  collaboration with UNFCCC and other relevant
  international organisations
• Training courses
• Information dissemination
• Participation financial contribution to UNFCCC
  WS etc.