The Current situation of Kyoto Mechanism in Japan

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The Current situation ofKyoto Mechanismin Japan
2003.5.28 Kiyotaka AKASAKA Consul General of
Japan in Sao Paulo
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-- Contents --

• 1. Current Situation of GHGs Emission
• 2. Japanese Policy for Global Warming
• 3. Liaison Committee for the Use of the Kyoto
  Mechanisms and JI/CDM Project Approval Guidelines
• 4. CDM Project Application already received
• 5. Government of Japans support to facilitate
  CDM/JI Projects

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• 1. Current Situation of GHGs Emission

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Japans GHGs emissions in 2000
(Source)Japans Inventory
14 reduction needed to meet the Kyoto Target of
-6 from 1990
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Major source of Japans GHGs
(Source)Japans Inventory
About 90 of total GHGs emissions was form energy
combustion.
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Energy Efficiency Indicators (1)- energy
consumption/GDP -
(Source)OECD/IEA, Energy Balances of OECD
countries
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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
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• 2.Japanese Policy for Global Warming

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The new climate change policy program 1
To cope with global warming problem and implement
Kyoto Protocol, Government of Japan adopted The
new climate change program in March 2002. Basic
Policies are
i) Contribution to both Environment and
Economy Climate change policy shall be developed
and implemented so as to contribute to both of
the environment and economy with the aim of
revitalizing the Japanese economy through
innovative initiatives of industry. ii) Step by
Step approach The period between 2002 and 2012
shall be divided into three terms (2004 and
2007), and the progress of domestic policies and
measures and the state of greenhouse gases
emissions shall be assessed and reviewed before
the start of the each term. Based on the analysis
and reviews, the Program shall be revised where
necessary so as to take additional policies and
measures where necessary, on a step by-step
basis.
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The new climate change policy program 2
iii) Shared Responsibility All state and local
governments, industries and the general public
must share in efforts to prevent the global
warming. iv) International Cooperation in
Climate change In order to ensure the effective
of actions against global warming, it is
important to establish a common rule in future in
which all countries including the United States
and developing countries participate. The
government of Japan continues its maximum efforts
for the establishment of a common rule.
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The new climate change policy program 3
In the New Climate Change Program, domestic
quantitative targets were established to achieve
6 reduction commitment.
Note Japan 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.
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• 3. Liaison Committee for the Use of the Kyoto
  Mechanisms and JI/CDM Project Approval Guidelines
  

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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
Foreign Affairs - Ministry of Agriculture,
Forestry and Fisheries - Ministry of Economy,
Trade and Industry - Ministry of Land,
Infrastructure and transport - Ministry of
Environment
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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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• 4. CDM Project Application Already
• Received

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CDM Project Application Already Received

• CDM Project in Brazil
• -Project Participant Toyota Tsusho
  Corporation
• -Name of the Project
• VM Tubes do Brazil Fuel Switch Project
• -Outline of Project
• Use charcoal for the production of steel
  instead of
• using cokes
• Target Gas CO2, N2O, CH4
• Expected Emission Reduction
• 1,041,051 t-CO2/Year

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• 5. Government of Japans support to
• facilitate CDM/JI Projects

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METIs support to facilitate CDM/JI project

• - Ongoing -
• (1)Set up of Help Desk for Kyoto Mechanism
  (2001)
• Help Desk was set up to support project
  developers and addressed by over 60 CDM Project
  Candidates as of the end of March 2003
• (2) Feasibility Study
• Feasibility study is conducted by NEDO to
  find promising CDM/JI projects to be carried out
  by private companies
• (3) Publishing Kyoto Mechanism Guidebook (in
  Japanese)
• The latest version of Kyoto Mechanism
  Guidebook (Ver. 3.2) was published on Jan 24,
  2003.
• - NEW-
• (4)Subsidy for CDM/JI Projects (2003)
• METI supports private companies to proceed
  CDM/JI projects through NEDO by subsidizing
  one-forth of total CDM/JI project cost
• (5)Carbon Fund for Utilizing Kyoto Mechanism
  (2003)
• The fund, which finances for CDM/JI
  projects, is constituted by investments mainly
  from private sectors. Emission reductions
  generated from the projects will be distributed
  among investors in proportion to their amount of
  investment
• (6) Risk Hedging measures(2003.10)
• METI offers risk hedging measures such as
  bonds and export insurance for private companies
  involved in CDM/JI projects to lessen the project
  risks.

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MOEs support to facilitate CDM/JI Project

• - Ongoing -
• (1)CDM/JI Feasibility Study(1999)
• Feasibility study is done to find promising
  CDM/JI projects to be carried out by private
  companies
• (2)CDM/JI Implementation Manual(2000)
• Implementation Manual for private companies
  considering CDM/JI projects is being prepared
• (3)Capacity building of CDM authorizing
  entities(2002)
• CDM accreditation modeling project is underway
  to train authorizing entities to gain experience
  in CDM accreditation
• (4)Information dissemination for Kyoto
  Mechanism(2002)
• Information on Kyoto Mechanism and government
  policy is provided on Web. Also inquiries are
  accepted via email (kyotomecha_at_env.go.jp)
• -New-
• (5)Subsidy for CDM/JI Projects(2003)
• Subsidize additional facilities needed to
  qualify as CDM/JI projects
• (6)Consulting service for Kyoto Mechanism(2003)
• Disseminate information on the framework,
  project needs in host countries, promising
  projects for credit issuance, PDD preparation,
  etc, aiming for private companies to implement
  CDM/JI

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• - Thank You -