The International Symposium on New Refrigerants and Environmental Technology 2023, 16th Nov. 2023, Kobe, Japan

Accelerating Efforts towards Carbon Neutralityin Japanese Industry
The Japan Refrigeration and Air ConditioningIndustries AssociationTetsuji Okada© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

CONTENTS

1. Who is JRAIA?
2. Update on JRAIA's Key Activities
3. Industry's commitment to environmental issues
4. Laws and regulations in Japan(HVAC sector)
5. International Activities© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

1. Who is JRAIA?
JRAIA(Japan Refrigeration and Air Conditioning Industries Association)
 Established in Feb. 1949
 Minato city, Tokyo (located in front of Tokyo Tower)
 Chairman: Yasumichi Tazunoki (from Mitsubishi Electric Co.) The number of the members: 168 companies incl. associate members as ofJune 2023
 Business Fields:- Air conditioning (residential, commercial, automotive)- Refrigeration (commercial, industrial, transport)- Ventilation- Heat pump system (HP water heaters)- Refrigerants- Parts
 www.jraia.or.jp/english© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

2. Update on JRAIA's Key Activities
EnergyEfficiency

・Active involvement in the technical group of ISO for next generation performance evaluation method
・Action for energy efficiency related regulations and standards in Japan, EU, etc.

Refrigerants

・Publish the guideline for the refrigerant leak detection monitoring for Japan market.
・Discussion for the next designated products of F-Gas Act in Japan

Environment

・Consideration of LCCP (Life Cycle Climate Performance)
・Action for environment related regulations especially in the EU; Ecodesign, F-Gas, PFAS, etc.

InternationalActivities

・ICARHMA meeting (International Council of Air Conditioning, Refrigeration, and Heating Manufacturers’ Associations):

Collaborate with 11 international industrial associations and contributed as advisorycommittee member for UNEP’s RDL (Refrigerant Driving License)

・Three Industry Association Meeting (China-Korea-Japan) : Annual meeting to discuss common issues.
・ASEAN5＋J Workshop: Exchange information on energy saving and refrigerant conversion including global
environmental issues among industry associations of 5 ASEAN countries

・Seasonal Energy Efficiency(CSPF)Evaluation Method: Promotion in ASEAN countries© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

3. Industry's commitment to environmental issue(i) Japan’s HVAC&R market and refrigerant transition by product category
Product Category

No. of Units(k)& Y/Y (%)

Refrigerants

2022FY
Residential A/Cs

9145.7 (98.4%)

R32(almost 100%)Commercial A/Cs

823.2 (100.5%)

R410A，R32(small size)

Residential H/P water heaters

704.4 (115.9%)

CO2(almost 100%)

Gas engine-driven A/Cs

26.9 ( 100.4%)

R410A

Water chilling units12.7 (98.1%)

R32，R410A，R134A

Air to air heat exchangers

139.5 (97.2%)

NA

Commercial ref. cabinets

248.4 (91.2%)

Condensing units

71.1 (89.0%)

R448A，R410A，CO2

Refrigeration units

214.0 (106.6%)

R22→R404A，R410A

R404A→R410A，CO2(separate type)

R290，R1234yf(self contained)© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

3. Industry's commitment to environmental issue(ii) JRAIA’s position on Carbon Neutrality
JRAIA will work towards the realization of CN2050 while considering S+3Es.
① HVAC&R industry’s basic stance towards CN2050 : Aim to expand the use of heat pump technology and products that are also highly efficient from theperspective of utilizing renewable energy.
 Use the designated product system to reduce HFCs as much as possible and explore the possibility ofsafe use of lower GWP, e.g. “Green refrigerants” such as natural refrigerants and ultra low-GWPrefrigerants.

② Direction of response to CN2050 in HVAC&R sector： Basic principle : S＋3Es

Balanced target setting and target-driven activities on Safety plus Environment performance, Energy
efficiency and Economic feasibility are important.
 Safety(S) : Ensure safety together with users(consumers), installers and other relevant stakeholders
 Environment performance(E) : Convert to lower GWP refrigerants from an environmental point of view.
 Energy efficiency(E) : Improve the efficiency of equipment systems from the perspective of improving
energy efficiency (directly linked to the reduction of CO2 emissions).
 Economic feasibility(E) : A reasonable price (cost) that balances the above three items is essential topromote market diffusion.
© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

3. Industry's commitment to environmental issue(iii) Important Issues to be considered in refrigerant conversion
Regulation in Japan

Appropriate Risk Assessment

S+3Es

S:Safety• Low toxicity• Low flammability

E: Environment • ODP zero
Performance• Lower GWP

Ozone Layer Protection Law
Fluorocarbon Recovery andDestruction Law• High Seasonal Energy
Efficiency

Energy Saving Law(Top runnerprogram)

E: Energy

Efficiency

E: EconomicFeasibility

High Pressure Gas Safety Act• Initial Cost
• Running Cost

New technology development© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

3. Industry's commitment to environmental issue(iv) VRF
Stakeholder

Further consideration of S+3Es
including risk assessment anddiscussion amongst allstakeholders is necessary for VRF

Manufacturers（JRAIA)
Users

・・・・・・

VRF
maintenance
Building
designConstruction
Facility
designRelated regulations and standards ： Safety measures:
1. High Pressure Gas Safety Act
2. Product Standards of JRAIA(JRA 4070)
3. Guideline of JRAIA( JRA GL16)

1. Regulation of refrigerant filling amount (upper limit)
2. Installation of mechanical ventilation equipment
3. Installation of shut-off device※ ( 2 or 3 )+ Installation of detection and alarm device© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

3. Industry's commitment to environmental issue(v) LCCP (Life Cycle Climate Performance)
JRAIA LCCP Evaluation WG
LCCP evaluation for residential use ACs using R22, R290, R410A, R32, R454C
 Evaluate the followings in addition to evaluation based on IEA Annex 54① System performance simulation with accurate test verification of refrigerants② Equipment operation time (calculated from IoT, big data, and outside air temperature)③ Amount of refrigerant leakage

 Evaluate electricity demand scenarios for each temperature regions in order to be utilized globally(Covering tropical / subtropical / moderate / cold region)
 Incorporate well-balanced consideration of S+3Es

Action items
May 14th IEA Heat Pump Conference Paper Submission, Presentation
Aug ICR2023 International Conference (＠Paris) Annex54 Workshop

Nov Progress report at The International Symposium on New Refrigerants andEnvironmental Technology 2023@ Kobe, Japan© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

4. Laws and regulations in Japan(HVAC sector)(i) Latest Japanese government’s environmental policy① Cabinet decision on the "Plan for Global WarmingCountermeasures“（22nd Oct.2021)
Fiscal year
(Unit: Million t-CO2)

Greenhouse gas
emmissions and removals

2013

Targets and estimatesin fiscal year

2030

ReductionRatio

Conventional target(Reduction Ratio)

14.08

7.60

▲ 46%

▲ 26%

Four gases incl. HFC etc.

12.35
4.63
2.38
2.08
2.24
1.06
1.34
0.39

6.77
2.89
1.16
0.70
1.46
0.56
1.15
0.22

▲ 45%
▲ 38%
▲ 51%
▲ 66%
▲ 35%
▲ 47%
▲ 14%▲ 44%▲ 25%▲ 7%▲ 40%▲ 39%▲ 27%▲ 27%▲ 8%▲ 25%

Greenhouse gas removals-▲0.48--Energy-related CO2Industry
Commercial and others
ResidentialTransport
Energy conversion
Non-energy-related CO2( CH4, N2O)

© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

4. Laws and regulations in Japan(HVAC sector)(i) Latest Japanese government’s environmental policy② Cabinet decision on ”the 6th Strategic Energy Plan”（22nd Oct. 2021）

The 10th anniversary of the Great East Japan EarthquakeConfirmation of basic policy of S + 3Es(Safety, Energy Security, Economic Efficiency, Environment)
 "2050 Carbon Neutrality“Business / housing sector-Building Energy Conservation Law-Strengthen “Top Runner Programs”
in building materials and equipment.
© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

4. Laws and regulations in Japan(HVAC sector)(ii) Overview of Legislation in Japan
Legislation on refrigerants“Ozone Layer Protection Act” (revised in 2018)- Regulation on production and consumption of CFC/HCFC/HFCs (abbr. OLP Act)- National low to be ratified the Kigali agreement to the Montreal Protocol.

“Act on Rational Use and Proper Management of Fluorocarbons” (revised in 2021)- Regulation on emission of CFC/HCFC/HFCs (abbr. Fgas Act)
- Target GWP and year for each product group .

“High Pressure Gas Safety Act” (revised in 2016)- Regulation on safety of flammable (toxic) gas- Method of safe use of products and refrigerants- A2L refrigerants are included as “particular inert gas”

Legislation on energy efficiency“Global Warming Countermeasure Plan”- Regulation on emission of energy origin CO2“Act on the Rational Use of Energy(Saving Energy Act)” (revised every 3-5 yr)- Top Runner Program has been revised in 2022 (Target year for RAC (Wall-hung type) : 2027)© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

4. Laws and regulations in Japan(HVAC sector)(iii) Japan’s Energy Conservation Regulation: Top Runner Program
Review of Energy Efficiency Target Year for each product categories
Approved by METI’s WG (Air Conditioner & Electric Water Heater Judgment Criteria WG, on 8 Feb 2023):
 Residential-use Air Conditioners :- Energy Efficiency Target Year
Wall-mounted type (single-split ACs): 2027
other types (include multi-split ACs): 2029
- Reviewed classification (including new class for equipment in cold regions ) Heat pump water heaters- Energy Efficiency Target Year :2025© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

4. Laws and regulations in Japan(HVAC sector)(ⅳ) HFC reduction in Japan
Implementation scenarios for green refrigerants and applicable equipment

4,037(Result)
3,430(Result)

GWP target (Weighted Average)
Fiscal year 2030 : 450
Fiscal year 2036 : 102021-11-29 by materials of Government of Japan Joint Council© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
UNEP Organizational Structure
COP

MOP
OEWG

Assessment Panels
Scientific
Environmental Effects
Technology and Economics
FTOC
FSTOC
MCTOC
MBTOC
RTOC
© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
1) UNEP RTOC:
・Organizational Structure

MOP※SAP (Scientific Assessment Panel)
TEAP (Technology & Economical AP)
EEAP (Environmental Effects AP)
RTOC(Refrigeration, Air conditioning and Heat pump Technical Option Committee)
EETF( Energy Efficiency Task Force)

MLFSSAP

Meeting of the Parties to the Montreal Protocol

TEAP

EEAP
RTOC
EETF

Oct.22nd:
Workshop on Energy Efficiency in Nairobi© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
1) UNEP RTOC:
To maximise Kigali Amendment co-benefits, it is vitalto tackle RACHP EE with HFC phase-down

Indirect Energy
Emissions

Direct Refrigerant
EmissionsGlobal Cumulative Saving Potential
2023 to 2050, billion tonnes CO2e
Indirect emissions 57.4
Direct emissions
20.2

Keyword for the near future:・Refrigerants transition
・Energy Efficiency
・System approach
45th OEWG, 03 - 07 Jul
2023 Thailand, Bangkok© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
2) ICARHMA Meeting:・Held once a year by each industry association (interim mtg is held during AHRI Show)・Sept.22 Held in Montreal, Canada
・Participating organizations: AHRI (US), EPEE, Eurovent (EU), AREMA (Aust.),CRAA (China), KRAIA (Korea), HRAI (Canada), ABRAVA (Brazil), JRAIA・Agenda: Sharing information about issues and responses faced by each region and organiza on.

© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities3) United States:
the American Innovation and Manufacturing Act (AIM Act)
① HFC production/consumption quota system based on total GWP amount⇒ Already established as a rule in 2021
② Measures to promote conversion to low GWP refrigerants⇒ Published in the Official Gazette as the final regulation on October 24, 2023
③ Measures to utilize recycled refrigerant and minimize atmospheric emissions⇒ Draft regulations will be announced on October 19, 2023, and public comments are being
accepted. Deadline for comments: December 18th

© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
4) European Union:
Final stage of Fgas regulation revision (trilogue meeting held)
Proposed ban on split type AC&HP systems placed on the market.

＊except when required to meet safety requirements.
① ATW systems below 12kW & GWP 150 or above [From Jan. 2027]② ATA systems of 12kW or less & GWP150 or more, Over 12kW & GWP750 or more [From Jan. 2029]③ More than 12kW & GWP150 or more [From Jan. 2033]④ Split systems ≤12 kW full F gas ban from 2035
※PFAS(both in US and in EU):
US: many states have passed or are considering regulations regarding specific PFAS.
EU: Under REACH regulation, the discussion is ongoing. JRAIA has proposed our comments.

© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

5. International Activities
5) Southeast Asia：
ASEAN5+J workshop (in Hanoi, Vietnam 26th Oct.2023)■ Participation in various industrial associations(Indonesia, Malaysia, Philippines, Thailand, Vietnam, Japan)■ Main subject:“ Energy Efficiency, Safety, and Lower GWP Refrigerants”© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

SummaryDirection to go: Actions towards carbon neutrality in 2050
Specific issues for this purpose:→ Direct CO2

1) Refrigerant conversion
emission reduction(“Green” refrigerants, Natural refrigerants)
LCCP→ Indirect CO22) Improving energy efficiency
emission reduction(MEPS, Top Runner)
S+3Es3) Ensuring safety→ Major premise(manufacturing reliable products)
required for products
4) Expanding market penetration→Product quality and pricerequired by customers5) Unique technological capabilities→ Demonstrate the strengths of Japanese manufacturers6) Demonstration of leadership and contribution on the international stage→ Policy proposals, demonstration of technical capabilities, and support© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.

Thank you for your attention© 2023 JRAIA The Japan Refrigeration and Air Conditioning Industry Association. All Rights Reserved.