Japan Energy Conservation
Handbook
2003 / 2004

Contents
1 World Energy Situations
1.1 Energy resource reserves (2002)
1.2 Primary energy consumption by energy resource
1.3 Primary energy consumption by region
1.4 Trends of Primary Energy Consumption
1.5 Energy supply in major countries (2001)
1.6 Energy consumption in major developed countries
1.7 World Energy Outlook
1.8 Projections of Energy Demand and Growth Rates
2 Global Environmental Trends
2.1 Climate change and energy consumption
2.2 International efforts to counter global warming
2.3 Japan's policy to deal with global warming
3 Energy Situation in Japan
3.1 Demand of energy sources and GDP
3.2 Transition of percent distribution of primary energy supply (1955- 2010)
3.3 Final energy consumption by sector
3.4 Outlook of final energy consumption
3.5 Outlook of primary energy supply
3.6 Outlook of CO2 emissions originating from energy use
4 Energy Conservation Policy in Japan
4.1 Outline of energy conservation policies
4.2 The Basic Energy Plan
4.3 Law concerning the rationalization of the energy use
4.4 Evaluation criteria on the rationalization of energy use for factories
4.5 Criteria for clients on the rationalization of energy use for buildings
4.6 Criteria for clients on the rationalization of energy use for houses
4.7 Design and construction guidelines on the rationalization of energy use for houses
4.8 Top Runner Program
4.9 Evaluation criteria for machinery and appliances
4.10 Law for Energy Conservation and Recycling Support
4.11 Financial measures to accelerate the introduction of energy efficient technologies/
equipment in the industrial and commercial sectors
4.12 Commendation Programs to award energy conservation efforts
4.13 Publicity activities
4.14 Energy Audit Program
4.15The international ENERGY STAR Program
5 Energy Conservation by sector
5.1 Energy conservation in the industrial sector
5.2 Energy conservation in the commercial/residential sector
5.3 Energy conservation in the transportation sector
5.4 Current trend and development of energy conservation efforts
6 Institutional Organization
6.1 Ministry of Economy, Trade and Industry (METI)
6.2 Advisory Committee (As of Oct. 2001)
6.3 The Energy Conservation Center, Japan (ECCJ)
Reference
Energy Calories (Japan)

1 World Energy Situations
1.1 Energy resource reserves (2002)

1Mexico has been included in South & Central America since 2001. You need to take account of that whencomparing with the previous fiscal year.
2As the stockpile of uranium is abundant, its annual output is lower than its annual demand (62,000 tons in2001). Therefore, uranium's recoverable year is figured out by dividing the value of the proven recoverable
reserves by the annual demand of uranium.

1.2 Primary energy consumption by energy resource
Unit: 1 million tons of oil equivalents (Mtoe).

Note) Figures in parenthesis represent percentage.
Source) Prepared based on the "2002 EDMC Handbook of Energy & Economic Statistics in Japan"

1.3 Primary energy consumption by region
Unit: 1 Mtoe

Note) Figures in parenthesis represent percentage.
Source) Prepared based on the "2002 EDMC Handbook of Energy & Economic Statistics in Japan"

1.4 Trends of Primary Energy Consumption(1) Per-capita primary energy consumption(2) Primary energy consumption per GDP(3) World energy consumption (2000)

1.5 Energy supply in major countries (2001)(1) Total primary energy supply (TPES) and percentage shares of energy sources

EP = Electric power
Note)1) The import and export of electric power are also included in the primary energy supply ( - in the chart
represents excess of export).
2) Coal includes other solid fuels.
Source) OECD ENERGY BALANCES (2000-2001/ I EA)(Comment)
1) The ratio of petroleum is especially high in Japan and Italy, accounting for 50%.
3) In the U.S.A. and Germany, the share of coal is as high as 24%.
4) In Canada, the share of hydraulic power is as high as 17%.
5) In France, the share of nuclear power is especially as high as 42%(2) Import dependence (2001)

(3) Percentage sector shares in final energy consumption (2001)(4) Total electricity generated and percentage shares of power sources (2001)

1.6 Energy consumption in major developed countries(1) Trend of energy consumption(2) Comparison of energy intensities

1.7 World Energy Outlook(1) World Oil Demand(2) World Oil Supply1

1.8 Projections of Energy Demand and Growth Rates1(1) World(2) OECD(3) Transition Economies(4) Developing Countries(5) China

1 Source: International Energy Agency (2002), World Energy Outlook, Paris: OECD

2 Global Environmental Trends
2.1 Climate change and energy consumption(1) Transition of deviation from normal surface temperatur

Note)Bars represent the temperature of each year, lines show 5-year runningaverage and straight lines stand for long term trend.
Source)IPCC (1995) and White Paper on the Environment 2002 (Ministry for theEnvironment)(2) Global energy balance (Index incident solar rays = 100)Note) Figures in parenthesis represent estimated values when we assume the CO2
concentration becomes double. In case the concentration of greenhouse effect gas
such as CO2 increases, the energy flow in the dotted line becomes larger. This causes
the rise of temperature. The global temperature is said to fall to as low as -19 degrees
centigrade if no carbon dioxide or no steam should be contained in the atmosphere.
Source) "Meteorological Research Notes No. 160, Carbon Dioxide Special", Taro
Matsuno, 1987, Meteorological Society of Japan (partially modified).

(3) Increase of the carbon dioxide level and changes in fossil energy consumptionNote)This chart is prepared from the data of CO2
concentration level of the past millennium based on the ice
sheet core records by the Siple Station (D47, D57 at theSouth Pole), and the CO2 level since 1958 that are measured
at Mauna Loa Observatory in Hawaii. Ice sheet cores were allcollected on the Antarctic Continent. The smooth curve is a100-year running average. The sharp rise of the CO2 level
since the outset of the Industrial Revolution is evident, goingalong with the increase of CO2 emissions originating from theuse of fossil fuels (See the enlarged chart since fiscal 1850).
Source)IPCC (1995), translated by the Meteorological Agency.
Source)White Paper on the Environment (Ministry ofEnvironment, 2000)(4) CO2 emissions by country (2001)

Source: EDMC, Handbook of Energy & Economic Statistics in Japan (2004)(5) Per-capita CO2 emissions (2001)

2.2 International efforts to counter global warming
In this chapter we will focus on the two mechanisms that are dealing with global warming issues: The
Intergovernmental Panel on Climate Change (IPCC) is the mechanism that accumulates scientific knowledge on global
warming while debates on the international countermeasures have been made in the COPs (Conference of theParties) of United Nations Framework Convention on Climate Change (UNFCCC). These two mechanisms arecomplementing each other.
(1) IPCC: Accumulation of scientific knowledge
IPCC is a body organized by the scientists around the world. It was founded in November 1988 by the World
Meteorological Organization (WMO) and the United Nations Environment Program (UNEP) jointly as a place to study
global warming problems at a governmental level. In the report compiled for 1995, IPCC announced their analysis on
the climate change since the 19th century. According to their findings, global warming had been already occurring
due to the increasing amount of emitted greenhouse gases after the Industrial Revolution etc.
(2) UNFCCC: Study of international countermeasures
UNFCCC discusses and performs international countermeasures to the climate change while IPCC is a place toaccumulate scientific knowledge. In UNCED (United Nations Conference on Environment and Development:
commonly named "Earth Summit") which was held in Rio de Janeiro in Brazil in June, 1992, a large number of nations
including Japan signed UNFCCC. The purpose of this treaty is to stabilize the concentration of greenhouse gases in theatmosphere. As a result, it is required that the amount of emitted greenhouse gases should be controlled or cut
down. UNFCCC was ratified by 50 countries and went into effect in March, 1994. Following its effectuation, the COP1
was held in Berlin and the COP2 in Geneva, the COP3 was held in Kyoto to adopt "Kyoto Protocol", which defined the
reduction targets of greenhouse gases in the period from 2008 through 2012.
(3) IPCC report on global warming
Increase of Atmospheric CO2* 265 - 285 ppm before the Industrial Revolution (1750- 1800)* 365 ppm in 1996
* Over 600 ppm estimated by the end of 2100

Rise of Sea Level* 10 - 25 cm rise over the past 100 years.
* Estimated 9 - 88 cm rise between 1990 - 2100.
Rise of Average World Tempera-ture* 0.3 - 0.6 degrees centigrade rise over the past 100 years.
* Estimated rise of 1.4 - 5.8 degrees centigrade between
1990 - 2100.

Influences of Green House Gases on Global Warming (1850-1990)

(4) COP3 outline of the Kyoto Protocol
The COP3 (the 3rd Conference of Parties) of the UN Framework Convention on Climate Change was held on
December 1 - 11, 1997.

38 Parties in Annex I:
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Monaco,
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Slovakia, Slovenia, Spain,
Sweden, Switzerland, Ukraine, United Kingdom, USA, and 15 EU member states combined

2.3 Japan's policy to deal with global warming(1) The General Principle to Promote Measures to Counter Global Warming
On March 19, 2002, the meeting of "the Headquarters to Promote Countermeasures on Global Warming (HPCGW)" washeld in Prime Minister's official residence, where the members agreed on "the General Principle to Promote Measures toCounter Global Warming".
The General Principle presents a broad overview of measures to realize Japan's targets set in the Kyoto protocol (6%reduction in relation to the 1990 level) and is made up of more than 100 measures and action plans. What needs to be
stressed here is that the General Principle sets a reduction goal for each green house effect gas. For instance, in terms of
the CO2 which originates from the use of fossil fuels, the emission level should be reduced to exactly the same level as thatof 1990. And the emission level of CO2 from non-fossil fuels (e.g. waste incineration), methane and dinitrogen monoxideshould be lowered by 0.5% in relation to the 1990 level. In terms of CFCs substitute, the emission level should be curtailed
to the 1% up compared with the base year (1995).
(2) Basic Aims of the Principlea)Establish the framework which can contribute to both environmental and economic development and make full use oftechnological innovations and inventive efforts by the business sector in order for the actions on global warming to vitalize
the economy and create employment.
b)The Principle is scheduled to be reviewed and reevaluated in 2004 and in 2007 (Step-by-step approach).
c)The concerted participation from the central government, local governments, business operators, and the public is a sinequa-non because attaining the Kyoto targets will be far from plain sailing. Therefore the Principle focuses on the commercial
and residential sector and the transportation sector, encouraging the business operators to further promote their voluntaryactions.
d)Japan will continue maximum efforts to establish universal rules that the US and developing nations can adopt.
A systematic tree of the Principle will be shown below.

3 Energy Situation in Japan
3.1 Demand of energy sources and GDP

3.2 Transition of percent distribution of primary energy supply (1955- 2010)

Note) The estimated figures of FY 2010 are based on the long-term energy supply and demand outlook
published by General Resource Energy Investigation Committee (2001).The percentage shares of energy
resources in primary energy supply in the fiscal 2000 are:Nuclear power
12.4%
Natural gas
13.1%
Hydro/geothermal
3.6%
New energy
1.1%
Coal
17.9%
Oil
51.8%

3.3 Final energy consumption by sector

3.4 Outlook of final energy consumption

3.5 Outlook of primary energy supply

3.6 Outlook of CO2 emissions originating from energy use

4 Energy Conservation Policy in Japan
4.1 Outline of energy conservation policies(1) Brief history of energy conservation policy in Japan
Japan has made impressive achievements in the energy conservation. It is mostly because of the combined
efforts made by the both public and private sectors since the first oil crisis. As of the year 1973, when thefirst oil crisis occurred, Japan's dependence on oil resources was as high as 80% of its total primary energy
demand.
Although the oil crisis revealed Japan's fragile supply- demand structure of energy, the government took
advantage of it as a precious lesson and has since been making full efforts to build a robust supply-demand
structure.
Specifically, on the supply level, the diversification of energy sources has been pushed forward with byswitching to alternative energies such as natural gas or nuclear power. On the demand level, on the other
hand, the industrial sector is playing a central role in terms of energy conservation.
As the result of those tireless efforts, the dependence on oil has declined to 52%, which enables Japan torealize an energy-conservation-oriented society while staying in an economic power at the same time. And
in terms of energy consumption per GDP, our country has been successful in curbing increasing theconsumption, even compared with that of other major developed nations.
In the meantime, the member nations reached an agreement with the target that required developed
nation to cut their GHG emissions at the 3rd Session of the Conference of the Parties (COP3) in Kyoto 1997.
Therefore, in order to reach the goal and conserve the environment on a global level, further efforts ofenergy conservation have since been perceived.
More than 90 % of GHG consists of carbon dioxide and approximately 90% of carbon dioxide is emitted
from combusting fossil fuels. That means nearly 80 % of GHG emissions originates from energy use. For
that reason potent and effective energy policies are thought to be the key player in resolving environmental
problems.
In order to achieve the goal of 6% GHG emission reduction set by the Kyoto protocol, the Japanese
government decided to design measures covering the both supply and demand of energy. In terms of thedemand level, for example, it will urge the industrial, the commercial and residential and the transportation
sector to promote more energy conservation, though considerable efforts have already been taken since
the oil crisis. If these measures are put into place, an aggregate of 56 million kL energy is estimated to be
saved in the year of 2010, which is almost equivalent to the annual energy consumption in all of thehouseholds in Japan. This tells us how ambitious the goal of the energy conservation measures will be.
However, the energy consumption in the commercial sector and the transportation sector has kept risingpartly due to the changing the lifestyles of the Japanese people. Based on this recent trend, the Advisory
Committee for Energy put forward additional measures aimed at the promotion of energy conservation in
the commercial sector and the transportation sector in 2001.

(2) Promotion of energy conservation measuresa) Introduction and promotion of energy conservation equipment and systems
For promoting energy conservation equipment, investment in industry and commerce, loan programs andtax reduction have been established (low interest loans by the Japan Development Bank and Smaller
Business Finance Corporation and a tax system for promoting investment to reform energy supply anddemand structure) by the Energy Conservation Assistance Law.
b) Acceleration of development and practical application of energy conservation technologies.
To technologically ensure the practice of energy conservation in future, the R&D of technologies
concerned with energy conservation has been promoted under the cooperation among industries, thegovernment and academy.
c) Formulation and application of guidelines based on the Energy Conservation Law
a. Industrial sector: Guidelines for factories, etc.
b. Transportation sector: Fuel consumption standards for automobiles and Fuel consumption standards fortrucks.
c. Commercial and residential sector:
Guidelines for buildings
Guidelines for residential housing
Addition of designated appliances and formulation of energy efficiency guidelinesd) Enhancing people's awareness of energy conservation by publicity activities.
a. Being thoroughly informed of various measures by the Council for Promotion of Energy and Resources
Conservation Measures, such as "energy conservation in summer and winter."b. Preparing and distributing posters and pamphlets, holding symposiums and offering information
through mass media.
e) Active promotion of an energy conservation labeling systema. In June 1995, Japan and the U.S.A. agreed to unify the standard and the indicating system of theInternational Energy Star Program which is an energy conservation standard for office automationequipment from personal computers and the program was enforced on October 1, 1995. Each of theindustrial, residential and commercial, and transportation sectors is endeavoring to promote energy
conservation through careful measures such as the above(3) Promotion of international energy conservation measures
From the international viewpoint, Japan is engaged in the following activities by offering rich experiences,
excellent technologies, and know-how in energy conservation to the developing countries.
a) For bilateral cooperation
Dispatch of experts
Acceptance of trainees
Implementations of model projects of energy conservation, for example, waste heat recovery in plants
where large amounts of energy are consumed, such as iron and steel works and power stations.

b) For multilateral cooperation
Make full use of the opportunities to exchange information and opinions through internationalorganizations, such as IEA and APEC, and to establish international cooperation as much as possible.

4.2 The Basic Energy Plan
The Agency for Natural Resources and Energy (ANRE) announced the draft of the Basic Energy Plan on
25 July, 2003. This plan defines the next 10-year direction of measures on the demand and supply
based on the three principles of the Basic Act of Energy Policy. Here are the details of the threeprinciples.
a) Securing the stable energy supply
In order to deal with the future growth of energy demand in the Asian region and Japan's dependence
on the Middle East oil, the following measures should be promoted: (i) Energy conservation, (ii)
Diversifying imported energy resources and strengthening the relationship with major oil exporting
nations. (iii) Diversifying energy resources, such as developing domestically produced fuels, (iv) Securing
the oil and LP gas reserves.
The supply-demand problem of electricity in the Kanto area should be considered, and reliability andstability of domestic supply should be secured. And securing energy is a prerequisite for the stableenergy supply. The government and business owners should make full efforts to secure the stablesupply.
b) Environmental sustainability
In addition to reducing the emissions of NOx and SOx, the following measures will be promoted tocombat global warming: (i) Energy conservation, (ii) Use of non-fossil energy and switch to gas energyand (iii) Development and introduction of clean fossil fuel systems and energy efficiency technology.
c) Utilizing the market mechanism
Promote the institutional reforms and design plans to utilize market principles in the framework thatmeets Japan's real situations, considering "Securing the stable supply of energy" and "Environmental
sustainability".

4.3 Law concerning the rationalization of the energy use(1) Objective
This law aims to contribute to the sound development of the national economy through implementing necessary
measures for the rational use of energy in factories, buildings, and machinery and equipment, and other necessary
measures to comprehensively promote the rational use of energy, while it seeks to ensure the effective utilization of fuelresources that would meet the economic and social environment of energy at home and abroad.
(2) Energy covered by the Law"Energy" in this law means fuels such as oil, flammable natural gas, and coal, as well as heat and electricity produced byusing such fuels (excluding electricity generated by the renewable energy such as photovoltaic cells, wind power, etc.).
(3) Basic policies and obligations of energy users
The Minister of Economy, Trade and Industry shall establish and announce fundamental policies aiming at comprehensive
promotion of the rational energy utilization in respective fields. The main energy users in each field shall take account of
the fundamental policy and make efforts to rationalize their energy use.
This is to comprehensively promote the rational use of energy through the systematic formulation and the publicannouncement of the basic matters pertaining to the measures to promote the rational energy utilization.
(4) Measures for factories
Japan's final energy consumption in the industrial and civil business sectors accounts for as much as 60% of the totalenergy consumption. Therefore, more proactive actions to promote the rational energy utilization in factories andbusiness premises are important. To implement the law effectively, the following provisions were established;1)Evaluation criteria for business operators
The Minister of Economy, Trade and Industry shall establish and announce the subject of evaluation criteria regarding themeasures to be taken deliberately in order to achieve the goals towards the rationalization of fuel combustion, utilization
and recovery of waste heat, prevention of electricity loss by resistance etc, and the relevant goals: the subject ofevaluation criteria are targeted to those who conduct business activities and utilize energy in their factory / businesspremises (hereafter referred to as Factory) and are purposed that the rational utilization of energy in Factory would be
implemented appropriately and effectively.
This is to show a guideline of the individual and concrete measures about the basic matters stated in the basic policy andto guide business operator to judge and conduct appropriate and effective implementation of the rational energy
utilization in Factory. (The new criteria is scheduled to be enforced on 1st April 2003.)
2)Guidance and advice
The competent minister (the Minister of Economy, Trade and Industry, and other minister(s) who are responsible for the
programs of the relevant Factory.), may provide business operators with guidance and advice about the rational energy
use with the consideration of the things concerning the evaluation criteria when judged necessary by the minister
3)1st class designated energy management factories
The Minister of Economy, Trade and Industry may designate factories which consume large amount of fuel etc. orelectricity (in terms of fuel 3,000 kL or more per year in crude oil equivalents. In terms of electricity, 12 million kWh or
more per year) and belong to the five manufacturing industries from the view point that the rational energy utilization has
to be promoted.
Those who establish the Factory shall appoint an energy manager to monitor the work related to the rational energy
utilization, prepare and submit a mid-to-long term plan, and report the status of their energy utilization to the competent
minister every year.
However, under the amended law in June 2002, it is applied to the business operators of large-scaled office buildings etc.
and of who were designated as 1st class Designated Energy Management Factory that they may appoint, instead of
appointing an energy manager, a person, who has completed a designated training course that were conventionallyconducted in the past, as an energy officer to deal with day-to-day energy management, only if they include aparticipation of an energy manager at the time of preparing a mid-to-long term plan.
4)Instructions, announcement and order to make rationalization plans
If 1st class Designated Energy Management Factory is judged to be in egregious breach of the evaluation criteria forenergy rationalization, the competent minister may instruct the factory operator to prepare a rationalization plan, and if
the operator does not obey the instructions, they can announce to that effect or give an order for taking any action to
respond to the instructions, after hearing the opinion of the council concerned

5)2nd class designated energy management factories
Factories other than 1st class Designated Energy Management Factories whose consumption of fuels, etc. or electricity is on
a medium scale (whose annual consumption of fuels is l,500kL or more in terms of crude oil and whose annual electric
consumption is 6 million kWh or more), shall promote the rational use of energy in the same way as 1st class designatedenergy management factories. Thus the Law provides that the Minister of Economy, Trade and Industry may designate thesefactories as 2nd class Designated Energy Management Factories. The Law prescribes that those who manage 2nd class
Designated Energy Management Factories shall appoint energy management officers, have the energy management officers
take an energy conservation course, and keep the record of the conditions of energy use, etc. However, the amended law inJune 2002 imposed an obligation to report on energy use to the competent minister on an annual basis, instead of theobligation of recording the energy use situations stipulated by the former version of the law.
6)Recommendation
If a 2nd class Designated Energy Management Factory is judged not to comply with the evaluation criteria for energy
rationalization, the competent minister may submit a recommendation to the operators and request them to take necessary
steps for the rational use of energy.
7) Category of designated energy management factory

4.4 Evaluation criteria on the rationalization of energy use for factories(Based on "Standards for judgment for entrepreneurs regarding the rational use of energy at factories" revised on January 25, 1999)

4.5 Criteria for clients on the rationalization of energy use for buildings(Ministry of Economy, Trade and Industry/Ministry of Land, Infrastructure andTransport, Notice No. 1, partially revised on February 24, 2003)(1) Prevention of heat loss through outer walls, windows, etc. of the buildings(a) Proper measures shall be taken to prevent possible heat loss through outer walls, windows, etc. of the buildings
with due considerations to the following approaches.
i)Developing plot and ground plans of the buildings based on the directions of the outer walls, layouts of the rooms,
etc.
ii)Using highly efficient thermal insulation materials for outer walls, roofs, windows and openingsiii)Reducing heat load due to insolation by adopting a system capable of properly controlling solar radiation coming
through windows, promoting greening, etc.
(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken regarding outerwalls, windows, etc. of the buildings (except factories, etc.) shall be determined in accordance with (c). However,
the assessment on the walls, windows, etc. of the buildings of less than 5,000 square meters in gross area may
follow (d) as well as (c).
(c) "Conventional PAL standard values"(d) Important ones in terms of energy use among the outer walls, windows, etc. of the buildings of the category
cited in the conditional clause of (b) shall be assessed based on the values that are obtained by adding a total ofmarks of the following i) to iv) and the specific values determined according to the use of the building concerned
and the area classification, which are respectively calculated so as to become numbers over 100.
i)Marks regarding plot and ground plans of the building
Points shall be determined depending on the measures regarding the main direction, the shape, the air location andthe average floor height.
ii)Marks regarding heat insulation efficiency of the outer walls and roofs
In the general region (other than the cold region (Hokkaido, Aomori, Iwate and Akita prefectures) and the hot
region) and the cold region, points shall be added up according to the area classification and the measures taken
respectively for the outer walls and roofs of the building concerned, while the point for the hot region shall be zero.
However, when the measures taken for one assessment item serve for more than two items, the area-weighted
average of the thickness of the insulation material shall be used for assessment.
iii)Marks regarding insulation efficiency of the windows
In the general region and the cold region, points determined according to the area classification and the measurestaken shall be used and that for the hot region shall be regarded as zero.
iv)Marks regarding sunray-shielding efficiency of the windows
Points determined according to the area classification and the measures taken shall be used.

(2) Efficient use of energy regarding air conditioning equipment(a) Efficient use of energy for air conditioning equipment shall be ensured with due considerations to the following
approaches.
i)Designing air conditioning systems by taking into account characteristics of air conditioning loads of the rooms andother factii)Developing heat transfer equipment plans designed for little energy loss in air ducts, piping, etc.
iii)Adopting appropriate control systems of the air conditioning equipment
iv)
Adopting heat source systems with highly efficient energy use(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken regarding the air
conditioning equipment installed in the buildings (except factories, etc.) shall be determined in accordance with (c).
However, the assessment on the air conditioning equipment of the buildings of less than 5,000 square meters in grossarea (package air-conditioners (limited to air-cooling system) specified under JIS B8616-1999 (package airconditioner) and gas heat pump heating/cooling equipment specified under JIS 8627-2000 (gas heat pumpheating/cooling equipment) may follow (d) as well as (c).
(c) "Conventional CEC/AC standards" (Appendix)(d) Important ones in terms of energy use among the air conditioning equipment cited in the conditional clause of (b)shall be assessed based on the values drawn from the addition of a total of marks of the following (i) to (iii) andspecific values determined depending on the use of the building concerned and the area classification, which arecalculated so as to become numbers over 100.
i)Marks regarding reduction of outside air load
Points determined depending on the measure taken shall be summed up.
ii)Marks regarding places for installation of outdoor machines and lengths of piping from the outdoor machines toindoor machines
Points shall be determined depending on the condition.
iii)Marks regarding heat source equipment efficiency
Points shall be determined depending on the measures taken.
(3) Efficient use of energy by mechanical ventilation equipment other than air conditioning equipment(a) Efficient use of energy shall be ensured by mechanical ventilation equipment other than air conditioning
equipment with due considerations to the following approachesi)Developing plans designed for little energy loss in air ducts, etc.
ii)Adopting appropriate control systems for the mechanical ventilation equipment other than air conditioning
equipmentii)Adopting energy-efficient equipment that has proper capacity for necessary amount of ventilation(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken regarding themechanical ventilation equipment (except air conditioning equipment, hereinafter the same in (3)) installed in thebuildings (except factories, etc.) shall be determined in accordance with (c). However, the assessment of themechanical ventilation equipment of the buildings of less than 5,000 square meters in gross area may follow (d) as
well as (c).
(c) "Conventional CEC/V standards" (Appendix)(d) Those that are installed in rooms not air-conditioned and are important in terms of energy use out of themechanical ventilation equipment cited in the conditional clause of (b) shall be assessed based on the values drawn
from the addition of 80 points to a total of marks respectively determined depending on the condition of the relevant
items, which shall be calculated so as to become numbers over 100 respectively.

4.6 Criteria for clients on the rationalization of energy use for houses(Ministry of International Trade and Industry/Ministry of Construction Notice No. 2 March 30, 1999)(1) Standards for annual heating and cooling loads, etc. according to area classification
The clients shall ensure that their houses satisfy either of the following standards; standards for annual heating and coolingloads specified in (a) below or standards for heat loss coefficient and summer insolation acquisition coefficient specified in(b) below.
(a)Standards for annual heating and cooling loads according to area classification
The annual heating and cooling load of the house shall be equal to or smaller than the standard value given in Table 1
according to area classification.
Annual heating and cooling load shall be a total of heating and cooling loads for a year (in mega joules) obtained according
to the predetermined conditions.
(b)Standards for heat loss coefficient and summer insolation acquisition coefficient according to area classification
The heat loss coefficient of the house shall be equal to or smaller than the standard value given in Table 1 according toarea classification.

(2) Standards for equivalent clearance area according to area classification
The equivalent clearance area of the house concerned shall be equal or smaller than the standard value given in Table 2
according to area classification.

(3) Moisture condensation proof(a)Prevention of surface moisture condensation
In the sites requiring insulation, no portions (except opening) that may cause surface condensation and are significantly
lacking in heat insulation shall be created.
(b)Prevention of condensation within walls
Proper measures shall be taken to prevent condensation within the walls, such as the installation of a moisture-proof
airtight layer and ventilation layer, the use of dry timber, the construction of a ventilation opening in the attic or under thefloor.
(4) Keeping necessary amount of ventilation
A comprehensive ventilation plan shall be developed so that the number of ventilation times of 0.5 or more times per hourfor the entire house can be ensured.
(5) Prevention of inside air contamination caused by heating systems, etc.
Measures to prevent inside air contamination should be taken in the case where a combustion-type heating system or hot
water supply system is installed.
(6) Maintaining energy efficiency in heating and cooling systems
System operation methods and energy efficiency shall be taken into account in the case where a heating or cooling system
is installed.
(7) Employing ventilation routes for heat prevention
In areas where ventilation is effective against heat in summer, ventilation routes shall be ensured within the range that will
not cause trouble or inconvenience to daily living by permitting the entry of burglars or excessive noise in houses.

4.7 Design and construction guidelines on the rationalization of energy
use for houses(Ministry of Land, Infrastructure and Transport, Notice No. 1,291, partially revised on August 1, 2001)(1) Objective
This section aims to define guidelines relating to the design and construction of houses as well as proper measures torationalize the use of energy for houses, according to the provisions prescribed in the "Criteria for Clients on the
Rationalization of Energy Use for Houses".
(2) Portions required to be designed for heat insulation structure
Roofs or ceilings immediately beneath the roofs, ceilings exposed to the outdoor air, etc, walls, floors and openings, andearthen floors, etc. whose peripheries are exposed to the open air, shall be insulated according to the area classification.
(3) Standards relating to the heat insulation performance, etc. of building frames(a) Standards for the design of building frames
The heat transfer coefficient of each portion shall be equal to or under the standard value determined according to thetype of house, the construction method for heat insulation material and the area classification.
The thermal resistance of heat insulating agent used for each portion shall be equal to or higher than the standard value
determined according to the type of house, the construction method for heat insulation material and the area classification.
(b) Standards for the installation of insulation materials
Keeping the heat insulation performance of the building frames
Preventing moisture condensation that could potentially degrade the heat insulation performance and the durability of thebuilding frames
Reducing heat loss in heat bridges and preventing moisture condensation on their surfaces(c) Standards for the construction of airtight layer
The equivalent clearance area shall be equal to or smaller than the standard value specified in the criteria according to thearea classification.
(4) Standards for the heat insulation performance, etc. of openings
When making openings of a heat insulation structure, the standards prescribed for heat transfer coefficient and summer
insolation entry rate or the standards for fixtures, etc. shall be followed.
(5) Standards for the ventilation plans
When making building frames and openings of heat-insulation structure, a ventilation plan shall be developed according to
the standards for ventilation systems and the standards for ventilation plans depending on ventilation systems. Whendesigning and constructing a house in connection with a ventilation plan, the designated points shall be taken into
consideration.
(6) Standards for heating and cooling and hot water supply plans
When making building fames and openings of heat insulation structure, cooling and heating and hot water supply plans
shall be developed according to the standards provided in 1) to 4) below.
1) Equipment which is proper for the heating and cooling load of the room concerned and has high partial load efficiency
shall be selected.
2) When installing a combustion-type heating system, etc., an enclosed-type or outdoor-type heating system shall beselected so that the indoor air contamination can be reduced.
3) When using a semi-enclosed-type heating system, etc., proper measures shall be taken to prevent exhaust gas fromflowing backward at the time of use of a local ventilation unit.
4) Heating and cooling equipment shall be designed so that continuous heating, partial heating, intermittent heating, etc.
may be available as the resident desires.
(7) Standards for airflows
In order to keep rooms comfortable with airflow when the open air is comfortable, an opening shall be provided in eachroom in a different direction whenever possible.
(8) Provision of information regarding how to live
In view of the high air-tightness performance of the houses constructed according to this volume of guidelines, the person
who designs and constructs a house shall clearly state the information in manuals for houses, etc., and provide theinformation to clients.

4.8 Top Runner Program(1) Background
In order to diffuse appliances and vehicles that are highly energy efficient, the revised Energy Conservation Law makes it
obligatory for manufacturers and importers to ensure their products to meet energy-saving target standards.
The Japanese government launched the Top Runner Program based on the amended Law in 1999, under which thestandards are set based on the efficiency level of the most efficient product commercially available in a given category. For
each manufacturer and importer, the weighted average efficiency of all units shipped within the same category must meetthe standards for that category by the time established for each category. The details of the standards of each product will
be shown in the section 4.9.
(2) What is the Top Runner Program?
1) Target Designated Products:
Target products are ones designated as machinery and equipment which are commercially used in large quantities in Japan,
consume significant amount of energy on use and intensively required with energy consumption efficiency.
2) Target Standard Value:
As for the designated products, manufacturers and importers etc. are obliged to meet the target standard values
concerning "energy consumption efficiency" of those products. Target standard values are set on the basis of the value ofthe most energy efficient products of the same in the market.
3) Classification of Target Standard Value:
Target standard values are set in classifications considering a variety of models with different sizes and functions etc. foreach product.
4) Target Fiscal Year:
Target fiscal years by which the target standard value must be achieved are set up through taking into consideration of
future technological development forecasts and the development period of products and so on, usually in the range of 4 to18 years from the base fiscal year.
5) Judgment Method of Achievement:
In the target fiscal year, achievement of the target is judged based on energy conservation figures as a weighted average ofshipment by product for each product category per manufacturer and importer etc. Top Runner Standards are different
from the concept of MEPS.
6) Measurement Method:
The measurement method primarily uses JIS (Japan Industrial Standards).
7) Indications:
Responsibility is assigned to indicate the energy consumption efficiency of the device in catalogs, on the device itself, etc.

(3) List of target designated products in the Top Runner Program(4) Expected energy conservation by the target fiscal year

4.9 Evaluation criteria for machinery and appliances(Based on Article 18 of "Energy Conservation Law")
a. Gasoline passenger vehicles
1) Target scope:
Gasoline passenger vehicles which have received designation with the seating capacity of 10 persons or less2) Energy Consumption Efficiency
A numeric value (km/l) expressed as mileage per liter when driven in 10•
E15 mode.
3) Category, Target values4) Target fiscal year: 20105) Energy conservation effects
Approximately 23% improvement in efficiency compared to 1995 levels by 2010.

b. Diesel passenger vehicles
1) Target scope:
Diesel passenger vehicles that have received designation, with the seating capacity of 10 persons or less.
2) Energy Consumption Efficiency
A numeric value (km/l) expressed as mileage per liter when driven in 10/15 mode.

4) Target fiscal year: 2005
5) Energy conservation effects
Approximately 15% improvement in efficiency compared to 1995 levels by 2005.

c. LP gas passenger vehicles
1) Target scope:
LP gas passenger vehicles that have received designation, with the seating capacity of 10 persons or less.
2) Energy Consumption Efficiency
A numeric value (km/l) expressed as mileage per liter when driven in 10•
E15 mode.

4) Target fiscal year: 20105) Energy conservation effects
Approximately 11.4% improvement in efficiency compared to 2001 levels by 2010.

4.10 Law for Energy Conservation and Recycling Support
The law is designed to support business operators who will voluntarily implement projects to promote
the rationalization of the use of energy and natural resources. The description concerning the rationaluse of energy of the law will be summarized below. In this law, the concept of "the rational use ofenergy" included the use of substitute energy sources for oil(1) Guidelines for efforts
The competent minister shall establish guidelines for business operators and building owners who will
voluntarily implement projects for the rational use of energy.
(2) The definition of specified projects
There are three categories of projects which will be defined as "specified". Business operators etc. whoare going to take on the projects must draw up and submit project plans to the competent minister inorder to receive his/her approval.
The three categories are the projects that:a. Install or improve the equipment that can contribute to the rational use of energy in factories orother business sites .
b. Use any building materials or install or improve any equipment that can contribute to the rational useof energy at the time of building construction. .
c. Conduct R&D on the manufacturing technology of industrial products that can contribute to therational use of energy.
(3) Approval of projects
The competent minister shall approve the projects if he/she recognizes that they meet therequirements of the guidelines stated in (1).
(4) Assistance measures
The specified business projects that are conducted in conformity with the approved plan will besupported with the following assistance measures:a. Interest rate subsidy ,b. Bond issued by NEDO
(5) Specified facilities
Heat supply facilities that are necessary to establish the effective energy utilization system will be
designated as "specified facilities. The effective energy utilization system includes "the large-scalecogeneration regional heat supply system" or "the cascade heat utilization-type industrial complex".
And the funds borrowed to install or improve those facilities will be covered by the bonds by the NEDO.
(6) Enforcement of the law
The law was enforced on June 25, 1993 and had a ten-year life span. However, it was partially revised in
March 15 and determined to be extended until 31 March 2013.

4.11 Financial measures to accelerate the introduction of energy efficienttechnologies/equipment in the industrial and commercial sectors*1 The preferential rate II is applied until
the end of FY2004.
*2 Energy conservation promotion projects
for the industrial sector are provided withinterest subsidies from Oil
Special Account in Category (2) and only to
ESCO in Category (1). The preferential rate I
is applied only to the projects until the endof FY2004 that are given a loan during theperiod when an application for interest
subsidy is accepted.
*3 The preferential rate III is applied only to
ESCO until the end of FY2004.
*4 Energy conservation promotion projects
for buildings are provided with interest
subsidies from Oil Special Account in
Category (2). The preferential rate II isapplied only to the projects that are given aloan during the period when an application
for interest subsidy is accepted.
*5. These projects are provided withinterest subsidies from Oil Special Account.

DBJ: Development Bank of JapanODFC: The Okinawa Development FinanceCorporation
NEF: North East Finance of Japan
JFS: Japan Finance Corporation for Small
Business
PFC: People's Finance Corporation

4.12 Commendation Programs to award energy conservation efforts
The Energy Conservation Center Japan is conducting various commendation programs to promote the awarenessof how important the efficient use of energy is. Here are brief lists of those programs.
(1) Commendation Program to Excellent Energy Managers: A commendation certificate will be given to
individuals who have long been pursuing energy management and made an outstanding contribution to efficientenergy management. Sponsored by METI.
(2) Commendation Program to Excellent Energy Management Factories: A commendation certificate will be given
to factories or business facilities who have long made efforts to rationalize the energy use, have long been
pursuing energy management and made an outstanding contribution to energy management as well as are
acknowledged to be a paragon of successful energy management . Sponsored by METI.
(3) The National Contest of Energy Conservation Successful cases: The winner of the contest will be decided on
how well the technology or the procedures will be developed based on theoretical grounds and elaborate
research and can contribute to the further promotion of energy conservation. Sponsored by ECCJ.
(4) Commendation Program to Meritorious Energy Management Service Performers: A commendation certificate
will be given to individuals who have long been playing a central role and made an outstanding contribution topromoting the efficient energy management. Sponsored by ECCJ.
(5) Commendation Program to Excellent Energy Management Engineers: A commendation certificate will begiven to individuals who have long provided efforts to the energy management service and made an outstanding
contribution to promoting the efficient energy management. Sponsored by ECCJ.
The prize awarding ceremony will be held in February and prize certificates will be conferred on the awardees by
the Ministry of Economy, Trade and Industry as well as the Director-General of the Agency of Natural Resources
and Energy.
On top of those commendation programs, the ECCJ sponsors contests for the school students in order to inspire
the younger generation with the importance of energy conservation practices. Here we will give a brief
description about the contest.
(6) Energy Conservation Poster Contest for elementary and junior high school students. Sponsored by ECCJ.
(7) Energy Conservation Essay Contest for elementary and junior high school students. Sponsored by ECCJ.

(8) Commendation Program to Excellent Energy Conservation Equipment : A commendation certificate will begiven to companies or teams for their strong commitment to promoting the efficient use of energy. The
commitment to the global environment and security can be a crucial variable for judging. Sponsored by JMF2.
(9) The Energy Conservation Grand Prize will be awarded to equipment, resources or systems which have alreadyor likely to be launched into markets and have high excellence in energy conservation. The prize has three genres:i) home-use, ii) commercial use, and iii) automobiles. Entries are judged on energy efficiency, originality,
marketability and environmentality. Sponsored by ECCJ.
1 "Energy Conservation Equipment" represents, i) devices, facilities and systems in addition to "equipment" ingeneral sense, ii) measuring instruments remarkably contributing to energy conservation, iii) equipment that
exploits unutilized resources such as wastes.
2 JFM = The Japan Machinery Federation

4.13 Publicity activities- Energy conservation day, energy conservation month, and general check-up day for energy
conservation
In order to promote energy conservation as a nationwide activity, the government has established"Energy Conservation Day" on the 1st of every month, "Energy Conservation Month" in February and"General Check-up Day for Energy Conservation" on the 1st of August and December. Educational
and publicity activities are conducted in cooperation with the local governments and privatecompanies.

4.14 Energy Audit Program(1) Energy audit for small and midsize companies
Energy audit service for small and midsize factories took place in 1955 and approximately 5,600 cases ofenergy audit service have since been conducted in the factories around Japan.
a. Target factories: A firm whose capital is less than 100 million yen or whose total number of employees
is less than 300.
b. Cost: Free of chargec. Number of auditors and auditing period: Number of experts: 1-2; Period: 1-2 days
d. Audit
1) Advice on heat energy2) Advice on electric energye. Organization: The Energy Conservation Center, Japan(2) Energy Audit for commercial buildingsa. Target buildings: Buildings designated as "1st class designated Building" according to the Energy
Conservation Law.
b. Cost: Free of chargec. Details of audit: Two or three audit experts will make an interview with the persons in charge about the
management standards for the building which is going to have an energy audit. Then, they will make anon-the-spot survey how the facilities in the building are operated. After the survey, they will draw up a listof areas which need remedies. And they will give advice for energy saving.
d. Organization: The Energy Conservation Center, Japan

4.15 The international ENERGY STAR Program
The international Energy Star program is a voluntary energy-efficiency labeling program designed topromote energy-efficient products. It was established in the US in 1992. Japan reached agreements topromote certain ENERGY STAR qualified products in 1995.
To participate in the program, contact an agency in charge, and it will respond with further information.
Once it has been approved that the products of a manufacturer or a firm meet the standard, and thenthe manufacturer or the firm will be eligible to use the ENERGY STAR label.
(1) Product categories
Personal computers, monitors, printers, fax machines, copying machines, scanners and multifunction
devices.
(2) Scheme

5 Energy Conservation by sector
5.1 Energy conservation in the industrial sector(1) Energy consumption by manufacturing industry(2) Energy intensities in major industries (IIP)5.2 Energy conservation in the commercial/residential sector(1) Energy consumption by fuel(2) Energy consumption per household, by fuelNote) The lower figures in the bar represent percentage
distribution.
Source) "Domestic Energy Statistics Annual Report 2001",
Residential Environment Planning & Research Center5.3 Energy conservation in the transportation sector(1) Energy consumption by type of transport(2) Energy consumption and transportation volume by type of transport (2001)(A) Energy consumption and transportation volume by type of passenger transport(B) Energy consumption and transportation volume by type of freight transport5.4 Current trend and development of energy conservation efforts(1) BackgroundAt the Third Conference of the Parties to the UN Framework Convention on Climate Change (COP3), held in Kyoto in
December 1997, an agreement was reached on greenhouse gas emissions reduction targets for developed countries.
As part of this agreement, Japan pledged a 6% reduction in greenhouse gas emissions from the 1990 level, to beachieved in terms of the average annual value for the 2008-2012 period. Japan's target for energy-related carbon
dioxide emissions, which account for about 80% of all greenhouse gas emissions, is the achievement of stabilization at
the FY 1990 level by FY 2010.
(2) Current trend
On the heels of COP3, the Long-term Energy Supply-Demand Outlook was reviewed and revised by METI's Advisory
Committee in 1998, aiming to attain the GHG emission reduction target committed to at COP3.
Outlook of Energy Consumption and CO2 Emission
Based on the revised outlook made by METI's Advisory Committees in 1998
- To attain the GHG emission reduction target committed at COP3 -The above chart shows the long-term energy consumption outlook of Japan, forecasting that energy consumption andthe emission of greenhouse gases in 2010 will increase respectively to 456 million kL of crude oil equivalent and to 347
million carbon tons of CO2 in the case of BAU (Business-As-Usual).
To attain Japan's target of the COP3 commitment, it would need not only to maintain the energy consumption in 2010at 400 million kL, which means reducing it by 56 million kL through energy conservation, but also to introduce more
active energy supply measures with lower CO2 emissions including atomic energy, new energies and other non-fossil
energies.
(3) Outlook & Projection for Energy Consumption and CO2 Emission
The Long-term Energy Supply-Demand Outlook was further reviewed and revised by METI's Advisory Committee in2001 and in 2004.
Outlook & Projection for Energy Consumption and CO2 Emission(Based on the outlooks made by METI's Advisory Committee)
According to the further review and revision in 2001, theenergy conservation effects of the conventional measuresprojected in 1998 would be 50 million kL, revised from 56
million kL. Therefore additional measures for the reductionof 7 million kL would be needed to attain the target.
According to the further review and revision in 2004, theenergy conservation effects of the conventional measuresprojected in 2001 would be 55 million kL, revised from 57
million kL. Therefore, additional measures for the reductionof 10 million kL would be needed to attain the target.

6 Institutional Organization
6.1 Ministry of Economy, Trade and Industry (METI)(1) Organizational chart of METI(2) Organizational chart of Agency for Natural Resources and Energy (ANRE)6.2 Advisory Committee (As of Oct. 2001)

6.3 The Energy Conservation Center, Japan (ECCJ)(1) Organizational chart of ECCJ<As of 1 April 2004>(2) About ECCJ
Legal status:An incorporated foundation under thesupervision of METI
Establishment:1978 (just when hit by the 2nd oil crisis)
Mission:Core organization responsible for promotion ofenergy conservation
Office location: Head office & 8 branches in Japan
Supporting member:2,868 members (as of Dec. 2003)
Staff:153 persons (as of Apr. 2003)
Budget:5,869 million yen in 2003FY (53 million U$)
Fields of activity:Industrial, Residential/Commercial andTransportation sectors
Major activities: For Industry sector;
1) Energy conservation audit services for factories
2) Education & training on energy conservation
3) State examination for energy managers
4) Technological development
5) Disseminating excellent energy conserving equipment
6) ISO14001 seminar for environmental inspectors
For Residential & Commercial sector;
1) Energy conservation audits services for buildings
2) Energy labeling system
3) Ranking catalogue for energy efficient appliances
4) Energy Saving Navigation (ESN)
5) Establishment of "Energy Conservation Republic"6) Education at primary/middle model schools7) International Energy Star program implementation
8) ESCO research and development
Cross-sector and for Transportation sector ;1) Energy conservation campaign & exhibition (ENEX)
2) Conference for presentation of successful cases3) Commendation (grand energy conservation prize)4) Survey and monitoring
5) Information & data base6) Publicity and publishing7) Consulting service through e-mail8) International cooperation and communications

Reference
Energy Calories (Japan)