Japan
Energy Conservation
Handbook
2008

The Energy Conservation Center, Japan

CONTENTS
1. ENERGY SITUATION···········································································································1
1.1 World Energy Situation ...................................................................................................................... 1
1.2 Japan’s Energy Situation .................................................................................................................... 1

2. ENERGY CONSERVATION POLICIES AND LAWS IN JAPAN ·································4
2.1 Outline of Energy Conservation Policies........................................................................................... 4(1) Brief history of energy conservation policies in Japan(2) Promotion of energy conservation measures(3) Promotion of international energy conservation measures
2.2 The Basic Energy Plan....................................................................................................................... 6(1) Energy security(2) Adaptability to the environment(3) Utilization of market mechanism
2.3 Japan’s Recent National Strategies and Activities............................................................................. 6
2.4 Law concerning the Rational Use of Energy ..................................................................................... 7(1) Objective(2) Energy defined by the law(3) Basic policies and obligations of energy users(4) Measures for factories(5) Measures for buildings(6) Measures for equipment(7) Measures for transportation(8) Activities of the New Energy and Industrial Technology Development Organization(9) Supporting measures and penalties(10) Amendment of the law concerning the rational use of energy
2.5 Evaluation Criteria for Factories on Rational Use of Energy ............................................................ 18
2.6 Standards and Target Values for Operating Equipment in Factories.................................................. 26(1) Air ratios for boilers(2) Waste gas temperatures for boilers(3) Air ratios for industrial furnaces(4) Standard and target rates of waste heat recovery for industrial furnaces (including waste gas
temperatures for reference)(5) Standard values and target values of furnace wall outer surface temperatures (for industrial
furnaces with furnace temperatures of 500͠ and higher)(6) Standard value and target value of power factor(7) Target efficiencies of high efficiency motors
2.7 Evaluation Criteria for Building on Rational Use of Energy ............................................................. 32(1) Prevention of heat loss through external walls, windows, etc. of the buildings(2) Efficient use of energy by air conditioning equipment(3) Efficient use of energy by mechanical ventilation equipment other than air conditioning
equipment(4) Efficient use of energy by lighting fixturesi(5) Efficient use of energy by hot water supply equipment(6) Efficient use of energy by lifting equipment
2.8 Law for Energy Conservation and Recycling Support....................................................................... 40(1) Guidelines for efforts(2) The definition of specified projects(3) Approval of projects(4) Assistance measures(5) Specified facilities(6) Enforcement of the law
2.9 Financial Supporting Measures.......................................................................................................... 41(1) Official financial assistance programs (2007)(2) Tax incentives to promote investment in the energy supply and demand structure reform (2007)(3) Certification process for the equipment which promotes reform of energy supply and demand
structure.
2.10 Commendation Programs toward Energy Conservation Efforts...................................................... 44
2.11 Publicity Activities........................................................................................................................... 45
2.12 Energy Audit Program ..................................................................................................................... 45(1) Energy audit for factories(2) Energy audit for commercial buildings

3. GLOBAL ENVIRONMENTAL TRENDS·········································································· 46
3.1 Climate Change and Energy Consumption ........................................................................................ 46(1) Transition of deviation from normal surface temperature (only at the ground level)(2) Global energy balance (Index incident solar rays = 100)(3) Increase of the carbon dioxide level and changes in fossil energy consumption(4) CO2 emissions by country (2005)(5) Per-capita CO2 emissions (2005)
3.2 International Efforts to Counter Global Warming.............................................................................. 49(1) IPCC: accumulation of scientific knowledge(2) UNFCCC: study of international countermeasures(3) IPCC report on global warming(4) Influences of greenhouse-gases on global warming (1850-1990)(5) History of COPs of the UN Framework Convention on Climate Change(6) Outline and achievement of COP13 & COP/MOP3
3.3 Kyoto Protocol Coming into Effect ................................................................................................... 52
3.4 G8 Summit......................................................................................................................................... 53(1) Outline of Gleneagles Summit(2) Outline of Hokkaido Toyako Summit
3.5 Energy Conservation Activities of the Foreign Countries ................................................................. 54
3.6 Japan’s Policies to Deal with Global Warming .................................................................................. 56(1) Guideline for measures to prevent global warming(2) Kyoto protocol target achievement plan(3) Reinforcement of energy conservation measures in each sector

4. ENERGY CONSERVATION MEASURES BY SECTOR··············································· 59
4.1 Industrial Sector................................................................................................................................. 59
ii

(1) Energy situation for the industrial sector(2) Energy conservation policies and measures for the industrial sector(3) Outline of the Keidanren Voluntary Action Plan on the Environment (Target and Measuresof Major Organizations)(4) Overall factory check based on the energy conservation law(5) “Spill-Over” for dissemination and promotion of energy conservation technology(6) Energy conservation by coordination among factories and workplaces(7) Dissemination of high-efficiency industrial furnaces and high-efficiency boilers(8) Dissemination of cogeneration and fuel cells(9) Important check points concerning technical energy conservation measures(10) Challenges in typical energy conservation technology development
4.2 Equipment.......................................................................................................................................... 74(1) Energy situation for equipment(2) Energy conservation policies and measures for equipment - Top Runner Program(3) Dissemination and outreach measures for equipment
4.3 Commercial and Residential Sector................................................................................................... 83(1) Energy situation for the commercial /residential sector(2) Energy conservation policies and measures for the residential sector(3) Energy conservation measures for the commercial buildings(4) Other energy conservation measures in the commercial sector(5) Promotion of commercial building energy management system (BEMS) (thorough energy
management utilizing IT)(6) Promotion of ESCO business
4.4 Transportation Sector......................................................................................................................... 92(1) Energy situation for the transportation sector(2) Energy conservation policies and measures for the transportation sectoriii

APPENDIX
1. ENERGY DATA······················································································································ 96
1.1 World Energy Data............................................................................................................................. 96(1) Energy resource reserves(2) Primary energy consumption by energy resource(3) Primary energy consumption by region(4) Trend of primary energy consumption(5) Energy supply in major countries(6) Energy consumption in major countries
1.2 Domestic Energy Data (Outlook) ....................................................................................................103(1) Demand of energy sources and GDP(2) Outlook of energy consumption and supply
1.3 Domestic Sectoral Energy Data .......................................................................................................106(1)Industrial sector(2)Residential sector(3)Commercial sector(4)Transportation sector

2. RECENT NATIONAL STRATEGIES AND ACTIVITIES··········································· 119
2.1 New National Energy Strategy.........................................................................................................119(1) Establishment of the world’s most advanced energy supply-demand structure(2) Comprehensive strengthening of resource diplomacy and cooperation in the energy andenvironment field(3) Improving emergency program(4) Others
2.2 Strategy for Energy-Saving Technology ..........................................................................................121(1) Background(2) Purpose of the program(3) Extraction of technological challenges and prioritized fields
2.3 International Cooperation/Asia Energy Conservation Program.......................................................122(1) Significance of energy conservation cooperation(2) Future course to strengthen cooperation in the energy conservation field(3) Future efforts

REFERENCE
1. RELATED ORGANIZATIONS ························································································· 127
1.1 Ministry of Economy, Trade and Industry (METI)
1.2 Energy Conservation Center, Japan (ECCJ)
1.3 The New Energy and Industrial Technology Development Organization (NEDO)
1.4 Japan International Cooperation Agency (JICA)
1.5 The Institute of Energy Economics, Japan (IEEJ)

2. ENERGY CALORIES (JAPAN) ························································································ 134
iv

1. ENERGY SITUATION
1.1 World Energy Situation
The world energy demand in 2030 is expected to continue to be in an increasing trend. As shown inthe below figure, the energy demands especially in China and other Asian countries excluding China
are expected to largely increase. For further world energy data, refer to the Appendix 1.1.

Increase of world energy demand centering on China and the rest of Asia
2030/2005

20000(Unit: Million ton crude oil equivalent)

18000(17,721) Total

16000

OECD
35%

12000

1.3times(11,429)8%

FormerSoviet Union

9%

22%

China

20%

3%

Japan
Asia

(excluding Japan, China and Korea )

5%

4%
12%
4%
5%
5%

15%
5%
6%
5%

Central andSouth America
Middle East
Africa2005(actual figures)

2015(forecast)

2030(forecast)

39%

10000

(8,755)2.2times

44%

8000

1.1times

47%

6000

9%

4000

0

1.2times(excluding Japan)(14,361)

14000

2000

1.6times

18%
10%
3%
5%

8%

5%
4%

4%

15%
5%
11%

4%

1.9times

1.7times
2.0times
1.6times

1990(actual figures)

Source) Prepared from “World Energy Outlook 2007 (IEA)”

1.2 Japan’s Energy Situation
As shown in the below figure, Japan’s oil share among the primary energy supply total has beensignificantly lowered since the highest level (approximately 77 %) marked in 1973 to the current
lowest level (approximately 48 %). As shown in the next page, Japan’s energy consumption has beensteadily expanded especially in commercial/residential and transportation sectors since the 1970’s oil
crises period, largely due to convenience-thriving and energy-needing lifestyles. Refer to the
Appendixes 1.2 and 1.3 for the Japan’s energy consumption trend.

1Transition of energy mix in Japan’s primary energy supply (1955-2030)
100%

Nuclear power .4
Natural gas 5.4
Hydro/
geothermal 3.6

80%

5

8

9

4

4

4
4

(77.4)

3

4

New energy, etc. .
4

60%

5

Coal 20.6

7

8
20

8

40%

Oil 47.9
44

40

20%

0%
ಫ55

ಫ60

ಫ65

ಫ70

ಫ73

ಫ75

ಫ80

ಫ85

ಫ90

ಫ95

ಫ00

ಫ05

ಫ0

ಫ5

38

ಫ20

ಫ25

ಫ30
FY

Note) The estimated figures of FY 2010 are based on the long-term energy supply and demand
outlook published by the Advisory Committee on Energy and Natural Resource inMarch 2005. Also the estimated figures of FY 2020 and 2030 are based on the above
outlook published in March 2008.
The figure of “New energy, etc.” after FY1990 includes amount of “waste heat andothers”.
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

23

2. ENERGY CONSERVATION POLICIES AND LAWS
IN JAPAN
2.1 Outline of Energy Conservation Policies(1) Brief history of energy conservation policies in Japan
Since the first oil crisis, Japan has made impressive achievements in energy conservation, mostly
due to the combined efforts made by both public and private sectors. In1973 when the first oil crisis
occurred, the oil resource dependency of Japan was as high as 80% of its total primary energy
demand. The oil crisis revealed that the country’s fragility of energy supply and demand structure,
but the government took advantage of the situation as a precious lesson and has made utmost
efforts that subsequently have built a robust supply and demand structure. On the supply level, thediversification of energy sources has been facilitated by successfully switching to alternative
energies such as natural gas or nuclear power. On the demand level, the industrial sector has playeda central role in energy conservation. As the result of those tireless efforts, the country’s oil
dependency has declined to 48%, which enables Japan to realize an energy conservation oriented
society while staying as an economic power at the same time. In terms of energy consumption perGDP, Japan has been successful in curbing increasing the consumption, compared with other major
developed nations.
In the meantime, the member nations reached an agreement with the target that required developed
nations to cut their GHG emissions at the 3rd Session of the Conference of the Parties (COP3) inKyoto 1997. Further energy conservation efforts have since been perceived to reach the goal andconserve the environment on a global level. More than 90 % of GHG consists of carbon dioxide
and approximately 90% of carbon dioxide is emitted from combusting fossil fuels, which means
nearly 80 % of GHG emissions originates from energy use. For that reason, potent and effectiveenergy policies are regarded to be the key player in resolving the environmental problems.
The government decided to set up measures covering both energy supply and demand to achieve
the 6% GHG emission reduction goal set by the Kyoto Protocol. On the demand level, thegovernment will urge the industrial, the commercial and residential and the transportation sectors
to promote further energy conservation, even 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 isestimated to be saved in 2010, almost equivalent to the annual energy consumption in all
households in Japan. This indicates the goal of the energy conservation measures presents itself
highly ambitious one. However, based on the recent continuing rising trend of energy consumption
in the commercial sector and the transportation sector partly due to people’s lifestyle changes, theAdvisory Committee on Energy and Natural Resources has reviewed the measures for energy
conservation from 2001. The committee put forward additional measures in 2005 and reviewed
them in 2007 (refer to 3.6 (3)).

(2) Promotion of energy conservation measures
1) Financial support of energy conservation equipment and systems
To promote energy conservation equipment, investment in industry and commerce, loan

4

programs and tax reduction measures 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 and demand structure) by the Energy Conservation
Assistance Law.

2) Acceleration of development and practical application of energy conservation
technologies
To technologically ensure the practice of energy conservation in future, the R&D oftechnologies concerned with energy conservation has been promoted under the cooperation
among industries, the government, and academy.

3) Formulation and application of guidelines based on the Energy Conservation
Law(a) Industrial sector: Guidelines for factories such as evaluation criteria, operation standards,
etc.
(b) Transportation sector: Fuel consumption standards for automobiles and trucks.
(c) Commercial and residential sector: Guidelines for buildings and appliances

4) Raising people's awareness of energy conservation by publicity activities(a) Being thoroughly informed of various measures by the Council for Promotion of Energy andResources Conservation Measures, such as “Energy conservation campaign in summer andwinter.”(b) Preparing and distributing posters and pamphlets, holding symposiums and offering
information through mass media.

(3) Promotion of international energy conservation measures
Under the government policy and support, ECCJ conducts various training programs targetingdeveloping countries mainly in Asia to promote energy efficiency and conservation as well as toenhance Japan’s stable energy supply. Programs include lectures; practical trainings at trial plants;
factory tours, etc., aiming at transferring Japan’s experiences and information including energy
conservation policies, energy management activities and status, technologies regarded highly
efficient, etc.), which could serve as useful reference for their planning/implementation/diffusion ofenergy efficiency and conservation.
1) For bilateral cooperation- Dispatch of experts- Acceptance of trainees
2) For multilateral cooperation- Exchange information and opinions through international organizations, such as IEA and
APEC- Establishment of international cooperation through Asia Energy Efficiency and Conservation
Collaboration Center52.2 The Basic Energy Plan
The Agency for Natural Resources and Energy (ANRE) submitted the Basic Energy Plan to the Dietin October, 2003. This plan defines the next 10-year direction of measures on the demand and supply
based on the three principles set in the Fundamental Law on Energy Policy Measures. The threeprinciples are as follows:(1) Energy security
To deal with the future growth of energy demand in the Asian region and Japan’s high oil
dependency on the Middle East countries, the following measures should be promoted: (i) Energy
conservation, (ii) Diversifying imported energy resources and strengthening the relationship withmajor 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
and stability of domestic supply should be secured. Securing energy is a prerequisite for the stableenergy supply. The government and business owners should make full efforts to secure the stablesupply.

(2) Adaptability to the environment
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
energy and (iii) Development and introduction of clean fossil fuel systems and energy efficiency
technology.

(3) Utilization of market mechanism
Promote the institutional reforms and design plans to utilize market principles in the frameworkthat meets Japan’s real situations, considering “Securing the stable supply of energy” and“Environmental sustainability”
Source) Energy White Paper 2004 issued by Ministry of Economy, Trade and Industry

2.3 Japan’s Recent National Strategies and Activities
Responding to the stringent global energy situation such as an oil price rise, the “new national energy
strategy” was studied in consideration with energy security and officially announced on May 31, 2006.
The “energy conservation technology strategy” was established and declared in the “energy
conservation frontrunner plan” under the “new national energy strategy” in order to improve theenergy consumption by at least 30% by the year 2030. This improvement will be achieved byestablishing a virtuous circle of technological innovation and reform of the social system. For thedetails, refer to the Appendixes 2.1 and 2.2.
In order to cope with a weakening of the energy supply-demand structure caused by a sharp increasein energy demand in Asian countries, the “Asia energy conservation promotion program” waspresented as an effort of international cooperation to voluntarily promote energy conservation in
Asian countries. Refer to the Appendix 2.3 for further detail of Japan’s international cooperation.

6

2.4 Law concerning the Rational Use of Energy
Structure of the law
Enforced on 1st Oct. 1979, revised on 10th August 2005 (is the revised part)*The contents of the revised version which will be enforced in April 2009 are not included.
Refer to page 17 for the outline of this revised version.
7

(1) Objective
This law aims to contribute to the sound development of the national economy throughimplementing necessary measures for the rational use of energy in factories, buildings,
transportation, 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 defined by the law
The term “energy” in this law means fuels such as oil, flammable natural gas, and coal, as well asheat and electricity produced by using such fuels (excluding electricity generated by the renewableenergy such as photovoltaic cells, wind power, etc.).

(3) Basic policies and obligations of energy users
The Minister of Economy, Trade and Industry (METI) 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 into account of the fundamental policy and makeefforts to rationalize their energy use. This is to comprehensively promote the rational use ofenergy through the systematic formulation and the public announcement of the basic matterspertaining 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 muchas 60% of the total energy consumption. More proactive actions to promote the rational energy
utilization in factories and business premises are important. To implement the law effectively, thefollowing provisions were established:1) Evaluation criteria for business operators
METI shall establish and announce the subject of evaluation criteria regarding the measures to betaken 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 therelevant goals: the subject of evaluation criteria are targeted to those who conduct businessactivities and utilize energy in their factories / business premises (hereafter referred to as
factories) and are purposed that the rational utilization of energy in factories would be
implemented appropriately and effectively. (Refer to the 2.5 “Evaluation Criteria” and the 2.6“Standards and Target Values”.)
These evaluation criteria present themselves as a set of guidelines for the individual and concretemeasures about the basic matters stated in the basic policy and to guide business operators tojudge and conduct appropriate and effective implementation of the rational energy utilization infactories.

2) Guidance and advice
The competent minister (METI and other minister(s) responsible for the programs of the relevant
factories) may provide business operators with guidance and advice about the rational energy use
8with the consideration of the things concerning the evaluation criteria when judged necessary by
the minister.

3) Type 1 designated energy management factories
Factories which consume large amount of energy (the total consumption of fuel and electricity is
3,000 kL or more per year in crude oil equivalent) and belong to the five manufacturingindustries and the buildings are designated as “Type 1 Designated Energy Management
Factories” from the view point that the rational energy utilization has to be promoted. The
designated criteria were amended and reinforced in April, 2006.
The “Type 1 Designated Energy Management Factories” shall appoint an energy manager tomonitor the work related to the rational energy utilization, prepare and submit a mid-to-long termplan, and report annually the status of their energy utilization to the competent minister.
The buildings in the category of “Type 1 Designated Energy Management Factories” mayappoint an energy management officer, instead of an energy manager, who has completed adesignated training course that were conventionally conducted in the past. In those buildings, anenergy management officer is conducting a day-to-day energy management, but they shall have aparticipation of an energy manager, only when preparing a mid-to-long term plan.
<Instructions, announcement and order to make rationalization plans>
If “Type 1 Designated Energy Management Factories” are judged to be in egregious breach of
the evaluation criteria for energy rationalization, the competent minister may instruct thedesignated factories to prepare a rationalization plan. If the operator does not adhere to the
instructions, the ministers are authorized to announce to that effect or give an order for taking
any action to respond to the instructions based on the opinion collected at the council concerned.

4) Type 2 designated energy management factories
A factory whose energy consumption is a medium scale (the total consumption of fuel andelectricity is 1,500 kL or more per year in crude oil equivalent) shall promote the rational use ofenergy in the same way as “Type 1 Designated Energy Management Factories”. Those factories
shall be designated as “Type 2 Designated Energy Management Factories”. The law prescribesthat “Type 2 Designated Energy Management Factories” shall appoint an energy management
officer, who takes a training session of energy conservation, and keep the record of theconditions of energy use, etc. However, the amended law in June 2002 imposed an obligation toreport on energy use to the competent minister on an annual basis instead of the obligation ofrecording the energy use situations stipulated by the former version of the law.
<Recommendation>
If “Type 2 Designated Energy Management Factories” are judged not to comply with theevaluation criteria for energy rationalization, the competent minister may submit arecommendation to the operators and request them to take necessary steps for the rational use ofenergy.

95) Category of designated energy management factory
Annual Energy Consumption

Total of Fuel and Electricity

Industrial Category
࡮All industries other than thoselisted at left
e.g. office buildings,
department stores, hotels,
schools, hospitals, government
offices, and amusement parks)
࡮ Head office / office bldg. ofthe left listed industries.

Following 5 industries:
Manufacturing
MiningElectricity supply
Gas supply
Heat supply
Type 1 Designated Energy
Management Factory

Type 1 Designated Energy
Management Factory

3,000 kL
Type 2 Designated Energy Management Factory

1,500 kL

Regulatory obligations
Regulatory obligations* Appointment of qualified Energy Manager* Submission of medium- to- long- term plan
* Periodical report* Appointment of Energy Management Officer* Submission of medium- to- long- term plan
(Participation of qualified Energy Manager for
preparing medium- to- long- term plan)* Periodical report

Regulatory obligations* Appointment of Energy Management Officer* Periodical training of Energy Management Officer* Periodical report

6) Number of energy managers required by the law

Type 1 Designated Energy Management Factories producing Coke andsupplying Electricity, Gas and Heat
Annual Fuel Consumption

Number Required

3,000 or less than 100,000 kl-oe

1100,000 kl-oe or more

2

Type 1 Designated Energy management Factories other than above
Annual Fuel Consumption

Number Required

3.000 or less than 20,000 kl-oe

1

20,000 or less than 50,000 kl-oe

250,000 or less than 100,000 kl-oe

3100,000 kl-oe or more

4107) Certified energy manager system
Factories belonging to any of the five designated industries with a total of fuel and electricity
consumption of at least 3,000 kL of crude equivalent are designated as “Type 1 DesignatedEnergy Management Factories” under the Law concerning Rational Use of Energy, subject to the
obligation to appoint one or more energy managers according to the level of the energy
consumption. Such energy managers must be selected from nationally qualified license holders
for energy management.
A license is awarded to a person who has passed the examination for qualified person for energy
management or who has been authorized by the Minister for Economy, Trade and Industry uponcompleting a qualification course of qualified person for energy management. This certification
process works as follows:(a) Examination of qualified person for energy managementa) Prerequisites : Noneb) Examination subjects
Examinees shall take No1 subject as [Requisite] and No2-4 subjects by choosing a set of[Heat] or [Electricity].

[Requisite]
1 Comprehensive energy management and laws/regulations䌛Electricity䌝䌛Heat䌝
2 Basics of flow of heat and fluid
3 Fuels and combustion
4 Heat utilization equipment andtheir management

Choice2 Basics of electricity
3 Electric equipment and machinery
4 Power applicationc) Application destination
Examination Department, Energy Management Examination and Training Center, theEnergy Conservation Center, Japand) Examination date and sites
The examination is held in August every year and at 10 locations in the whole country.
e) Announcement of successful applicants
The examinee’s number who passes the examination will be announced on the Official
Gazettef) Issue of certificate
Examinees who pass the examination first submit an application of a credential to the
Minister for Economy, Trade and Industry. The issuance of a certificate requires a year or
more of practical experience in the rational use of energy.

(b) Qualification course of qualified person for energy managementa) Contents of coursei) Lecture11ii) Examinationb) Prerequisites
At least three years of practical experience in the rational use of fuel/electricity.
c) Course period and sites
The course is held for 7 days in December in every year at six locations in the wholecountry.
d) Application destination
Training Department, Japan Energy Management Examination and Training Center, The
Energy Conservation Center, Japan(5) Measures for buildings
Most of the energy consumed in the civil sector is used in buildings. The measures focusing on theinsulation of buildings are highly effective for the rational use of energy. The law provides thefollowing rules for rational energy use in the field of buildings:
1) Obligations of building owners
Construction clients (those who intend to construct or modify buildings) and owners of buildings
must take appropriate measures to prevent heat loss through external walls, windows, etc. and toutilize efficiently the energy for building facilities such as air conditioners, mechanicalventilation systems, lighting, water heaters and elevators, with the basic policies in mind, inefforts to contribute to the rationalization of energy use in the building.
In order to ensure proper and effective implementation of such measures, the Minister of
Economy, Trade and Industry and the Minister of Land, Infrastructure and Transport shallestablish and announce standards which building owners should refer to in making decisions forrationalizing energy use in their buildings. The new standard for the buildings (excluding
residences) was announced on 30 March, 2006. (Refer to the item 2.7 Evaluation Criteria for
Buildings.) The new standard for houses was announced on 27 March, 2006.

2) Guidance and advice
The competent authorities (Local (prefecture) authority with district construction surveyors andgoverning authorized construction procedures) may, when necessary, give necessary guidance
and advice on building design and construction to the building owners other than residences
while taking into account the evaluation criteria which the building owners should refer to in
making decisions and for private dwellings shall establish and announce guidelines for theirdesign and construction in accordance with the criteria which construction clients and building
owners should refer to in making decisions. In addition to these rules, the Minister of Economy,
Trade and Industry may give manufacturers of insulation and other construction material
necessary guidance and advice for improving the insulation properties of their construction
materials to ensure the improvement of the quality of insulation materials, which constitute abasic element in improving the total insulation capability of buildings.

3) Instructions for specified buildings
Construction Clients and Owners (Specified Construction Clients, etc.) who intend to construct
or extensively modify the buildings (including residences) having a total floor area of 2,000m2 or12larger (Specified Buildings) shall submit notification of energy-saving measures to thecompetent authorities before the start of construction. In addition, after the completion of
construction or modification, the Specified Construction Clients, etc. who submitted theabovementioned notification shall submit periodical reports on maintenance of buildings withrespect to energy-saving measures.
When the competent authority finds energy-saving measures to be significantly insufficient inconsideration of the criteria, the authority shall advise them for improvement. When theSpecified Construction Clients, etc. do not follow the authority’s advice and instruction forimprovement on the measures described in the notification, the authority shall announce to the
public the name of the owner in question.

(6) Measures for equipment
Automobiles, air-conditioners, and other equipment require large amounts of energy, which aremostly purchased after systematically produced in large quantities. For the rational energy use ofsuch equipment, it is important to call for consumers to act on energy conservation effort in the use,
but a more drastic way is to improve the energy efficiency at a production stage. Based on this idea,
the law provides for various following rules in the use of equipment:

1) Obligations of manufacturers
Those who produce or import energy consuming equipment shall, with the basic policies in mind,
ensure the rationalization of energy consumption concerning the equipment by improving theenergy efficiency of the equipment which they produce or import. Automobiles and otherequipment as specified in the Government Ordinance, the Minister of Economy, Trade andIndustry (and also the Minister of Land, Infrastructure and Transport for automobiles) shallestablish and announce standards for energy efficiency improvement which manufacturers
should refer to in making decisions. The Minister of Economy, Trade and Industry (and also the
Ministry of Land, Infrastructure and Transport for automobiles) may give necessary
recommendations to manufacturers and importers when the government finds a considerable
improvement is needed for their specific products in view of the standards which they shouldrefer to in making decisions, provided that the production or import volume for such products
exceed a certain level (for example, more than 2,000 automobiles per year, or more than 500 air
conditioners per year).
Target standard values are set based on the product in the market having the highest energy
efficiency of all the products of the same group. (“Top Runner Program”)
The years when each of the specified equipment was designated are as follows:
1 April 1999

㧦Gasoline and diesel passenger vehicles, air conditioners, fluorescentlights, television sets, copying machines, computers, magnetic disk
drives, gasoline-fueled and diesel powered trucks and VTRs

22 December 1999 㧦Electric Refrigerators, Electric Freezers
27 December 2002 㧦Space Heaters, Gas Cooking Appliances, Gas Water Heaters, Oil Water
Heaters, Electric Toilet Seats, Vending Machines, Transformers

1315 July 2003

㧦LPG passenger vehicles (This is categorized in the passenger vehicles.)1 April 2006

㧦Microwave ovens, Electric rice cookers, DVD Recorders

2) Labeling
Equipment described above shall be marked to show its “energy consumption efficiency” to help
consumers selectively purchase highly efficient equipment. The Minister of Economy, Trade andIndustry (and also the Minister of Land, Infrastructure and Transport for automobiles) shallestablish the labeling procedures to be followed by manufacturers etc. concerning “energy
consumption efficiency”, labeling method, and other matters to be observed in labeling for each
item of specified equipment, and shall issue a notification of them.
If the minister(s) deem(s) that the labeling does not conform to the notification, he (they) can givea recommendation to the manufacturer, etc., and if the manufacturer, etc. does not comply, theminister(s) can announce to that effect and give an order to take an action conforming to therecommendation.

(7) Measures for transportation
It is obliged that transportation companies both in cargo and passenger as well as cargo owners
which are over a given level of business scale shall be responsible to draw up energy conservationplans and report the amount of energy consumption, etc. every year.

(8) Activities of the New Energy and Industrial Technology Development Organization
In addition to its current activities, the New Energy and Industrial Technology Development
Organization (NEDO) has also begun (a) to develop energy use rationalization technologies, (b) toprovide support for introducing energy use rationalization technologies, etc.

(9) Supporting measures and penalties
The law also provides other requirements for the government to make efforts concerning financial
aid and tax incentive measures to promote rational energy use, measures to promote science andtechnology, and measures to deepen the awareness of consumers. The law also specifies provisions
concerning the submission of reports, on the spot-inspections, and penalties.

(10) Amendment of the law concerning the rational use of energy
The 1979 law was amended and reinforced in 1983, 1993, 1998, 2002, 2005 and 2008. In theamended version promulgated in March 2008, energy conservation measures were strengthened inboth the commercial sector including offices, convenience stores, etc. and household sector.
This amended version will be enforced in April 2009.
The chronicles of revisions of the law are shown in the following table.

14

15

16

17

18

19

20

21

22

23

24

25

2.6 Standards and Target Values for Operating Equipment in Factories(1) Air ratios for boilers
Air ratio

Classification
Solid fuel
ItemStandard For electric utility
30t/h or more
Others10 to less than 30t/h(evaporation
5 to less than 10t/h
volume)Less than 5t/h
Target For electric utility
30t/n or more
Others10 to less than 30t/h(evaporation
5 to less than 10t/n
volume)Less than 5t/h

Load factor
Liquid fuel(%)
Fixed bed Fluidized bed
75-10050-10050-10050-10050-10075-10050-10050-10050-10050-1001.3-1.45
1.3-1.45
1.2-1.3
1.2-1.3-

1.2-1.45
1.2-1.45
1.2-1.25
1.2-1.25-

1.05-1.20
1.10-1.25
1.15-1.30
1.20-1.30
1.20-1.30
1.05-1.10
1.10-1.15
1.15-1.25
1.15-1.30
1.15-1.30

Byproduced
gas such asGas fuel
blast furnacegas
1.05-1.10
1.2
1.10-1.20 1.20-1.30
1.15-1.30
1.20-1.30
1.20-1.30
1.05-1.10 1.15-1.20
1.10-1.15 1.20-1.30
1.15-1.25
1.15-1.25
1.15-1.25-< Standards >Note 1㧦The standard values of air ratio mentioned in the table above define those to be obtained inmeasurements at the boiler outlet when fired at a constant level of load after regularinspection and in a stable state.
Note 2㧦Turbine load factor shall be used for boilers installed for power generation, and the loadfactor of the boiler itself for those installed for other purposes.
Note 3㧦The air ratio value of each boiler should be calculated using the following expression.
Round the result to one decimal place if the corresponding standard value as defined
above is significant down to the first decimal, and to two decimal places if it is significant
down to the second decimal.
Air ratio = 21/[21 - (Oxygen concentration in the exhaust emission in percentage)]
Note 4㧦As to the pulverized coal fired boiler included in the fixed bed solid fuel types, standard
air ratio values of 1.15-1.3 shall apply to electric utilities, and 1.2-1.3 to otherapplications (those having the quantity of evaporation of 30 t/h or more, and of 10 toless than 30 t/h only).

< Targets >Note 1㧦The target values of air ratio mentioned in the table above define those to be obtained inmeasurements at the boiler outlet when fired at a constant level of load after regularinspection and in a stable state.
Note 2㧦Refer to Notes 2 and 3 of Appendix I-(A)-(1) for calculation of load factor and air ratio.
Note 3㧦As to the pulverized coal fired boiler included in the fixed bed solid fuel types, target air
ratio values of 1.15-1.25 shall apply to electric utilities, and 1.2-1.25 to other applications(those having the quantity of evaporation of 30 t/h or more, and of 10 to less than 30 t/honly).
Note 4㧦Target air ratio values shall be 1.2-1.3 for boilers firing black liquor at a load factor between
50 and 100%.

26

(2) Waste gas temperatures for boilers
Waste gas temperature

Classification

Byproduced
Load factor
gas such as
Item
Liquid fuel Gas fuel(%)
blast furnace
Fixed bed Fludized bed
gasStandard For electric utility
75-100145
110
200
30t/h or more
50-100
200
200
200
170
200
Others10 to less than 30t/h 50-100
250
200
200
170
(evaporation
5 to less than 10t/h
50-100220
200
volume)Less than 5t/h
50-100250
220Target For electric utility
75-100135
110
190
30t/n or more
50-100
180
170
160
140
190
Others10 to less than 30t/h 50-100
180
170
160
140
(evaporation
5 to less than 10t/n
50-100300
180160
volume)Less than 5t/h
50-100320200180Solid fuel< Standards >* The classification “for electric utility” above refers to boilers installed by electric power companies
for power generation.
Note 1㧦The standard values of waste gas temperature mentioned in the table above define those to beobtained in measurements at the boiler outlet when fired at 100% of load factor (turbine loadfactor shall be used for boilers installed for power generation, and the load factor of theboiler itself for those installed for other applications) after regular inspection, with its inlet
air temperature set at 20ºC. The boiler outlet may be the outlet of a waste heat recovery
plant or a flue gas treatment system for environmental protection if such equipment is in use.
Note 2㧦As to the pulverized coal fired boiler included in the fixed bed solid fuel types, standard
waste gas temperature values of 150ºC shall apply to electric utilities, and 200ºC to otherapplications (those having the quantity of evaporation of 30 t/h or more, and of 10 toless than 30 t/h only).

< Targets >Note 1㧦The target values of waste gas temperature mentioned in the table above define those to beobtained in measurements at the boiler outlet when fired at 100% of load factor (turbine loadfactor shall be used for boilers installed for power generation, and the load factor of theboiler itself for those installed for other applications) after regular inspection, with its inlet
air temperature set at 20ºC. The boiler outlet may be the outlet of a waste heat recovery
plant or a flue gas treatment system for environmental protection if such equipment is in use.
Note 2㧦As to the pulverized coal fired boiler included in the fixed bed solid fuel types, target waste
gas temperature values of 140ºC shall apply to electric utilities, and 160ºC to otherapplications (those having the quantity of evaporation of 30 t/h or more, and of 10 to lessthan 30 t/h only).
Note 3㧦Target waste gas temperature values shall be 180ºC for boilers firing black liquor.

27

(3) Air ratios for industrial furnaces
Gas fuel
Liquid fuelContinuous Intermittent Continuous Intermittent
type
type
type
type
Standard Melting furnace for metal forging
1.25
1.35
1.3
1.4
Continuous reheating furnace (billet, bloom, slab)
1.20
1.25
Metal heating furnace other the above
1.25
1.35
1.25
1.35
Metal heat treatment furnace
1.20
1.25
1.25
1.3
Oil heating furnace
1.20
1.25
Thermal decomposition furnace and reforming furnace
1.20
1.25
Cement kiln
1.30
1.3
*1
Coal kiln
1.30
1.35
1.3
1.35
*1
Drying furnace
1.25
1.45
1.3
1.5
*2
Target Melting furnace for metal forging
1.05-1.20 1.05-1.25 1.05-1.25 1.05-1.30
Continuous reheating furnace (billet, bloom, slab)
1.05-1.15
1.05-1.20
Metal heating furnace other than the above
1.05-1.20 1.05-1.30 1.05-1.20 1.05-1.30
Metal heat treatment furnace
1.05-1.15 1.05-1.25 1.05-1.20 1.05-1.30
Oil heating furnace
1.05-1.20
1.05-1.25
Thermal decomposition furnace and reforming furnace 1.05-1.20
1.05-1.25
Cement kiln
1.05-1.25
1.05-1.25*1Coal kiln
1.05-1.25 1.05-1.35 1.05-1.25 1.05-1.35 *1
Drying furnace
1.05-1.25 1.05-1.45 1.05-1.30 1.05-1.50 *2
Item*1 Value of liquid fuel in case pulverized coal firing*2 Burner portion only

< Standards >Note 1㧦The standard values of air ratio mentioned in the table above define those to be obtained inmeasurements at the exhaust port of kiln or furnace when fired at a level of load around therated after inspection and repair.
Note 2㧦Standard values for liquid fuel types shall apply to industrial furnaces that use by-productgases such as blast furnace gas as fuel.

< Targets >Note 1㧦The target values of air ratio mentioned in the table above define those to be obtained inmeasurements at the exhaust port of kiln or furnace when fired at a level of load around therated after inspection and repair.
Note 2㧦Target values for liquid fuel types shall apply to industrial furnaces that use by-product gases
such as blast furnace gas as fuel.

28

(4) Standard and target rates of waste heat recovery for industrial furnaces(including waste gas temperatures for reference)

Exhaust gas
temperature(㷄)Capacity
category

Standard waste
heat recovery
rate %

Target waste
heat recovery
rate (%)

Reference
Waste gas
temperature (㷄)Preheated air (㷄)Less than 500

A䇭䊶B

25

35

275

190

500 - 600

A䇭䊶B
A

25

35

335

230

35

40

365

305

B

30

35

400

270

C

25

30

435

230

A

35

40

420

350

B

30

35

460

310

C

25

30

505

265

A

40

45

435

440

B

30

40

480

395

C

25

35

525

345

A

45

55

385

595

B

35

45

485

490

C

30

40

535

440

A

45

55

-

-

B

35

45

-

-

C

30

40

-

-

600 - 700

700 - 800

800 - 900

900-1,000

1,000 or more

* In the above table, A refers to the furnaces with the rated capacity of 84,000 MJ per hour or
more. And B includes the furnaces with the rated capacity from 21,000MJ per hour or more toless than 84,000MJ. Finally, C refers to the furnaces that have the hourly rated capacity from
840MJ or more to less than 21,000MJ.
< Standards >Note 1㧦The standard waste heat recovery rates mentioned in the table above define the percentage ofrecovered heat in relation to sensible heat of the exhaust gas emitted from the furnacechamber when fired at a level of load around the rated.
< Targets >Note 1㧦The target waste heat recovery rates mentioned in the table above define the percentage ofrecovered heat in relation to sensible heat of the exhaust gas emitted from the furnacechamber when fired at a level of load around the rated.
Note 2㧦The waste gas and preheated air temperature values indicated above as reference are thoseresulting from calculations of waste gas temperatures during waste heat recovery at thecorresponding target rates and air temperatures during preheating using such recovered heat.
The values have been calculated based on the following conditions:(i) Temperature drop due to heat radiation-diffusion loss between furnace outlet and heatexchanger: 60ºC(ii) Heat radiation-diffusion rate from heat exchanger: 5%(iii) Use of liquid fuel (equivalent to heavy oil)(iv) Outside air temperature: 20ºC(v) Air ratio: 1.2

29

(5) Standard values and target values of furnace wall outer surface temperatures(for industrial furnaces with furnace temperatures of 500͠ and higher)
Furnace wall outer surface temperature (㷄)ItemStandard

TargetFurnace temperature (㷄)Ceiling

Side wall

Bottom in contact with open air

1,300 or more

140

120

180

1,100-1,300

125

110

145

900-1,100

110

95

120

Less than 900

90

80

100

1,300 or more

120

110

160

1,100-1,300

110

100

135

900-1,100

100

90

110

Less than 900

80

70

90

< Standards >Note 1㧦The standard values of furnace wall outer surface temperature mentioned in the table
above define the average temperature of furnace wall outer surface (except specificparts) during its normal, steady operation at an outside air temperature of 20ºC.
< Targets >Note 1㧦The target values of furnace wall outer surface temperature mentioned in the table above
define the average temperature of furnace wall outer surface (except specific parts) during
its normal, steady operation at an outside air temperature of 20ºC.

(6) Standard value and target value of power factor< Standards >The standard value of power factor at the power receiving end is 90% or more.
< Targets >The target value of power factor at the power receiving end is 95% or more and it is applied to theequipment listed below and electric power substation facilities.
Equipment nameCage-type induction motor
Coil-type induction motor
Induction furnace
Vacuum melting furnace
Induction heater
Arc furnace
Flash butt welder (excluding portable type)
Arc welder (excluding portable type)
Rectifier30

Capacity (kW)more than 75
more than 00
more than 50
more than 50
more than 50
more than 0more than 0more than 0,000

(7) Target efficiencies of high efficiency motors
Ԙ Totally enclosed types ( 0.2 – 160 kW)
Output
(kW)
0.2
0.4
0.8
1.5
2.2
3.7
5.5
7.5
11.0
15.0
18.5
22.0
30.0
37.0
45.0
55.0
75.0
90.0
110.0
132.0
160.0

2-poles
50Hz
60Hz
200V or
220V or
400V
440V
70.0
71.0
76.0
77.0
77.5
78.5
83.0
84.0
84.5
85.5
87.0
87.5
88.0
88.5
88.5
89.0
90.0
90.2
90.0
90.2
90.6
91.0
91.0
91.0
91.4
91.7
92.1
92.4
92.4
92.7
92.7
93.0
93.6
93.6
94.3
94.5
94.3
94.5
94.8
95.0
94.8
95.0

Efficiency Values (%)
4-poles
50Hz
60Hz
200V or
220V or
400V
440V
72.0
74.0
76.0
78.0
80.5
82.5
82.5
84.0
85.5
87.0
86.0
87.5
88.5
89.5
88.5
89.5
90.2
91.0
90.6
91.0
91.7
92.4
91.7
92.4
92.4
93.0
92.4
93.0
92.7
93.0
93.3
93.6
94.1
94.5
94.1
94.5
94.1
94.5
94.5
95.0
94.8
95.0

6-poles
50Hz
60Hz
200V or
220V or
400V
440V
73.0
76.0
78.5
80.0
83.0
84.5
84.5
86.0
86.0
87.0
88.0
89.0
88.5
89.5
89.5
90.2
89.5
90.2
91.0
91.7
91.0
91.7
91.7
92.4
91.7
92.4
92.4
93.0
93.3
93.6
93.6
94.1
93.9
94.1
94.5
95.0
94.5
95.0
94.5
95.0

Efficiency Values (%)
4-poles
50Hz
60Hz
200V or
220V or
400V
440V
80.0
82.0
82.0
84.0
85.0
86.5
86.0
87.5
87.5
88.5
88.5
89.5
90.0
90.6
90.2
91.0
90.6
91.4
91.4
92.1
91.7
92.1
92.1
92.4
92.1
92.7
92.4
93.0
92.7
93.3
93.0
93.6
93.3
93.6
93.3
93.9
93.6
94.5

6-poles
50Hz
60Hz
200V or
220V or
400V
440V
78.0
80.0
82.0
84.0
84.0
85.5
85.5
87.0
87.0
88.5
88.0
89.0
89.0
90.0
89.5
90.6
90.6
91.4
91.0
91.7
91.4
92.1
91.7
92.4
92.1
92.7
92.4
93.0
92.4
93.0
92.7
93.3
93.0
93.6
93.3
93.9
93.6
94.1

ԙ Protected type (0.75 – 160 kW)
Output
(kW)
0.75
1.5
2.2
3.7
5.5
7.5
11.0
15.0
18.5
22.0
30.0
37.0
45.0
55.0
75.0
90.0
110.0
132.0
160.0

2-poles
50Hz
60Hz
200V or
220V or
400V
440V
77.5
78.5
83.0
84.0
83.0
84.0
85.0
85.5
87.0
87.5
88.0
88.5
89.0
89.5
89.5
90.2
90.6
91.0
90.6
91.0
91.0
91.4
91.4
91.7
91.7
92.1
92.1
92.4
92.4
92.7
92.7
93.0
93.0
93.3
93.3
93.6
93.9
94.1

Note㧦Efficiency values shall be measured according to the procedures set forth in Section 7.3 - “Efficiency
Test” of JIS C 4212 titled “High-efficiency, Low Voltage Three-phase Squirrel Cage Induction
Motors,” by applying the tolerance values provided in its Section 4.2 - “Applicable Tolerances.”31

2.7 Evaluation Criteria for Building on Rational Use of Energy(Ministry of Economy, Trade and Industry/Ministry of Land, Infrastructure andTransport, Notice No. 1, partially revised on March 30, 2006)
This is the outline of the “Evaluation Criteria for Building on Rational Use of Energy”. For full-text
and details of the scores, please refer to the website by ECCJ. (http://www.eccj.or.jp/law/ken1_e.html)(1) Prevention of heat loss through external walls, windows, etc. of the buildings(a) Construction clients shall take proper measures to prevent heat loss through the external walls,

windows, etc. of buildings, with due consideration given to the following particulars.
i)They shall make the site and floor plans for buildings with due consideration given
to the orientation of the external walls, layouts of rooms, and other matters.

ii) They shall use thermal insulating materials for external walls, roofs, floors, windows,

and openings.
iii) They shall reduce the solar radiation load by adopting a system capable of properly

controlling solar radiation through windows, planting trees, or taking othermeasures.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (1)-(a) related to the external walls, windows, etc. of buildings (except for “Factories andothers” in Table 1) shall be based on (1)-(c). Note that for external walls, windows, etc. ofbuildings having a total floor area of 5,000 square meters or less (excluding those in tropicalregions), the judgment may be based on(1)-(d) as well as (1)-(c).
(c) The value calculated by dividing the annual thermal load of the indoor perimeter zones of abuilding by the total of the floor areas (unit: m2) of the indoor perimeter zones shall be equal
to or smaller than the value calculated by multiplying the value specified for each cell in Row(a) of Table 1 by the scale correction coefficient. Indoor perimeter zone means an indoor zoneof 5 m or less in horizontal distance from the center line of the external wall of each floor
excluding the basement, the indoor floor of the top story just beneath the roof, and the indoor
floor just above the floors exposed to the outside air.
(d) With regard to external walls, windows, etc. of buildings listed in the note in (1)-(b), for theexternal walls, windows, etc. which are important from the viewpoint of energy use, the value
calculated by adding the value determined according to the building type and regionalclassification to the total of the evaluation scores in i) to iv) below, shall be 100 or more.
i)

The evaluation score of the site and floor plans of buildings
The score shall be selected based on the measures taken regarding main orientation,
shape, core layout and average floor height of a building.

ii) The evaluation score of the thermal insulation performance of the external walls androofs
The score in an ordinary or cold district shall be the total of the scores selected based32

on the measures taken for each item in the district. The scores in a tropical district
shall be 0. When 2 or more measures are taken for one item, the judgment shall bemade based on an area-weighted average of the thicknesses of the thermal insulators.
iii) The evaluation score of the thermal insulation performance of windows

The score in an ordinary or cold district shall be selected based on the measurestaken in the district of the building. The score in a tropical district shall be 0.
iv) The evaluation score of the solar heat shading performance of windows

The score shall be selected based on the measures taken in the district of thebuilding.
(e) Obligations of owners of specified building regarding the maintenance related to preventionof heatloss through external walls, windows, etc. of the buildings(2) Efficient use of energy by air conditioning equipment(a) Construction clients shall take proper measures to achieve efficient use of energy by air

conditioning equipment, with due consideration given to the following practices.
i)

They shall take into consideration the air conditioning load characteristics of rooms
and other factors in designing air conditioning systems.

ii) They shall make heat retention plans to minimize energy loss in air ducts, piping,and others.
iii) They shall adopt a proper control system for air conditioning equipment.
iv) They shall adopt a heat source system with high energy efficiency.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (2)-(a) related to air conditioning equipment installed in buildings (except for “Factories andothers” in Table 1) shall be based on (2)-(c). Note that the judgment for air conditioning

equipment (which is limited to package air conditioners (limited to the air-cooling type)defined in Japanese Industrial Standards B 8616-1999 (package air conditioners) and gas heatpump air conditioners defined in Japanese Industrial Standards B 8627-2000 (gasengine-driven heat pump air conditioners)) installed in buildings having a total floor area of
5,000 square meters or less may be based on (2)-(d) as well as (2)-(c).
(c) The value calculated by dividing the annual primary energy consumption by the air

conditioning equipment to be installed in buildings to treat the air conditioning load in termsof heat quantity (Joule) by the assumed air conditioning load of the building in the same
period shall be equal to or smaller than the value specified in each cell of Row (b) of Table 1.
(d) With regard to the air conditioning equipment listed in the note in (2)-(b), for the equipment

which is important from the viewpoint of energy use, the value calculated by adding the value
determined according to the building type and regional classification to the total of theevaluation scores in i) to iii) below, shall be 100 or more.
33

i)

The evaluation score for the reduction in outside air load
The score shall be the total of the scores selected based on the measures taken.

ii)

The evaluation score for the installation location of an outdoor unit and the length ofthe pipe from the outdoor unit to the indoor unit
The score shall be selected based on the measures taken.

iii) The evaluation score for the efficiency of heat source equipment

The score shall be selected based on the measures taken.
(e) Obligations of owners of specified building regarding the maintenance related to air
conditioning equipment.

(3) Efficient use of energy by mechanical ventilation equipment other than air
conditioning equipment(a) Construction clients shall take proper measures to achieve efficient use of energy bymechanical ventilation equipment other than air conditioning equipment, with due
consideration given to the following practices.
i)

They shall make a plan to minimize energy loss in air ducts and others.

ii) They shall adopt a proper control system for mechanical ventilation equipment otherthan air conditioning equipment.
ii) They shall introduce mechanical ventilation equipment with high energy efficiency

and a proper capacity for the required ventilation volume.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (3)-(a) related to mechanical ventilation equipment (except for air conditioning equipment)
installed in a building (except for “Factories and others” in Table 1) shall be based on (3)-(c).
Note that the judgment for mechanical ventilation equipment installed in a building having a
total floor area of 5,000 square meters or less may be based on (3)-(d) as well as (3)-(c).
(c) The value calculated by dividing the annual primary energy consumption for mechanicalventilation equipment installed in a building in terms of heat quantity (Joule) by the annual
assumed primary energy consumption for ventilation of the building in the same period interms of heat quantity shall be equal to or smaller than the value specified in each cell of Raw(c) of Table 1.
(d) With regard to the mechanical ventilation equipment shown in the note in (3)-(b), for theequipment which is installed in non-air conditioned rooms and which is important from theviewpoint of energy use, the value calculated by adding 80 to the total scores selected basedon the measures taken for each item shall be 100 or more.
(e) Obligations of owners of specified building regarding the maintenance related to mechanicalventilation equipment other than air conditioning equipment

34

(4) Efficient use of energy by lighting fixtures(a) Construction clients shall take proper measures to achieve efficient use of energy by lighting

fixtures, with due consideration given to the following practices.
i)

They shall introduce lighting fixtures with high lighting efficiency.

ii) They shall adopt a proper control system for lighting fixtures.
iii) They shall install lighting fixtures in a manner that facilitates easy maintenance andmanagement.
iv) They shall properly lay out lighting fixtures, set illuminance, and select room shapeand interior finishes.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (4)-(a) related to lighting fixtures installed in a building shall be based on (4)-(c). Note thatthe judgment for lighting fixtures installed in a building having a total floor area of 5,000
square meters or less may be based on (4)-(d) as well as (4)-(c).
(c) The value calculated by dividing the annual primary energy consumption for lighting fixturesinstalled in a building in terms of heat quantity (Joule) by the annual assumed primary energy
consumption for lighting of the building in the same period in terms of heat quantity shall beequal to or smaller than the value specified in each cell of Row (d) of Table 1.
(d) With regard to lighting fixtures shown in the note in (4)-(b), for each lighting section which isimportant from the viewpoint of energy use, the value calculated by adding 80 to the total
score of the scores listed in i) to iii) below shall be 100 or more. If there are two or more
lighting sections, the value calculated by adding 80 to an area-weighted average of the scoresin all the lighting sections shall be 100 or more.
i)

The evaluation score for the lighting efficiency of lighting fixtures
The score shall be the total of the scores selected based on the measures taken foreach item.

ii) The evaluation score for the control method of lighting fixtures

The score shall be selected based on the measures taken.
iii) The evaluation score for the layouts of lighting fixtures, setting of illuminance, andselection of room shape and interior finishes
The score shall be the total of scores selected based on the measures taken for each
item.
(e) Obligations of owners of specified building regarding the maintenance related to lighting
fixtures.

(5) Efficient use of energy by hot water supply equipment(a) Construction clients shall take proper measures to achieve efficient use of energy by hotwater supply equipment, with due consideration given to the following practices.
i)

They shall consider shorter piping, thermal insulation of piping, etc. in planning35

proper piping.
ii)

They shall adopt a proper control system for hot water supply equipment.

iii) They shall adopt an energy-efficient heat source system.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (5)-(a) related to hot water supply equipment installed in a building shall be based on(5)-(c). Note that the judgment for hot water supply equipment installed in a building having
a total floor area of 5,000 square meters or less may be based on (5)-(d) as well as (5)-(c).
(c) The value calculated by dividing the annual primary energy consumption for hot watersupply equipment installed in a building in terms of heat quantity (Joule) by the annual
assumed hot water supply load of the building in the same period in terms of heat quantity
shall be equal to or smaller than the value specified in Row (e) of Table 1.
(d) With regard to hot water supply equipment shown in the note in (5)-(b), for the equipment

which is important from the viewpoint of energy use, the value calculated by adding 70 to
the total scores of the scores specified in i) to v) below shall be 100 or more.
i)

The evaluation score for the piping plan
The score shall be the total of the scores selected based on the measures taken foreach item. (When there are two or more measures taken for one item, the highest
score among the corresponding scores shall be used.)ii) The evaluation score for the control system of hot water supply equipment

The score shall be the total of the scores selected based on the measures taken foreach item (When there are two or more measures taken for one item, the highest
score among the corresponding scores shall be used.)iii) The evaluation score for the efficiency of heat source equipment

The score shall be selected based on the measures taken. (When there are two or moremeasures taken are applicable, the highest score among the corresponding scores shallbe used.)iv) When solar heat is used as a heat source, the evaluation score to be added shall beobtained by multiplying by 100 the value calculated by dividing the quantity of solar
heating (unit: kilojoules/year) by the hot water supply load (unit: kilojoules/year).
v) When supplied water is preheated, the evaluation score to be added shall be obtainedby multiplying by 100 the value calculated by dividing the annual average of watertemperature raise by preheating (unit: ºC) by a temperature difference between thetemperature of hot water used (unit: ºC) and the annual average of supplied watertemperature by region (unit: ºC).
(e) Obligations of owners of specified building regarding the maintenance related to hot watersupply equipment.

36

(6) Efficient use of energy by lifting equipment(a) Construction clients shall take proper measures to achieve efficient use of energy by lifting

equipment, with due consideration given to the following practices.
i)

They shall adopt a proper control system for lifting equipment.

ii)

They shall adopt a drive system with high energy efficiency.

iii) They shall adopt a proper installation plan for the required transport capacity.
(b) The judgment whether construction clients have taken proper measures for the matters listedin (6)-(a) related to elevators among lifting equipment installed in a building (only for “Hotels
and others” and “Offices and others” in Table 1) shall be based on (6)-(c). Note that the
judgment for elevators among lifting equipment installed in a building having a total floor areaof 5,000 square meters or less may be based on (6)-(d) as well as (6)-(c).
(c) The value calculated by dividing the annual primary energy consumption for elevators

installed in a building in terms of heat quantity (Joule) by the annual assumed primary energy
consumption for elevators of the building in the same period in terms of heat quantity shall beequal to or smaller than the value specified in each cell of Row (f) of Table 1.
(d) With regard to the elevators shown in the note in (6)-(b), for the elevators which are importantfrom the viewpoint of energy use, the value calculated by adding 80 to the total scores
specified in i) and ii) below shall be 100 or more.
i)

The evaluation score for the control system of elevators
The score shall be selected based on the measures taken.

ii)

The evaluation score for the number of elevators installed
The score shall be 10 when less than three elevators are installed, and 0 when three ormore elevators are installed.

(e) Obligations of owners of specified building regarding the maintenance related to lifting
equipment.

37

Table 1(1)(2)

HotelsHospitals
and others and others

(3)

(4)

(5)

(6)

(7)

(8)

Shops
Restauselling
Offices
Schools
Halls
Factories
rants,
goods
and others and others
and others and others
and others
and others

(a)

420

340

380

300

320

550

550

–

(b)

2.5

2.5

1.7

1.5

1.5

2.2

2.2

–

(c)

1.0

1.0

0.9

1.0

0.8

1.5

1.0

–

(d)

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

1.0

–

–

–

–

In the case of 0 < l x d 7
In the case of 7 < l x d 12(e) In the case of 12 < l x d 17
In the case of 17 < l x d 22
In the case of 22 < l x
(f)

1.0

–

1.5
1.6
1.7
1.8
1.9
–

Note)
1. “Hotels and others” mean hotels, Japanese-style hotels, and other facilities which are similar fromthe viewpoint of energy use.
2. “Hospitals and others” mean hospitals, nursing homes, institutions for those with physicaldisabilities, and other facilities which are similar from the viewpoint of energy use.
3. “Shops selling goods and others” mean department stores, markets, and other facilities which aresimilar from the viewpoint of energy use.
4. “Offices and others” mean offices, government and other public offices, libraries, museums, andother facilities which are similar from the viewpoint of energy use.
5. “Schools and others” mean elementary, junior high, and senior high schools, universities,
technical colleges, advanced vocational schools, professional schools, and other facilities which
are similar from the viewpoint of energy use.
6. “Restaurants and others” mean restaurants, buffets, coffee houses, cabarets, and other facilities
which are similar from the viewpoint of energy use.
7. “Halls and others” mean auditoriums, halls, bowling alleys, gymnasiums, theaters, cinemas,
pachinko parlors, other facilities which are similar from the viewpoint of energy use.
8. “Factories and others” mean factories, livestock barns, garages, bicycle-parking areas,
warehouses, pavilions, wholesale markets, crematories, and other facilities which are similarfrom the viewpoint of energy use.
9.
In this table, Ix shall be the value calculated by dividing the sum of the length of thecirculation piping for supplying hot water and that of the primary piping (unit: m) by the dailymean of the total amount of hot water consumed (unit: m3).

38‫ޣ‬About indicator (a) ~ (f) in Table 1‫ޤ‬Top floor㨯Indicator (a) is called “PAL”.
PAL stands for “Perimeter Annual Load” and is defined as follows:

Intermediate
floor
Bottom floor

Annual thermal load of the indoor perimeter zones (MJ/year)
PAL =Floor area of the indoor perimeter zones (ms)

PilotisDefinition of the indoor perimeter zone

㨯Indicator (b) ~ (f) is called “CEC/AC”, “CEC/V”, “CEC/L”, “CEC/HW” and “CEC/EV”, respectively.
CEC stands for “Coefficient of Energy Consumption”.

CEC definition for air-conditioning (indicator (b) : CEC/AC) and hot water supply (indicator (e) :CEC/HW):
Annual primary energy consumption of the target equipment (MJ/year)
CEC =Annual assumed load of the relevant use (MJ/year)

CEC definition for ventilation (indicator (c) : CEC/V), lighting (indicator (d) : CEC/L) and elevator(indicator (f) : CEC/EV):

Annual primary energy consumption of the target equipment (MJ/year)
CEC =Annual assumed primary energy consumption of the target equipment (MJ/year)39

2.8 Law for Energy Conservation and Recycling Support
The law is designed to support business operators voluntarily implementing projects to promote therationalization of the use of energy and natural resources.

(1) Guidelines for efforts
The competent minister shall establish guidelines for business operators and building owners
voluntarily implementing projects to promote the rationalization of the use of energy and natural
resources.

(2) The definition of specified projects
Three categories of projects are defined as "specified". Business operators etc. who takes on the
projects must draw up and submit project plans to the competent minister in order 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 sites1.
b. Use any building materials or install or improve any equipment that can contribute to the rationaluse of 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 get support
with the following assistance measures:a. Interest rate subsidy2,
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 25 June, 1993 and had a ten-year life span. However, it was partiallyrevised in 1 October, 2003 and determined to be extended until 31 March, 2013.
1

The same business categories as covered by the designated energy management factory scheme (Section 1, Article 6,
Energy Conservation Law).
2
Financial institutions (Development Bank of Japan, etc.) who lend the necessary funds have the interests partially coveredby Oil Special Account (currently Energy Special Account) (budgetary action without any legal provision). The interest is
far lower than the lowest interest for the fiscal investments and loans (a. 1.8% for the specific activities of factories, etc, b.
1.85% for those of buildings, as of March 14, 2000).

40

2.9 Financial Supporting Measures
The financial supporting measures are provided to accelerate the introduction of energy efficienttechnologies and equipment in the industrial and commercial sectors.

(1) Official financial assistance programs (2007)
1) For large-sized enterprises

financing percentage
Interest
Agency%Rate

Target Projects
Overall Energy-saving Promotion Projects
1. General Energy Conservation Projects
The following are considered as general energy conservation projects:(1) Projects for installation or improvement of approved equipment by
the enterprises approved according to Energy Conservation
Assistant Law, which is included in their proposed building
construction plans, including extensions and reconstruction work,
and which is specified by such enterprises as contributing to theimproved use of energy in their energy conservation projects
submitted to and approved by Authority.
(2) Projects for constructions required for achievement of medium- or
long-term energy conservation plans designed by investors/owners
of office buildings, department stores, hotels or other similar
facilities according to the Energy Conservation Law.

DBJ
ODFC

Preferential
rate I*150%(3) Projects for installation or improvement of such manufacturingmachinery and equipment that meet the specific requirements forenergy performance standard provided in the Energy Conservation
Act (hereinafter called “Top Runner Equipment”).
(4) Non-industrial projects that can improve energy use efficiency by
10% or more.
(5) Cogeneration system improvement projects rendering 60% or higher
primary energy use efficiency (cogeneration systems should have
output power of at least 50 kW)
2. Energy-saving Promotion Projects for the Industrial Sector
The following projects that will make it possible to reduce energy
consumption by 100 kL or more per year in terms of crude oil:(a) Effective energy use
Projects for installation of additional equipment to recover unusedenergy such as waste heat or equipment to raise energy use
efficiency by 10% or more, including ESCO/ESP projects.
(b) Promotion of introduction of the approved equipment for effectiveenergy use type for industries
Projects for installation or improvement of approved equipment by
the enterprises approved according to Energy Conservation
Assistant Law, which is required at their factory or work places andwhich is specified by such enterprises as contributing to theimproved use of energy in their energy conservation projects
submitted to and approved by Authority.
41

40%

DBJ
ODFC

Preferential
rate I*250%

3. Energy-saving Promotion Projects for Buildings
Repair projects contributing to improvement in energy-saving
performance (ESCO/ESP projects only)
4. Projects for acquisition of machinery and equipment that meet the
specific requirements for energy performance standard provided in
the Energy Conservation Act (“Top Runner Equipment”).
5. Electric Power Load Leveling Projects
Projects for selection and installation of such equipment that
contributes most to leveling power load from among regenerative
air-conditioners/hot-water supply systems, regenerative heaters andcity gas air coolers.
Projects for improvement of wind power generation plants (Output of
1200 kW or higher)
Projects for improvement of solar power generation plants (Output of
150 kW or higher) *5
Fuel cell introduction projects (Output of 100 kW or higher, use ofwaste heat, and 65% or higher primary energy use efficiency are
required.)
Biomass energy plant introduction projects

DBJ
ODFC

Preferential
rate I
*3

DBJ
ODFC

Preferential
rate I*450%

Preferential
rate I

DBJ

40%*1㧦Projects described in (1), (2) and (3) are provided with interest subsidies from the Energy Special Account. The
preferential rate II is applied to the ESCO or ESP projects of those fallen under the projects (1) and (2) that are
subsidized by the Energy Special Account if the benefit of interest subsidy is selected.
*2㧦The preferential rate II is applied to the projects that are provided with interest subsidies from the Energy Special Account,the ESCO or ESP projects, and the projects of which energy use efficiency are considered to be improve more than 20%
if the benefit of interest subsidy is selected.
*3㧦Interest subsidies are available by the Energy Special Account (The preferential rate II is applied to those provided withthis subsidy if the benefit of interest subsidy is selected).
*4㧦City gas air cooler projects are provided with interest subsidies from the Energy Special Account (The preferential rate IIis applied if the benefit of interest subsidy is selected).
*5㧦Includes non facility capital (projects that support capital and fund-raising, etc.)
Note) DBJ
㧦Development Bank of JapanODFC㧦The Okinawa Development Finance Corporation

2) For small and medium-sized enterprises
Target Projects(Promoting the efficient use of energy)(1) Projects for acquisition of energy conservation facilities,
including acquisition by ESCOs for lease or rental.
(2) Projects for acquisition of mechanical self-running equipment forworks by lease or rental companies.
(Promoting the introduction of specific high energy performanceequipment)(1) Projects for installation of specified industrial high-performance
furnaces, high-performance boilers and others.
(2) Projects for installation of specified additional equipment whichyields performance comparable to industrial high-performance
furnaces or high-performance boilers to current furnaces or boilers.
(Promoting the use of alternative energy sources)
Projects for introduction of the equipment that uses alternative energy
sources instead of oil, including remodeling and updating of thoseexisting.

Period of Lending: 15 years
AgencyInterest rate

JASME
NFLC
ODFC

Special interest
rate 1.

JASME
NFLC
ODFC

Special energy
conservationinterest rate *JASME

One of three typesof interest rate will
be applied
depending on theequipment.

* Interests are subsidized from the Energy Special Account.
Note) JASME: Japan Finance Corporation for Small and Medium Enterprise
NFLC : National Life Finance Corporation
Source) Prepared from “the Financial Supporting Measures on Financial and Taxation for Introducing Energy Efficiency
and New Energy Facilities (2007) by Ministry of Economy, Trade and Industry”

42

(2) Tax incentives to promote investment in the energy supply and demand structurereform (2007)
When business operators purchase the equipment which contributes to efficient energy use andutilize it for their business activities within a year, they can choose either one of the following
options:
1) Tax exemption equivalent to 7% of the equipment acquisition cost (which should not be more than
20% of the income tax or corporate tax payable.) and that applies only to small and medium sizedcompanies.
2) Special depreciation of 30% of the equipment acquisition cost in the year of acquisition, in addition
to ordinary depreciation and that applies to all companies including large sized companies.
• Energy-conserving equipment: Equipment for general industries

69 units(3) Certification process for the equipment which promotes reform of energy supply
and demand structure
Energy Conservation
Policy Planning
Office, Agency of
Natural Resources andEnergyReport on issueof certificate

The Energy Conservation
Center, Japan

Ministry of Economy, Trade and Industry
Ministry of Public Management, Home Affairs,
Posts and Telecommunications
Ministry of Health, Labor and Welfare
Ministry of Agriculture, Forestry and Fisheries
Ministry of Land, Infrastructure and Transport
Ministry of Environment

Guidance and advice forapplication of this system

Copy of Certificate

Submission ofcertificate

Application ofcertificate

Users of energy
conservation equipment
Application oftax reduction

Delivery of equipment

Tax office43

Discussion

Industrial
Associations, etc.

Issue ofcertificate sheet

Manufacturer of energy
conservation equipment

2.10 Commendation Programs toward Energy Conservation Efforts
The Energy Conservation Center, Japan conducts various commendation and awareness raisingprograms on the rational use of energy as follows:
1) “Commendation Program to Excellent Energy Managers”:
A commendation certificate is given to individuals who have long been pursuing energy
management and contributed to efficient energy management. (Sponsored by METI)
2) “Commendation Program to Excellent Energy Management Factories”:
A commendation certificate is given to factories or business facilities that have long made efforts
to rationalize the energy use, have long been pursuing energy management and contributed toenergy management as acknowledged as a paragon of successful energy management. (Sponsored
by METI)
3) “The National Contest of Energy Conservation Successful Cases”:
The winner of the contest is determined based on how well the technology or the procedures will
be developed based on theoretical grounds and elaborate research and can contribute to thefurther promotion of energy conservation. (Sponsored by METI)
4) “Commendation Program to Meritorious Energy Management Performers”:
A commendation certificate is given to individuals who have long played a central role andcontributed to promoting the efficient energy managements. (Sponsored by ECCJ)
5) “Commendation Program to Excellent Energy Management Engineers”:
A commendation certificate is given to individuals who have long provided efforts to the energy
management service and contributed to promoting the efficient energy management. (Sponsoredby ECCJ)
6) Energy Conservation Poster Contest and Essay Contest for elementary and junior high school
students. (Sponsored by METI)
7) Commendation Program to Excellent Energy Conservation Equipment1:
A commendation certificate is given to companies or teams for their commitment to promoting theefficient use of energy. The commitment to the global environment and security can be a crucial
variable for judging. (Sponsored by JMF2)8) The Energy Conservation Grand PrizeAwarded to equipment, resources or systems all high in energy conservation which have alreadyor likely to be in the market, the prize has three targets: i) home-use, ii) commercial use, and iii)
automobiles. Energy efficiency, originality, and marketability are factors for judgment.
(Sponsored by METI)
9) The commendation program for “Top Energy Efficient Product Retailing Promotion Store”.
(Sponsored by METI)
10) The commendation program for “Excellent ESCO projects”. (Sponsored by METI)The awarding ceremony is held in February and prize certificates are conferred by the Minister of
Economic, Trade and Industry, the Director-General of the Agency of Natural Resources and Energy,
the President of Energy Conservation Center, Japan, etc.
1 “Energy Conservation Equipment” represents, i) devices, facilities and systems in addition to “equipment” in general sense,ii) measuring instruments remarkably contributing to energy conservation, iii) equipment that exploits unutilized resources
such as wastes.
2 JFM = The Japan Machinery Federation

44

2.11 Publicity Activities
In order to promote energy conservation as a nationwide activity, the government hasestablished ”Energy Conservation Day” on the 1st of every month, “Energy Conservation Month” inFebruary 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 andprivate companies.

4

5

6

7

8

9

10

11

12

1

2

3

En ergy C on servatio n D ay (First d ay o f every m o n th)

䃂

䃂

䃂

䃂

䃂

䃂

䃂

䂾

䃂

䃂

䂾
G en eral Check-u p D ay fo r E n erg y(First d ay in Au gu st an d D ecem ber)

䃂

䃂

䃂

䃨
Energy Con servatio n M on th

2.12 Energy Audit Program
A few audit experts will make an interview with the persons in charge about the management
standards for the factory or building which is going to have an energy audit. Then, they will make an
on-site survey how the facilities in the factory or building are operated. After the survey, they willdraw up a list of areas which need remedies and give advice for energy saving potential and needed
actions. This energy audit program is conducted free of charge by the Energy Conservation Center
Japan.

(1) Energy audit for factories
The total number of factories received the energy audit service is 2,513 in the decade fromFY1998 to 2007.
The target factories are ones in the category of “Type 2 Designated Energy Management
Factories” by the Energy Conservation Law and undesignated factories whose annual energy
consumption is 100kL or more of crude oil equivalent.

(2) Energy audit for commercial buildings
The total number of buildings received the energy audit service is 2,306 in the decade fromFY1998 to 2007. During this period, the target buildings were ones in the category of “Type 1
Designated Energy Management Factories”.

From FY2008, the target buildings are ones in the category of “Type 2 Designated Energy
Management Factories” by the Energy Conservation Law and undesignated buildings whose
annual energy consumption is 100kL or more of crude oil equivalent.

45

3. GLOBAL ENVIRONMENTAL TRENDS
3.1 Climate Change and Energy Consumption(1) Transition of deviation from normal surface temperature

Deviation from normal value (͠)

Deviation from normal value ദ(only at the ground level)YearNote) The bar graph represents the temperature of each year, the line graph shows 5-year
running average and the straight line stands for long term trend.
Source) Prepared form “Website of Japan Meteorological Agency”(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 -19͠ if no carbon dioxide or no steam should
be contained in the atmosphere.
Source) Prepared from “Meteorological Research Notes No. 160, Carbon Dioxide Special” (TaroMatsuno, 1987, Meteorological Society of Japan, partially modified)46

(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 at the D47, D57, Siple Station and the South Pole,and the CO2 level since 1958 that are measured at Mauna Loa Observatory in Hawaii.
Ice sheet cores were all collected on the Antarctic Continent. The smooth curve is a100-year running average. The sharp rise of the CO2 level since the outset of theIndustrial Revolution is evident, going along with the increase of CO2 emissions
originating from the use of fossil fuels (See the enlarged chart since fiscal 1850).
Source) IPCC (1995), translated by the Meteorological Agency. (IPCC: Intergovernmental Panelon Climate Change) “White Paper on the Environment 2000” (Ministry of Environment)47

(4) CO2 emissions by country (2005)

Others, 23.6%
Peru, 0.1%
New Zealand, 0.1%

USA, 22.0%

Vietnam, 0.3%
Hong Kong, 0.2%
Singapore, 0.2%
Chile, 0.3%
Philippines, 0.3%
Malaysia, 0.6%
Thailand, 0.9%
Taiwan, 1.0%
Indonesia, 1.3%
Australia, 1.4%
Mexico, 1.6%

China, 19.0%

France, 1.5%
South Korea, 1.7%
Italy, 1.7%
Canada, 2.0%
UK, 2.2%
Germany, 3.0%
India, 4.5%
Japan, 4.7%

Russia, 5.8%

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”(5) Per-capita CO2 emissions (2005)
6.00
5.40
5.07

5.00
4.63
4.25

t-Carbon/Person

4.00
3.27
2.96

3.00

2.69 2.62

2.66

2.54
2.33

2.22

2.08

2.00

1.77

1.75

1.18

1.15

1.06

1.14

0.99

1.00

0.71
0.43

0.30

0.25

0.26

0.28

U
K
ad
a
So
ut Ita
l
h
K y
or
e
Fr a
an
M ce
e
A xic
us o
t
In rali
do a
ne
s
Ta ia
iw
Th an
ai
l
M a ndal
Ph ay
ili siappines
CS i hi
ng le
H ap
on or
e
g
K
V o ng
N ie
ew tn
Ze am
al
an
d
Pe
r
O u
th
er
W s
or
ld
an

C

U

C

SA
hi
n
R a
us
si
Ja a
pa
n
In
G di
er a
m
an
y

0.00

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

48

3.2 International Efforts to Counter Global Warming
The Intergovernmental Panel on Climate Change (IPCC) is the mechanism that accumulates scientificknowledge on global warming while debates on the international countermeasures have been made in
the COPs (Conference of the Parties) of United Nations Framework Convention on Climate Change(UNFCCC). These two mechanisms are complementing 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 reportcompiled 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 to accumulate scientific knowledge. In UNCED (United Nations Conference on
Environment and Development: commonly named “Earth Summit”) which was held in Rio deJaneiro 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 the atmosphere. As aresult, 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 from2008 through 2012.

(3) IPCC report on global warming
The Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) by theWorking Group I (WGI) published in January, 2007 concluded that the global warming is occurringin the climate system and the increase of the man-originated GHG is the cause of the climatechange.

Rise of Sea Level between 2090 - 2099 (the end of 21st century)
㨯18-38 cm rise is estimated in the society where the environment and economic activities areprojected to be globally balanced.
㨯26-59 cm rise is estimated in the society where the high economic growth is achieved byrecognizing fossil fuel as the important source of energy.
Rise of Average World Temperature between 2090-2099 (the end of 21st century)㨯1.8͠ (1.1͠-2.9͠) rise is expected in the society where the environment and economic
activities are projected to be globally balanced.
㨯4.0͠ (2.4͠-6.4͠) rise is expected in the society where the high economic growth isachieved by recognizing fossil fuel as the important source of energy.
‫ڎ‬Average world temperature has risen 0.74͠ in the past 100 years (1906-2005).
49

(4) Influences of greenhouse-gases on global warming (1850-1990)

Fluorides & Others
11%
Nitrous oxide (N2O)
6%
CO2
64%

Methane(CH4)19%

Source㧕Prepared from “IPCC Report” (2000)(5) History of COPs of the UN Framework Convention on Climate Change
1) COP3 outline of the Kyoto Protocol
The COP3 (the 3rd Conference of Parties) was held on December 1 - 11, 1997.
Target gases

CO2, CH4, N2O, HFC, PFC, SF6

Target year

2008 - 2012
At least 5% for all Annex I parties-5% Croatia
0% Russia, New Zealand-6% Japan, Canada, Hungary, Poland-1% Norway
Reduction target*Base year:-7% US
1990+8% Australia-8% Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, Portugal,
Spain, Sweden, UK, Switzerland, Bulgaria, Czech, Estonia, Latvia,
Lithuania, Rumania, Slovakia, Slovenia
Sinks

GHG reduction subject to afforestation is inclusive into calculation for thecommitments.

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.
50

Kyoto mechanism
Emission Trading(ET)
Joint Implementation(JI)

Parties in Annex I may participate in the Emission Trading in order toachieve their commitments.
For the purpose of meeting its commitments, Parties in Annex I may
transfer to or acquire from, emission reduction units, any other parties
in Annex I.
The purpose of CDM mechanism is to assist Parties not included in

Clean Development
Mechanism(CDM)

Annex I in achieving sustainable development and to contribute to theProtocol, while Parties in Annex I may use the certified emission
reductions accruing from such projects.

Enforcement and effect
The Convention shall become effective 90 days after 55 or more
Enforcement

parties to the UNFCCC, incorporating Annex I parties of which total
CO2 emission in 1990 is 55% or more of total CO2 emissions of all
Annex I parties, ratify the Protocol.
When no Protocol exists, the global CO2 emission in 2010 will

Effectincrease by 24% compared with 1990. When the Protocol is enforced
in 2000, the global CO2 emission in 2010 will reduce by 5.2%
compared with 1990.

2) Meetings after COP㧢㧢The COP 6 of the UNFCCC was held in Hague, Netherlands on Nov. 13 - 25, 2000 and its Part-2
Conference was held in Bonn, Germany on July 16 - 27, 2001.
The COP 7 was held in Marrakech, Morocco on Oct. 29 - Nov. 9, 2001.
The COP 8 was held in New Delhi, India on Oct. 23 - Nov. 1, 2002.
The COP 9 was held in Milan, Italy on Dec.1-12, 2003.
The COP 10 was held in Buenos Aires, Argentina on Dec.6-17, 2004.
The COP 11 & COP/MOP 1 was held in Montreal, Canada on Nov.28-Dec.9, 2005
The COP 12 & COP/MOP 2 was held in Nairobi, Kenya on Nov.6 -17, 2006

(6) Outline and achievements of COP 13 & COP/MOP 3
The COP 13 & COP/MOP 3 was held in Bali, Indonesia on Dec.3 -15, 2007
The reached agreements on the framework after 2013 are following:
1. Ad Hoc Working Group (AWG) under the Framework Convention (New AWG (Bali Roadmap))
Under the framework convention, new AWG will be launched to address the framework etc. after
2013 and it will complete its work in 2009.
2. AWG 4 on Further Commitments for Developed Countries (Annex I parties)
The future action plan of the AWG was agreed and a conclusion will be drawn from the results of
the works in 2009
3. Review of the Kyoto Protocol under Article 9 (Article 9 review)
Items to be addressed in the second review of the protocol scheduled to take place in the next year
were subjects of the discussion, however, a decision was made without defining the target items.
The COP 14 COP/MOP 4 will be held in Poland in December 2008.

51

3.3 Kyoto Protocol Coming into Effect
The requirements for the Kyoto Protocol coming into effect included that (1) not less than 55 parties tothe convention ratify the protocol, and (2) parties included in Annex I which accounted in total for atleast 55% of the total CO2 emissions in 1990 of the parties included in Annex I ratify the protocol(Figure below). The requirement (1) was met before some time, and the requirement (2) was met by
the ratification of Russia in November 2004, and thus the Kyoto Protocol came into effect on February
16, 2005. Consequently, Japan is obliged to reduce the volume of greenhouse gas emissions by 6%from the standard year level during the first commitment period from 2008 to 2012. With regard to thecommitment of the next period starting in 2013, the protocol stipulates that international examination
begin by the end of 2005. At the COP10 held in Buenos Aires, Argentina in December 2004, theholding of a seminar for governmental experts was agreed, which will serve as the foothold ofdiscussion concerning the framework after 2013.

Proportions of CO2 emissions of annex I parties in 1990
Other
Australia
FrancePolandUS

Italy
CanadaUK
GermanyJapan

RussiaSource) Compiled by the Ministry of the Environment based on data collected from eac
party by the secretariat of the convention before the COP3

52

3.4 G8 Summit(1) Outline of Gleneagles Summit
The 31st Summit (meeting of leaders of major countries) was held in Gleneagles, Scotland, theUnited Kingdom from July 6 to 8, 2005. On the issue of the global environment, the Gleneagles
Plan of Action involving energy conservation, clean energy use and other specific actions was
agreed upon as well as an agreement to begin a dialogue between the G8 nations and other countries
with significant energy needs (the outcomes are to be reported to the 2008 Summit in Japan).
During the discussions with the leaders of emerging economy countries, the G8 members asked thatthese countries shoulder greater responsibility in tackling climate change and other problems. Japanemphasized the importance of compatibility between environment protection and economic
development, use of technology for that purpose, promotion of the 3Rs (Reduce, Reuse andRecycle) and the spirit of mottainai (the spirit of virtue of thrift), and increasing efforts to curtail
illegal logging, etc.
The G8 nations agreed to proceed with actions in the following key areas: Conversion to theeffective use of energy; Cleaner power generation for future; Promoting research and development;
Financing the transition to cleaner energy; Managing the impact of climate change; Tackling illegal
logging.
Source) http://www.mofa.go.jp/mofaj/gaiko/summit/gleneagles05/s_03.html(2) Outline of Hokkaido Toyako Summit
The 34th Summit was held in Toyako, Hokkaido from July 7 to 9, 2008 under the chairmanship ofPrime Minister Yasuo Fukuda. It has been eight years since Japan last hosted a G8 summit (theKyushu-Okinawa Summit in 2000).
Summary on “Environment and Climate Change” is below:(a) Prime Minister Fukuda stated at the beginning that this was a very important summit, one thatshould determine whether humanity can move toward a low-carbon society, severing its
dependence on fossil fuels and addressing challenges including global warming and resource
depletion countries.
(b) Long-term Goal
With respect to the goal of achieving at least 50% reduction of global emissions by 2050, the G8
leaders agreed to seek to share and adopt it with all Parties to the United Nations Framework
Convention on Climate Change.
(c) Mid-term Goals
In order to achieve absolute emission reductions in all developed nations, G8 leaders agreed to
implement ambitious economy-wide mid-term goals.
(d) Sectoral Approach
It was recognized that sectoral approaches are useful tools for achieving national emission
objectives and for reducing GHG emissions.
(e) Climate Investment Funds
G8 leaders welcomed and supported the establishment of the Climate Investment Funds
administered by the World Bank to support the efforts of developing countries, and welcomed
commitments from other donors.
Source) http://www.g8summit.go.jp/eng/news/summary.html

53

3.5 Energy Conservation Activities of the Foreign Countries
Approach to prevention of global warming by the major advanced countries
Item
Greenhouse gas reduction
target set by Kyoto Protocol(1990-basis)
Ratification of Kyoto
ProtocolLaws concerning energy
conservation

Japan

U.S.

CanadaAustralia

㧙6%

㧙7%

㧙6%

㧗8%

Ratified (June 2002)

Not-ratified

Ratified (December 2002)

Ratified (December 2007)

Law concerning Rational Useof Energy(Enforcement in '79, revisionin '83, revision in '93, revisionin '98, revision in '02, revisionin '05, revision in '08)

Energy Policy Act
2005/Energy Independence
and Security Act 2007

Energy Efficiency Act(Establishment in '92,
revision in '95, revision in'97, revision in '98,
revision in '08)

Energy Efficiency Act
1997
Energy Efficiency
Opportunities Act 2006
Renewable Energy(Electricity) Act 2000

Kyoto Protocol Target
Achievement Plan (‘04)
Government’s plan andstrategy

National Goal to Reduce
Emissions Intensity2002

Project Green-A Plan for
Honouring our Kyoto
Commitment 2005

Energy White
Paper-Securing Australia's
Energy Future2004
National Framework forEnergy Efficiency NFEE
2004

National Energy Policy 2001

National Greenhouse
Strategy2002

Financial support system
concerning energy
conservation

Governmental organizations
having jurisdiction overenergy conservation

Organizations promoting
energy conservation

Subsidy measures based on
the Law for Supporting
Energy Savings and 3R
Assistance (Energy ReformTax System) and various
other financial support
measures

Assistance and tax incentive
measures based on theComprehensive Electricity
Restructuring Act or 2005
Energy Policy Act

Various tax
incentive/assistancemeasures including
preferential for renewableenergy based on theincome tax act 1998 andbio-energy incentive basedon the federal tax

Various tax
incentive/assistancemeasures based on therevised fuel tax

Ministry of Economy, Tradeand Industry (Agency for
Natural Resources andEnergy)Department of Energy-DOE

Natural Resources
Canada-NRCan

Department of Industry,
Tourism, andResources-ITR

Ministry of Land,
Infrastructure and Transport

Department ofTransport-DOT

Transport Canada

Department of Transportand Regional ServicesDOTARS

Environment Canada

Department of Climate
ChangeEnergy Technology Center(In Natural Resources
Canada-NRCan)National Appliance andEquipment Energy
Efficiency
Committee-NAEEEC

Ministry of the Environment

Environmental Protection
Agency-EPA

Energy Conservation Center,JAPAN (ECCJ)

Alliance to Save Energy

Japan Center for Climate
Change Actions㧔JCCCA)

American Council for an
Energy-Efficient
Economy-ACEEE

Institute for Global
Environmental Strategies(IGES)

Major domestic measuresfor promotion of energy
conservation

Drastic reinforcement of Law
concerning Rational Use ofEnergy (Industry,transportation, andcommercial/residential
sectors) , pursuit of theobjectives of the voluntary
technical action plan in theindustrial sector, andexpansion and review of thestandards for top-runnerequipment

Energy Policy Act of 2005
based measures for industry,transportation, public, andcommercial/residential
sectors: MEPS target
equipment expansion
continued promotion ofEnergy Star program, various
voluntary agreements andprograms, utilization ofpartnership schemes

Expansion of target
products of energy
efficiency standards basedon the Energy Efficiency
Act , promotion of
EnerGuide labelingprogram, and otherassistance measures for
sectors

Various measures basedon the white paper 2004
for industry,transportation, public, andcommercial/residential
sectors: expansion oftarget equipment of
MEPS standard, various
voluntary agreements andprograms, utilization ofpartnership schemes

Efficiency improvement of
nuclear power generation

Efficiency improvement of
nuclear power generation

Efficiency improvement of
nuclear power generation

No nuclear power
generation

Promotion of renewableenergyPromotion of renewableenergyPromotion of renewableenergyPromotion of renewableenergy

54

Item

EU

Germany

FranceU.K.

Greenhouse gas reduction target
set by Kyoto Protocol(1990-basis)

㧙8%

㧙21%

0%

㧙12.5%

Ratification of Kyoto Protocol

Ratified (May 2002)

Ratified (May 2002)

Ratified (May 2002)

Ratified (May 2002)

Energy Conservation
Ordinance 2002,
Renewable Energy Sources
Act2004, Energy
Consumption LabelingAct2002, Cogeneration
Act2002, Renewable
Energy Law2000, Energy
Industry Act1998"POPE Law"- Framework
Law on Energy 2005,
Decrees to Promote
Cogeneration2001, Law on
Air and Rational Energy
Use1996

Renewable Obligation
Order 2005, Energy Act
2004, Sustainable Energy
Act2003/ Climate Change
Bill 2007/ Energy Bill
2007 - 2008

Laws concerning energy
conservation

Directive on Energy
End-Use Efficiency andEnergyServices(2006/32/EC),
Framework Directive for
Setting Eco-Design
Requirements forEnergy-Using Products(2005/32/EC), Directive on
the promotion ofcogeneration (2004/8/EC),
Directive on the Energy
Performance of Buildings(2002/91/EC),
Directive on the promotionof electricity fromrenewable energy sources(2001/77/EC)
EU Energy Efficiency
Target 2008 “20 20 by
2020”/ EU Action Planfor Energy Efficiency 2007
(2007-2012)

Integrated Energy andClimate Programme 2007/
Energy Efficiency Action
Plan 2007/ National
Climate Change
Programme 2005

Energy White Paper 2003
(Livre blanc sur lesenergies 2003)

Energy White Paper 2003
(Our Energy
Future-Creating a Low
Carbon Economy 2003)

Government’s plan and strategy

EU Energy Conservation
Plan, SAVE Program, etc.
(Intelligent Energy Europe
2003-2006)

Energy Efficiency Action
Plan 2007

Implementation of energy
conservation program
based on the EU
Parliament/Board decision(No.1230/2003/EC)
Promotion of Kyoto
Mechanism including
Emission Trading

Ecological tax, promotionof Kyoto Mechanism
including Emission
Trading, renewable energy
promotion, and tax
preferential measures forcogeneration, etc.

Promotion of Kyoto
Mechanism including
Emission Trading

Climate change levy, tax
preferential measures basedon the climate change levy
for cogeneration power,
variation of tax rates basedon CO2 emission
introduced by the VED car
tax, and promotion of
Kyoto Mechanism
including Emission Trading

Directorate-General for
Energy and Transport (Inthe European Commission)Federal Ministry of
Economics andTechnology-BMWi

Ministry of the Economy,
Finance, andIndustry-MINEFI

Department of Trade andIndustry-DTI

Federal Ministry ofTransport, Building, andHousing-BMVBWMinistry for theEnvironment

Department forTransport-DfT

Financial support system
concerning energy conservation

Governmental organizations
having jurisdiction over energy
conservation

Organizations promoting energy
conservation

Energy Conservation
Implementation Plan 2004,
2007 (Energy Efficiency:
The Government's Plan for
Action 2004)

Directorate-General for
Environment (In theEuropean Commission)Federal Ministry for theEnvironment, Nature
Conservation, and Nuclear
Safety-BMU

European Environment
Agency-EEA

Deutsche Energie
Agentur-DENA

Department of theEnvironment, Food andRural Affairs-DEFRA

Agency for Environment
and Energy
Management-ADEME

Environment Agency
Carbon Trust
Energy Saving Trust-EST

Major domestic measures forpromotion of energy
conservation

Various measures based on
the related directives forindustry, transportation,
public, andcommercial/residential
sectors: promotion of
Kyoto Mechanism
including Emission
Trading, various voluntarycommitments, etc.

Compliance with EU
directives, reinforcement of
the insulation or equipment
standards, voluntarycommitments,
environmental tax,
utilization of economic
measures such as emission
trading, etc.

Compliance with EU
directives, various
measures based on theenergy act 2005,
introduction of whitecertificate scheme,
promotion of Kyoto
Mechanism including
Emission Trading

Compliance with EU
directives, various
measures based on thedomestic energy efficiency
plan, regulatory measurestargeting energy suppliers
based on the EEC program,climate change levy andclimate change agreement,
reinforcement of thebuilding regulation

Efficiency improvement of
nuclear power generation

Phase-out of nuclear powerscheduled in 2022

Efficiency improvement of
nuclear power generation

Efficiency improvement of
nuclear power generation

Promotion of renewableenergyPromotion of renewableenergyPromotion of renewableenergyPromotion of renewableenergy55

3.6 Japan’s Policies to Deal with Global Warming(1) Guideline for measures to prevent global warming
On March 19, 2002, the meeting of “the Global Warming Prevention Headquarters” was held in
Prime Minister's official residence, where the members agreed on “Guideline for Measures toPrevent Global Warming”. The guideline presents a broad picture 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 morethan 100 measures and action plans. What needs to be stressed here is that the guideline sets a
reduction goal for each greenhouse gas respectively. For instance, in terms of the CO2 originatingfrom the use of fossil fuels, the emission level should be reduced to exactly the same level as that of1990. And the emission level of CO2 from non-fossil fuels (e.g. waste incineration), methane anddinitrogen monoxide should be reduced by 0.5% in relation to the 1990 level. In terms of CFCs
substitute, the emission level should be curtailed to the 1% increase compared with the base year
(1995).

(2) Kyoto protocol target achievement plan
Since Japan ratified the Kyoto Protocol in June 2002, the country has been actively promoting theimplementation of measures to reduce greenhouse gas emissions, including measures for energy
conservation and new forms of energy, based on the Guideline for Measures to Prevent Global
Warming. The government evaluated and reviewed the outline in FY2004, designated as the year
for carrying out these tasks.

The Law Concerning the Promotion of Measures to Cope with Global Warming stipulates that aplan for reaching the target should be established when the Kyoto Protocol comes into effect. In
response to the protocol coming into effect in February 2005, the Kyoto Protocol Target
Achievement Plan was established, succeeding the Guideline for Measures to Prevent Global
Warming as a result of its evaluation and review in FY2004 (Cabinet decision on April 28, 2005).
The goals of this plan are to fulfill the commitment of 6% reduction and to further reducegreenhouse gas emissions globally and continuously over a long term. In addition, this plan contains
the following items as its basic concepts: environmental conservation consistent with economic
development, the promotion of technological innovation, the participation of all entities andpartnership between them as well as the securing of transparency and the sharing of information toensure the participation and partnership, the utilization of various policy tools, emphasis on theprocess of PDCA (plan-do-check-action), and international partnership for the implementation of
measures to address global warming. The table below shows measures to change the country’s
energy supply-demand structure and structure a CO2 reducing type of society.
Source) Prepared from “Materials 3-1 for the 27th Meeting of the Global Environment
Subcommittee of the Industrial Structure Council”

56

Creation of CO2 Reduction Type Society

Creation of regional/urban structures andsocio-economic systems of CO2 reduction typeSpatial or network measures

CO2 reduction type of urban design
x Promotion of Spatial utilization of energy (District heating and cooling, etc.)
x Joint efforts between different entities (Joint energy management of integrated facilities or several
buildings by utilizing IT)
x CO2 reduction through improvement of the environment deterioration by heat by implementing
measures against heat island effects, including the planting of trees

Designing of a CO2 reduction type of transportation system
x Utilization of public transportation systems (Improvement in public transportation systems andconvenience, and commuting transportation management, etc.)
x Use of eco-friendly automobiles (Dissemination of idling stop and eco-friendly driving, etc.)
x Establishment of a system to ensure smooth road traffic (Regulation of the demand for automobile
traffic and the introduction of intelligent transportation systems)
x Realization of environmentally sustainable transportation (EST) (Trial in leading areas)

Formation of a CO2 reduction type logistics system
x CO2 reduction by joint efforts of cargo owners and transportation companies (Revision of the Energy
Conservation Law, Green Transportation Partnership Conference)x Furthering of more efficient transportation (Modal shift, more efficient truck transportation)

Spatial utilization of new energy and the accommodation of energy
x Establishment of networks for distributed new energy system
x Utilization of biomass
x Effective use of unused energy sources (Energy generated from temperature differences, energy ofsnow and ice, heat from waste incineration)x Accommodation of energy between entities (Accommodation of waste heat generated in factories in
an industrial complex)

Measures taken by a company
entities
ies
or other individual entit

Efforts by
manufacturers
x Steady

implementation ofindividual actionplans
x Thorough energy
management infactories
x Efforts in theresidential andtransportation
divisions in theindustrial sector

Efforts bytransportation
x Use of eco-friendly
automobiles (describedabove)
x CO2 reduction by joint
efforts between cargoowners andtransportationcompanies (describedabove)x Furthering of more
efficient transportation(described above)

CO2 reduction in
offices and storesx Steady implementation ofindividual action plansx Thorough energy
management based on
the Energy ConservationLaw
x Improvement in theenergy conservation
performance of buildings
x Dissemination of BEMS
(building energy
management systems)

CO2 reduction inhouseholds
x Improvement in

the energy
conservation
performance of
housingx Dissemination of
HEMS (Homeenergymanagement
systems)

Measures for machinery

Individual measures

CO2 reduction in the energy supply sectors
x Steady promotion of nuclear power generationx Promotion of efficient use of oil and LP gas

x Shift to natural gas
x Promotion of introduction of new energy

x Lowering of CO2 emissions intensity in theelectric power fieldx Realization of society using hydrogen

Measures by
equipment in theindustrial sector
x Introduction ofmachinery andequipment with highenergy conservation
performancex Highly efficientindustrial furnaces
x Next generation
coke ovens

Measures for equipment in thetransportation sector

Measures for equipment in
offices, stores andhouseholds

x Dissemination of vehicles that meet the
top runner standards
x Dissemination of fuel-efficient
automobilesx Dissemination of clean energy
automobiles
x Control of the running speed of large
trucksx Introduction of equipment for idling stop
x Introduction of sulfur-free fuelx Improvement in energy efficiency in therailroad, vessel and aircraft sections

x Improvement in the efficiency ofequipment based on the top
runner standards
x Provision of information on energy
conservation type equipment
x Support for dissemination andtechnological development ofenergy conservation type
machinery, including highly
efficient water heaters
x Reduction of standby energy

1257

(3) Reinforcement of energy conservation measures in each sector
1) BackgroundAs part of the agreement reached at the COP3, held in Kyoto in December 1997, Japan pledged a
6% reduction in greenhouse gas emissions from the 1990 level, to be achieved in terms of theaverage annual value for the 2008–2012 period. CO2 emissions reduction measures related toenergy use by each sector are listed below.

2) Measures for achieving the goal and expected effectSupplyTransportation Sector

Commercial/Residential Sector

Industrial Sector

Items for achieving the goal

additional measures or notes in 2005

(Unit:1,000kl-oe)
Prospect in 2010 (as of May 2007)
Expected
Expected
Minimum Effect Maximum Effect

Implementation of Keidanren Voluntary Action
Reflect improvement effect on energy intensity.
14,98014,980Plan on the Environment
Introduction of energy conservation equipment
1,080
1,600
such as high performance furnaces, boilers
Implement energy conservation by sharing
Energy consevation by coordination among
waste heat etc. among multiple factories.
450
1,000
adjacent factories(Support coordinated projects in majorindustrial complexes.)
Reinforce energy management in middle- tosmall-sized factories based on the Energy
Reinforcement of energy management
Conservation Law, expand target factories
400
400
under the Law planned to be revised in 2005
and so on.
Dissemination of fuel-efficient construction
Encourage to use fuel-efficient construction
100
100
machine in construction sector
machine and actively utilize it in public works.
Review the top runner standards (9 items) andEfficiency improvement of equipment by top
add electric rice cookers, microwave ovens and
6,100
6,100
runner standards
others to the target products.
Reduction of standby power consumption
400
400
Expect to further improve energy efficiency of
Improvement of energy saving performancebuildings, newly built houses and existing
11,30011,300(Buildings, Houses)
houses under the Energy Conservation Law
planned to be revised in 2005.
Dissemination of energy saving equipment suchas high efficient water heater, lighting (LED),
2,600
3,100
air-conditioner, and refrigerator
Expect that consumers select energy saving
Provision of energy information to consumers products and use energy more efficiently by
500
1,000
by energy supply businesses etc.
providing information to encourage them tosave energy.
Expect the effect of the replacement of or withelectric pots, dish washing machine, compact
Promotion of replacement with energy saving
fluorescent lamps, water-saving shower heads
1,800
1,800
equipment
and energy saving devices for air-conditioning
compressor.
Dissemination of HEMS and BEMS
1,600
2,200
Reinforce energy management in officebuildings based on the Energy Conservation
700
700
Reinforcement of energy management
Law, implement on-site investigation andexpand target factories under the Law planned
to be revised in 2005
Improvement of fuel efficinecy of vehicles by
Add LP gas passenger vehicles to the target
8,700
8,700
top runner standards
products.
Dissemination of clean energy vehicles
About 2.3 million vehicles
200
900
Introduction of sulphur-free fuel and vehicles
0100that can run on the fuelExpect to be disseminated at an accelerated
Support the introduction of idling stop vehicles
1020
rate by means of support measures forEnergy saving measures concerningtransportation system such as promotion of useof public transportation, modal shift to rail
11,20012,200freight, and improvement of energy efficiency ofrail and air
New energy
15,04019,100
Promotion of introduction of cogeneration with Add the effect of measures for gas engine
4,980
5,030
natural gas
water heaters.
Promotion of introduction of fuel cell20
2,200Reduce CO2 emissions intensity (Emission per unit of user end electricity) by
Reduction of CO2 emissions intensity inapprox. 20% in FY 2010 compared to the FY1990 level.
electricity sector by promoting nuclear power

Source) Prepared from “Material-1 at the 11th meeting of the Energy Efficiency and Conservation
Subcommittee of the Advisory Committee on Energy and Natural Resource”
58

4. ENERGY CONSERVATION MEASURES BY SECTOR
4.1 Industrial Sector(1) Energy situation for the industrial sector
The significant energy efficiency improvement has been monitored for the industrial sector in Japan.
In the oil shocks period, the total energy consumption share for all sectors marked at a ratio of 4:1:1
respectively for the industry, residential and commercial, and transportation, but the FY 2004 data
marked the ratio of 2:1:1, with the industry significantly resulting in lowering its share andsuccessfully leveled off its consumption. This industrial sector’s positive trend is regarded attributed
to the effect of the regulatory measures of the energy conservation law and manufacturers andbusinesses’ accompanying efforts. For the detail of the industrial sector data, refer to the Appendix
1.3.

(2) Energy conservation policies and measures for the industrial sector
1) History of energy conservation measures for factories
Since the oil crisis, Japan’s industrial sector has played a central role in the efficient use of energy.
Due to the efforts, the sector has successfully maintained almost the same energy consumption
level as in the oil crisis despite the growing output. The sector accounts for nearly 45 % of thetotal energy demand in Japan. Despite those proactive efforts, there was a growing awareness that
more measures were necessary in order to take more effective actions on global environmental
issues. In June 1997, Japan Business Federation (Keidanren) announced the “Keidanren
Voluntary Action Plan on the Environment”, aiming to promote the efficient use of energy.
As a national policy, the Law Concerning the Rational Use of Energy (Energy Conservation Law)
was revised to reinforce the sector’s voluntary energy management. The revision of 2002
expanded the range of “the Type 1 Designated Energy Management Factory” designation, which
had been limited to five industries such as the manufacturing industry, to include all industries.
Through the revision, business operators became obligated to submit periodic reports, who own
factories classified as “Type 2 Designated Energy Management Factory”. The revised law cameinto force on April 1, 2003.
Moreover, in unison with the revision of the Energy Conservation Law, new criteria to assess
energy use of factories and business offices were enforced on April 1, 2003, which were tocontrol inefficient electric power facilities, to promote the implementation of the cogeneration
system, which is highly energy efficient and to make good use of ESCO companies. In addition,
there are financial incentives such as low interest loan programs to boost investment indeveloping energy efficient products and technologies under the law concerning energy
conservation and recycling assistance and tax breaks under the tax measures to promote theinvestment in restructuring the country’s energy supply-demand.

592) Relevant legislationi) Measures based on the Law Concerning the Rational Use of Energya) Enactment of a basic policy concerning the rational use of energy (Cabinet decisionannounced by the Ministry of International Trade and Industry (MITI) on 15 July 1993)b) Guidelines for the rational energy utilization in factories (MITI announcement No. 39
dated on 25 Jan 1999).
c) Guide for making a medium-long term plan of those who establishes factories forundertakings of manufacturers among the Type 1 Specified Business Operator’(Announcement No.1, Ministry of Finance, Ministry of Health and Welfare, Ministry ofAgriculture, Forestry, and Fisheries, MITI, and Ministry of Transportation dated on 25
February 1999).
d) Guide for making a medium-long term plan of those who establishes factories forundertakings of mine industry, electric supply industry, gas supply industry, and heat
supply industry among the Type 1 Specified Business Operator’ (MITI Announcement No.
108 dated on 25 February 1999).

ii) Supporting measuresa) Support based on the Energy Conservation and Recycling Support Lawb) Low-interest financing by the Development Bank of Japan, etc.
c) Tax system to promote investment to reform the energy supply and demand structured) Support for business operators who introduce leading-edge energy conservation equipmente) Advisor business regarding introduction of leading-edge energy conservation technologiesiii) Commendation, dissemination and publicity activitiesa) Commendation toward excellent energy control-designated factoriesb) Conduction of the ENEX exhibition, a general exhibition of energy conservation
technologies and equipment, etc.
iv) Technology developmenta) Study to lead basic technologies for the rational energy utilizationb) Development of practical application of technologies to rationalize energy utilization60

(3) Outline of the Keidanren Voluntary Action Plan on the Environment (Target and
Measures of Major Organizations)
Name of Organization

TargetThe Federation of Electric Power
Companies of Japan (FEPC)㨯In the period from FY2008 to FY2012,
aim to reduce CO2 emissions intensity(Emission per unit of user end electricity)
by an average of approx. 20% or to approx.
0.34kg- CO2 /kWh compared to theFY1990 level.

The Japan Iron and SteelFederation (JISF)

Measures to Attain Goals (2008)

㨯Reduce energy consumption in the
production process in FY2010 by 10 %compared to the FY1990 level on theassumption of the crude steel production
100 million-ton level.
㨯As an additional measure, use a million
tons of plastic waste in blast furnaces, etc.
on the assumption of the establishment ofappropriate collection systems and others.
*Take an average of five years from
FY2008 to FY2012 to achieve the above
target.

Japan Chemical Industry
Association (JCIA)

㨯Aim to reduce energy intensity to 90% of
the FY1990 level by FY2010.
㨯Develop the chemical industry’s own
technologies such as catalytic technology,
biotechnology and process technology inharmony with the environment.
㨯Contribute to CO2 emission reduction
measures in developing countries as well astransferring energy conservation
technology and environmental protection
technology which have been developed in
the chemical industry.
㨯In the period from FY2008 to FY2012,
reduce energy intensity in refineries by anaverage of 13% compared to the FY1990
level.

Petroleum Association of Japan
(PAJ)

61

1. Promotion of nuclear power generation basedon security and confidence-building
2. Further improvement of efficiency in thermal
power generation and discussion on the
management and control of thermal powersource3. Diffusion and expansion of renewable energy
4. Research and development of technology
contributing to energy conservation, CO2
recovery and storage technology.
1. Recovery of waste energy (increase ofrecovery of by-product gas, steam, CDQ
steam etc.)
2. Efficiency improvement of facilities (newinstallation and remodeling of in-house
power generators, installation of regenerative
burners, introduction of high efficiency
oxygen compressor)
3. Reduction of process, making the processcontinuous (introduction of direct rollingetc.)
4. Improvement of operation (power saving,
compressed air saving, steam saving, fuelsaving activities, reduction of ratio of
reducing agent)
5. Investment on energy conservation such as
efficiency improvement at the renewal of
facilities
1. Efficiency improvement of facilities andequipment (installation of high efficiency
facilities, replacement of equipment andmaterials etc.)
2. Rationalization of process (process
rationalization, process conversion etc.)
3. Recovery of waste energy (recovery of waste
heat and cool energy, turning waste fluid/
waste oil/waste gas into fuel etc.)
4. Improvement of operation methods(condition change of pressure, temperature,
flow etc.)
5. Fuel switch and others (fuel switch, productmodification etc.)
1. Revision of operation management(Improvement of control technology andoptimization technology)
2. Expansion of mutual utilization of waste heatamong facilities (among refining facilitiesetc.)
3. Additional construction of recovering
facilities of waste heat and waste energy(waste heat boiler, recovery equipment of
furnace exhaust gas heat, etc.)
4. Efficiency improvement by appropriate
maintenance of facilities
5. Adoption of efficient equipment and catalyst
6. Participation in “Industrial Complex
Renaissance” (sharing of heat energy amongneighboring factories in industrial complex)

Name of Organization

Japan Paper Association

Japan Cement Association (JCA)

TargetMeasures to Attain Goals

㨯In the period from FY2008 to FY2012,
aim to reduce fossil energy intensity per
product by an average of 20% and CO2
emissions intensity derived from fossil
energy by an average of 16% compared to
the FY1990 level.
㨯Strive to promote forestation in Japan andoverseas to expand owned or managed
forested areas to 0.7 million ha by FY2012.

1. Introduction of energy conservationequipment (heat recovery equipment,
introduction of inverters etc.)
2. Introduction of high efficiency facilities(high-temperature high-pressure recovery
boilers, high-efficiency cleaning
equipment, low-differential pressurecleaner, etc.)
3. Revision of manufacturing process(shortening and integration of processes)
4. Fuel switch (switch to biomass energy,
waste energy)
1. Facilities to utilize waste as alternative heat
energy source (waste wood, waste plasticetc.)
2. Efficiency improvement of facilities (fans,coolers, finishing mills etc.)
3. New installation and remodeling of energy
conservation equipment (high-efficiency
clinker coolers etc.)
4. Replacement of facilities (including repairof facilities)
1. Energy supply side measures (introductionof energy conservation facilities,
improvement of efficiency of boilers,
introduction of cogeneration, introductionof high-efficiency compressors,
introduction of wind power generation, highefficiency transformers)
2. Energy demand side measures (energy
conservation in coating line, introduction of
invertors for fans and pumps, energy
conservation in lighting andair-conditioners)
3. Upgrading energy supply methods andtechnologies of operation and management(reduction of energy loss during nooperation, reduction of air leak etc.)
4. Merger, abolition and integration of lines
5. Fuel switch
1. Promotion of switching materials (to makehigh calorie) to natural gas, etc.
2. Further Promotion of energy conservation
measures (utilization of LNG cold energy,
efficiency improvement of facilities,
reduction of heat loss, review of theoperation of LNG pumps, speed control ofseawater pumps)
1. Replacement for new and fuel efficient
airplanes and promotion
2. Optimization of routes and time byintroducing new air traffic control support
system (CNS/ATM), etc.
3. Reduction in weight of loaded equipment
and goods
4. Expansion of engine washing with water
1. Promotion of introduction of ESCO projects
2. Setting of top runner standard (further
promotion of energy efficiency bycomparing with other stores)
3. Introduction of energy conservationequipment, rooftop gardening, utilization ofnatural energy㨯Reduce energy intensity of cement
production (Thermal energy for cement
production + Thermal energy for private
power generation + Purchased electricalenergy) in FY2010 by 3.8% compared to
the FY1990 level.
* Take an average of five years from
FY2008 to FY2012 to achieve the above
target.
㨯In the period from FY2008 to FY2012,
reduce the total CO2 emissions fromproduction plants of 14 member companies
by an average of 12.5% compared to theFY1990 level.

Japan Automobile Manufacturers
Association, Inc. (JAMA)

Japan Gas Association (JGA)

Scheduled Airlines Associationof JapanJapan Department Stores
Association (JDSA)㨯In the period from FY2008 to FY2012,
reduce CO2 emissions intensity per 1m3 ofgas in the process of city gas production
and supply to an average of 12g- CO2/ m3
from 84g- CO2/ m3 in FY1990 and CO2
emission to an average of 0.54 million tonCO2 from 1.33million ton- CO2 in FY1990.
㨯Reduce CO2 emission derived fromaviation fuel by 12% per production unit
(Available seat kilometers) by FY2010
compared to the FY1990 level.

㨯Reduce energy intensity in stores (Floor
space  Energy consumption per store
hours) by 6% in the target years (from
FY2008 to FY2012) compared to theFY1990 level.

Source) Prepared from “Results of the FY2007 Follow-up to the Keidanren Voluntary Action Plan on theEnvironment (Section on Global Warming Countermeasures, Version Itemized per Business Category),in March 2008” (Website by Keidanren (Japan Federation of Economic Organization))62

(4) Overall factory check based on the energy conservation law
A field investigation targeting the “Type 1 designated energy management factories” (“overallfactory check”) has been conducted since FY 2001 guided by METI. In the investigation, theobservance situation of the criterion part of the judgment standards is evaluated. The assessment
results based on the objective standards determine whether any directions should be given. Whenthe achievement in rational use of energy is extremely insufficient, the factory/building is given
instruction to formulate and submit a rationalization plan and to implement it after the on-the-spot
inspection.

When thefactory/building
does not follow thegiven instruction

When rationalizationachievement isextremely insufficientcompared to the
judgment standardsof factories

Field investigation

Setting status ofmanagement
standards, records,
and maintenancecheck files areinspected based on
the assessment
criteria.

When theevaluation
points are lessthan 50

On-the-spot inspection(2) (1) is sent backRegional Bureau
of Economy, Tradeand Industry

investigation sheet
is sent

Instruction to formulate
rationalization plan

(1) Preliminary

Publication/directive

Target factoryof investigation

The flow diagram of full factory check is shown below.

Source) “Energy conservation measures” (2005 edition) by the Energy Conservation Measures
Section, the Agency for Natural Resources and Energy63

(5) “Spill-Over” for dissemination and promotion of energy conservation technology
1) The concept of the “Spill-Over”
As energy conservation is an important policy, the Energy Conservation Technology Strategy wasformulated in June, 2002 by the government (Agency for Natural Resources and Energy-ANRE).
This strategy puts a stress on promoting a concept of “Spill-Over” to actively spread existingenergy conservation technologies to meet technological needs across various sectors and fields.
This term “Spill-Over” is originally used as a technical term to indicate the overflow of water, but
now used in various specialized fields. In the telecommunications sector it indicates a conditionin which information communicated by electric waves is leaked; in chemistry it indicates a
condition in which chemical species move on the surface of a catalytic agent, promoting areaction; and in economics it indicates a condition in which public investment has secondary
effects. In the field of energy conservation technology, “Spill-Over” indicates a condition inwhich cross-sectional/basic technology has impacts on other fields and categories, where further
development and improvement generates better energy conservation technology. This energy
technology again has impacts on other fields, thereby reaching full growth in a cyclical way.
Applying an excellent energy conservation technology into other fields and categories andexpanding its utilization has advantages in that: It does not require duplicated investment indevelopment costs; it requires shorter development duration; and it has quick effects. Highly
effective energy conservation technologies are already in place. Spilling over the many excellent
technical elements and energy conservation methods of these technologies will immediately
contribute to the promotion of energy conservation.

2) Selection and categorization of technologies with high feasibility for spill-over
The presentation of energy conservation projects held at the Energy Conservation Center, Japan
included a wide range of reports on some excellent examples. Some cases used ingenious ways ofconservation energy or showed originality in selecting improvement themes. Some cases focusedon main improvement technologies. Other cases carried out comprehensive energy conservation
measures which gave special attention to detail, although the measures themselves were quite
ordinary. Measures based on results of technology development, those that took a hint fromspill-over from other fields and introduced new production methods, and especially those basedon development or introduction/application technology development of new processes andinnovative production technology have brought large energy conservation effects. The technology
and methods among the cases that will be useful in a wide range of fields can be grouped into thefollowing:a) Structure and approach for promotion of energy conservationb) Understanding of current conditions by an energy management system which makes theconditions visualizedc) Finding an energy conservation theme by abolishing the existing ideas and reviewing designed
values and management criteriad) Use of surplus energy, or effective use of energy that has been left unused

64e) Introduction of cogeneration, improvement of operation methods, raising utilization ratef) Remodeling equipment into or replacing one with high-efficiency equipmentg) Utilization of energy conservation methods by the Energy Service Company (ESCO) projectsh) Effective use of heat, and mutual effective use of heat and materialsi) Energy conservation measures for compressed airj) Energy conservation measures for steamk) Energy conservation measures for air conditioningl) Energy conservation by coordination among factories and workplacesm) Reduction of the consumption of the fixed consumption of energy3) Reduction of the fixed consumption of energy, which is highly-needed from thedemand side
In most of the case reports, details of a preliminary investigation for selection of a task for energy
conservation improvement and narrowing down of themes were described. One of the themesthat were listed up in most of the cases was reduction of the fixed consumption of energy or
reduction of the amount of energy consumption not linked to production, even if such energy was
not termed a constantly required amount of energy.
There are some cases about the consumption of the fixed consumption of energy, namely, thecase that it is high because the existing utility system and low-efficiency energy supply
equipment had been maintained and operated, and another cases that it is large because the excess
equipment had been maintained expecting high economic growth.
In this way, reduction of consumption of the fixed consumption of energy is a cross-sectional
theme. Rationalizing the consumption of such energy is advantageous even if the business pattern
and main products change. According to the data of past cases, technologies to reduce
consumption of the fixed consumption of energy are summarized in the table below. Excellent
energy conservation technologies can be flexibly applied to a wide range of fields, in addition to
being able to reduce energy consumption by rationalization. Evaluation of the energy
conservation technologies is carried out reviewing the following points: high-efficiency, low-loss,
downsizing, weight reduction, adaptability, as well as improvement in user-friendliness including
capability to deal with networking and safety of the technology itself.
Source) Agency for Natural Resources and Energy-ANRE: Report by the committee of the strategy
for energy-saving technology, June 2002

65

Methods of reducing the fixed consumption of energy introduced by excellent cases
Among the energy conservation measures in the industry sector, technology highly required by the demand side
is reduction of the fixed consumption of energy that is not in proportion to production by converting it to avariable energy, which is an energy required in proportion to the production. Generally, points for reducing of
the fixed consumption of energy are rationalization of a utility energy supply system, optimization of excess
demand, and reduction of consumption of a standby power requirement.
1. Method 1: Reduction of the fixed consumption of energy by raising production efficiency and reducing
production duration.
1) Cut-down of processing steps by partial integration of production steps2) Cut-down of duration by paralleling the processes that can directly influence production efficiency
3) Cut-down of duration by rationalization of preliminary treatment, preliminary processing, preheating,etc., in production processes
4) Cut-down of duration by rationalization of post treatment, energy recovery, etc. in production processes5) Cut-down or omission of post treatment duration by improvement of production technology (highprecision processing and high quality processing)6) Cut-down of heating/melting duration by improvement and rationalization of energy consumption rate7) Cut-down of duration by raising production efficiency through raising production technology by basic
technology8) Cut-down of waste time to the utmost limit, including cutting standby time in production processes
2. Method 2: Conversion the consumption of the fixed consumption of energy to the variable energy
1) Replacing hydraulic actuator system with electric actuator system
2) Replacing pneumatic actuator system with electric actuator system
3) Lowering the set pressure for pneumatic line, and converting the fixed consumption of energy to thevariable energy by using booster pump and buffer tank4) Lowering temperature level of the retention furnace, and adopting induction heating at pouring gate andadditional heating by DC torch5) In the heating process, converting the fixed consumption of energy to the variable energy by adopting
infrared heating, laser heating, and pulse combustion burner introducing
6) Reduction of heating and cooling sources by applying recovered heat in before and after heating/coolingprocesses in the same production line to preheating and pre-cooling process7) Diligently setting control values before rebooting in more detail by stopping equipment to be at standby
time by the minute and second
3. Method 3: Reduction of production space and minimization of the fixed consumption of energy amount
1) Level down of clean room, etc., and raising the cleanliness of each appliance, chamber, and container
2) Introduction of zone or spot air-conditioning by dividing air-conditioning area
3) Dividing into smaller lighting areas for the purpose of adaptive control of lighting for each area, andadopting localized lighting and natural light4) Distributed allocation and adaptive control for boilers, compressors, transformers, power factor
improvement equipment, etc.
5) Reduction of energy for lighting/air-conditioning by adopting Just In Time (JIT) production system anddividing spaces for assembly process and parts stockyard into smaller areas
4. Method 4: Rationalization and lowering loss of appliances related to the fixed consumption of energy
1) Adoption of higher efficiency appliances for lighting, air-conditioning, ventilation, water supply, andother appliances that consume the constant amount of energy2) Rationalization of fluid pump, blower, etc., by introducing inverter control system
3) Reduction of energy for lighting, ventilation, air-conditioning by mitigating work environment
conditions under unmanned operation
4) Lowering losses by cascade connection of different types of pumps
5) Reduction of waste power by reducing potential risk of steam leakage, compressed air leakage, waterleakage, etc.
6) Reduction of holding energy by improvement of adiathermancy of furnace wall, etc.
5. Other methods :1) Utilization of recovered energy with a total enthalpy heat exchanger, etc., from sensible heat of products
in batch processing system for the energy constantly required2) Reduction of pumping energy by rationalizing pressure utilization in decompression and compression
chambers in the same production line3) Converting exhaust heat/coolant in production process to the fixed consumption of energy by using
absorption type refrigerator
4) Reduction of the fixed consumption of energy amount by utilization of internally generated exhaust heatin clean rooms, etc., for drying5) Reduction of number of appliances consuming the fixed consumption of energy amount by
time-sharing66

(6) Energy conservation by coordination among factories and workplaces
Comprehensive energy conservation can be attempted by mutual utilization of exhaust heat andwaste in various neighboring factories in an industrial complex, etc. For example, hydrogen, which
accounts for 55% of the gas generated in coke ovens of steel plants, can be supplied to oil refineries,
where the hydrogen is refined and used for desulfurization, if the oil refinery is close to the steel
plant. It is expected that adoption of iron carbide as a raw material used in electric furnaces will not
only compensate the electricity required, but also allow surplus electricity to be sold and hydrogento be supplied to neighboring plants and communities.
CementSecuring inexpensive raw material
Industrial waste treatment

Steel industry

Smelting slag
Full-scale iron making method using
blast furnace
Gas purification
Waste catalyst
Coke oven gas (H2, CO)
Gas separation
Blast furnace gas, converter gas
Oil refining industry(CO, CO2)
Energy Center
Large demand for(Common power
Combustible waste
inexpensive hydrogengeneration plant)
plastics, etc.
Increase of additional
Hub function
Petrochemicalvalue of heavy oil
industry
Gasification
Increase in demand for
Fuel oilchemical raw materials
Paper/pulp(H , CO)2

Conversion of raw materials
and processes

Evaporation/
dehydration energy(7) Dissemination of high-efficiency industrial furnaces and high-efficiency boilers
1) Development of high-efficiency industrial furnaces*1
When heat efficiency is raised by setting a higher preheating temperature of combustion air using
the existing combustion technology, a rapid increase in NOx occurs due to the regional rise inflame temperature. Accordingly, it had been thought that achieving energy conservation andreduction of environmental burden at the same time was impossible. This changed, however, with
the introduction of high-temperature air combustion technology, in which combustion air
preheated to reach over 1,000 degree centigrade is rapidly blown into the furnace and fuel issprayed into this high-speed air stream and burned at high-temperature in a low oxygen density
atmosphere. In this case, the amount of NOx generation decreases by a large margin comparedto simple high-temperature combustion by raising the preheating temperature of combustion air.
In the “Field test project on high-efficiency industrial furnace introduction,”*2 high-temperature
air combustion technology was applied to commercial furnaces. The field test, which targeted
167 industrial furnaces, confirmed an energy conservation effect corresponding to reduction of
160,000 kL of crude oil equivalent through achieving a 30% or higher energy conservation rate
and 50% or higher NOx reduction. Introduction and dissemination of high-efficiency industrial
furnaces is carried out as a project for supporting business entities making efforts to rationalize
energy use in the New Energy and Industrial Technology Development Organization (NEDO).

*1 This project, which is called “development of high-efficiency industrial furnaces, etc.,” consists of three sub-projects:“combustion control foundation technology,” “development of high-efficiency industrial furnaces,” and “high-efficiency
boilers.” These projects were carried out for seven years from FY1993 to FY1999 as entrusted business by the New
Energy and Industrial Technology Development Organization (NEDO).
*2
The “Field test project on high-efficiency industrial furnace introduction” of NEDO was carried out for three years fromFY1998 to FY2000, receiving a governmental subsidy for one-third of the cost.

67Temperature of combustion air (qC)

Range of stablecombustion

III. New combustion
range (high-temperature
air combustion)

II. High-temperature
flaming range(high-temperature
combustion)
Range of unstablecombustion

High-temperature flaming

Ordinary flaming
I. Ordinary flaming range(ordinary combustion)

High-temperature
air combustion
flaming

Temperature of combustion air (qC)

Density of oxygen in combustion air (%)
Temperature of combustion air and combustion
range (conceptual diagram)

Density of NOx emission in high-temperature
air combustion

The great difficulty in introduction and popularization of the high-efficiency industrial furnaces isthat the amount of facility investment is not comparable to the advantages of energy conservation
efforts.
High-temperature air combustion technology, which is extremely effective in reducing CO2 andNOx, is distinctive of Japan and can be regarded as an innovative combustion technology that plays
a leading role in carrying out effective energy use and global warming prevention measures for theworld. Currently, development research is being conducted to practically apply this technology to
non-industrial combustion and heating facilities that consume a large amount of energy.

2) Development of high-efficiency boilers*1
The efficiency of existing industrial boilers is rather high, achieving 86%-90% (at the low
calorific value of the fuel). The boilers’ efficiency rate of energy use has also reached a high level
among heat application facilities, but its energy consumption accounted for a large portion in theindustrial sector. The project to develop high-efficiency boilers started in order to develop
high-efficiency boilers that would contribute to reduction of exhaust combustion gas such as CO2
and NOx, energy conservation, and environment conservation from perspective of global
warming prevention.
The development of high-efficiency boilers was carried out focusing on innovative elemental
technologies such as oxygen combustion and heat-exchange appliance of condensed exhausted
gas. The experiment in the pilot plant showed a greater effectiveness compared with in theexisting air combustion boilers, achieving 105.73% of total heat efficiency of the boiler (based on
low calorific value of the fuel, which equals to 98.9% in case of high caloric value).
*1

This project, which is called “development of high-efficiency industrial furnaces, etc.,” consists of three sub-projects:“combustion control foundation technology,” “development of high-efficiency industrial furnaces,” and “high-efficiency
boilers.” These projects were carried out for seven years from FY1993 to FY1999 as entrusted business by the New
Energy and Industrial Technology Development Organization (NEDO).

68

Reduction of oxygen production cost (PSA oxygen supply device, etc.) in the case of oxygen
combustion, and selection of low-priced dew point-corrosion-proof materials in the case ofheat-exchange appliance of condensed exhausted gas (economizer using steam’s latent heatrecovery) are the future challenges. At the moment, they have potential for becoming effective
technologies when separation and recovery of CO2 will be required as a measure against global
warming in the future.

(8) Dissemination of cogeneration and fuel cells
1) Cogeneration
Cogeneration, a combined heat and power generation system, is a system in which energy is first
converted into electric energy or motive energy by activating an energy converter (driver) and theexhaust heat that is generated in the energy conversion process is then effectively used forthermal energy demand (steam, hot water, cold water). In a cogeneration system, the following
appliances are used as drivers:- Internal combustion engine: diesel engine, gas engine, gas turbine- External combustion engine: steam turbine, stirring engine- Fuel cell: PAFC (phosphoric-acid type), MCFC (molten carbonate type), SOFC (solid oxidetype), PEFC (polymer electrolyte type)
Drivers used for cogeneration are mainly internal combustion engines. The number of the engineswith cogeneration installed, the capacities, fuel used, and the main uses are shown in the tablebelow. Gas engines and gas turbines are able to effectively use gas fuels made from solid waste
and biomass. At the moment, about 60% of cogeneration systems are adopting gas firing, which
emit

less

environmental

burdenincluding

CO2,

SOx,

NOx,

etc.,

and

are

more

environmentally-friendly.

Main drivers and features of cogeneration
Diesel engine

Gas engine

Gas turbine

Number of installation

Approx. 60%

Approx. 30%

Approx. 10%

Capacity

Approx. 40%

Approx. 10%

Approx. 50%

Fuel used

Diesel oil, Crude oil

City gas, LNG

Mainly city gas, LNG

Main use

Civil use

Civil use

Industrial use

The total heat efficiency of a cogeneration system is 70 - 80%, which corresponds to 25% of theenergy conservation of a thermal power generation boiler system. However, this value can beobtained under the condition that 100% of the exhaust heat is effectively used. Accordingly, thepoint is that the exhaust heat should be applied to facilities that are expected to demand heat, suchas factories, business offices, hospitals, stores, etc.
The introduction of cogeneration is expected to be pushed forward, because it will improveenergy security and contribute to measures against global warming. The future challenge is todevelop compact and high-efficiency gas engines and gas turbines (micro gas turbines) for civiluse. Fuel cells, which are able to generate highly efficient electricity as well as exhaust heat,69

can make highly effective cogeneration motors. The future challenge for fuel cells is to lower the
price.

2) Fuel cells
Fuel cells work based on a chemical reaction in which the fuel cells generate electricity and waterat the same time by consuming hydrogen and oxygen. This is the inverse reaction of electrolysis
of water. Fuel cells have various advantages including high power generation efficiency, small
emission of environmental burden, adaptability to a wide range of facility capacities, andapplicability to everything from distributed power generation to mass-concentrated power
generation. The table below summarizes the main types of fuel cells and their characteristics.

Main types of fuel cells and their characteristics
PAFC(phosphoric-acid type)

MCFC(moltencarbonate type)

SOFC(solid oxide
type)

PEFC
(polymerelectrolyte type)

Charge carrier

Hydrogen ion

Carbonate ion

Oxygen ion

Hydrogen ion

Operatingtemperature

Approx. 200qC

600 - 700qC

Approx. 1,000qC

80 - 100qC

Facility
capacity

20 - 500 kW

500 kW - 1,000
MW50 kW – 100
MW

1 - 100 kW

Efficiency at
generating end

Approx. 45%

50 - 65%

55 - 70%

35 - 45%

Main use

Distributed powersources (cogeneration)

Distributed andmass-concentrate
d power source
substituting fire
power

Distributed andmass-concentrate
d power source
substituting fire
powerPower source forhousehold use anddriving source for
automobiles

Points to note

Poisoning of platinum
catalyst;
CO should be 1% andless.

Catalyst is not
required.

Reformer is not
required.
Catalyst is not
required.

Poisoning of
platinum catalyst;
CO should be 10
ppm and less.

Fuel cells are regarded as a prospective technology to solve global warming problems in a futurehydrogen-oriented society. This is because fuel cells are applicable to various fields including
vehicles such as passenger cars and buses, cogeneration systems for households and officebuildings, distributed power generation systems installed in places needing to replacemass-concentrated commercial power generation systems, and power sources to replacesecondary batteries for PCs and cellular phones. However, all types of fuel cells face challenges
to improve durability, prolong life span, and lower cost. Especially, for the types that require a
catalyst, cutting down platinum use and developing alternative catalysts are big challenges.

70

(9) Important check points concerning technical energy conservation measures
Business
category
SteelPetrochemical

Paper/pulp

Operation management ofmajor production facilities
Advanced combustion control
by computers, etc.

Optimization ofnaphtha-cracking furnace
Combustion control of furnaces
such as naphtha-cracking
furnace
Optimization of reflux ratio of
distillation towers andoptimization of steam pressure
Optimum operation control bycomputers, etc.

Optimization of temperature,pressure, and material density
in each process
Optimization of electricity
consumption by operation
control of power generation
facility and processing
appliances
Optimization of steam pressure
Reinforcing of water
conservation
Effective use of waste heat

Conditions of waste energy
recovery (sensible heatrecovery for cokes and sinteredore)
Introduction of high-efficiency
heating furnaces
Temperature control of furnace
wall
Moisture control of coal charge
Reduction of coking time andcoking temperature

Waste heat recovery from
naphtha-cracking furnace
Insulation of pipes and furnace
casingEffective recovery of reaction
heatCollection of steam drain
Construction of additional
high-efficiency heat exchanger

Installation of high dew point
sealing hood in paper machine
Installation of high-efficiency
heat exchanger
Installation of automatic
combustion control appliances
Use of heat pump
Installation of waste kiln-heatrecovery appliance
Use of waste as fuels

Idling prevention and speed
control of electric motor for aroller of rolling millPower generation by exhaustgas pressure from the furnace,exhaust heat recovery power
generation
Introduction of CDQ steam
driven expansion turbine

High-efficiency compressor
Control of number of operating
units
Control of rotation speed
Intake air temperature controlof gas turbine
Rotation speed control of
motor

Rotation speed control of motor
Use of medium and low
pressure surplus steam for
power generation using
mixed pressure turbine
Electricity conservation of dust
extracting process

Continuous casting equipment
Direct rolling equipment
Continuous annealing
equipment
Optimization control ofintervals of regenerative burner

High-efficiency radiation tubeof naphtha-cracking furnace
Introduction status of
low-temperature low-pressure
process by changing catalysts

Sealing of process,strengthening of pressurization,
raising density
Heat cascade use control of
paper machine

Items(1) Operation
management(2)

Additional facilities

ThermalElectrical(3)Production
facilities

Low density polyethylene
production plant
Gas phase polypropylene
production plant
Utilization of waste plastics forblast/coke furnaces

Utilization of pinch technology(4) Others

Source) Survey by the Energy Conservation Center, Japan71

Efficient use of black liquor
recovered from pulp processing
Multiple-effect condensed
and canned black liquor
High-temperature
high-pressure recovery
boilerSludge combustion boiler

Business
category
CementPlate glass

TextilesAutomobiles

Kiln combustion
controlManagement ofsolution tank(conditions of burner)

Operation managementof boilers (automatic
control of O2)
Operation under the
optimal conditions byattaching temperatureand moisture sensor
Control of dyeing heatpattern

Operation managementof major production
facilities(high-efficiency
operation, etc.)

Strengthening ofthermal insulation ofkiln and suspension
preheater
Renovation ofpreheater
Power generation using
medium-/low
temperature waste heat
High-efficiency clinker
cooler

Installation of waste
heat boiler
Operation condition
Strengthening ofthermal insulation ofsolution tankExhaust heat recovery
Drain recovery
Heat recovery fromwaste fluid
Insulation for pipes
Shortening pipes
Operation withconstant loading(accumulator)

Heat insulation of/heatrecovery from oven inpainting process
Waste heat recovery
and heat insulation of
furnace in heat
treatment process

Computer control ofmotive energy (rotation
frequency control, etc.)
Vertical millMill with preliminary
millingHigh-efficiency
separator

Rotation frequency
control of motor

Rotation frequency
control of motor
Low-pressure loss typetransformer

Load control of motorin machine processing
process
Switch from electricheating (heater, etc.)
to direct heating
Control of number androtation speed ofhydraulic/pneumatic
motor

Short-liquor dyeing
deviceWater-saving washer
Heat setter
High-efficiency dryer

Reduction of air
circulation amount inpainting booth inpainting process
Reduction of standby
electricity by
conversion of
hydraulic/pneumatic
driving into electric
drivingPrevention ofgenerating surplus
electricity by rapid
high-precision control
of welding current
Rationalization ofpainting/drying process

Installation of
distribution type boiler
Introduction ofcogeneration system

Heat recovery of solid
waste incinerator(power generation
steam, etc.)
Introduction ofcogeneration system

Items(1) Operation
management(2)

Additional facilities

ThermalElectrical

NSP kiln
SP kiln
High-efficiency millFluidized bed cement
calcination furnace(3) Production
facilities

Improvement of defectrate in quality control(4) Others72(10) Challenges in typical energy conservation technology development
Business
category
SteelPetrochemical

TextilePaper/pulp

Future challenges in energy conservation technology development
Points for attention
Typical techniques
Problems
Rationalization of production
Integration of high-speed
Development of zero defect moldprocess
continuous casting process andcasting technology
hot rolling process
Cut-down of reduction energy Utilization of scrap (electric
Production of virgin iron for
furnace, cold iron-resource
dilution of electric furnace (DR, IC)
Exhaust heat recovery
melting furnace)
Lateral production of iron andEstablishment of optimal process
Development of new ironhydrogenproducing method
Direct iron ore melting
Establishment of optimal process
Development of new coke
reduction technology
production method
Future generation coke making
Establishment of optimal process
technology
Establishment of optimal process
Development of materials forMulti-purpose converter
enabling high-efficiency
Material technology for
Improvement in extremely highextremely hightemperature tolerance/durability
temperature/highly critical
based on hyperfine structure
turbineobservation technology
Rationalization of production
Gas phase polypropylene
Development of low-temperature,process
production technology
low-pressure, and high selectivity
catalyst
Development of low energy
Separation by membrane,
Development of optimal process fordecomposition technology
extraction, and absorption
high-performance membrane
separation
Reduction of environmental
Development of catalytic
load
cracking process of naphtha
Analysis and evaluation technology
Green chemistry
using bio-technology/extremely
critical catalyst
Minimization of circulating
Stabilization of dyeing quality
Nozzle-type dyeing device
stain solution
Dyeing measures for fabrics with
Airborne dyeing device
heavy weigh per unit
Minimization of washing
Counter-current washer
water
Removal of impurities such as lint
Use of drying heat cascade
Establishment of decompressing
Vacuum drying systemprocess
Non-aqueous system
Improvement of treatment capacity,
Processing technology using
processing
etc.
plasmaDyeing processing technology
Non-heating processing
Development of treatment applianceunder the condition of critical
CO2 density
Processing equipment using
Change in dyeing processing
Improvement of treatment capacity,ozone
systemetc.
Improvement of productivity, etc.
Ink-jet printing technology
Change in paper making
Improvement ofDevelopment/introduction of newprocess
dehydration/draining efficiency draining technology
Improving efficiency of paper
High-density paper making
Maintenance of paper quality
making method
technology
Improving efficiency of
Direct causticizing technology
Prevention of lowering of strength
causticizing process, omission High-temperatureof pulp
of caustic kiln
high-pressure causticizing
Development of gouttechnology
removal/filtration technology in
Energy conservation ofhigh temperature
pulping process
Cooking using preliminary
Searching for lignin-decomposing
treatment of microbes in chips
fungi and enzymes and increasing
Increase in amount of power
Bio-bleaching technology
their reaction speed, andgeneration by high-efficiency
consideration of their application touse of black liquor
Increase in amount of powerindustrial technology
generation by gasification
Development of recovered lignin
technology and re-powering
utilization and improvement orefficiency in recovering chemicals
Decrease in energy required forgasification

Source) Surveyed by the Energy Conservation Center, Japan73

4.2 Equipment(1) Energy situation for equipment
In Japan in the field of equipment, the per-household energy consumption has increased, thus
contributing to the country’s steady increase in the household sector. This trend is regarded causedby the country’s societal factors such as lifestyle change leading to more energy consumption,individual’s multiple ownerships of home appliances, and so on.

Recent trend of appliance ownership rate at household (1990 to 2006)
275

Number of Units / Household (%)

250
225

Televisions

200

Space Heaters (oil)175

Room Air-conditioners

150
Electric Refrigerators
125
Personal Computers
100
Toilet withwarm-water shower
DVD Players

75
50
25
0
'90 '91'92 '93'94 '95'96 '97'98 '99 '00'01 '02'03 '04'05 '06

FY

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”
Evolution of energy consumption and number of households
140

Energy consumption
135

Number of households
Energy consumption/household

Index: FY1990 as 100

130

125

120

115

110

105

100
1990

1991

1992

1993

1994

1995 1996

1997

1998

1999

2000 2001

2002

2003

2004

2005

2006

FY

Source) Prepared from “Comprehensive Energy Statistics”, “Basic Resident Resister”
74

Annual energy consumption of products (estimation)

Ranking

Products

1
2
3
4
5
6
7
8
9
10
11
12
13
14

Passenger vehicles
Freight vehicles
Air conditioners
Gas water heaters
Space heaters
Flourescent lighting fixtures
Standard transformers
Electric refrigerators & freezers
Oil water heaters
Gas cooking appliances
TV sets
Incandescent lighting fixtures
Electric hot-water pots
Vending machines
Electric toilet seat with warmwater-shower
Routers
Rice cookers
Prionters, Monitors
Elevetors
Electric space heaters(including warm-air type)CPU, Personal computers
Microwave ovens
Showcases
Refrigerator-freezers, Freezers,
Refrigerators (commercial use)
Electric carpets
Telephones
Laundry machines, Clothes dryers
Diswashers (including thosewith dryers)
Electric irons
Stereo sets
Ventilators
Copiers, MFDs
VCRs
Hair dryers
Vacuum cleaners
Fax machines
DehumidifiersElectric fans
Magnetic disk units
DVD players
Electric clothes dryers
Electric pans
Electric massagers
DVD recorders

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
*

Number ofowned units(10㫩units)

Shipment
volume in2004(10㫩units)

2004
56,28818,459109,449
35,93045,446384,144
12,921
54,255
4,518
49,444
98,771
197,259
29,743
2,645

2004
4,534
1,070
7,455
3,427
5,606
40,705
330
4,590
530
7,531
8,572
19,8884,656
366

EnergyConsumption(crude oil
equivalent:
10㫩kl)
2004
51,58235,085
11,521
8,300
6,895
6,781
6,374
2,906
2,755
2,489
1,264
1,095
599
589

15,585

2,988

406

10,65737,22446,532
580

3,319
6,310
14,386
34

401
385
373
333

6,926

881

300

36,34732,057
1,174

12,609
3,475
158

254
233
227

1,004

180

181

8,643
60,01940,178

1,058
6,515
4,487

166
154
152

4,110

927

116

12,733
40,66357,515
4,190
64,14026,17339,571
16,257
4,285
11,19339,60019,415
1,432
5,918
10,75225,557

1,927
1,663
7,624
728
1,663
4,033
5,863
3,432
679
1,419
27,550
3,192
154
927
1,283
4,381

112
97
89
83
76
76
72
50
44
37
30
25
21
12
4
98

* The value are shown here as reference only because DVD recorders are included in VCRs.

Notes): Current target products under Top Runner Program
No.12 and 16 are the next target products.
75

Contrarily, the energy efficiency of home electronics equipment and office equipment have largely
improved comparative to earlier energy performances in equipment, such as air-conditioners,
refrigerators/freezers, TVs, and VCRs.

Evolution of refrigerators’ annual electricity consumption(1998-2007 Models, Rating capacity 401~450L)
윌Wh

Annual Power Consumption

Minimum Value

Maximum Value

1000

900
840

900

770

800
700
600
500

740

720

800

660

680
620

750
690

660

640
590

600
510

610
550

540

400

450

300
200
100
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY

Source) Prepared from the data by The Japan Electrical Manufacturers’ Association(2) Energy conservation policies and measures for equipment - Top Runner Program
1) Outline of top runner program(a) BackgroundTo diffuse highly energy efficient appliances and vehicles, the revised energy conservation law
makes it obligatory for manufacturers and importers to ensure their products to meetenergy-saving target standards. The government launched the Top Runner Program based on the1999 amended law under which the standards are set based on the most energy efficient productcommercially available in a given category. For each manufacturer and importer, the weighted
average efficiency of all units shipped within the same category must meet the standards for thatcategory by the target year decided for each category.
(b) Designated products:
Target products are ones designated as machinery and equipment which are commercially usedin large quantities in Japan, consume significant amount of energy on use and intensively
required with “energy consumption efficiency”.
(c) Target standard values:
As for the designated products, manufacturers and importers etc. are obliged to meet the target
standard values concerning “energy consumption efficiency”. Target standard values are set
based on the most energy efficient product commercially available in the market in a given
category.

76

(d) Classification of target standard values:
Target standard values are set in classifications considering a variety of models with different
sizes and functions etc. for each product.
(e) Target fiscal years:
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 to 8 years from the base fiscal year.
(f) Judgment methods of achievement:
In the target fiscal year, achievement of the target is judged based on such indicators as aweighted average of shipment by product for each product category per manufacturer andimporter etc. Top Runner Standards are different from the concept of MEPS.
(g) Measurement methods:
The measurement method primarily uses JIS (Japan Industrial Standards).
(h) Indications:
Responsibility is assigned to indicate the “energy consumption efficiency” of the device incatalogs, on the device itself, etc.

2) Target achievement verification procedures
For each of the companies that manufactures or imports machinery and equipment specified in
the Top Runner Standard, each machinery and equipment category’s weighted average value mustachieve a standard value by the target fiscal year. To confirm the achievement of standards,
questionnaires are distributed to machinery and equipment manufacturers soon after the target
fiscal year and information are obtained on numbers of units shipped, energy consumption
efficiency, and the like in the target fiscal year. The surveys are conducted by the Agency for
Natural Resources and Energy that is responsible for enforcing the Energy Conservation Law.
Weighted average energy efficiency = the sum of {(the number of units shipped domestically foreach product name and type) × (energy consumption efficiency per unit)} ÷ the total number ofunits shipped domestically.
To confirm display implementation, product catalogues, as the primary source for displays, areperiodically and continuously collected. For displays on products themselves, submission ofname plates, etc. or retail store surveys are conducted to confirm the implementation.

3) Measures to be taken when the target values are not achieved
If the results obtained from the energy efficiency surveys mentioned in the previous paragraphappear to be remarkably low compared to judgment standards and a need to make suitable
improvements in energy efficiency is recognized at the time, the Minister of Economy, Trade andIndustry (in cases involving cars, the Minister of Economy, Trade and Industry and the Ministerof Land, Infrastructure and Transportation) offer recommendations to the manufacturer inquestion as required. Further, if this advice is not followed, the recommendations are made public

77and the manufacturer may be ordered to follow the recommendations.
Manufacturers subject to these recommendations and advice should be limited to those whose
improvements in manufacturing and imports of equipment are considered to have a substantial
impact on energy consumption in Japan. Targets should be limited to manufacturers whoseorganizational capacity is economically and financially firm enough, that is, limited to
manufacturers for which there will be no problems regarding social appropriateness. For eachmachinery or equipment product covered by the Top Runner Standard, a cutback in shipping
volume will be set according to production and import volume as stipulated by the government
decree. If there are categories that partially fail to achieve goals among the many items, it will not
be appropriate to advise the manufacturer immediately. Instead, reasons why goals were notachieved, other companies’ achievement records in the same field, achievement records in othercategories of the company in question, and percentages of categories that have not achieved
target standards in overall categories, and other factors will be comprehensively evaluated. These
measures are implemented for manufacturers that do not adhere to display rules. For displays,
cutbacks based on manufacturers’ production and import volume are not applied and allcompanies are subject to these measures in spite of small volume in production and import.

4) Evaluation criteria for machinery and appliances under top runner program
The evaluation criteria, etc. for manufacturers, etc. regarding improvement of the performance of“Designated Machineries” pursuant to the provision in Paragraph 1 of Article 18 of the Law
Concerning the Rational Use of Energy (Law No.49 of 1979) are defined and notified by thecategory of machinery and appliance. The details of the evaluation criteria for machinery andequipment are shown in the web-site of ECCJ. (http://www.eccj.or.jp/top_runner/index.html)

785) Designated products and its expected energy conservation effects by the target fiscal year
Efficiency
Improvement(Projected)
Gasoline, Diesel
2015
2004
23.5%
LP Gas
2010
2001
11.4%
1 Passenger Vehicles
Small Buses
2015
2004
7.2%
Route Buses, General Buses
2015
2002
12.1%
Gasoline, Diesel
2015
2004
12.6%
2 Freight Vehicles
Trucks
2015
2002
12.2%
Non-ducted/Wall mounted/Cooling䍃Heating/under 4kW
2010
2005
22.4%
3 Air Conditioners
Other than the above(Cooling䍃Heating)2007*
1997**
63.0%
4 TV Sets
LCD, Plasma
2008
2004
15.3%
5 Video Cassete Recorders
2003
1997
58.7%
6 Flourescent Lights
2005
1997
16.6%
7 Copying Machines
2006
1997
30.0%
8 Computers
2008
2001
69.0%
9 Magnetic Disc Units
2008
2001
71.0%
10 Electric Refrigerators
2010
2005
21.0%
11 Electric Freezers
2010
2005
12.7%
Gas
2006
2000
1.4%
12 Space Heaters
Oil
2006
2000
3.8%
Burner Section
2006
2000
13.9%
13 Gas Cooking Appliances
Grill Section
2008
2002
27.4%
Oven Section
2008
2002
20.3%
Gas Instant Water Heaters, Bath Tub Gas Water Heaters
2006
2000
4.1%
14 Gas Water Heaters
GWH for Space Heating (with no Hot Water Supply Function)
2008
2002
3.3%
GWH for Space Heating (with Hot Water Supply Function)
2008
2002
1.1%
15 Oil Water Heaters
2006
2000
3.5%
16 Electric Toilet Seats
2012
2006
9.7%
17 Vending Machines(Addition of Paper Container, Cups)
2012
2005
33.9%
Oil-filled
2006
1999
30.3%
18 Transformers
Molded2007
1999
19 Microwave Oven
2008
2004
8.5%
20 Electric Rice Cookers
2008
2003
11.0%
non DTB-capable
2008
2004
22.4%
21 DVD Recorders
DTB-capable
2010
2006
20.5%
*2007 freezing year => Oct. 1, 2006 through Sep.30 2007, **1997 freezing year => Oct.1, 1996 through Sep.30, 1997
TargetFiscal Year

Equipment

Base
Fiscal Year

Source) Prepared from “Annual Energy Report FY2008” (METI), “Top Runner Program (Dec.2007)” (ECCJ)

6) Efficiency improvement achieved by top runner products
Equipment
Gasoline Passenger Vehicles #Diesel Freight Vehicles #Air Conditioners #Fluorescent Lamps #TV Sets (CRT)Video Cassette Recorders
Copying Machines
Computers
Magnetic Disc Units
Electric Refrigerators
Electric Freezers
Vending Machines

TargetFiscal Year

2010
2005
2004*
2005
2003
2003
2006
2005
2005
2004
2004
2005

Base
Fiscal Year

1995
1995
1997**
1997
1997
1997
1997
1997
1997
1998
1998
2000

Efficiency
Efficiency
Improvement Improvement(Actual)(Projected)

22.8% 26.0% (FY2005)
6.5%
21.7%
66.1%
67.8%
16.6%
35.6%
16.4%
25.7%
58.7%
73.6%
30.0%
72.5%
83.0%
99.1%
78.0%
98.2%
30.5%
55.2%
22.9%
29.6%
33.9%
37.3%

*2004 freezing year => Oct. 1, 2003 through Sep.30 2004, **1997 freezing year => Oct.1, 1996 through Sep.30, 1997

Source) Prepared from “Annual Energy Report FY2008” (METI), “Top Runner Program (Dec.2007)” (ECCJ)
For the product categories marked with #, energy efficiency standard values are defined by the energy
consumption efficiency (e.g. km/l), while those without # mark are by the amount of energy consumption(e.g. kWh/year). In the above table, values of the “Energy efficiency Improvement” indicate the rate of
improvement calculated based on each standard. Example: If the efficiency is improved from 10 km/l to 15
km/l, the improvement rate is calculated as 50%. (It is not calculated as the improvement of fuelconsumption by 33% from 10 liters down to 6.7 liters for a 100km drive.) ; and if the efficiency isimproved from 10 kWh/year to 5 kWh/year, the improvement rate is 50%.
79

80

(3) Dissemination and outreach measures for equipment
1) Energy labeling program
The energy-saving labeling system introduced as JIS standard in August 2000 started to give
better information for consumers of energy efficiency of home appliances. As of April 2007, thelabeling is applied to 16 products detailed in the below table. Target years are set per productcategory.
Energy conservation standard Annual electricity
consumption
achievement percentage

Target year FY2006

108䋦
䋦

175kWh/year

The labeling is colored in orange for a product which doesn't achieve the target standards ofenergy efficiency, while the labeling is colored in green for a product that achieves over 100% of
the target standards. The "achievement rate of energy efficiency standards" is given as apercentage indicating how far the product's energy efficiency is improved from the target value
with the special definitions given as follows for each indication of the labeling information:
Energy efficiency: Measurement process is set per product category. The indicated values are
more efficient with the higher rate of energy performance rate and less energy efficient with thelower rate of energy performance rate.

2) New appliance labeling program
Following the introduction of the original labeling program referred as above, the government
revised the energy conservation law to include the new information requirement of the appliances’
expected electricity cost or fuel usage information. The new comparative rating system which ispresented as five-star rating provides consumers with comparative purchasing with other productsin the same category. Cost information is now required for the designated three products.

Target products for the labeling programs㧖

Category

Air conditioners
Electric refrigerators
Electric freezers
Fluorescent Lights
Electric Toilet Seats
TV sets
Computers
Magnetic disksSpace heaters
Gas cooking appliances
Gas water heaters
Oil water heaters
Transformers
Electric rice cookers
Microwave Ovens
Video-cassetterecorders
DVD recorders

The new “Multi-Stage
Indication of “Expected
Rating System”
Energy Labeling
Annual Electricity Bill”(Uniform Energy-saving
ProgramInformation
Label㧕

ż
ż
ż
ż
ż
ż
ż
ż
ż
ż
ż
ż
ż
ż
ż

ż
ż

ż
ż
ż
ż
ż
ż

ż

ż㧔Fuel㧕ż㧔Fuel㧕ż㧔Fuel㧕żżżżż㧖 Only TR products are targeted. Second hand products are not targeted.

813) Retailer assessment program
The new retailer commendation program was introduced, expected tocontribute to further energy efficient product sales. Selecting applianceretailers who are active in selling and promoting energy-efficient products,
the program awards a label to the store called as the “Top Energy Efficient
Product Retailing Promotion Store”. The selection indicators include shop
assistants’ knowledge, in-company training histories, etc. In FY 2004, 43
large-scale stores and in FY 2005 88 large-scale stores and 18 small-scale
stores were awarded. Effective in FY2004, Minister of Economy, Trade andIndustry Award and Minister of Environment Award were established.

4) International energy star program
Established in the US in 1992, the international Energy Star program is avoluntary product labeling program designed to promote energy-efficient
products. The US program has much wider application including programsfor buildings, housings, domestic appliances and more. Japan joined in 1995
and only participates in the office equipment application, including personal
computers, monitors, printers, fax machines, copying machines, scanners,
and multifunction devices.

82

4.3 Commercial and Residential Sector(1) Energy situation for the commercial /residential sector
As referred in the previous equipment chapter, the significant improvements in the equipment
energy efficiency have been monitored in Japan. However, contrary to the trend, the country’s final
energy consumption of the residential and commercial sector has been rising. This trend is regarded
attributable to the increasing the number of households, convenience and affluence thriving
lifestyles, the increase of multiple appliances ownership per household, bigger size trend in
appliances, and the increase of high-tech appliances, which use energy heavily.

Commercial /residential sector final energy consumption
Energy Consumption(million in crude oil equivalent kL)

140
120

Commercial
100
7 0 .07 2 .67 5 .07 3 .67 5 .27 7 .47 6 .36 1 .380
5 2 .360

3 0 .82 8 .240

2 6 .4

Residential

2 5 .91 7 .720
1 9 .82 5 .5

2 7 .7

3 3 .0

'73

'75

'80

4 0 .34 2 .7'85'90

5 0 .95 4 .65 3 .15 5 .05 3 .45 4 .15 6 .35 4 .4

'95

'00

'01

'02

'03

'04

'05

'06

0
'70

FY

Source) Prepared from “Comprehensive Energy Statistics”
In the commercial sector, the energy demand has still been increasing in this sector, although
the per-floor space energy intensity has remained roughly flat in recent years shown as below.
This is due to the increase of the total floor-spaces and in FY2006, it showed approximately
38.2% rise from FY1991 in the country in all business types.

Energy consumption per-floor (1,000m2) of buildings

Crude oil equivalent kL /1,000 m2

46.0
44.7

45.0
43.7

44.0

43.6

43.3
41.5

41.2

41.0

40.2
39.8

41.3
40.7
40.0

39.7

40.0
39.0

43.8

42.7 42.8

43.0
42.0

44.6

40.1

38.0
37.0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 FY

Source) Prepared from “Comprehensive Energy Statistics”, “EDMC Handbook of Energy & Economic
Statistics in Japan (2008)”
83Buildings floor space share by business type (FY1990 and 2006㧕
㧕
1800

O ffic e ,Bu ildin gs
2 6 .01600

Schools 20.3

Hospitals 5.8

Total Floor Area (million square meters)

1400

1200
Wh o le saler e t aile r s
2 3 .7

2 4 .41000

2 2 .1800

S c h o o ls
2 0 .2600
2 4 .2Othe rs
1 1 .9400
1 1 .4
5 .0

200
1 .9

6 .0
3 .9

Ho spit als
Th e at e r s,
6 .0
L e isu r e plac e s
Ho t e ls 5 .3
2 .0
1 .2

0
1990

2006

R e st au r an t s 3 .7
De par t me n t
st o r e s,
S u pe r mar ke t s
1 .3

FY

Source㧕Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”(2) Energy conservation policies and measures for the residential sector
1) Outline of the policies and measures for the residential sector
Although the household sector has made a progress in terms of energy efficiency of
appliances, its energy demand are also increasing due to the increasing ownership of new
appliances and the growing public demands to seek for more comfortable and convenient
lifestyle.
In order to deal with this trend, following collective measures have been launched: the firstmeasure focuses on improving energy efficiency in machinery and equipment, the second
measure aims to improve the heat insulation performance in residences and buildings and thethird one manages the total energy demand.
In terms of the first one, strict standards have been set by introducing the Top-Runner
Program. At first it targeted the appliances specified in the energy conservation law such as
air conditioners and TVs. Later, the target range was extended to include gas and oil
appliances/equipment, vending machines, etc. with the revision of the law in December,84

2004. Moreover, in the field of the hot water supply system, which accounts for 30% ofenergy consumption in the households, more energy-efficient system has been developed andcommercialized. And the support programs to make a smooth introduction in the market areunderway.
As for the second measure, the activities to promote the energy conservation labelingprogram for residences and the subsidy programs for residences conforming to the energy
conservation standards are being conducted.
The third measure supports the publicity activities to disseminate energy conservation at
home, for instance, on how to best choose energy efficient appliances. And it is backing thetesting and demonstration of home energy management system (HEMS).

2) Relevant legislation, etc.
a) Support measures for houses
Extra financing from the Government Housing Loan Corporation is provided for energy
conservation-oriented housesb) Dissemination, publicity, etc. to promote energy conservationi) To make various measures thoroughly known through the energy conservation.
Measures in summer and winter, which were decided by the Conference to Promote Energy
and Resources Conservation Measuresii) Introduction of energy conservation labeling system(Japanese Industrial Standards (JIS) C9901)

iii) Spreading and publicity activities, etc., by the Energy Conservation Center,
Japan, the Construction Environment and Energy Conservation Organization,etc.;- Preparation and distribution of posters and pamphlets, conduction of symposiums,
implementation of a house heat insulation construction engineers’ lecture course, andinformation supply through mass media- Implementation of an Energy Conservation Grand Prize, as a system to commend energy
conservation-type equipment for the C&R sector- Preparation for Energy Conservation Performance Catalogue (including 7 appliances: air
conditioners, TVs, VTR, refrigerators, laundry machines, lighting equipment, andcopiers)- Establishment of a ‘Heat Insulation Spreading and Promotion Liaison Conference’, forgeneral consumers and builders- Implementation of a system to acknowledge excellent energy conservationbuilding construction techniques, etc.

85

(3) Energy conservation measures for the commercial buildings
Classification

Operation control/simple remodeling· Reduction of sunlight
Window shade operation, attachment ofsolar control film
Air-conditioning(1)Reduction of · Reduction of space load
heating and cooling Installation of wind shield room, revolving
door, use of airtight sash
load
· Concentration of air-conditioned operationarea· Reduction of outdoor air load
Reduction of surplus open air intake
Cut of open air during
preheating/pre-cooling· Heat source efficiency operation control
Air-conditioning
Unit control according to load, schedule(2)Efficiency
control, water supply temperature change
improvement of · Change of indoor temperature/humidity set
equipment system · Zero energy band control
Increase of using temperature deference(flow rate /wind volume)· Free cooling· Cleaning of heat exchanger coil filter, etc.
· Measurement and record for improvement ofenergy efficiency·
Periodical
maintenance checkAir-conditioning·
Maintenancecheck of automatic control(3) Management ofdevicesequipment oroverall system

Material Transfer

Lighting

Boiler and Hot
water supply· Control of fan operation time
· Inspection/repair of duct air leakage· Adoption of pump unit control· Adoption of inverters· Air volume control with various sensors for
power for ventilation· Putting out light near window· Putting out light when unnecessary (manualswitch, timer)· Light color finishing of interior· From incandescent bulb fluorescent lamp
· Periodical replacement, cleaning of lamp
· Control of hot water temperature set· Utilizing rest water of storage type boiler· Control of steam pressure·Heating loss prevention of steam (hot water)
pipe

86

Equipment remodeling· Prevention from heat entering buildings
through outer wall or windows.
· Reduction of window space, adoptionof layered glass, insulation of internal(external) walls, installation ofeave/balcony, etc., adoption of air flow
system· Efficient use of heat source
Adoption of high-efficiency heat pump,introduction of co-generation, heatstorage system· Use of natural energy
Use of solar heat, outdoor air cooling,night purge· Use of waste heat
Attachment of total heat exchanger
Heat pump system using waste heat(use of wasted heat from air cooler, &wasted water from drainage, river, etc.)· Outdoor air intake control (CO2 control)· As heat source, adoption of equipmentwith high part-load efficiency or heatstorage system.
· Adoption of BEMS
(humidity/temperature meter for
improving the efficiency of
air-conditioning, sensor system )· Heating appliance with far-infrared ray· Adoption of VAV (variable air volume)
system· Adoption of high efficient fan· Improvement of duct pressure damage· Adoption of VWV (Variable water
volume) system· Improvement of friction loss of pipe
· Adoption of great temperature gap
system· Adoption of HID lamp, optical ductsystem· Adoption of Hf-type lighting equipment· Task and ambient lighting· Introduction of Daylight sensor, humansensor· Adoption of suitable boiler
high efficiency, small type boiler,
suitable capacity· Optimization of pipe design
Minimal length, suitable diameter· Heat pump-type hot water heater· Condensation heat recovery method
water heater

Classification
Lifting equipment

Cooking

Washroom

Operation control/simple remodeling

Equipment remodeling· Efficient operation of escalators etc. withsensors detecting the presence of a person· Prevention of water left running (opening
and closing water tap)
· Replacement of damaged packing· Heat control· Cleaning of equipment·Preventing unnecessary preheating of
range/oven· Adoption of group control system· Replacement of damaged packing· Adjustment of wash basin water stop tap· Water control of feces stool flush valve· Installation of imitation sound devices· Adoption of water conservation tap· Adoption of self closing tap· Adoption of water conservation feces stool· Examination of urinal cleaning system(water supply time control by timer, lightsensor equipment automatic water supply
system, light switch connection system,etc.)· Adoption of air cooled type freezer (water
conservation)· Attachment of back system· Adoption of energy conservation typeshowcase (double layer air curtain type,swing door, etc.)· Control of cooling temperature· Reduction of door opening (number, time)· Prevention of too much food storage· Letting hot food cool before storage
Freezer/Refrigerator/ · Putting out showcase light after closing
time
Showcase· Frost removal· Check/repair of door packing· Periodical cleaning of condenser· Night cover, night set for showcase· Speedy door opening/closing· Allowing back space (10cm or more)
Vending machine · Exact change of "hot" and "cold"· Switch off during non-business, non-store
hours· Cutting transformer at source side
·Checking ventilation of electricity reception
room (prevention of efficiency decline due
to high temperature)
Electricity reception· Adoption of energy conservation typeequipment (electromagnetic cooking
device, gas cooking device, pressure
cooker, steamer)· Adoption of water conservation top· Adoption of bubble maker tap· Adoption of single lever mix tap· Adoption of double tank sink

· Adoption of energy conservation typevending machine (automatic switch for
fluorescent lamp, energy conservation
timer, peek cut function, reinforcement of
insulation, etc.)· Adoption of transformer with suitablecapacity· Adoption of cell facility for power storage· Improvement of power factor (Installationof condenser)· Adoption of demand control system· Adoption of low-less transformer· Adoption of 400 volt class wiring
equipment· Repair/replacement of automatic control
equipment
Damage, bad placement of valve, damper,
sensor, etc.
Equipment· Improving precision of thermometer
maintenance· Additional attachment of measuring device· Examination of energy consumption(by fiscal year, by equipment type)
Source ) “Energy Conservation Equipment Summary, 2004 Edition, Judgment Standards for Business
Operators Regarding Rational Use of Energy at Factories” (Notification of the Ministry ofInternational Trade and Industry, May 2006), “Energy Conservation Handbook for Small
Scale Service Industry”, etc. (the Energy Conservation Center Japan)87

(4) Other energy conservation measures in the commercial sector
1) Outline of the policies and measures in the commercial buildings
In the commercial sector, the main factor of the increase of energy consumption stems from thegrowing floor space of office and commercial buildings, which is triggered by the industrial
structure change. Nevertheless, the awareness to control the energy intensity is relatively low
compared to the industrial sector, whose energy cost directly affects their production costs. In
order to address this problem, like the household sector, following measures have been taken to
improve the energy conservation performance in buildings: (i) establishing energy conservation
standards based on the energy conservation law, (ii) offering low interest loans to the buildings
which perform high energy conservation, (iii) introducing the Top Runner program to help
promote energy efficiency for office appliances, and (iv) implementing the Energy Star programthat sets energy conservation standards for office equipment.
In June 2002, the Energy Conservation Law was revised and the clause ‘industries subjected to
the “Type 1 Designated Energy Management Factory” was extended to the commercial sector
such as office buildings, large-scale retail stores, hotels, hospitals, etc. Consequently, the business
operators newly subjected to the “Type 1 Designated Energy Management Factory” are required
to submit regular reports and mid-to-long term plans like the business operators already subject tothe “Type 1 Designated Energy Management Factory”.

2) Relevant legislation, etc.
a) Measures based on the Law Concerning the Rational Use of Energyi) Evaluation criteria for building owners regarding the rational energy use in buildings(Announcement No. 1 by MITI and Ministry of Construction on 20 March 1999)ii) Official announcement of performance data of a diathermancy of construction materials(MITI on 8 April 1999)iii) Outline of the International Energy Star Program System (Announcement No. 258 by
METI on 30 March 2001)b) Support measuresi) As to buildings for business that meet the effort guidelines in evaluation criteria forbuildings: acknowledgement on equipment investment plans, low-interest financing, andgrants for paying a fixed interest rate, based on the Energy Conservation and Recycling
Support Lawii) Financing by the Development Bank of Japan toward environmentally low-burden-type
buildings (“eco-care” buildings) (Ministry of Land, Infrastructure and Transport)c) Dissemination and publicity activities on energy conservationi) Familiarize various measures through the Energy Conservation Measures in Summer andWinter, which were decided by the Conference to Promote Energy and Resources
88Conservation Measures.
ii) Dissemination and publicity activities pushed through by the Energy Conservation Center,
Japan, the Construction Environment and Energy Conservation Organization, etc.
- Preparation and distribution of posters and pamphlets, conduction of symposiums,
implementation of a house heat insulation construction engineers’ lecture course, andinformation supply through mass media- Implementation of an Energy Conservation Grand Prize as a system to commend
energy conservation-type equipment, and grant an award to buildings performing wellfor environment and energy conservation- National for energy conservation outstanding cases- Evaluation on energy conservation for buildings, and business sector- Japan Association of Energy Service Company (JAESCO)- Certified mark system for Environment-and-energy friendly buildings(5)Promotion of commercial building energy management system (BEMS) (thoroughenergy management utilizing IT)
By using IT technology, BEMS system promotes and facilitates energy demand management forcommercial buildings. The system ensures recognizing real-time room conditions in buildings bytemperature sensors and/or the optimal operation of lighting and air-conditioning responding toconditions in the room. BEMS image is shown below:

89(6) Promotion of ESCO business
1) Outline of ESCO business
ESCO is a business that offers comprehensive services on energy conservation to clients, who inreturn will offer part of their energy saving gains (saving on utility bills, etc.) The business has
two forms: “Guaranteed savings agreement”, where customers cover business costs, and “Sharedsavings agreement”, where the ESCO business covers business costs. These options enable
service provision according to customer needs. * ESCO stands for Energy Service Company

Energy conservation
effectCustomer gain

Repayment

ESCO expenses
Interest
Initialinvestment

Utility charge
payment
Utility charge
payment

Before the introduction of
ESCO business

ESCO operator shallguarantee theachievement.

During the implementation of
ESCO business

There are two methods of ESCO business as follows.
(a) Guaranteed method(b) Shared method

90

CustomerGain

Utility charge
payment

After the contract terms
completed2) Size of the ESCO-related market
The ESCO-related market has been growing rapidly in these years. Though the amount of orders
decreased in 2004, it recovered up to 90% of its 2003 level in the following year. In 2006, thetotal amount of orders was almost the same as that in the previous year, but the amount of orders
received of ESCO business declined by 8% because the number of large plans decreased due tothe rising cost of fuel. The scale of the potential market is expected 2,470 billion yen according to
the ESCO Business Introduction Promotion Study Group of The Energy Conservation Center,
Japan. In the U.S., the scale of market is approx. $2 billion (2000).

Market size of repair work for energy conservation including ESCO business䋨100 million yen䋩
600
557

Others䈠䈱ઁ

515

Diagnosis + Repair work for energy

500

497

conservation + Performance
ESCO(ESP,䉥䊮䉰䉟䊃⊒㔚฽䉃䋩
contract (= ESCO Business)

449

Diagnosis + Repair work for energy⸻ᢿ䋫⋭䉣䊈ᡷୃᎿ੐

400

conservation
Repair work for energy⋭䉣䊈ᡷୃᎿ੐䈱䉂conservation only

74

374

140
353

303
300

200

492

265
36

278
57䋦

172

186
170

19

10
100

0
1998

1999

2000

2001

2002

2003

2004

2005

2006

FY

Source) Prepared from the data by Japan Association of Energy Service Companies

3) Future challenge
For further promotion of ESCO business, we have to make efforts to (1) promote the ESCO
business in the public sector, (2) facilitate fund procurement, and (3) improve the recognition of
the business. With respect to the item (1), we carried out the ESCO business as a model case at
the Ministry of Economy, Trade and Industry in 2004. Furthermore, we will prepare an ESCO
introduction manual for municipalities and hold meetings to explain the guidelines atmunicipalities. With respect to the item (2), we will promote the use of the low-interest loans ofDevelopment Bank of Japan and the project financing method. With respect to the item (3), we
will hold ESCO business explanation meetings throughout Japan to promote introduction.

91

4.4 Transportation Sector(1) Energy situation for the transportation sector
The energy consumption in Japan’s transportation sector had increased until FY1996 since the oilcrisis, but the recent data shows that the previous increasing trend stopped and almost leveled off its
consumption. Its major factor is attributed to the increasing number of the ownership of passenger
vehicles.

Evolution of energy consumption in freight and passenger transportation
Energy Consumption(Crude oil equivalent million kL)

120

Freight

100
80
60

40.5

42.1
42.1 42.0

42.0 41.4 41.2 39.5 38.9 39.1
38.7 38.7
44.7 43.5 42.5
43.9 44.4

40
20

59.2 59.9 61.2 61.5 62.6 62.4 62.2 62.1 60.6 59.5
52.9 55.2 57.2
50.0
48.3
46.5
43.7

Passenger0'9 0 '91 '9 2 '9 3 '9 4 '9 5 '9 6 '9 7 '9 8 '9 9 '0 0 '0 1 '02 '0 3 '0 4 '0 5 '0 6
FY

Source) Prepared from “Comprehensive Energy Statistics”

As shown in the below figure, Japan’s per-capita transportation energy consumption marked lower
compared to other major selecting countries, but those countries have successfully lessened theconsumption level, as shown that Germany coming closer to Japan’s lowest level. The energy
consumed by passenger vehicles accounts for 90 % of the total fuel consumption in this sector.
Japan’s vehicle energy performance has significantly improved specifically since the introduction ofa new standard setting process applied for appliances and vehicles called Top Runner Program. As
mentioned in the equipment chapter, as a result of cooperative effort made by manufacturers under
the program, the great improvement in fuel efficiency in those vehicles can be monitoredcomparative to earlier energy performances as shown in the below figure.

92

Transition of per-capita energy consumption in the transportation sector
3.50
3.01( U SA )Index 䋨2004 Japan䋽1䋩

3.00
2.51( U SA )

2.50

(☨)
USA
(⧷)
UK

1.29( U K)

2.00

1.16( F rance)
1.06( Germa ny)

1.50

0.69( U K)
0.65( Germa ny)

1.00

0.61( F ra nce)

Germany(⁛)
France
(੽)
Japan
(ᣣ)

1.00( J a pan)0.50
0.48( J apan)

0.00
1971

1973

1980

1985

1990

1995

2000

2004

2005
Year

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

Evolution of passenger vehicles’ average fuel consumption (10࡮
࡮15 modes)
16.0
15.5

15.5
15.0

Fuel Efficiency (km/L)

15.0

14.6

14.7

'02

'03

15.1

14.5
14.0

14.0
13.5

13.5

13.2
12.9

13.0
12.5

12.3

12.2

12.3

'94

'95

12.4
12.1

12.0
11.5
11.0
'93

'96

'97

'98

'99

'00

'01

'04

'05

'06

FY
Source) Prepared from “Vehicle Fuel Consumption List” by Ministry of Land, Infrastructure,
Transport and Tourism

93

Car ownership per household (1990-2006)
1.20
䋨Unit䋯household䋩

1.10

1.040
0.991

1.00

0.928
0.866

0.90

1.023
0.958

0.897

0.788
0.80

1.101

1.093

1.078

1.054

1.104

1.097

1.086

1.067

0.828

0.70
0.60
'90

'91

'92

'93

'94

'95

'9 6

'9 7

'9 8

'9 9

'00

'01

'02

'03

'04

'05

'0 6

FY
Source) Prepared from “Basic Residential Resister” and “Website of Automobile Inspection &Registration Information Association”

Average weight of owned vehicles (1990-2006)
Average Weight 䋨kg䋩

1,250

1,050

1,186

1,183

1,179

1,146

1,150
1,100

1,189

1,186

1,173

1,200
1,083

1,160

1,182

1,187

1,189

1,185

1,182

1,128

1,038
1,061

1,000
950
'9 0 ' 9 1 ' 9 2 '9 3 ' 9 4 ' 9 5 '9 6 '9 7 ' 9 8 ' 9 9 '0 0 ' 0 1 ' 0 2 '0 3 ' 0 4 ' 0 5 '0 6
Year
Source) Prepared from “Website of Automobile Inspection & Registration Information Association”

Energy consumption intensity by transportation
3.0
Vehicle (private)

Unit: MJ/(person䊶km䋩

2.5
2.0

Airplane (passenger)

1.5
1.0

Bus

0.5

Train (passenger)

0.0'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
FY
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)94

(2) Energy conservation policies and measures for the transportation sector
1) Outline of energy conservation measures in the transportation sectora) Measures based on the Law Concerning the Rational Use of Energyi) Given the continuing increasing trend of the transportation sector’s energy consumption

and the growth from FY1990 to 2005 of energy consumption of passenger vehicles
accounting for almost 90 % of that in the sector, implementing measures focusing on
passenger vehicles is crucial. The Law Concerning the Rational Use of Energy designates
gasoline- and diesel-powered automobiles as specified equipment, aiming to improveautomobiles fuel consumption. Energy conservation target values are established for themand indication of their energy consumption efficiency is required.
ii) Under the revised version of the law in 2006, new obligations were imposed on carriers(freight, passenger) and consigners: submission of plans for energy saving and submission of
periodical reports on energy use.
b) Support measuresi) Spreading and promotion of automobiles which use clean energy as fuelPreferential tax measures for purchasing low-fuel-consumption cars and low-air-pollution cars
Financial aid will be offered to help promote the purchase of clean-energy-automobiles andlow-air-pollution cars, and low-fuel-consumption cars, and for the development of the related
technology.
ii) Improvement of energy efficiency of individual transportation equipment. Implementation of
investment and financing, etc. to introduce energy efficient equipment.
c) Dissemination and publicity, etc., on energy conservationi) To make various measures thoroughly known through the Energy Conservation Measures insummer and winter, of which measures were decided by the Conference to Promote Energy andResources Conservation Measures.
ii) Dissemination by posters and pamphlets, holding symposiums, media campaigns participated byrelated ministries, agencies, and various actors in different fields.
iii) Implementation of activities to acknowledge and enlighten about idling-stop during waiting at
stoplights through Idling-Stop Caravan: cross over Japan, brochures for effects of fuel consumption
reduction, etc.

95

APPENDIX
1. ENERGY DATA
1.1 World Energy Data
(1) Energy resource reserves(in 2007)

Allocation by region

Proved recoverable reserves(R)

North America
Central & South America
EuropeFormer Soviet Union
Middle East
AfricaAsia / Pacific

Oil

Natural gas

Coal

Uranium

1.2379trillion barrels

177.36
trillion m3

847.5
billion tons

5.47
million tons

5.6%
9.0
1.4
10.2
61.0
9.5
3.3

4.4%
4.4
3.2
30.3
41.3
8.2
8.2

29.6%
1.9
5.9
26.2
0.2
5.8
30.4

14.0%
5.0
-*
31.0
2.0
18.0
26.0

Annual production
(P)

29.7
billion barrels(81.5 million
barrels/day)

2.94
trillion m3

6.4
billion tons

40,263 tons

Recoverable years(R/P)

41.7 years

60.3 years

132 years

132 years

SourceBP statistics (year 2008)

䇼Reserves䇽
OECD䊶
NEA/IAEA
Uranium(year 2007)‫ޣ‬Production‫ޤ‬World Nuclear
Association*With regard to Uranium, there is not “Europe” in the category of allocation by region, and 4% isallocated to “Others”.
96(2) Primary energy consumption by energy resource
Unit:

Mtoe

Nu c l e ar (1 . 0 )Hydr o (2 . 0 )

Year
Oi l

Nat u r al gas

C o al( 18.0)( 27.5)( 49.8)73<Total>Ot h e r s (1 . 7 )5,447( 2.3) ( 2.9) ( 1.9)

80

( 46.3)( 19.1)( 27.6)

6,479( 2.4) ( 5.6) ( 2.2)

( 40.5)85( 20.3)6,958( 29.0)( 2.3) ( 6.7) ( 2.2)
( 39.4)90( 21.2)7,886( 28.1)( 2.6) ( 7.3) ( 2.4)
( 39.0)95( 22.0)( 26.7)8,298
䋨2.5) ( 7.5) ( 2.5)

00

( 38.8)( 23.2)( 25.4)

9,016( 2.4) ( 7.1) ( 2.4)

04

( 37.6)( 22.8)10,036( 27.6)(2.4)(7.0)(2.5)
䋨22.9䋩

䋨37.2䋩

05

0

2,000

4,000

10,311

䋨28.0䋩

6,000

8,000

10,00012,000Note) Figures in parenthesis represent percentage.
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

97

(3) Primary energy consumption by region
Unit: Mtoe

Year

OECD

Non-OECD<Total>73( 69.1)( 30.9)5,447

80( 62.9)85( 59.5)90( 57.4)6,479( 37.1)

6,958( 40.5)7,886( 42.6)8,298

95( 59.0)00( 59.1)04(54.9)(45.1)

10,03605(53.8)(46.2)

10,3110

2,000( 41.0)( 40.9)4 ,00 0

6 ,00 0

8,000

9,016

10,0 00Note) Figures in parenthesis represent percentage.
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan”

98

12 ,000

(4) Trend of primary energy consumption
1) World per-capita primary energy consumption
9
(Year1973䋽100)

170
160
150

Non-OECD Average

140
130
120

OECD Average
World Average

110
100
90
1973

1980

1985

1990

1995

2000

2004

2005

Year

2) World per-GDP primary energy consumption
10,000 toe/1 billion US$
9080
Non-OECD Total

70
60
50
40

World Total

30
20OECD Total

10
0
1973

1980

1985

1990

1995

2000

2004

2005

Year

3) World energy consumption, GDP, and population (2005)
Primary Energy
Consumption
Y/Y
Avg.
Mtoe Growth Growth Rate
Rate (1973-2005)

Real GDP (2000US$ standard)

Population

Y/Y
Avg.
Y/Y
Avg.
BillionGrowth Growth Rate Million Growth Growth Rate
US$
Rate (1973-2005)
Rate (1973-2005)

OECDTotal 5,548

0.77%

1.22%

28,382

2.58%

2.70% 1,167

0.68%

0.81%

Non-OECD
4,763
Total

5.15%

3.30%

7,965

6.90%

4.13% 5,243

1.29%

1.76%

World Total 10,311

2.75%

2.01%

36,3473.50%

2.96% 6,410

1.17%

1.57%

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

99

(5) Energy supply in major countries
1) World total primary energy supply (TPES) and shares of energy sources (2006)
Unit: %, Figures in parentheses are Million toe

Electricity
Electricity

P
.0
0

P
0.

P
.3
3

4
.4

1
.1

0
.0

P
2.

P
.1
1

P
0.

P
.1
1
0
.0

Hydro/Geothermal

NuclearNatural Gas

Coal

Oil

Japan

Germany

U.K.

FranceItaly

CanadaU.S.A.

Note)1) The import and export of electric power are also included in the primary energy supply.
( “minus” in the chart represents excess of export.)
2) Coal includes other solid fuels.
Source) Prepared from “Energy balance of OECD Countries 2008” (IEA)
Comment) 1) The share of oil is especially high in Japan and Italy, accounting for about 45%.
2) In the U.S.A. and Germany, the share of coal is as high as about 24%.
3) In Canada, the share of hydraulic power is as high as 16%.
4) In France, the share of nuclear power is especially as high as 43%.

2) World sector shares in final energy consumption (2006)
Unit: %, Figures in parentheses are Million toe

NonNon-energy use

Commercial /Residential

Transportation

IndustryJapan

German

U.K.
U.K.

FranceItaly

CanadaSource) Prepared from “Energy balance of OECD Countries 2008” (IEA)
100

U.S.A.

3) World total electricity generated and shares of power (2006)
Unit: %, Figures in parenthesis represent 100 million kWh

Hydro/G
Geothermal, etc
Hydro/

Nuclear power

Natural gas

Coal
Coal

Oil

Japan

Germany

U.K.

FranceItaly

CanadaU.S.A.

Source) Prepared from “Energy balance of OECD Countries 2008” (IEA)(6) Energy consumption in major countries
1) World trend of energy consumption, GDP, oil consumption and dependency(Unit:%)

Real GDP growthrate (year-over-year)

US
UK
Germany
France
Italy
RussiaChina
Japan

Energy consumption
increase rate
(year-over-year)

Oil consumption
increase rate
(year-over-year)

Oil dependence
rate

2004

2005

2004

2005

2004

2005

2004

2005

4.2
3.1
1.6
2.3
1.1
7.1
10.0
-0.4

3.2
1.8
1.0
1.2
0.0
6.4
10.2
2.6

2.0
0.5
0.3
1.3
1.2
0.2
19.3
3.3

0.5
0.2
-1.0
0.4
1.3
0.8
9.7
-0.3

2.8
2.2
-1.0
1.1
-4.5
-0.5
15.3
-1.3

0.6
1.2
-1.4
-0.8
-2.0
2.0
-2.3
-1.3

40.7
35.8
36.0
33.5
45.7
20.6
22.9
47.9

40.7
36.2
35.8
33.1
44.2
20.9
21.3
47.4

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

101

102

1.2 Domestic Energy Data (Outlook)(1) Demand of energy sources and GDP
1) Energy demand by energy sources and GDP
GDP (base year 2000) (trillion yen)

Energy Demand (08J)

600

30
553.4

First Oil Crisis
Second Oil Crisis
25

500

GDP

23.45

Total En e rgy
Demand

20

400

15

300

11.6

Oil Demand

11.2

10

Ele c tric ity De man d( Lef t Axis:10 0 billion
kWh )

200

4.8

5

100

Coal Demand
3.6

Natural Gas Demand
0

0
70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

FY

2) Changes in energy/GDP elasticity

㨪06
1990윟
윟2000 2000㨪

Fiscal Year

1965윟
윟73

1973윟
윟80

1980윟
윟90

GDP Growth Rate

9.06㧑

3.49㧑

3.97㧑

1.16㧑

1.52㧑

Annual Average
Growth Rate of Energy
Demand10.86㧑

0.43㧑

2.04㧑

1.40㧑

0.04㧑

Energy/GDP Elasticity

1.20

0.12

0.51

1.21

0.03

Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”103

(2) Outlook of energy consumption and supply
1) Final energy consumption(Unit : million kL of crude oil equivalents)
2010
1990

Fiscal Year

Current
Measures2005

Additional
Measures웉Expected Maximum 웉Expected Maximum

Items

Effect웊웊%%

Effect웊웊

%%Final Consumption Total

359

100%

413

100%

403

100%

392

100%

Industrial Sector

181

50%

181

44%

178

44%

172

44%

Civil Sector

95

26%

134

32%

130

32%

127

32%

Household Sector

43

12%

56

14%

53

13%

51

13%

Commercial Sector etc.

52

15%

78

19%

77

19%

76

19%

83

24%

98

24%

95

24%

93

24%

Transportation Sector

2) Primary energy supply(Unit: million kL of crude oil equivalents)
2010

Fiscal Year
1990

2005

Items

Primary Energy Supply

508

587
%

Amount%Current
Measures

Additional
Measures웉Expected Maximum

웉Expected Maximum

Effect웊웊

Effect웊
웊

583

566

Fuel

AmountAmount%Amount

%

Oil

265

52%

255

43%

227

42%

218

39%

LPG

19

4%

18

3%

19

3%

19

3%

Coal

85

17%

123

21%

117

18%

113

20%

Natural Gas

54

11%

88

15%

94

15%

89

16%

Nuclear power

49

10%

69

12%

83

14%

83

15%

Hydro power

22

4%

17

3%

19

4%

19

3%

Geothermal

0

0%

1

0%

1

0%

1

0%

New Energy,etc

13

3%

16

3%

24

4%

24

4%

Source) Prepared from the report of “Long-term Outlook of Energy Demand and Supply” issued by the
Demand &Supply Subcommittee of the Advisory Committee for Natural Resources and Energy in
May 2008.

1043) Final energy consumption by sector

300

250
Index 䋺 FY1973 as 100

251.6

Industry
Commercial/Residential
Transportation

200
206.3
150
98.5
100

50

0
73 75

80

85

90

95

00

04 06
FY

Note) Due to revision of the aggregation method in Energy Balance Tables in Japan, values
for FY1990 onwards and values for preceding years are the results of utilizing
different methods.
Source) Prepared from “Comprehensive Energy Statistics”

1051.3 Domestic Sectoral Energy Data
(1)Industrial sector
1) Manufacturing industry’s energy consumption
Unit: 06 J
700
670
651

643

667

662

1 5 .7

1 5 .4

6 .0

6 .3

670

648

632
8 .0

600

1 4 .2

604

594
584

535

500

Other

1 2 .7

1 0 .63 .1
3 .0

1 5 .1

1 5 .2

1 2 .63 .3
3 .1

1 2 .7592

1 2 .91 2 .4

6 .6

6 .4

2 .3

2 .2

4 6 .4500
1 2 .4
1 1 .8

6 .6
6 .6

6 .3
2 .3

2 .9

2 .5

5 .9
2 .0
2 .1

2 .0

Machinery/MetalNonferrous
Metal

6 .6
2 .1

2 .8

5 .9
3 5 .5
3 1 .3

400

5 .2
2 .5

2 .2
2 6 .82 9 .72 8 .42 7 .52 6 .1

2 5 .82 5 .72 5 .6Iron & Steel

6 .2

6 .2

6 .3

Ceramics

3 2 .43 3 .13 3 .5

3 3 .5Chemicals

2 5 .92 7 .6

3 0 .13 1 .9

300

7 .3
8 .4

9 .6
1 0 .0
8 .7

8 .5

8 .0

7 .0

8 .7

8 .3
9 .6

200
2 6 .92 8 .02 4 .22 7 .22 8 .72 8 .93 0 .6

3 0 .93 2 .22 7 .2

100
6 .4

0

6 .4

6 .7

7 .0

7 .1

6 .6

6 .7

6 .9

6 .7

6 .3

6 .2

6 .0

5 .7

5 .6

Paper & Pulp
Textile
Food

4 .3

4 .4

4 .3

3 .0

3 .2

3 .7

3 .3
3 .5

2 .9
3 .4

2 .3
3 .4

2 .4
3 .5

2 .2
3 .5

2 .0
3 .5

2 .0
3 .5

1 .8
3 .5

1 .7
3 .5

1 .6
3 .5

1 .6
3 .6

73

78

83

87

89

91

93

95

97

99

01

04

05

06
FY

Note) Units in the parentheses: %Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

1062) Major industries’ energy costs to variable costs
35

Ceramics
Iron & SteelPaper & Pulp

30

Chemicals

28.1

All Manufacturers
25.9

Ratio of energy cost in variable costs (%)

25

21.5

20
17.9
16.3
16.4

15.1
15
14

14

13.2

11.8

11.7

11.1
10.6

10.2
9.7

10

9.0

8.6

8.4
7.3

8.0

6.6
5.9

7.4

7.4

6.9

5
3.9

3.8

3.9

90

95

00

4.1

0
83

85

05

Note) Variable costs = raw materials cost + fuel cost + electric power cost
Energy costs = fuel cost + electric power cost
Source) Prepared from “Industrial Statistics Table (Industry Section)” by Ministry of Economy,
Trade and Industry

107

06

Year

3) Trend of investment for energy conservation facilities(Investment Ratio for Energy Conservation
to Total Investment: %)(Investment: Billion yen)

600

10
Other
manufacturers
9

8.9

Car

8.5

500

8
7.6

7.7
Oil

7.4
7.1

7

6.9

400
6.1

Paper & Pulp

6.1

6

5.3
300

5
4.3

4.2
3.6

4

3
2.4

2.3
1.6

1.8

3

2.3

2

1.8

2

2

1.4
1
0.7

0.4
0

0
1979

1982

1983

1984

1986

1988

1990

Iron & SteelElectricity
Invest. Ratio(Manufacturing)
Invest. Ratio(Electricity)

3.6

200

100

Cement

1992

1993

1995

1997

1999

2000
FY

Source) Prepared from the research report by METI in FY2001 for 444 companies

1084) Energy demand analysis for the industrial sector
13䋨10 J䋩

a) Factors affecting manufacturing industry energy consumption

90000
80000

Confounding Factor
Output Factor
Structural Factor
Energy Intensity
Total Change

70000
60000
50000
40000
30000
20000
10000
0
-10000-20000-30000-40000-50000-60000-70000-80000

70

75

80

85

90

95

00

05 06
FY

b) Trend of factors of manufacturing sector energy consumption change(Unit: 1016 J)
Fiscal Year

'90

'92

'94

'96

'98

'00

'02

Energy Consumption Changes

13.5

-13.3

26.1

10.7

-13.7

10.7

11.6

0.8

-5.1

8.6

Output Effect

29.0

-35.9

18.2

21.5

-45.2

28.7

17.8

26.9

10.6

31.8

Structure Effect

-2.7

10.9

3.1

-10.4

-3.8

-7.9

-2.2

-14.4

-17.6

-17.4

Intensity Effect

-12.3

13.4

4.4

0.1

38.6

-8.8

-3.3

-10.7

2.4

-4.7

Factor

Source)'04'05

Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)”

109

'06

(2) Residential sector
1) Per household energy consumption (by energy sources)
ᅐMJ/웉HouseholdሩYear웊ᅑYearElectricity

City gas

6,884

'80
'82

9,279

8,048

6,098

9,811

27.5

23.8

8.

29.

9,882

8,604

28.5

24.8

27.9

'86
'88
'90
'92

32.8

6,046

9,593

7.4

27.7

30,628
232
0.7

303
0.9

9,625

6,159

11,857

24.7

5.8

30.4

10,3796,045

12,079

25.7

5.0

30.0

12,177

10,261

6,496

12,470

29.4

24.7

5.7

30.

10,673

6,176

11,111

32.0

25.9

5.0

27.0

13,952

11,765

6,291

11,585

32.0

27.0

4.4

26.6

'00
'02

15,471

11,141

6,667

11,631

34.4

24.8

4.8

25.9

'05

75
0.2

4,48024
0.

4.5637
0.

43,6307
0.0

44,96

12,163

6,687

12,569

25.5

4.0

26.3

16,683

11,6396,578

11,379

36.0

25.

4.2

24.6

17,473

11,777

6,444

11,822

36.8

24.8

3.6

24.9

17,634

11,881

5,928

11,320

25.4

2.7

24.2

18,263

11,482

5,946

10,276

39.7

25.0

2.9

22.4

18,504

11,992

5,588

11,655

25.

.7

24.4

12,156

5,584

10,902

25.6

.8

23.0

18,846
39.7

5,000

5
40,38
0.3

34.2

38.8

'06

38,97816,301

37.7

'04

69
0.4

26
0.5

13,172'98

34,657

32
0.8

28.5

'96

33,772

74
0.5

357
.0

11,483'94

0<Total>

799
2.6

,57
5.0

10,043

4.3

22.9

10,858

'84

4,373

7,012

22.5
22.5

'73

Coal Others

Kerosene

LPG

10,00015,00020,00025,00030,00035,00040,000Note) The lower figures in the bar represent percentage distribution.
Source) Prepared from “Domestic Energy Statistics Annual Report 2006” (Residential
Environment Planning & Research Center)

110

47,72

46,28047,56

46,76345,96747,73945,00047,48850,000

2) Per household energy consumption (by usage)
ᅐMJ/웉HouseholdሩYear웊ᅑ
Air conditioningYear

Hot water supply

Heating
11,643

'73

225
0.7

38.0

9,244

'80

27.4

9,136

'82

26.4

'84

12,052'86

12,247'88

12,988

11,92910,942273
0.8

14,075

11,172

40.6

32.2

576
.5
456
.
49
.0
827
2.0

27.3

11,78226.2

12,442
26.9

10,665

26.2

24.

5,000

32.0

10,00040,3814,751

13,32335.6

32.

15,10013,99336.7

34.0

4,4804,5615,927

15,86935.5

35.3

43,630758
.6

16,131

16,822

33.8

35.3

,067
2.3

15,69817,073

33.9

36.9

862
.8

11,4280

12,916

,340
3.0

908
.9

12,497'06

14,69914,959

,022
2.2

23.2

38,978

36.5

,055
2.3

26.2

'05

30.2

,30
2.4

12,250'04

11,760

37.4

34.3

27.2

'02

14,591

16,104

12,944'00

34,657

36.9

29.4

'98

33,772639
.5

14,010'96<Total>30,628

32.4

27.3

'94

3.0

39.8

3.3

'92

9,497

30.2

13,44030.4

11,237

9,263

46
0.4

30.9

'90

Lighting,
Electric appliances& Others

15,00015,86917,57233.4

37.0

15,747

17,71133.7

37.9

44,9647,72

46,28047,56

46,76318,486

15,79345,96740.2

34.4

15,726

18,60832.9

39.0

47,73919,17847,48816,02040.4

33.7

20,00025,00030,00035,00040,00045,00050,000Note) The lower figures in the bar represent percentage distribution.
Source) “Domestic Energy Statistics Annual Report 2006” (Residential Environment Planning &Research Center)1113) Rate of home appliance stock owned by household
Fiscal Year
Appliances

1970

1980

1990

Warmed toilet Seat (withwarm water shower)

2000

2004

0.461

0.685

Refrigerator

0.917

1.112

1.112

1.148

1.199

Microwave oven

0.012

0.316

0.713

0.989

1.029

Washing machine

0.921

1.027

1.05

1.055

1.072

0.143

0.226

0.234

0.157

0.261

0.395

0.426

Electric clothes dryer
Electric futon dryer
Vacuum cleaner

0.738

1.084

1.267

1.349

1.402

Air conditioner

0.036

0.528

1.1

2.009

2.424

0.523

0.928

0.901

1.877

2.17

2.322

0.123

0.543

1.024

5,739,922

5,673,876

Electric carpet
Color television

0.248

1.375

Personal computer
Real disposable income

3,910,717

4,875,782

Note 1) Employees’ household only.
Note 2) Real disposable income is the actual value which was derived by revising the result for fiscal
year with consumer price index (General, year 2000-base).
Source) Prepared from “Annual Report on Consumer Confidence Survey” by Cabinet Office,“Annual Report on the Family Income and Expenditure Survey” by Ministry of Internal
Affairs and Communications, “Comprehensive List of Consumer Price Linked Index (year2000-base), Annual Report on Consumer Price Index” by Ministry of Internal Affairs andCommunications1124) Improvement
Improvementofofenergy
energyefficiencyof homeelectric
appliances
efficiencyof homeelectric
appliancesa) Air Conditioners (1996-2008 Models)
Simple average values of typical models of energy conservation type wall-mounted cooling andheating air conditioners with 2.8kW cooling capability.
'96 Model

347'98 Model

300

59

859

262

'02 Model

241

7 06

947

'04 Model

237

70 8

945

'06 Model

217

665

882

'08 Model

214

644

858

755

300

Power
consumption
for space heating

07'00 Model

0Power
consumption
for air cooling

302

955

60 0

900

*The rightmost
numbers show total
power consumption
during term

1 200

150 0

1800

(Unit: kWh)

Note)

Based on Japan Refrigeration and Air Conditioning Industry Association standards
JRAS4046(standards for calculating room air conditioner term power consumption)
Source) Prepared from the data by Japan Refrigeration and Air Conditioning Industry Associationb) TVs (1997-2008 Models)
Simple average values of the products.
Annual Power Consumption

Standby Power Consumption%
100

2.25W 231W
220W

100 100

207W

95
Index: Value in 1973 as 100

90
80
161W
150W

70

141W

65

60

61

40

20

0.37W

16

0.35W

0.37W

14

16

16

’06 Model’07 Model’08 Model

0.31W
0.17W

8
0

’97 Model’00 Model’03 Model

LCD televisions (32(32-inch wide V type)

CRT televisions (32(32-inch wide type)

Source) Prepared from “Catalog of Energy Efficiency Performance (summer and winter version of eachfiscal year)” by ECCJ
113

(3) Commercial sector
1) Per-floor energy consumption in commercial buildings (by energy sources)(MJ/m£)
Solar
Coal

FY

Oil

Gas

Electricity

1,082
71.5

149
9.9

265
17.5

'73

16
1.1

'80

33
2.8

666
56.5

'82

30
2.8

568
52.3

'84

40
3.7

526
47.8

'86

27
2.5

501
46.6

146
13.6

392
36.6

'88

30
2.6

510
44.7

168
14.7

427
37.4

'90

24
2.0

500
42.1

174
14.6

481
40.5

'92

20
1.6

537
43.2

183
14.8

492
39.6

'94

27
2.2

458
37.6

'96

29
2.4

414
34.7

'98

28
2.3

406
33.7

'00

24
2.0

354
29.8

224
18.8

569
48.0

17
1.4

1,188

'02

26
2.2

318
27.0

232
19.7

583
49.6

17
1.4

1,175

'04

25
2.2

314
27.1

234
20.1

572
49.3

16
1.4

'05

24
2.1

294
25.1

241
20.5

596
50.8

17
1.4

'06

23
1.9
0

144
12.2
141
12.9
148
13.4

5
0.5

1,086

381
34.6

7
0.6

1,102

200

400

7
0.6
8
0.7

800

1,242

12
1.0

557
46.3

16
1.3

17
1.4
1,000

1,188
10
0.8

15
1.2

594
50.9
600

1,142

534
44.7

198
16.4

1,513

1,073

528
43.3

203
17.0

247
21.2

7
0.6

1
0.1

1,179

342
31.5

194
15.9

286
24.5

5
0.4

331
28.1

웝Total웟

1,218

1,195

1,204

1,172
1,167
1,111

1,200

1,400

1,600

Note) Lower figures in the bars represent percentage.
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)1142) Per-floor energy consumption in commercial buildings (by usage)(MJ/m£)
KitchenPower
Hot water supply
and others <Total>

Cooling
FY

Heating

483.2
31.9

54.8
3.6

278.2
23.6

1,179

'73

69.2
4.6

'80

52.8
4.5

'82

55.7
5.1

361.9
33.3

317.3
29.2

64.1
5.9

287.5
26.5

1,086

'84

71.9
6.5

358.3
32.5

292.1
26.5

69.9
6.3

309.8
28.1

1,102

'86

63.6
5.9

325.9
30.4

284.7
26.5

'88

74.0
6.5

323.0
28.3

302.2
26.5

75.8
6.6

'90

96.0
8.1

311.0
26.2

300.4
25.3

75.4
6.3

'92

89.5
7.2

337.7
27.2

309.5
24.9

'94

112.2
9.2

301.9
24.8

'96

98.6
8.3

289.5
24.2

257.7
21.6

85.9
7.2

463.5
38.8

1,195

'98

112.4
9.3

279.1
23.2

254.0
21.1

82.0
6.8

476.8
39.6

1,204

'00

130.6
11.0

268.1
22.6

227.2
19.1

88.9
7.5

472.7
39.8

1,188

'02

142.1
12.1

259.6
22.1

205.4
17.5

87.7
7.5

479.7
40.8

1,175

'04

107.0
9.2

243.1
20.9

222.1
19.1

97.1
8.4

491.6
42.3

1,172

'05

139.8
11.9

237.4
20.3

207.4
17.7

93.4
8.0

494.1
42.2

1,167

'06

129.4
11.1

0

707.5
46.8
336.7
28.6

445.3
37.8

67.4
6.3

195.3
16.8

200

400

366.9
32.1

600

1,142

405.1
34.1

1,188

429.1
34.5

80.2
6.6

95.9
8.2

1,242

446.2
36.6

1,218

501.5
43.0

800

1,513

1,073

331.8
30.9

76.4
6.1

277.4
22.8

243.6
20.9

65.6
5.6

198.7
13.1

1,111

1,000

1,200

1,400

1,600

Note) Lower figures in the bars represent percentage.
Source) Prepared from “EDMC Handbook of Energy & Economic Statistics in Japan (2008)115

(4) Transportation sector
1) Transportation energy consumption (by type of transport)
4,000䋨Unit䋺1015J䋩
Air

3,500

MarineTransportation 3,000

Rail

2,500

Freight Vehicle
2,000
䇭 Bus

1,500
Passenger car forbusiness use
1,000
Passenger car for
private use
5000Grand total ofTransport sector
energyconsumption
Total of passenger
sector energy
consumption
Passenger car for
private use
Passenger car forbusiness use
Bus
RailMarinetransportation
Air
Total of freightsector energy
consumption
Motor truck
Rail
Marinetransportation
Air

75

80

85

90

92

94
96
Fiscal Year

98

2000

2002

2004

2006

75

80

85

90

92

94

98

2000

2002

2004

2006

96

1,938 2,302 2,465 3,114 3,327 3,516 3,722 3,820 3,798 3,817 3,839 3,756(5.3)(-1.2)

(2.4)

(4.5)

(2.3)

(4.7)

(2.6)

(1.1)

(-2.2)

(0.1)

(1.0)

(-1.2)

996 1,244 1,424 1,880 2,044 2,193 2,345 2,449 2,432 2,465 2,493 2,422
(7.4)

(0.9)

(3.6)

(8.0)

(3.5)

(5.3)

(3.4)

(1.7)

(-2.6)

(0.0)

(1.2)

(-1.9)

713

942 1,116 1,513 1,664 1,823 1,955 2,050 2,075 2,106

87

78

88

100

104

76

87

94

64

67

63

62

59
61

56
63

54
64

64
77

62
79

64
81

62
81

61
82

58
81

57
80

62
80

64
80

6

5

4

7

8

7

9

8

9

7

8

7

70

99

98

119

127

143

151

154

145

147

157

176

2,122 2,032

941 1,058 1,041 1,233 1,283 1,323 1,377 1,372 1,366 1,352 1,346 1,334
(3.1)
657
17

(-3.7)
791
13(0.9) (-0.5) (0.2) (3.8) (1.4) (0.1) (-1.5) (0.2) (0.6) (0.2)
819 1,058 1,105 1,147 1,178 1,140 1,116 1,085 1,101 1,105
8
7
7
6
6
6
6
6
6
6

262

244

200

151

153

149

171

203

221

239

217

199

5

9

14

17

18

21

21

23

24

22

23

24

Note) Values in parentheses represent the increase rate (%) compared with the previous fiscal year.
Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in JAPAN (2008)”

1162) Energy consumption and transportation volume share (FY 2006)(by type of passenger transport)
0

20

40

60

100

80

(%)

0.3
2.6
EnergyConsumption

Passenger
Vehicle
Bus

7.3

86.5
3.3

Rail
MarineAir

Transportation
Volume

6.3

59.1

6.1

28.2

0.3
0

20

40

60

80

100 (%)

Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in Japan (2008)”

3) Energy consumption and transportation volume share (FY 2006)(by type of freight transport)
0

20

60

40

(%)
100

80

1.8
0.4
EnergyConsumption

14.9

82.8

Freight
VehicleRail
MarineAir

4.0
Transportation
Volume

59.9

35.9

0.2
0

20

40

60

80

100

(%)

Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in Japan (2008)”

1174) Energy intensity by type of transport (FY 2006)(Energy consumption per passenger-kilometer)
Rail

100
(203kJ/passenger(203kJ/passengerJ/passenger-km)
km)

Bus

353
(717kJ/passenger(717kJ/passengerJ/passenger-km)
km)

Marine894(1,814kJ/passenger(1,814kJ/passengerJ/passenger-km)
km)

Passenger
Vehicle1,244(2,526kJ/passenger(2,526kJ/passengerJ/passenger-km)
km)

Air

1,012
(2,055kJ/passenger(2,055kJ/passengerJ/passenger-km)
km)

0

Note)

200

400

600

800

1,000

1,200

1,400

Index Rail =100

Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in Japan (2008)”

5) Energy intensity by type of transport (FY 2006)(Energy consumption per freight ton-kilometer)

Rail

100
(245kJ/(245kJ/ton
J/tonton-km)
km)

390

Marine(958kJ/(958kJ/ton
J/tonton-km)
km)

Freight
Vehicle1,300(3,190kJ/(3,190kJ/ton
J/tonton-km)
km)

8,908

Air
(21,864kJ/(21,864kJ/ton
J/tonton-km)
km)

0

Note)

2,000

4,000

6,000

8,000

10,000Index Rail =100

Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in Japan (2008)”

118

2. RECENT NATIONAL STRATEGIES AND ACTIVITIES
2.1 New National Energy Strategy
The Ministry of Economy, Trade and Industry formulated the “new national energy strategy” aiming at
energy security, in view of the recent stringent energy situation such as a sharp rise in crude oil prices,and publicized an interim result of the study on March 30, 2006. Subsequently, based on thediscussions in the Coordination Subcommittee of the Advisory Committee on Natural Resources andEnergy (Chairperson: Masahiro Kuroda, President of Economic and Social Research Institute, Cabinet
Office, Government of Japan), specific items of the strategy were finalized. The following three goals
will be achieved through the strategy:1) Establishment of energy security that is trusted by the people
2) Establishment of the basis for sustainable growth by solving energy and environmental issues
simultaneously
3) Positive contribution to solving Asian and global energy problems
To be more specific, the following actions will be taken:(1) Establishment of the world’s most advanced energy supply-demand structure
The oil dependency of Japan is now 50%. The following four plans will be launched to lower the
figure to 40% or less by the year 2030:
1) Energy conservation frontrunner plan

Goal:
Measures:

To improve energy efficiency by 30% by the year 2030.
To establish a virtuous circle of technological innovation and social system
reform by formulating the strategy for technology that supports future energy
conservation, improving the criteria to certify top runners, strengthening
supportive measures, and studying a mid- and long-term energy-saving social
systems.

2) Next-generation transportation energy

Goal:

To lower the oil dependence in the transportation sector to about 80% by the year
2030.

Measures:

To present an action plan for achieving the three pillars (i.e., improvement offuel efficiency, promotion of the introduction of new fuels such as bio-fuel and
GTL, and development and diffusion of the electric car and fuel-cell vehicle).
To promote the utilization of bio-fuel, , introduce electric cars and fuel-cellvehicles at an early stage through intensive technological development of thestorage battery.

3) New energy innovation planGoal:

To lower the cost of photovoltaic power generation to the same level as those ofthermal power generation by 2030.
To support local production for local consumption by utilizing biomass, aiming

Measures:at the energy self-sufficiency in communities.
To present supportive measures to develop technical capabilities and self-sustain
as new energy industries.
To promote the construction of a “next-generation energy park,” where people119can actually see, touch, and understand new energy, and to develop innovativetechnology such as the next-generation storage battery.
4) Nuclear energy national plan

Goal:

To increase the proportion of nuclear power generation in the total generated
output to 30 to 40% or more, in and after the year 2030.
To establish the nuclear fuel cycle at an early stage and to practically exploit the
fast-breeder reactor.

Measures:

To promote nuclear power generation, which has an excellent supply stability
and is a clean energy source with little CO2 emissions during operation, as far as
safety is ensured.
To improve the investment environment for promoting nuclear power generation,
establish the nuclear fuel cycle at an early stage, and promote a peaceful use of
nuclear power internationally.

(2) Comprehensive strengthening of resource diplomacy and cooperation in the energy andenvironment field
1) Comprehensive strategy for securing resources
To raise the independently-developed oil resources to about 40% of total oil
Goal:
requirement on a transaction basis by 2030.
To intensify a comprehensive relationship with resource-rich countries by
Measures:actively using ODA, promoting investment exchange, and expanding humanexchange at all levels. In order to do so, to provide policy-based finance, tradeinsurance, and economic cooperation, etc. in collaboration with the government
and agencies concerned through formulating resource securing guidelines. Also,in this framework, to strengthen support to core businesses which assume theresponsibility of developing resourses. Furthermore, to promote the following
measures strategically and comprehensively in collaboration with thegovernment and agencies concerned aiming to develop mineral resources suchas rare metals in overseas countries and diversify supply sources, as well as toact as the world’s leading country which develops and exploits methane hydrate
and utilizes clean coal.
2) Asia energy and environment cooperation strategy
To cooperate in the field of energy, including energy conservation, and aim atGoal:
coexistence with other Asian countries.
To cooperate strategically with China, India, and other Asian countries, where
Measures:there is a rapidly increasing demand for energy, in various fields such as energy
conservation, effective coal utilization and safety in coal production, newenergy, and nuclear power.
(3) Improving emergency program
Emergency program will be improved, such as the revising of the oil stockpiling system and thestrengthening of functions, including the introduction of stockpiling of petroleum products, and theimprovement of the emergency action system for natural gas supply.

120

(4) Others
In order to support efforts under the cooperation between the public and private sectors,
technological problems to be solved toward the year 2030 will be summarized in the form of adevelopment strategy for energy technology, taking into consideration the technologies to berequired in retrospect to the present from an ultra-long-term perspective (for the year 2050 or
2100).
Source) Press release by the Ministry of Economy, Trade and Industry

2.2 Strategy for Energy-Saving Technology(1) Background
The “new national energy strategy” was formulated in May 2006 with the objectives of establishingenergy security that is expectedly trusted by the people, establishing the basis for sustainable growthby solving energy and environmental issues simultaneously, and positively contributing to solving
Asian and global energy issues. In the strategy, a numerical goal was set toward the year 2030,
which is to be shared by the public and private sectors. More specifically, efforts will be made forfurther promoting energy conservation and improve the energy efficiency by 30% or more.
Thanks to Japan’s energy-saving efforts since the 1970s, a considerable success was achieved byintroducing new manufacturing technologies, etc. In order to obtain similar achievements over the
next 30 years, it is essential for all sectors, including industrial sector, to develop technology that
contributes to enhancing energy efficiency and to encourage the introduction and diffusion of thetechnological results.

(2) Purpose of the program
In the “new national energy strategy”, the “strategy for energy-saving technology” was formulated
from a long-term perspective as a main pillar to improve the energy efficiency by 30% or more, inwhich the development of energy-saving technology and support for it was presented.
The purpose of the “strategy for energy-saving technology” is to promote the development ofinnovative technology by encouraging cooperation among different entities, for example, among
the industry, government and academia, among different business categories, or between
manufacturers and users, and, at the same time, to share the stages of technological development
among the entities concerned in order to meet the social and economic needs anticipated in the
future. In the strategy, energy-saving technology is positioned as a “source of competitiveness ofJapanese industry”, which will make Japan respected as “the world’s No. 1 energy conservation
country” to have overcome the unfavorable situations, for example, limited resources and tightenvironmental restrictions, in the international society toward the year 2030.

(3) Extraction of technological challenges and prioritized fields
Energy consumption is a basic human activity. Energy-saving technology, including energy
conservation in daily life, improvement in the equipment efficiency, and optimization of energy
supply methods, is a wide range of technologies related to all human activities. Several
considerations were taken in studying energy-saving technology according to the energy flow from121the primary energy conversion to the final energy consumption. In particular, important are ,forexample, the energy-saving technology which does not hamper convenience and benefit in the final
energy consumption and, at the same time, use out all the potential of energy in the energy
production and distribution field.
Also, although the development of energy-saving technology without hampering convenience andbenefit on the consumption side is strongly requested, it is important to develop with a gradual pacein each individual field. Meanwhile, in order to achieve a significant breakthrough, collaboration
among various business entities and the resulting creation of synergy effect are required. Therefore,
a comprehensive assessment was made on the energy-saving potential, the degree of technology
maturation, and the propagating effect to other fields, etc, and then energy-saving technologies tobecome a stem in the future were extracted. The extracted technologies were rearranged andincorporated as the five prioritized fields so as to be exploited across multiple fields.
< Five prioritized fields >x Super-efficient combustion system technology
x Technology of energy utilization beyond space-time restrictionx Technology for creation of informative living spacex Technology to establish an advanced transport society
x Next-generation energy-saving device technology
Source: Strategy for energy-saving technology (interim report)
http://www.eccj.or.jp/rodemap/index.html

2.3 International Cooperation / Asia Energy Conservation Program(1) Significance of energy conservation cooperation
The significance of Japan’s international cooperation in the energy conservation field with Asian
countries is as shown below.
1) Improving energy supply-demand structure in Asia
Cooperation in the energy conservation field with Asian countries will improve energy efficiency,
suppress a sharp increase in demand for energy, and improve the energy supply-demand structure.
Consequently, the cooperation will contribute to stabilizing the mid- and long-term energy
supply-demand in Asia, while at the same time stabilizing the crude oil market price andimproving the global energy supply-demand structure. In particular, the suppression of energy
demand and the reform of energy supply-demand structure in foreign countries through energy
conservation cooperation will contribute to the energy security of Japan, which is heavily
dependent on overseas countries for most of its energy resources.
2) Solving global environmental problems
Asian countries consume a large amount of energy and at the same time are attributed to a large
proportion of CO2 emissions in the world. The promotion of cooperation in the energy
conservation field will lead to the reduction of CO2 emissions in Asian countries and contribute122to solving global environmental problems.
3) International contribution
Generally speaking, Asian countries are heavily dependent on imported oil and have a fragile
energy supply-demand structure. For this reason, under present circumstances, with oil prices athistorically high levels, there is an increasing need for the stabilization of energy supply-demandin Asian countries. Against the above problem, there are great expectations for Japan, which has
the world’s top track record in terms of energy conservation, to cooperate in the energy
conservation field. Japan’s active promotion of cooperation in the energy conservation field with
Asian countries will meet their expectations and externally show our attitude of a firm
commitment to energy security in Asia. This international contribution is of great significanceand will help to strengthen Japan’s leadership in Asian countries in energy and other fields.
4) Reduction of destabilizing factors in the Asian economy
Recently, Japan has undergone an extremely profound economic interdependence with Asian
countries, including China, in both export/import and investment exchange. However, the energy
problem remains a destabilizing factor for growing Asian economy. The promotion ofcooperation in the energy conservation field will make Asia’s economic structure invulnerable tofluctuations in energy price, prevent the energy problem from hampering economic growth, andresult in the reduction of destabilizing factors of the whole economy in Asia, including Japan.
5) Deepening the business exchange between Japan and Asian countries
In order to promote energy conservation in Asian countries, it is necessary to improve energy
conservation-related systems, develop human resources, and diffuse energy-saving appliancesand facilities. Energy conservation is needed in all fields, including the industrial, commercial
and household fields of each country. It is expected that the market size of energy-saving
appliances and facilities in Asian countries will substantially expand with future economic
growth. Asian countries have a big expectation of the transfer of globally leading energy-saving
technology possessed by the Japanese industry. Responding to such expectations will contributeto encouraging energy conservation in Asia and deepening the business exchange between Japanand Asian countries.

(2) Future course to strengthen cooperation in the energy conservation field
The energy supply-demand structure needs to be improved in Asian countries by promoting
energy conservation on their own initiative, in the light of the above-mentioned. In order to doso, efforts for international cooperation in the energy conservation field will be drasticallymade to implement the “Asia energy conservation program” based on the following ideas:
1) Support for establishing the legal/policy system in Asian countries
Some improvements have been made on the legal system concerning energy conservation,
including the Energy Conservation Law and energy-efficiency standards. However, it is still
pointed out that the legal system has not been working satisfactorily due to lack of
substantial enforcement, although the foundation of the legal system concerning energy
conservation has been built in Asian countries.
123Under these circumstances, Japan will reinforce a support for establishing and implementing
the legal system concerning energy conservation in Asian countries. To be more specific,
Japan will support for the development of human resources, including the dispatch of longterm experts to Asian countries, and receiving of trainees in the training course, and for theformulation of energy efficiency standards and the establishment of energy statistics system.
Japan will also support for establishing an energy conservation center in various countries
and regions.
2) Cooperation in the household, transportation, and electric power sectors
In the heavy-energy-consuming countries in Asia, including China and India, the industrial
sector consumes considerable amount of energy, and Japan has been cooperating with thesecountries, mainly in the industrial sector. Because energy demand is forecasted to increase
sharply due to the drastic improvement in the standard of living and the progress inmotorization, a growing need arises for the promotion of energy conservation in thehousehold and transportation sectors. In response to the above, Japan will start to cooperate
in the energy conservation of the household and transportation sectors, while continuing acooperation in the industrial sector as before. Specifically, Japan will cooperate ininternationally expanding the energy-efficiency standards, the labeling system and the
ESCO system. There are many countries where low efficiency is kept unimproved in theelectric power generation and distribution, for which Japan will cooperate.
.
3) Support for the business-based diffusion of Japanese-made energy-saving appliancesand facilities into Asian countries
In order for Asian countries to voluntarily promote energy conservation, it is helpful tointroduce energy-efficient appliances and facilities in the industrial, commercial, household,and transportation sectors, as well as to establish the legal systems. In order to activate an
investment in energy conservation in Asian countries, it is necessary for Japanese companies
to support the business activities in Asian countries, through transferring their own
energy-saving technology. In order to support the business activities of the Japanesecompanies in Asian countries, it is necessary to promote business exchange through dialog
among industries, business meeting, etc. Policy-based finance will be provided by the Japan
Bank for International Cooperation (independent administrative agency) and others. The
CDM scheme will be also helpful from the viewpoint of supporting energy-saving
businesses.
4) Collaboration with international organizations
The energy supply-demand problem in Asia is important, not only to Japan but also to theglobal energy market. As known well, European countries, the USA and internationalorganizations have cooperated with Asian countries in the energy conservation field. Under
present circumstances, in order to lend effective cooperation in the energy conservation field,
it is necessary to establish an international cooperation system in collaboration with overseas
donors, including the IEA and APEC, and international financial institutions, such as the
ADB, to facilitate smooth financing for energy conservation projects. In addition, it ispresented to support the formulation of energy efficiency standards of electric appliances in124collaborate with international NPOs, for which Japan is ready to provide the necessaryfinancial support.
5) Collaboration with the government and agencies concerned
The New Energy and Industrial Technology Development Organization, Japan International
Cooperation Agency, Japan Bank for International Cooperation, Japan External Trade
Organization, The Energy Conservation Center, Japan, and other agencies concerned havebeen enthusiastically striving to implement an international cooperation in the energy
conservation field. To be more effectively and efficiently, close communication andcoordination are strongly requested among the international projects supported by overseas
donors, while reinforced coordination between the government and agencies concerned isessential. The “energy conservation/new energy international cooperation council”,
consisting of some cooperation agencies and the Ministry of Economy, Trade and Industry,should play an active role as a principal gathering to orientate an effective international
cooperation in both the energy conservation and new energy fields. In order to cope withinternational cooperation needs in the energy conservation field, the functions of theagencies concerned should be reexamined and strengthened, as necessary.
6) International development of the benchmark approach using the internationalframework
The benchmark approach that enables the comparison of energy efficiency in each sector isan effective means of promoting energy conservation. Japan will strongly support the IEA in
preparing an energy efficiency benchmark. Based on the benchmark approach, Japan will
help companies with technical capabilities to carry out business activities, participate in theenergy conservation technology transfer project proposed in the Asia-Pacific Partnership(APP), and diffuse the benchmark approach through the international framework of APEC,ASEAN plus 3 and others. In addition, the benchmark approach can be employed for raising
the technological rating of the Japanese companies which have an excellent energy-saving
technology.

(3) Future efforts
1) Countries to be concentrated
It is necessary to consider the following factors and select the Asian countries on which Japan
should concentrate a cooperation in energy conservation field:a) Size for energy demandb) Importance of a country in the energy policy of Japanc) Economic relation with Japand) Commitment to the promotion of energy conservation
After considering the above, China, India, Thailand, Indonesia, and Vietnam are prioritizedcandidate for cooperation.
2) Implementation plan
Bilateral policy dialogs will be held with the above-mentioned countries to discuss future125

directions for Japan’s cooperation. Considering the energy situation and cooperation needs ofeach country, an action plan will be formulated to promote a cooperation in the energy
conservation field.
Source) Material at the 9th Energy Efficiency and Conservation Subcommittee of theAdvisory Committee on Energy and Natural Resources (May 2006)
http://www.meti.go.jp/committee/materials/downloadfiles/g60607h11j.pdf

126

REFERENCE
1. RELATED ORGANIZATIONS
1.1 Ministry of Economy, Trade and Industry (METI)(1) Organization of METI

(as of April 2007)

Ministry of Economy, Trade and Industry
Internal Bureaus
Minister
Minister’s Secretariat
Senior Vice Minster

Economic and Industrial Policy Bureau

Senior Vice Minster

Research and Statistics Dept.

Parliamentary Secretary

Regional Economic & Industrial Policy
Group

Parliamentary Secretary

Trade Policy Bureau
Multilateral Trade System Dept.

Vice Minister

Trade & Economic Cooperation Bureau
Vice Minister

Trade Control Department
Industrial Science and Technology Policy
and Environment Bureau
Manufacturing Industries Bureau
Commerce and Information Policy Bureau
Commerce and Distribution Policy Group

External Bureaus
Agency for Natural Resource & Energy
Nuclear & Industrial Safety Agency
Small and Medium Enterprise Agency
Japan Patent Office

127

8 Regional Bureaus(Hokkaido, Tohoku, Kanto,
Chubu, Kansai, Chugoku,
Shikoku, Kyusyu)

(2) Organization of Agency for Natural Resources and Energy (ANRE)(as of April 2007)

1281.2 Energy Conservation Center, Japan (ECCJ)(as of August, 2008)(1) About ECCJ
Legal status:

An incorporated foundation under the supervision of METI

Establishment:

1978 (just when hit by the 2nd oil crisis)

Mission:Core organization responsible for promotion of energy conservation

Office location:

Head office & eight branches in Japan

Supporting member:

2,861 members (as of July, 2008)

Number of employees 133 persons
Budget:3,892 million yen in FY2007 (39 million US$ : @100¥/US$)

Fields of activity:

Industrial, Residential / Commercial and Transportation sectors

Major activities:

Industry sector;- Energy conservation audits services for factories- Education & training on energy conservation- State examination for energy managers (assigned by thegovernment)- Dissemination (conference for successful cases of energy
conservation activities, excellent energy conserving equipment,etc.)- Technological development and spillover
Residential / Commercial and Transportation sector;- Energy conservation audits services for buildings- Ranking catalogue for energy efficient appliances (disseminationof Top Runner Program)- Promotion of energy labeling system- International Energy Star program implementation- Energy efficiency product retailer assessment system- Dissemination of energy conservation indicator "E-Co Navigator"- Energy education at primary and middle schools- ESCO research and development
Cross sector:- Energy conservation campaign & exhibition (ENEX)- Commendation (grand energy conservation prize)- Information & data base, publicity and publishing- Survey and monitoring- International cooperation & communications

129

(2) Organization Chart (As of August 5 2008)130

1.3 The New Energy and Industrial Technology Development Organization (NEDO)(as of April, 2007)

General Affairs Department
Personnel Affairs Department
Chairman

Auditors

Accounting Department
Policy Planning and Coordination Department

President

Inspection and Operational Management Department
Assets Management Department

Executive
Directors

Information and Systems Department
Research and Development Project Evaluation Department
Research and Development Promotion Department
Electronic and Information Technology Development Department
Nanotechnology and Materials Technology Development Department
Head Office

Biotechnology and Medical Technology Development Department
Machinery System Technology Development Department
Fuel Cell and Hydrogen Technology Development Department
Energy and Environment Technology Center
Energy and Environment Policy Department
New Energy Technology Development Department
Energy Conservation Technology Development Department
Environment Technology Development Department
Kyoto Mechanisms Promotion Department
Coal Projects Department

Overseas Offices

Washington D.C., Paris, Bangkok, Beijing, Jakarta

Branch Offices

Kyushu, Hokkaido, Kansai

Source) NEDO Website
http://www.nedo.go.jp/english/introducing/organization.html

1311.4 Japan International Cooperation Agency (JICA)(as of October 1, 2008)
President

AuditorSenior Vice-President
Vice-President
Headquarters

Office of the President
Office of Audit

Domestic Offices

General Affairs Department
Overseas Offices

Information Policy Department
Office of Media and Public Relations
Personnel Department
Budget and Accounting Department
Treasury Department
Operations Strategy Department
Southeast Asia 1 and Pacific Department
Southeast Asia Department 2
East and Central Asia and the Cauvcasus

South Asia Department
Latin America and the Caribbean Department
Africa Department
Middle East and Europe Department
Economic Infrustructure Department
Public Policy Department
Human Development Department
Global Environment Department
Office for Climate Change
Rural Development Department
Industrial Development Department
Office for Private Sector Partnership
Training Affairs and Citizen Participation
Financing Facilitation and Procurement
Supervision
Credit Risk Analysis and Environment Review
Department

Procurement Department
Loan and Grant Administration Department
Evaluation Department
Department of Human Resources forInternational
Secretariat of Japan Overeas Cooperation

Secretariat of Japan Disaster Relief TeamJICA Research InstituteSource) JICA Website
http://www.jica.go.jp/english/about/organization/1321.5 The Institute of Energy Economics, Japan (IEEJ)(as of April, 2008)
Cooperative Research Group

Strategic Planning Group

Planning and
Administration Unit
Board ofDirectors
AuditorChairman& CEO
CouncilSenior Managing
Director & COO
Senior Managing
Director & CKO

Strategy andIndustry Research
Unit䂾 General Affairs Group䂾 Project Accounting Group䂾 General Planning Group䂾 International Cooperation Group䂾 Resources/Reference Room䂾 International Strategy Analysis Group䂾 Oil & Gas Strategy Group䂾 New and Renewable Energy Group䂾 Nuclear Energy Group䂾 Electric Power & Gas Industry Group䂾 Coal Research Group

Energy Data andModelling Center(EDMC)

䂾 Energy Demand, Supply and
Forecast Analysis Group䂾 Statistics Information Group

Global Environment
and Sustainable
Development Unit

䂾 Climate Change Policy Research Group䂾 Energy Conservation GroupJIME - IEEJ
(Middle-east
Research Center)䂾 Middle East & North Africa Group䂾 GCC Group䂾 Iran & Iraq Group䂾 Administration

The Oil Information Center
Asia Pacific Energy Research Centre (APERC)The Green Energy Certification Center (GECC)
Source) IEEJ Website
http://eneken.ieej.or.jp/en/about/organization/index.html

133

2. ENERGY CALORIES (JAPAN)
Energy<Coal>
Coking Coal (Domestic)

Unit
kg

Coking Coal (Import)

kg

Steam Coal (Domestic)kg

Steam Coal (Import)

Hard Coal (Domestic)kg

kg

Hard Coal (Import)

kg

Brown Coal

kg

Coke

kg

Coke Oven Gas

m3

Blast Furnace Gas

m3
3

Converter Gas

mPatent Fuelkg

Average Calorie (kcal)

Unit

Average Calorie (kcal)

KeroseneL

Gas OilL

Fuel Oil A

L

Fuel Oil B

L

Fuel Oil C

L

Lubricants

L

Other Petroleumkg

Refinery Gas

m3

Petroleum Coke

kg

LPG

kg

1953-99
20001953-99
2000-04
20051953-99
20001953-99
20001953-99
2000-04
20051953-99
20001953-99
2000-04
20051953-99
20001953-99
2000-04
20051953-99
2000-04

8,900
8,767
9,200
9,126
9,006
9,300
9,341
9,600
9,651
9,800
9,962
10,0099,600
9,603
10,10010,1059,771
9,400
10,726
8,500
8,504
7,143
12,00011,992Natural Gas
Natural Gas (Domestic)

m3
m3

LNG
Natural Gas (Import)

kg
kg

20051953-99
2000-04
20051953-99
2000-04
2005-

Coal Field Gas
Town Gas

m3
m3

12,136
9,800
9,771
10,392
13,00013,01913,0438,600
10,0009,818
10,702

5,709

Electricity(20.7%)

kWh

1953-559,300(22.2%)

1954

3,850

1956-60
1961-70
1971-80
1981-99
20001953-99
20001953-99
20001953-99
2000-04
20051953-99
2000-

9,350
9,400
9,300
9,250
9,126
8,100
8,433
8,400
8,266
8,000
8,146
8,027
8,700
8,767

(24.0%)(25.8%)(26.8%)(28.6%)(31.1%)(31.9%)(32.7%)(33.9%)(36.0%)(36.5%)(36.9%)(37.4%)(38.1%)(39.98%)(40.88%)

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966-70
1971-99
2000-04
2005-

3,600
3,350
3,200
3,000
2,750
2,700
2,650
2,550
2,400
2,350
2,350
2,300
2,250
2,150
2,105

F.Y.
1953-55
1956-60
1961-65
19661953-99
2000-04
20051953-65
1966-70
1971-80
1981-99
20001953-99
2000-04
20051953-65
1966-70
1971-75
19761953-99
2000-04
20051953-99

7,400
7,500
7,600
7,700
7,600
6,904
6,928
5,900
5,800
5,600
5,800
5,375
6,200
6,354
6,139
5,700
5,600
6,100
4,300
6,500
6,498
6,426
4,100

20001953-99
2000-04
20051953-99
20001953-99
20001953-99
20001953-99

4,109
7,200
7,191
7,023
4,800
5,041
800
815
2,000
2,009
5,700

2000<Oil>
Crude Oil

L

NGL

L

Gasoline

L

NaphthaL

Jet Fuel

L

Energy1953-99
2000-04
2005-( ) is thermal efficiency
1953
4,150

Source) Prepared from “EDMC Handbook of Energy and Economic Statistics in Japan (2008)”

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