EMAK & Japan’s Energy
Efficiency Policy
MASAOMI KOYAMA
Director, International Affairs
Energy Efficiency and Renewable Energy Department
Ministry of Economy, Trade and Industry

21st November 2018, CNI São Paulo Office, São Paulo, Brazil

1. EMAK (Energy Management Action Network)1-1. Overview• EMAK (Energy Management Action Network) was establishedin 2009 as a forum under the activity of IPEEC (InternationalPartnership for Energy Efficiency Cooperation).
• EMAK aims to promote improvement of energy efficiency
and energy savings in the industrial and the commercialsectors, primarily through a network of policy-makers andindustry stakeholders.
• It does so by facilitating discussions on policy issues related
to energy management, sharing the best practices of eachcountry, region and industry, and by supporting exchanges on
proven and innovative practices and capacity building.
• EMAK contributes to work under the G20 Energy Efficiency
Leading Programme.

1-2. Outputs 2015-2017●

Since 2009, EMAK has organised 8 workshops and 2 webinars
for the purpose of sharing experiences on the design andimplementation of energy efficiency policies andprogrammes.

●

Published a report on the workshops’ main findings and key
elements for designing and implementing award schemes.

●

Released a two-page digest of workshop recommendations tohelp communicate outcomes to policy makers and otherstakeholders.

1-3. Recent example of EMAK’s impact●

EMAK’s report on “Recognised Energy Management Best
Practices and Award Programs for Best Practices” provides
insights on how governments can design and implement
impactful energy management award programmes.

●

By considering these practical elements, policy makers canaccelerate the development of their own award programmesand ensure that these successfully support their government’s
energy management goals in an impactful manner.

1-4. Programme of work / Outlook●

Holding further workshops to facilitate best practiceexchange on energy management systems (e.g. 9th EMAK
workshop in the Brazil)●

Possibly enhancing cooperation and partnerships with other
IPEEC Task Groups and international organisations.

●

Identifying options (tools and best practices) to overcome
energy efficiency barriers, both at workshops and by sharing
workshop outcomes and reports.

●

Posting reports and presentation papers from workshops on
the IPEEC portal.

2. Japan’s Energy Efficiency Policy

Trend of Final Energy Consumption(JPY trillion）（Millions KL, Crude Oil

Real GDPEquivalent)

450

600

Final Energy Consumption

1973→2015

1973→2015

2.6 times

400

Total

500
350

運輸部門
Transport

1973→2015

300

400

Transport

Residential

250

Commercial

150

Residential

Commercial
産業部門
Industry

100

500
1973

75

80

8590952000【Source】 Energy Statistics and Annual Report on National Accounts

05

1015

2.3times

1973→2015

Industry0

1.9times

1973→2015

200

100

1.7times

1973→2015
300

200

1.2times（year）

0.8times

1.71973
1974
1975
1976
1977
1978
1979
1980
19811982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

Final Energy Consumption per Real DGP（Oil equivalent Million ton /1 trillion yen）
2.0
1.9

1.8

Approx.

40% improvement

1.6

1.5

1.4

1.3

1.2

1.1

1.0

Source: ANRE/METI

Basic Framework of Energy Efficiency Policy

Act on the Rational Use of Energy (1979)

History of the Act on the Rational Use of Energy

Factors Affecting the Successful Implementationof Key EE Policies
Energy Management System
EE&C improvement efforts by the in-house experienced energy managers being supported
by government’s stable provision of economic incentives and know-how sharing platform

Benchmark System
Assist EE&C efforts by the factories/business entities with the intra-industry comparison

Voluntary Action Plan
Facilitate intra-industry sharing and deployment of best practices

Top Runner Program
R&D efforts by the manufacturing industries and consumers’ choice toward EE
technologies –supported by labeling and economic incentives

Energy Efficiency improvement towards 2030
Final energy consumption(Long-term energy demand & supply outlook)
Econ growth(estimate)
361 million KLOE 1.7％／year

50.3 million KLOE
Energy Saving
376 million KLOE

Residential

14%

Transport

23%

Commercial

18%

Energy Efficiency Improvement
110
100

Residential

12%

Transport

19%

Final EnergyConsumption

90

35%
Improvement

326 million KLOE

Commercial

17%80
1970-1990
1990-20102012-2030

70
Industry45%

Industry
52%

60year02013
2030（With development of（Actual） Energy Efficiency measures）

5101520

Energy efficiency rate ＝ Final energy consumption ／real GDP

Energy Supply/Demand Structure toward CO2 Emissions
Reduction Target in 2030
○ While energy demand growth isprojected in line with economic
growth (an average 1.7%), energy
efficiency is expected to improve as
much as after the oil crises thoroughenergy conservation (35% in 20 years).

Final Energy DemandGDP
1.7％/year

Sweeping Energy
Savings
50 mllion kl（▲13% w.r.t.
reference case）

３６１million ｋｌ

Electricity

２５％

３２６million kl

Primary Energy Supply
４８９ million ｋｌ

Self-sufficiency
Renewables１３～１４％ ２４．３％
Nuclear１１～１０％
Natural Gas １８％

Electricity○ Energy supply/demand structure
improvement (energy self-sufficiency
rate: 6% in 2014 ⇒24.3% in 2030）○ Japan’s CO2 emissions reductiontarget(26% CO2 emissions reduction in 2030
compared with 2013 level)

２８％

Coal ２５％Heat
Gasoline
City gas
７５％

Heat
Gasoline
City gas
７２％

ＬＰＧ ３％

FY ２０１３

FY ２０３０（Actual）（After EnergySavings）

FY ２０３０

Oil ３０％(Source) METI “Long-term Energy Supply/Demand Outlook” p.5 (July 16, 2015)

Measures and Energy Saving Potential by Sector

Progress for the Target 2030
Total ＜approx. -50.30 million kl＞-6.00 million kl（Progress rate：11.8％）as of 2015

Industrial Sector <approx. -10.42 million kL>

Commercial Sector <approx. -12.26 million kL>-1.19 million kl（Progress rate：11.5％）as of 2015

-1.26 million kl（Progress rate：10.3％）as of 2015

 Main measures

 Main measures• Promotion of efficient lights including LED［0.33 / 1.08
million kl (30.6％) ］• Promotion of efficient lights including LED［49.0 / 228.8
million kl (21.4%) ］• Introduction of industrial heat pump［0.03 / 0.88 million kl(3.5％) ］• Improve energy-saving performance of equipment byequipment top runner program［25.0 / 278.4 million kl(9.0%) ］• Implementation of energy management through BEMS
［29.5 / 235.3 million kl (12.5%) ］• Introduction of industrial motors［0.04 / 1.66 million kl(2.4％) ］• Implementation of energy management through FEMS
［0.06 / 0.67 million kl (9.2％) ］

Residential Sector <approx. -11.60 million kL>

Transportation Sector <approx. -16.07 million kL>-1.11 million kl（Progress rate：9.5％）as of 2015

-2.41 million kl（Progress rate：15.0％）as of 2015

 Main measures

 Main measures• Promotion of efficient lights including LED［60.0 / 201.1
million kl (29.8%) ］• Diffusion of next-generation automobiles［59.1 / 938.9
million kl(6.3％) ］• Improve energy-saving performance of equipment byequipment top runner program［10.8 / 133.5 million kl (8.1%) ］• Other measures in transportation sector［181.5 / 668.2
million kl (27.2％) ］• Implementation of energy management through HEMS
［0.7 / 178.3 million kl (0.4%) ］（Breakdown）
Freight transport［74.4 / 337.6 million kl（22.0％) ］
Passenger transport［107.1 / 330.5 million kl（32.4％) ］

Further Challenges for improving EE
Industrial●Improvement ofenergy efficiency
come to astandstill
Factory regulation↓Corporationregulation

Commercial and Residential

Transportation
Automobile

Cargo●Trucks are moredifficult to electrify
than automobiles●Accelerationof spread of
EV・PHV/FCV
is a challenge

Appliance●Further energy efficiency improvement ofappliances is difficult by extension of
conventional technology alone

Equipment regulation（equipment top runner program）
Fuel consumption
standard（＋Eco car tax
reduction etc）

House and Building

Energy efficiency goalof appliances

Energy efficiency
improvement ofhouses

Expanding target
appliances up to 70% ofhousehold energy
consumption

Promote zero energyof newly-ordered
detached houses（Industrial top runnerprogram）

Consignor・Transporter regulation

Issue①

Issue②

Issue③Issue④

Issue⑤

Improvement ofenergy efficiency
by corporate
cooperation

Enhancement ofcollaboration between
consignor andtransporter

Accelerationof spreadof EV・
PHV/FCV

Improvement of energy
efficiency throughcooperation amongappliances

Zero energy useof houses andbuildingsBeyond theboundaries ofcompanies●Strengthen energy
efficiency of online shopping
business operators●Same industry●Energy efficiency●Positioningof EV in fuelconsumption
standards●Supply chain

throughout distribution●Mandating compliance●Promotion of energy efficiency
improvement throughcollaboration between appliances
by utilizing IoT and AI

with energy efficiency
standards for newly
built houses andbuildings●Evaluate energy efficiency
technology through cooperation
among appliances by equipment
top runner program●Promotion of spreadof ZEH includingcollection and existing
housingRecent Amendment of the EE Act (2018)【Amendment】【Current】
Regulation for each single business entity

Allows joint efforts from plural business entities(Example) Production facility integration
Energy Savings

Company Ａ Companies integratingproduction process can share
Total Savings
the result of energy savings
from such effort.
Energy Increases
Company Ｂ

Upstream
Process

Downstream
Process

Products

Integration
Upstream
Process

Downstream
Process

Products【Amendment】【Current】

Freight Owner＝Those entities
determining the transport methods

Freight Owner ＝Owner oftransporting goods
Some of the internet retail business entities
were outside of this regulation.

・Joint transport
・Joint use of stockyard
Cooperate

The Law will cover wider internet retail business entities,
which will have a greater impact on energyconsumption.

Internet retailbusiness A

Cooperate

・Improve utilization rate
・Load levelization
Freight Transport

Internet retailbusiness B

・Light/small box
・Installment of receiving box

THANK YOU !
Email: koyama-masaomi@meti.go.jp

Appendix

Fields subject to Regulations under the EE Act(1) Manufacturing plants &business establishments(2) Transportation◆ Business operators with an annual energy consumption of at least
1,500kl (equivalent crude oil) at manufacturing plants and businessestablishments.
◆ Freight carriers with a transportation capacity of a minimum certain scale,such as 200 trucks or 300 railway cars for railroads, etc.
◆ Cargo owners with an annual freight transport order of at least 30 million
tons .

(3) Machinery & equipment◆ Passenger cars, air conditioners, television sets, etc., 32 items.
(Comprises about 70% of household energy consumption.)(4) Residential buildings &structures◆Act on Improvement of Energy Consumption Performance of Buildings
Imposition of obligation to ensure buildings※ compliance with energy efficiency standards [Houses and Buildings]* Application starts from large-sized non-residential buildings by stages.

Submission of periodic
reports

Evaluation of the details ofsubmitted reports,
SABC evaluation< Matters to be stated in periodic reports > Implementation status of energy efficiency
measures Changes in specific energy consumption
 Status of the benchmark indices (for only
applicable types of business)

In case - business
operator’sefforts
areutterly
insufficient

In case - a business
operator
doesnot
follow the direction
given

Punishment

Publication andissuance of anorder

Direct thepreparation andsubmission of a
streamlining plan

Guidance

METI

Business
operators

Implementation Flow of Reporting System under the Act

In case - a business
operatordoes
notfollow the order○ Judgement on standards for energy efficiency
measures (Matters to be observed concerningbusiness operators’ management systems andmanagement methods of individual devices○Non-binding target (Reduction by 1% or more on anannual average basis)○Benchmark index/target levels (for several businesssectors (e.g. manufacture of steel, power supply,
manufacture of cement, manufacture of paper,
petroleum refinery, and manufacture of chemicals)Example of Behaviour Change Measures (Industry):
Evaluation system by Business Operator Classification
Class SClass B

Class A

Business operators superior inenergy efficiency efforts
6,469 companies（56.7%） *1

General business operators
3,333 companies（29.2%）[Levels](i) Having achieved the nonbinding target*2
or(ii) Having achieved the benchmark
target*3[Levels]
Not falling under Class S nor ClassB[Measures]
The name and number of years
during which the relevant business
operator has been classified into
Class S continuously are publicizedon the METI website to praise thebusiness operator as an excellent
one.

[Measures]
No particular measures are taken.

*1

Business operators whose energy
efficiency efforts are not progressing
1,601 companies（14.0%） *1[Levels](i) Having failed to achieve the nonbinding target and increased
specific energy consumption fromthe preceding year for two years ina rowor(ii) Having increased specificenergy consumption by 5% or moreon average for five years[Measures]
A written notice is sent and on-site
inspections, etc. are conductedintensively.

Class CBusiness operators
requiring close monitoring[Levels]
Among business operators classified
into Class B, those that areespecially bad at complying with
judgment standards[Measures]
Guidance based on Article 6 of theAct on the Rational Use of Energy isprovided.

*1 Calculated based on the total number of business operators that have submitted periodic reports in FY2017 (regarding performance in FY2016) (11,403 companies)*2 Non-binding target: Reduction of specific energy consumption by 1% or more on average for five years*3 Benchmark target: Levels to be aimed at in the medium- and long-term in business types and fields covered by the Benchmark System

Benchmark System

Benchmark System

Top Runner Programme: Basic Concept on how to set the Target Efficiency Standard

Example of Top Runner Programme

Fuel
economy(km/L)

19km/L
18km/L

1617km/L
15km/L

15km/L

14km/L
13km/L
12km/L

Judgment made with weighted
average for each product category.

When standards are set
Target fiscal year
Energy efficiency Standards according to Top Runner ProgramTop Runner Programme: 32 Equipment and Materials
1. Passenger vehicles
11. Electrical freezers
2. Air conditioners
12. Space heaters
3. Lighting equipment
13. Gas cookingappliances(Using only fluorescentlamps as main light
14. Gas water heaters
source)15. Oil water heaters
4. TV sets
16. Electric toilet seats
5. Photocopy machines
17. Vending machines
6. Computers
18. Transformers
7. Magnetic disk units
19. Electric rice
8. Freight Vehicles
cookers
9. Video cassette recorders 20. Microwave ovens
10. Electrical refrigerators 21. DVD recorders

22. Routers
23. Switching unitts
24. Multifunction devices
25. Printers
26. Electric water heaters
27. AC motors
28. Self-ballasted LEDlamps
29. Showcase
30. Insulation materials
31. Sashes
32. Multi-paned glazing*1.-9.:Apr. 1999, 10.-11.: Dec. 1999, 12.-18.: Dec. 2002, 19.-21.: Apr. 2006, 22.-23.: Jul. 2009, 24.-26.: Mar. 2012, 27.-28.: Nov. 2013, 29.: Feb.2016, 31.-32.: Nov. 2014

Labelling Programme supports Top Runner ProgrammeTop Runner Programme covers 70% of appliances and equipment in Household
70% is coveredby the program*1. Estimated by the Institute of Energy
Economics, Japan (IEEJ), based on theAgency for Natural Resources andEnergy's FY2009 Residential andCommercial Sector Energy Data Survey(10,040 valid responses) and
Supplementary Survey concerning
Appliance Use(?) (1448 valid responses)*2. This survey is based on tabulation
and analysis of each energy source, withvalues unified and converted on
megajoule (MJ) basis. Electric power insecondary conversion value.

EE improvement with Top Runner Programme[Passenger vehicles]
Fuel
economy(km/L)[Air conditioners]
Electric power
consumption forperiod (kWh)Transition in fuel economy of average new cars

2613001200

22.5221212

30.7%
improvement

1157

1100
18.3

19.5
1048

18100017.8

161412.3 12.4

16.5
15.7
14.7 15.1
15.5
14.0
15.0
13.5
14.6
13.2

96.7%
improvement

12.9

1028
1028

997
966
924

900

884

12.1
ＦＹ
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
(Note) Fuel economy values for the 10-15 mode.

700

896
872
860

800

108

1220
1174

21.1

2012124123.8

24

Electric power consumption for period

862

ＦＹ
1998 2000 2002 2004 2006 2008 2010 2012 2014
(Note) Wall mounted cooling and heating units with cooling capacity of 2.8kWclass model; simple average values for a representative model of energy
conserving-type products.

31