## Figure 4-2-2 Kyoto Protocol Second Commitment Period (CP2)

## Protocol Draft Revision:

✓ Draft revision of the Kyoto Protocol was not adopted at COP17 (body and Annex B describes the target values)

✓ Reflecting the standpoints of Japan and Russia, who declared their nonparticipation in the CP2 (No column exists to enter target value on Annex B attached to outcome document).

## Target Values:

✓ Advanced countries participating in the CP2 shall submit relevant information about reduction targets by May 2, 2012.

✓ Plans to adopt a revised Annex B describing reduction targets at 2012 CMP8 after reviewing the next Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP) (AWG-KP will complete its role at that time $ ^{*} $ ).

## Commitment Period:

✓ Two draft periods are proposed: a five-year period (2013 through the end of 2017) and an eight-year period (2013 through the end of 2020) to be determined at the next AWG-KP.

Source: Ministry of the Environment

Photo: Ministry of the Environment

Resource: The 23rd Tax Commission of FY 2010

Figure 4-2-4 Feed-in Tariff (FIT) from July 2012

Resource: Agency for Natural Resources and Energy

## 2 Institutional Initiatives toward a Low-Carbon Society in Japan

## (1) Greening of the Tax System

The FY 2012 Tax Reform Outline (Cabinet Decision of December 2011) recommended the introduction of the “Carbon Dioxide Tax as a Global Warming Countermeasure” in FY 2012 in order to strengthen global warming measures through tax incentives. This tax is to impose additional tax rates on the current Petroleum and Coal Tax (of which the tax base is whole fossil fuels) based on the $ CO_{2} $ emission volume of each fossil fuel category.

(2) The Feed-in Tariff Scheme for Renewable Energy

This is a scheme to foster renewable energy in Japan with the help of all electricity customers. Power companies will be obliged to purchase electricity generated from renewable energy sources such as solar PV and wind power on a fixed-period contract at a fixed price. This will promote the introduction of renewable energy.

Costs of purchased electricity generated from renewable energy shall be transferred to electricity customers all over Japan in the form of a nationwide equal surcharge. They shall pay the surcharge for renewable energy proportional to electricity usage.

## 3 Innovative Energy and Environmental Strategy

The accident that occurred at the TEPCO Fukushima Daiichi NPS after the Great East Japan Earthquake had a great impact on Japan’s environmental and energy policies. Amid increasing concerns, fierce debates were held with regard to shaken nuclear safety, the increasing demands for fundamental safety measures for nuclear power generation, and an energy structure that depends on nuclear power. Given this situation, countermeasures have been taken based on an awareness that reflects a social structure characterized by both massive energy consumption and significant energy-saving efforts. Therefore, the current Basic Energy Plan, which aims to increase dependency on nuclear power generation to 50% by 2030, should be completely withdrawn. In light of the problems in Japan’s energy strategy revealed by the recent disaster, the Japanese government announced its commitment to formulating an innovative energy and environment strategy consisting of short-term, medium-term, and long-term targets to correct

Figure 4-2-5 Basic Stance to Suggest Options
Basic Stance 1: In terms of the zero-based review, all possible measures should be taken to ensure nuclear risk management.
The review of energy/environmental strategy is attributed to the severe accident at TEPCO Fukushima Daiichi Nuclear Power Plant. Nuclear risk management is essential in order to suggest a concrete image to reduce nuclear dependency, which is becoming the main trend.
The options should provide all possible measures to ensure nuclear risk management.
Basic Stance 2: In order to reduce nuclear dependency, while looking at world affairs, energy security and global warming measures should be satisfied simultaneously.
It is important to simultaneously satisfy to preserving energy security and to contributing to global warming measures, in the situation in which the international situation of resources and international opinion concerning global warming are fluid.
Countermeasures for the following issues will be also suggested:
-In order to reduce nuclear dependency, how should measures be implemented for energy security aimed at shifting to non-fossil fuel energy, and for global warming?
-How should a system be realized in which energy saving and renewable energy autonomously expand?
-How should greenhouse gas emission be reduced while dependency on nuclear power, which is zero emission power, is decreasing?
Basic Stance 3: A new energy mix or global warming measures can be realized by a new energy system in which users or communities are able to choose energy under the banner of 'Creating Energy,' 'Storing Energy' and 'Saving Energy.'
Energy shortage due to the Great East Japan Earthquake or the accident at TEPCO Fukushima Daiichi Nuclear Power Plant have changed all energy users' behavior, and made following points clear:
-Energy users' own investments, such as for 'Creating Energy,' 'Storing Energy' or 'Saving Energy,' can stabilize the energy demand.
-It has been gradually accepted that the energy supply structure can be changed by the users' choice of energy source.
-It has been gradually accepted that local networks, initiated by communities, are effective for both crisis management and local revitalization.
An ideal energy mix and global warming measures will be realized by the combination/integration of technology, such as Creating Energy, Storing Energy, or Saving Energy, and by the establishment of a new energy system in which the users or community can choose energy sources an their own initiative. There initiatives are expected to contribute to local revitalization or to the resolution of global issues.
Source: Basic Principles - Towards a proposal defining Options for and Strategy for Energy and the Environment created from Energy and Environmental council on December 21, 2011 by the Ministry of the Environment