Japan

Energy Conservation
Handbook

2005 / 2006

The Energy Conservation Center, Japan

 Contents

1. World Energy Situations ....................................................................................................1

1.1 Energy resource reserves (2003)...........................................................................................1
1.2 Primary energy consumption by energy resource ...............................................................2
1.3 Primary energy consumption by region ...............................................................................3
1.4 Trends of Primary Energy Consumption .............................................................................4
(1) Per-capita primary energy consumption...........................................................................4
(2) Primary energy consumption per GDP .............................................................................4
(3) World energy consumption (2002) .....................................................................................4
1.5 Energy supply in major countries (2002) .............................................................................5
(1) Total primary energy supply (TPES) and percentage shares of energy sources............5
(2) Import dependence (2002)..................................................................................................5
(3) Percentage sector shares in final energy consumption (2002) ........................................6
(4) Total electricity generated and percentage shares of power sources (2002) ..................6
1.6 Energy consumption in major countries ..............................................................................7
(1) Trend of energy consumption.............................................................................................7
(2) Comparison of energy intensities ......................................................................................7
1.7 World Energy Outlook ...........................................................................................................8
(1) World Oil Demand ..............................................................................................................8
(2) World Oil Supply.................................................................................................................9
1.8 Projections of Energy Demand and Growth Rates ............................................................10
(1) World..................................................................................................................................10
(2) OECD .................................................................................................................................10
(3) Transition Economies .......................................................................................................10
(4) Developing Countries ....................................................................................................... 11
(5) China (which is included in Developing Countries) ...................................................... 11
(6) Increase of World Energy Demand centering on China and the Rest of Asia.............. 11

i
2. Global Environmental Trends ...........................................................................................12
2.1 Climate change and energy consumption.........................................................................12
(1) Transition of deviation from normal surface temperature ...........................................12
(2) Global energy balance (Index incident solar rays = 100) ..............................................12
(3) Increase of the carbon dioxide level and changes in fossil energy consumption .........13
(4) CO2 emissions by country (2003) ...................................................................................14
(5) Per-capita CO2 emissions (2003) ....................................................................................14
2.2 International efforts to counter global warming ..............................................................15
(1) IPCC: Accumulation of scientific knowledge .................................................................15
(2) UNFCCC: Study of international countermeasures .....................................................15
(3) IPCC report on global warming .....................................................................................15
(4) Influences of Green House Gases on Global Warming (1850-1990) .............................16
(5) History of COPs of the UN Framework Convention on Climate Change ...................16
2.3 Kyoto Protocol coming into effect......................................................................................20
2.4 G8 Summit .........................................................................................................................21
(1) Major issues ....................................................................................................................21
(2) An outline of the Gleneagles Plan of Action ..................................................................21
2.5 Energy conservation activities of the foreign countries...................................................22
(1) Approach to prevention of global warming by the major advanced countries .............22
(2) Overview of energy conservation measures in the foreign countries ...........................24
2.6 Japan’s policy to deal with global warming......................................................................25
(1) Guideline for Measures to Prevent Global Warming ...................................................25
(2) Kyoto Protocol Target Achievement Plan ......................................................................25

3. Energy Situation in Japan..................................................................................................27

3.1 Demand of energy sources and GDP.................................................................................27
(1) Trend of energy sources and GDP..................................................................................27
(2) Changes in Energy / GDP elasticity...............................................................................27
3.2 Transition of percent distribution of primary energy supply (1955- 2010) .....................28
3.3 Final energy consumption by sector .................................................................................29
3.4 Outlook of final energy consumption ................................................................................30
3.5 Outlook of primary energy supply ....................................................................................30
3.6 Outlook of CO2 emissions originating from energy use ...................................................31

ii
4. Energy Conservation Policy in Japan ........................................................................................ 32
4.1 Outline of energy conservation policies ..................................................................................... 32
(1) Brief history of energy conservation policy in Japan ............................................................. 32
(2) Promotion of energy conservation measures .......................................................................... 33
(3) Promotion of international energy conservation measures ................................................... 34
4.2 The Basic Energy Plan ............................................................................................................... 35
(1) Securing the stable energy supply .......................................................................................... 35
(2) Environmental sustainability ................................................................................................. 35
(3) Utilizing the market mechanism ............................................................................................ 35
4.3 Law concerning the Rational Use of Energy ............................................................................. 36
(1) Objective................................................................................................................................... 36
(2) Energy defined by the Law...................................................................................................... 36
(3) Basic policies and obligations of energy users........................................................................ 36
(4) Measures for factories ............................................................................................................. 36
(5) Measures for buildings ............................................................................................................ 40
(6) Measures for equipment.......................................................................................................... 41
(7) Activities of the New Energy and Industrial Technology Development Organization ......... 42
(8) Supporting measures and penalties ....................................................................................... 42
(9) Amendment of the law concerning the rational use of energy............................................... 42
(10) Structure of the “Law Concerning the Rational Use of Energy” ......................................... 46
4.4 Evaluation Criteria for Factory on rational use of energy ..................................................... 47
(1) Standards ................................................................................................................................. 47
(2) Targets...................................................................................................................................... 51
4.5 Standard and target values for operating equipment............................................................... 53
(1) Air ratios and waste gas temperatures for boilers ................................................................. 53
(2) Air ratios for industrial furnace .............................................................................................. 55
(3) Standard and target rates of waste heat recovery for industrial furnaces ........................... 56
(4) Standard values and target values of furnace wall outer surface temperatures ................. 57
(5) Equipment to be improved in power factor ............................................................................ 57
(6) Target efficiencies of high efficiency motors........................................................................... 58
4.6 Evaluation Criteria for Building on rational use of energy ..................................................... 59
(1) Prevention of heat loss through outer walls, windows, etc. of the buildings ........................ 59
(2) Efficient use of energy regarding air conditioning equipment .............................................. 60
(3) Efficient use of energy by mechanical ventilation equipment ............................................... 60
(4) Efficient use of energy regarding lighting equipment ........................................................... 61
(5) Efficient use of energy regarding hot water supply system................................................... 62
(6) Efficient use of energy regarding lifting equipment .............................................................. 63

iii
4.7 Top Runner Program .................................................................................................................. 65
(1) Background .............................................................................................................................. 65
(2) What is the Top Runner Program?.......................................................................................... 65
(3) List of target designated products in the Top Runner Program............................................ 66
(4) Expected energy conservation by the target fiscal year......................................................... 66
(5) Merits of Purchasing Top Runner Machinery and Equipment.............................................. 67
(6) Target Achievement Verification Procedures ......................................................................... 67
(7) Measures to be taken in case the Target Values are not Achieved ....................................... 68
(8) Evaluation Criteria for Machinery and Appliances under Top Runner Program................. 68
4.8 Law for Energy Conservation and Recycling Support .............................................................. 69
(1) Guidelines for efforts ............................................................................................................... 69
(2) The definition of specified projects.......................................................................................... 69
(3) Approval of projects ................................................................................................................. 69
(4) Assistance measures................................................................................................................ 69
(5) Specified facilities .................................................................................................................... 69
(6) Enforcement of the law............................................................................................................ 69
4.9 Financial Supporting Measures................................................................................................. 71
(1) Official Financial Assistance Programs (2005)....................................................................... 71
(2) Tax incentives to promote investment in the energy supply and demand structure reform
(2005) ....................................................................................................................................... 72
(3) Certification process for the equipment which promotes reform of energy supply and
demand structure. ................................................................................................................... 72
4.10 Commendation Programs to award Energy Conservation Efforts ......................................... 73
4.11 Publicity activities .................................................................................................................... 74
4.12 Energy Audit Program ............................................................................................................. 75
(1) Energy audit for small and midsize companies...................................................................... 75
(2) Energy Audit for commercial buildings .................................................................................. 75
4.13 The international ENERGY STAR Program ........................................................................... 76
(1) Product categories.................................................................................................................... 76
(2) Scheme ..................................................................................................................................... 76

iv
5. Energy Conservation by sector.............................................................................................. 77
5.1 Energy conservation in the industrial sector ....................................................................... 77
(1) Situation of energy use in the industrial sector ................................................................ 77
1) Energy consumption by manufacturing industry ....................................................... 77
2) Energy intensities in major industries (IIP) ............................................................... 78
3) The ratio of energy costs to variable costs in major industries .................................. 79
4) Energy conservation equipment investment and crude oil price ............................... 80
5) Effects of energy conservation and investment payback period................................. 81
6) Energy demand analysis for the industrial sector ...................................................... 82
(2) Energy conservation measures in the industrial sector ................................................... 83
1) History of energy conservation measures for factories ............................................... 83
2) Relevant legislation ...................................................................................................... 83
3) Outline of main voluntary technical action plan by Nippon Keidanren .................... 85
4) Measures taken in factories and buildings based on the Energy Conservation Law 89
5.2 Energy conservation in the residential sector.....................................................................103
(1) Energy consumption per household by energy sources....................................................103
(2) Energy consumption per household by usage ..................................................................104
(3) Improvements in energy efficiency of home electric appliances......................................105
(4) Diffusion rate and electricity consumption of home appliances ......................................107
(5) Energy conservation measures in the residential sector .................................................108
5.3 Energy conservation in the commercial sector....................................................................110
(1) Energy consumption per floor area by energy sources in the commercial buildings......110
(2) Energy consumption per floor area by usage in the commercial buildings.................... 111
(3) Energy conservation measures for the commercial buildings .........................................112
(4) Other energy conservation measures in the commercial sector ......................................114
(5) Promotion of commercial building energy management system (BEMS).......................115
(6) Promotion of ESCO Business............................................................................................116
5.4 Energy conservation in the transportation sector...............................................................118
(1) Energy consumption by type of transport ........................................................................118
(2) Energy consumption and transportation volume by type of transport (FY 2003) .........119
(3) Energy intensity by type of transport (FY 2003) .............................................................120
(4) Improvements in energy efficiency of vehicles .................................................................121
(5) Measures to improve fuel efficiency of automobiles.........................................................122
(6) Energy conservation measures in the transportation sector...........................................123
5.5 Reinforcement of Energy Conservation Measures in Each Sector .....................................125
(1) Background ........................................................................................................................125
(2) Additional Measures and Expected Effect........................................................................125

v
 6. Related Organization ....................................................................................................126
6.1 Ministry of Economy, Trade and Industry (METI).........................................................126
(1) Organization of METI...................................................................................................126
(2) Organization of Agency for Natural Resources and Energy (ANRE) .........................127
6.2 The Energy Conservation Center, Japan (ECCJ) ..........................................................128
(1) Organization of ECCJ...................................................................................................128
(2) About ECCJ...................................................................................................................129

Reference ...............................................................................................................................130

vi
 1. World Energy Situations

1.1 Energy resource reserves (2003)1）

Oil Natural gas Coal Uranium

Proved recoverable reserves (R) 1.1477 trillion barrels 176 trillion m3 984.5 billion tons 4.59 million tons

North America 4.1% 4.0% 26.1% 17.1%

Allocation by region

Central & South America 1) 10.3 4.3 2.3 3.6

Europe 1.8 3.6 13.4 2.8
Former Soviet Union 7.4 31.8 22.7 28.7
Middle East 63.3 40.8 0.2 0.2
Africa 8.9 7.8 5.6 20.5
Asia / Pacific 4.2 7.7 29.7 27.2

28 billion barrels
Annual production (P) (76.8 million 2.6 trillion m3 5.12 billion tons 36,000 tons
barrels/day)

Recoverable years (R/P) 41.0 years 67.1 years 192 years 85 years 2)

OECD/NEA, IAEA
Source BP statistics (year 2004) URANIUM
(year 2003)

1) Mexico was included in South & Central America category since 2000. You need to take account of that when
comparing with the previous fiscal year.
2) The recoverable reserves years in case of using uranium for a light water reactor by one through.
Therefore, uranium’s recoverable year is figured out by dividing the value of the proven recoverable reserves by the
annual demand of uranium in the world in 2002.

1
1.2 Primary energy consumption by energy resource

Nuclear Unit : 1 Mtoe

Year Oil Natural gas Coal Hydro
Other <Total>

Note) Figures in parenthesis represent percentage.

The figure of the other sources (renewable energy etc.) are neglected from the bar chart.
Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)”

2
1.3 Primary energy consumption by region

Unit : 1 Mtoe

Year
(年） OECD Non-OECD <Total>
ＯＥＣＤ計 非ＯＥＣＤ計 ＜合 計＞

73 (69.1) (30.9) 5,447

79 (64.1) (35.9) 6,504

81 (61.9) (38.1) 6,418

83 (59.9) (40.1) 6,487

85 (59.4) (40.6) 6,972

87 (58.4) (41.6) 7,394

89 (58.2) (41.8) 7,781

91 (57.9) (42.1) 7,915

93 (58.6) (41.4) 8,050

95 (58.9) (41.1) 8,309

96 (59.0) (41.0) 8,559

97 (59.0) (41.0) 8,637

98 (59.0) (41.0) 8,684

99 (58.9) (41.1) 8,843

00 (58.8) (41.2) 9,043

01 (58.3) (41.7) 9,089

02 (57.5) (42.5) 9,291

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Note) Figures in parenthesis represent percentage.

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)”

3
1.4 Trends of Primary Energy Consumption

(1) Per-capita primary energy consumption

Index (1971=100)
160

150
Non-OECD Average
140

130
OECD Average
120
World
世界平均 Average
110

100
71 73 79 81 83 85 87 89 91 92 93 94 95 96 97 98 99 00 01 02
Year

(2) Primary energy consumption per GDP

10,000 toe / 1 billion US$

80
70 Non-OECD Total
60
50
40
世界計
World Total
30
20 OECD Total
10
0
71 73 79 81 83 85 87 89 91 92 93 94 95 96 97 98 99 00 01 02
Year
(3) World energy consumption (2002)

Primary Energy Consumption Real GDP (1995 US $ standard) Population

Y/Y Avg. Growth Y/Y Avg. Growth Y/Y Avg. Growth

1 billion
1 Mtoe Growth Rate Growth Rate Growth Rate
US $ Million
Rate (1973-2001) Rate (1973-2001) Rate (1973-2001)

OECDTotal 5,346 0.94% 1.22% 28,401 1.60% 2.65% 1,144 0.70% 0.82%

Non-OECD
3,946 4.03% 2.98% 6,995 3.17% 3.67% 5,024 1.27% 1.81%
Total

World Total 9,291 2.22% 1.86% 35,396 1.91% 2.83% 6,168 1.16% 1.60%

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)”

4
 1.5 Energy supply in major countries (2002)

(1) Total primary energy supply (TPES) and percentage shares of energy
sources
Unit : %
Figures in parentheses are Million toe

EP EP EP EP EP
0,0 EP EP
0.2 0.3 -2.5 2.5 -0.7 0.1
Electricity

Hydro/Geothermal, etc

Nuclear

Natural Gas

Coal

Oil

Japan German UK France Italy Canada USA

EP = Electric power
Note)
1) The import and export of electric power are also included in the primary energy supply ( − in the chart represents excess of export).
2) Coal includes other solid fuels.

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)”
Comment)
1) The ratio of petroleum is especially high in Japan and Italy, accounting for 50%.
2) In the U.S.A. and Germany, the share of coal is as high as 24%.
3) In Canada, the share of hydraulic power is as high as 17%.
4) In France, the share of nuclear power is especially as high as 43%.

(2) Import dependence (2002)

Japan Germany U.K France Italy Canada U.S.A

Dependence on Energy import (%) 81.0 61.1 -13.8 49.4 84.6 -54.1 27.2

Dependence on Oil import (%) 99.7 96.7 -53.8 98.3 93.7 -58.2 60.1

Source) IEA/Energy Balances of OECD Countries (2001-2002)

5
 (3) Percentage sector shares in final energy consumption (2002)

Unit: % Figures in parenthesis represent 1 Mtoe.

Non-energy use

Commercial & Residential

sector

Transportation sector

Industrial sector

Japan Germany U.K. France Italy Canada U.S.A.

Source) IEA/Energy Balances of OECD Countries (2001-2002)

(4) Total electricity generated and percentage shares of power sources (2002)

Unit: % Figures in parenthesis represent 100 million kWh.

Hydro/Geothermal, etc.

Nuclear power

Natural gas

Coal

Oil

Japan Germany U.K. France Italy Canada

Canada U.S.A.

Source) IEA/Energy Balances of OECD Countries (2001-2002)

6
1.6 Energy consumption in major countries
(1) Trend of energy consumption
(Unit : %)
Energy consumption Oil consumption
Real GDP growth rate
increase rate increase rate Oil dependence rate
(year-over-year)
(year-over-year) (year-over-year)

2001 2002 2001 2002 2001 2002 2001 2002

U.S.A. 0.3 2.4 -2.1 1.6 1.4 -0.4 40.1 39.3
Japan 0.4 0.3 -1.0 0.0 -3.8 1.1 48.9 49.4
Germany 0.6 0.2 2.6 -2.0 2.1 -4.2 38.1 37.2
U.K. 2.1 1.8 1.3 -3.0 -2.5 -3.6 34.9 34.6
France 2.1 1.2 3.1 0.0 7.6 -2.8 35.3 23.9
China 7.5 8.0 -0.4 9.7 2.6 6.2 24.7 49.4

Source) IEA/Energy Balances of OECD Countries and IEA/Energy Balances of Non-OECD Countries (2001-2002)

(2) Comparison of energy intensities

Dollar = 1995 US dollar

600
中 国
Energy intensity (oil equivalent ton/million US$ of GDP)

2,500 カ ナ ダ
アメリカ
500
OECD
イギリス
フランス
400 イタリア
ド イ ツ
2,000
日 本
338 Canada
300

249 USA

200 188 OECD

1,500 166 UK
145
140
France
128 Italy
100
90.3 Germany
Japan

0
1,000 71 73 80 85 90 95 00 01 02

837 China

500

0
1971 1973 1980 1985 1990 1995 2000 2001 2002

Source) IEA/Energy Balances of OECD Countries and IEA/Energy Balances of Non-OECD Countries (2001-2002)

7
1.7 World Energy Outlook

(1) World Oil Demand

Unit : million barrels per day

Average annual
2002 2010 2020 2030 growth rate
2002-2030(%)

OECD North America 22.6 25.5 28.7 31.0 1.1

US and Canada 20.7 23.2 25.8 27.6 1.0

Mexico 2.0 2.3 2.9 3.4 2.0

OECD Europe 14.5 15.3 16.3 16.6 0.5

OECD
OECD Pacific 8.4 8.9 9.4 9.5 0.5
OECD Asia 7.5 7.9 8.3 8.3 0.4

OECD Oceania 0.9 1.0 1.1 1.2 1.2

OECD Total 45.4 49.7 54.4 57.1 0.8

Transition economies 4.7 5.5 6.5 7.6 1.8
Russia 2.7 3.1 3.6 4.2 1.6

Other 2.0 2.4 3.0 3.4 2.0

China 5.2 7.9 10.6 13.3 3.4

Indonesia 1.2 1.6 2.1 2.6 2.9
India 2.5 3.4 4.5 5.6 2.9
Non-OECD Other Asian Countries 3.9 5.1 7.0 8.8 3.0
Latin America 4.5 5.4 6.8 8.4 2.3
Brazil 1.8 2.3 2.9 3.6 2.4

Other Latin America 2.7 3.2 3.9 4.8 2.1

Africa 2.4 3.1 4.4 6.1 3.4

Middle East 4.3 5.4 6.8 7.8 2.1
Non-OECD total 28.6 37.5 48.8 60.4 2.7
Miscellaneous 3.0 3.2 3.5 3.8 0.9
World 77.0 90.4 106.7 121.3 1.6

Source) IEA / World Energy Outlook (2004)

8
(2) World Oil Supply
(million barrels per day)

Average annual

growth rate

2002 2010 2020 2030 2002-2030(%)

OECD North America 13.7 14.8 12.6 10.0 -1.1

US and Canada 10.1 10.6 8.7 7.2 -1.2

Mexica 3.6 4.2 4.0 2.8 -0.9

OECD Europe 6.6 4.8 3.1 2.2 -3.9

OECD Pacific 0.8 0.5 0.5 0.5 -2.0
OECD Total 21.1 20.1 16.3 12.7 -1.8

Russia 7.7 10.4 10.6 10.8 1.2

Other transition economies 1.9 4.2 4.7 5.2 3.7
Transition economies Total 9.5 14.6 15.4 15.9 1.8
Non-OPEC
China 3.4 3.3 2.7 2.2 -1.5
India 0.8 0.7 0.6 0.5 -1.6
Other Asia 1.7 1.6 1.2 0.6 -3.4
Latin America 3.7 4.7 5.5 6.1 1.8
Brazil 1.5 2.5 3.3 4.0 3.6

Other Latin America 2.2 2.2 2.2 2.1 -0.2

Africa 3.0 4.6 4.9 4.4 1.4

Middle East 2.1 1.8 1.4 1.0 -2.7
Developing Countries Total 14.6 16.6 16.2 14.8 -1.8
Non-OPEC Total 45.3 51.3 47.9 43.4 -0.2
OPEC Middle East 19.0 22.5 37.4 51.8 3.6
OPEC Other OPEC 9.2 10.7 12.4 13.0 1.2
OPEC Total 28.2 33.3 49.8 64.8 3.0
Non-conventional oil 1.6 3.8 6.5 10.1 6.7
of which GTL 0.0 0.4 1.5 2.4 16.0

Processing gains 1.8 2.0 2.5 3.0 1.9

World 77.0 90.4 106.7 121.3 1.6

Source) IEA / World Energy Outlook (2004)

9
1.8 Projections of Energy Demand and Growth Rates

(1) World
Energy Demand (Mtoe) Growth Rate (%)
2002 2010 2020 2030 2002-2010 2002-2020 2002-2030
Total Primary Energy Supply 10,345 12,194 14,404 16,487 2.1 1.9 1.7
Coal 2,389 2,763 3,193 3,601 1.8 1.6 1.5
Oil 3,676 4,308 5,074 5,766 2.0 1.8 1.6
of which international bunkers 146 148 152 162 0.2 0.2 0.4
Gas 2,190 2,703 3,451 4,130 2.7 2.6 2.3
Nuclear 692 778 776 764 1.5 0.6 0.4
Hydro 224 276 321 365 2.6 2 1.8
Biomass & Waste 1,119 1,264 1,428 1,605 1.5 1.4 1.3
Other Renewables 55 101 162 256 8.0 6.2 5.7

(2) OECD

Energy Demand (Mtoe) Growth Rate (%)

2002 2010 2020 2030 2002-2010 2002-2020 2002-2030
Total Primary Energy Supply 5,346 5,970 6,550 6,593 1.5 1.1 0.9
Coal 1,095 1,170 1,213 1,192 1.0 0.6 0.3
Oil 2,167 2,372 2,594 2,725 0.7 1 0.8
Gas 1,171 1,379 1,635 1,830 1.9 1.9 1.6
Nuclear 593 642 599 557 10.5 0.1 -0.2
Hydro 106 121 125 131 1.1 0.9 0.8
Biomass & Waste 181 223 282 359 2.5 2.5 2.5
Other Renewables 33 63 103 159 6.8 6.5 5.8

(3) Transition Economies

Energy Demand (Mtoe) Growth Rate (%)
2002 2010 2020 2030 2002-2010 2002-2020 2002-2030
Total Primary Energy Supply 1,030 1,186 1,358 1,499 1.8 1.6 1.3
Coal 194 219 227 217 1.5 0.9 0.4
Oil 222 265 312 362 2.2 1.9 1.8
Gas 504 578 685 782 1.7 1.7 1.6
Nuclear 69 77 80 71 1.2 0.8 0.1
Hydro 24 29 31 32 2.3 1.3 1
Biomass & Waste 16 17 19 25 0.8 1.1 1.7
Other Renewables 0 3 4 8 36.7 17.3 13.6

Source) IEA / World Energy Outlook (2004)

10
(4) Developing Countries
Energy Demand (Mtoe) Growth Rate
2002 2010 2020 2030 2002-2010 2002-2020 2002-2030
Total Primary Energy Supply 3,824 4,890 6,344 7,873 3.1 2.9 2.6
Coal 1,099 1,374 1,754 2,192 2.8 2.6 2.5
Oil 1,142 1,523 2,016 2,517 3.7 3.2 2.9
Gas 515 746 1,131 1,528 4.7 4.5 3.9
Nuclear 30 60 96 135 9.2 6.7 5.6
Hydro 94 127 166 202 3.7 3.2 2.7
Biomass & Waste 922 1,024 1,127 1,221 1.3 1.1 1
Other Renewables 21 35 54 89 6.4 5.3 5.2

(5) China (which is included in Developing Countries)

Energy Demand (Mtoe) Growth Rate
2002 2010 2020 2030 2002-2010 2002-2020 2002-2030
Total Primary Energy Supply 1,242 1,622 2,072 2,539 3.4 2.9 2.6
Coal 713 904 1,119 1,354 3.0 2.5 2.3
Oil 247 375 503 636 5.4 4 3.4
Gas 36 59 107 158 6.4 6.3 5.4
Nuclear 7 21 47 73 15.9 11.6 9
Hydro 25 33 50 63 3.6 3.9 3.4
Biomass & Waste 216 227 236 236 0.6 0.5 0.3
Other Renewables 0 5 10 20 - - -
Source) IEA / World Energy Outlook (2004)

(6) Increase of World Energy Demand centering on China and the Rest of Asia

Source : Figure has been converted on the basis of the IEA, “World Energy Outlook 2004”

11
2. Global Environmental Trends

2.1 Climate change and energy consumption

(1) Transition of deviation from normal surface temperature
1.5 1.5

1.0 1.0
Deviation from normal value (℃)

0.5 0.5

0.0 0.0

-0.5 -1.5

-1.0 -1.0

-1.5 -0.5
1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
2010
Year
Note) 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) White Paper on the Environment 2002 (Ministry of Environment)

(2) Global energy balance (Index incident solar rays = 100)

Note) Figures in parenthesis represent estimated values when we assume the CO2 concentration becomes double. In case
the concentration of greenhouse effect gas such as CO2 increases, the energy flow in the dotted line becomes
larger. This causes the rise of temperature. The global temperature is said to fall to as low as -19℃ if no carbon
dioxide or no steam should be contained in the atmosphere.
Source) "Meteorological Research Notes No. 160, Carbon Dioxide Special", Taro Matsuno, 1987, Meteorological Society
of Japan (partially modified).

12
(3) Increase of the carbon dioxide level and changes in fossil energy
consumption

Note) 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 a 100-year running average. The sharp rise of the CO2 level since the outset of the Industrial 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 Panel on Climate Change)
White Paper on the Environment 2000 (Ministry of Environment)

13
(4) CO2 emissions by country (2003)

New Zealand Peru Others

USA
0.1% 0.1% 24.2%
Vietnam 22.8%
0.2%
Hong Kong
0.2%
Singapore
0.2%
Chile
0.2%
Philippines
0.3%
M alaysia China
0.6% 16.4%
Thailand
0.8%
Taiwan Russia
India Japan
1.0% 6.3%
Indonesia 4.3%
UK Germany 4.9%
1.3% France Italy 2.3% 3.4%
Australia
1.6% 1.8% Canada
1.4%
M exico South Korea 2.1%
1.6% 1.8%

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2004)”

(5) Per-capita CO2 emissions (2003)

6 .0 0

5 .0 0

4 .0 0
t-Carbon/Person

3 .0 0

2 .0 0

1 .0 0

0 .0 0
d
ea

g
y

re
es
Ta a

pp a
In al ia

Ze m
A ic o

M nd
T h an
a

M e
a

s
h ly
n

ld
a
na

ng e
SA

ru
K

an
on
si

i
an

er
c
ad
si

di

S i h il
pa

Ph ys
or

H apo

a
in
u t Ita

or
U

an

iw
ne

la

Pe
hi

al
us

e w tn
ex

th
K
m
In

tr
an
U

a
K
Ja

C
ai

W
Fr
C

N ie
do

al
us
er

O
R

g
C

ili

V
on
G

So

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2004)”

14
2.2 International efforts to counter global warming

In this chapter we will focus on the two mechanisms that are dealing with global warming issues:
The Intergovernmental Panel on Climate Change (IPCC) is the mechanism that accumulates
scientific knowledge on global warming while debates on the international countermeasures have been
made in the COPs (Conference of 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 report
compiled for 1995, IPCC announced their analysis on the climate change since the 19th century.
According to their findings, global warming had been already occurring due to the increasing amount
of emitted greenhouse gases after the Industrial Revolution etc.

(2) UNFCCC: Study of international countermeasures

UNFCCC discusses and performs international countermeasures to the climate change while
IPCC is a place to accumulate scientific knowledge. In UNCED (United Nations Conference on
Environment and Development: commonly named “Earth Summit”) which was held in Rio de Janeiro
in Brazil in June, 1992, a large number of nations including Japan signed UNFCCC. The purpose of
this treaty is to stabilize the concentration of greenhouse gases in the atmosphere. As a result, it is
required that the amount of emitted greenhouse gases should be controlled or cut down. UNFCCC was
ratified by 50 countries and went into effect in March, 1994. Following its effectuation, the COP1 was
held in Berlin and the COP2 in Geneva, the COP3 was held in Kyoto to adopt "Kyoto Protocol",
which defined the reduction targets of greenhouse gases in the period from 2008 through 2012.

(3) IPCC report on global warming

Increase of Atmospheric CO2 Rise of Sea Level Rise of Average World Temperature

★ 265 - 285 ppm before the ★ 10 - 20 cm rise in 20 ★ 0.6±0.2 ℃ rise after 1861
Industrial Revolution (1750 - century
1800) ★ Estimated rise of 1.4 - 5.8 ℃
★ 365 ppm in 1996 ★ Estimated 9 - 88 cm rise between 1990 – 2100
★ 540-970 ppm estimated by the between 1990 - 2100
end of 2100

Source) Third Assessment Report of Climate Change 2001 (IPCC)

15
(4) Influences of Green House Gases on Global Warming (1850-1990)

Fluorides & Others

11%
Nitrous oxide (N2O)
6%

Methane(CH4) CO2
19% 64%

Source） 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
Reduction target At least 5% for all Annex I parties
*Base year: 1990 -5% Croatia 0% Russia, New Zealand
-6% Japan, Canada, Hungary, Poland - 1% Norway
-7% US +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 the
commitments.

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.

Kyoto Mechanism
Emission Trading Parties in Annex I may participate in the Emission Trading in order to achieve their
(ET) commitments.
Joint Implementation For the purpose of meeting its commitments, Parties in Annex I may transfer to or
(JI) acquire from, emission reduction units, any other parties in Annex I .
Clean Development The purpose of CDM mechanism is to assist Parties not included in Annex I in
Mechanism achieving sustainable development and to contribute to the Protocol, while Parties
(CDM) in Annex I may use the certified emission reductions accruing from such projects.

16
 Enforcement and Effect
Enforcement The Convention shall become effective 90 days after 55 or more 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.
Effect When no Protocol exists, the global CO2 emission in 2010 will increase 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) COP6 results and progresses

The COP6 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.
Major issues Financial & technical assistance from developed countries to developing countries to help
them manage the emission and adapt to the climate change.
Implementation of the Kyoto Mechanism :
- International Emission Trading (ET)
- Joint Implementation (JI)
- Clean Development Mechanism (CDM)
Utilization of carbon sequestration techniques “Sinks”
Compliance, with its related issues of Reporting, international governance and penalties
Results / No consensus was reached on the major issues at the Hague Conference, but the Bonn
Progresses conference succeeded in making the Kyoto Protocol agreeable for the ratification, expecting
to accelerate the transition phase to the implementation phase at COP7.

3) COP7 results and consensus

The COP7 was held in Marrakech, Morocco on Oct. 29 - Nov. 9, 2001.
Results Essential points of Bonn Agreement have been maintained. The demand urged by Japan,
Canada, Australia and Russia to implement flexibly the Kyoto Mechanism and its rule have
been confirmed. The U.S. was not substantially involved with the conference although it
attended the conference.
Consensus Establish the two funds for technology transfer and financial support to developing
countries.
Implementation of the Kyoto Mechanism :
- ET, JI and CDM shall be supplementary measures to domestic ones.
- Emission constraint by Nuclear Power is not counted in.
- Purchase of emission shall be less than 10% of total emission pledged by country.
Carbon sequestration techniques “Sinks” :
- Conditions by country shall be taken into consideration.
Penalty to carry over 1.3 times of the Non-achieved target.
CDM Executive Board is set up for Smooth promotion.

17
4) COP8 results and progresses
The COP8 was held in New Delhi, India on Oct. 23 - Nov. 1, 2002.
Results The Delhi Ministerial Declaration on Climate Change and Sustainable Development
adopted at COP8.
1) Strong encouragement of the Protocol ratification to Parties that have not yet.
2) Recognition with the concern of the findings of the IPCC Third Assessment
Report (TAR) which confirms the necessity of significant cuts in global emissions for the
ultimate objective of the Convention.
3) Note to current mitigation actions by both Annex I and non-Annex I countries and
emphasis on mitigation of GHG emissions to combat climate change as continuing high
priority under the provisions of the Convention.
4) Promotion of informal exchange of information on actions relating to mitigation and
adaptation among Parties for more effective and appropriate responses to climate change.
5) Take urgent actions at all levels to substantially increase the global share of renewable
energy sources.
Progresses Issues suspended in the COP7 were discussed and agreed.
1) Activity report from CDM Executive Board .
2) Report and assessment based on the Protocol .
3) Report from each parties

5) COP9 results and progresses

The COP9 was held in Milan, Italy on 1-12 December 2003.
Results The conference concluded as ministers’ call for urgent and coordinate action on climate
change.
1) Ministers agreed that climate change remains the most important global challenge to
humanity.
2) Participants emphasized that the Kyoto Protocol represents a significant first step
towards realizing the Convention’s goal of stabilizing atmospheric levels of greenhouse
gases at safe levels and called for its immediate entry into force.
Progresses The formal decisions adopted by the conference will strengthen the institutional framework
of both the Convention and the Kyoto Protocol.
1) New emission reporting guidelines based on the good-practice guidance provided by the
IPCC will provide a sound and reliable foundation for reporting on changes in carbon
concentrations resulting from land-use changes and forestry. These reports are due in
2005.
2) Another major advance is the agreement on the modalities and scope for
carbon-absorbing forest-management projects in the CDM. This agreement completes
the package adopted in COP7 and expands the CDM to an additional area of activity.

18
6) COP10 results and progresses
The COP10 was held in Buenos Aires, Argentina on 6-17 December 2004
Results The conference marked the 10th anniversary of the entry into force of the Framework
Convention on Climate Change, which served as a central theme for the meeting.
In addition to the accomplishments of the past ten years and future challenges, discussions
at COP 10 highlighted a range of climate-related issues including the impacts of climate
change and adaptation measures, mitigation policies and their impacts, and technology.
Progresses It was reconfirmed at the conference to be very important that all the countries keep on
cooperating for realizing more effectual measures from now on as well as aiming at the
further advance under the treaty and the Kyoto Protocol.
1) Each Annex I party welcomed the protocol effectuation on 16 February 2006 as the
important first step in promotion of international countermeasures against global
warming. It was identified that the intention of further efforts of each country to have
their respective targets for emission reduction achieved certainly must be sustained.
2) Based on the working plan that studies for the post Kyoto Protocol after 2013 would
start by the end of 2005, It determined to begin operations through information
exchange towards future activities in mid and long-term under participation of all
countries.
Next step The COP 11 will be held in Montreal, Canada from 28 November to 9 December 2005.

7) COP11 & COP/MOP1 results and progresses

The COP11 & MOP1 was held in Montreal, Canada between 28 November and 9 December in 2005.
The Eleventh Session of the Conference of the Parties (COP 11) was held in parallel with the First
Conference of the Parties to the Kyoto Protocol (COP/MOP1) of the United Nations Framework
Convention on Climate Change (UNFCCC). Being the first conference being held since the Kyoto
Protocol coming into force in February that year and for the Parties to the Kyoto Protocol, the conferences
attracted a lot of attention from various fields. Canada's Environment Minister Dion, the chairman of the
conference, at the opening, declared the three “I” as the objectives for the conference: the
“Implementation” of the Kyoto Protocol, the “Improvement” of the Kyoto Protocol, and the “Innovation”
towards the framework of the Post-Kyoto strategy after the end of the first commitment period. In
conjunction with the declaration, decisions were made for each of these three categories. For the scope of
the “Implementation”, the Marrakech accords were adopted, establishing the operational rule of the Kyoto
Mechanism. This adoption meant the establishment of the operational rule of the Kyoto Protocol,
including Kyoto Mechanism (Clean Development Mechanism (CDM), Joint Implementation (JI), and
Emissions Trading). To further create CDM’s certified emission reductions (CERs), within the scope of
the “Improvement”, decisions were made to discuss issues on strengthening the functioning and funding
of the Projects Reviewing Council, mitigating the certifying standards for CDM, and reviewing
small-scale CDM projects. As being the most major issue, within the scope of the “Innovation” towards
the framework of the Post-Kyoto strategy after the end of the first commitment period, the conference
entered into a heated debate and finally reached agreements to establish a new working group, starting in
May 2006, to discuss the reduction commitments after the end of the first commitment period (until
2012), and open up a “Dialogue for actions for long-term cooperation”, in which all Parties to UNFCCC,
including the US and developing countries will participate.

19
2.3 Kyoto Protocol coming into effect

The requirements for the Kyoto Protocol coming into effect included that (1) not less than 55 parties to
the convention ratify the protocol, and (2) parties included in Annex I which accounted in total for at least
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 the commitment 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, the holding of a seminar for governmental experts was agreed, which will serve as the
foothold of discussion concerning the framework after 2013.

Other
Aus

Fra

Pol US

Ital

Can

UK

Ger

Jap Rus

Proportions of CO2 emissions of Annex I parties in 1990

Source: Compiled by the Ministry of the Environment based on data collected from each party by the
secretariat of the convention before the COP3

20
2.4 G8 Summit

The 31st Summit (meeting of leaders of major countries) was held in Gleneagles, Scotland, the United
Kingdom from July 6 to 8, 2005.

(1) Major issues

By the initiative of Prime Minister Blair, the chair, Africa and climate change were taken up as main
agenda items of the Summit. Japan developed its argument from its original position for the Africa
question, based on its successful experiences of economic development cooperation with Asia, and for the
climate change question, based on its experiences of overcoming pollution problems during the period of
high economic growth and of achieving energy conservation and higher energy efficiency triggered by the
oil crises.

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 that these countries shoulder greater responsibility in tackling climate change and
other problems. Japan emphasized the importance of compatibility between environment protection and
economic development, use of technology for that purpose, promotion of the 3Rs (Reduce, Reuse and
Recycle) and the spirit of mottainai (the spirit of virtue of thrift), and increasing efforts to curtail illegal
logging, etc.

(2) An outline of the Gleneagles Plan of Action

--- Climate change, clean energy, sustainable development---
The G8 nations agreed to proceed with actions in the following key areas:
• Conversion to the effective 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

21
2.5 Energy conservation activities of the foreign countries
(1) Approach to prevention of global warming by the major advanced countries
Item Japan U.S. Canada Australia
Law concerning Rational National Energy Policy Implementation Plan for Stable Energy Supply
Use of Energy 2001 measure against Global Plan 2004 (Securing
(Enforcement in '79; Warming 2002 (Climate Australia's Energy
revision in '83; Change Plan for Future 2004)
revision in '93; Canada 2002)
revision in '98; Energy Policy Act 2005 Implementation Plan for National Framework
Government’s plan and revision in '02;
development of laws measure against Global for Energy Efficiency
revision in '05) Warming 2005 (Project NFEE 2004
concerning energy
conservation Green-A Plan for
Honouring our Kyoto
Commitment 2005)
Energy Policy Act 1992 Energy Efficiency Act
(Establishment in '92;
revision in '95; revision
in '97; revision in '98)
Subsidy measures based Assistance and tax Various tax Various tax
on the Law for Supporting incentive measures based incentive/assistance incentive/assistance
Energy Savings and 3R on the Comprehensive measures measures
Financial support system Assistance (Energy Electricity Restructuring
concerning energy Reform Tax System) and Act
conservation various other financial Tax incentive measures
support measures based on the Energy
Policy Act of 1992
Ministry of Economy, Department of Natural Resources Department of
Trade and Industry Energy-DOE Canada-NRCan Industry, Tourism, and
(Agency for Natural Resources-ITR
Resources and Energy)
Ministry of Land, Department of Department of
Governmental Infrastructure and Transport-DOT Transport and
organizations having Transport Regional Services-
jurisdiction over energy DOTARS
conservation
Department of Housing Department of the
and Urban Environment and
Development–HUD Heritage-DEH
Ministry of the Environmental Protection Australian Greenhouse
Environment Agency-EPA Office-AGO

New Energy and Alliance to Save Energy Energy Technology National Appliance
Industrial Technology Center (In Natural and Equipment Energy
Development Resources Efficiency
Organizations promoting Organization Canada-NRCan) Committee-NAEEEC
Energy conservation
The Energy Conservation American Council for an
Center, Japan Energy-Efficient
Economy-ACEEE
Ratification of Kyoto Ratification (June 2002) Non-ratification (as of Ratification (December Non-ratification (As of
Protocol September 2005) 2002) September 2005)
Greenhouse gas −6% −7% −6% ＋8%
reduction target set by
Kyoto Protocol
(1990-basis)
Drastic reinforcement of Measures for industry, Improvement of the Extension of
Law concerning Rational transportation, and standard for energy equipment subject to
Use of Energy (Industry, consumers based on the saving devices the MEPS standard
transportation, and Energy Policy Act of 2005
consumers)
Pursuit of the objectives of Reinforcement of Improvement of Promotion of the
Major domestic measures the voluntary technical measures by the recognition of efficiency of equipment
for promotion of energy action plan in the departments of the energy-saving and buildings and
conservation industrial sector Federal Government technology by provision improvement of
of information information service to
consumers
Extension and review of Improvement of domestic Assistance to Implementation of
the standards for infrastructure energy-saving steady report on
top-runner equipment construction and utilization of energy by
energy-saving repair enterprises
Improvement of nuclear Measures based on the Measures for Extension of the use of
power generation development of petroleum, gas, thermal recyclable energy
efficiency technologies for carbon power generation, and
sequestration, hydrogen mining industry
Other domestic measures utilization, nuclear
for reduction in energy, new energy, etc.
greenhouse gas Extension of the use of Extension of equipment Extension of the use of Measures based on
emissions new energy subject to the Energy Star recyclable energy R&D and technical
Program development
Further reduction in Reinforcement of Improvement/promotion
Chlorofluorocarbon-Replac measures by introduction of efficiency of domestic
ing Material emissions of tax incentives infrastructure

22
 Item EU Germany France U.K.
Implementation of Energy Conservation Law on Air and Energy Act 2004
energy conservation Ordinance 2002 Rational Energy Use
program based on the EU 1996
Parliament/Board
decision
(No.1230/2003/EC)
Government’s plan and EU Energy Conservation Energy White Paper Energy Conservation
development of laws Plan, SAVE Program, etc. 2003 (Livre blanc sur Implementation Plan
concerning energy (Intelligent Energy les energies 2003) 2004 (Energy
conservation Europe 2003-2006) Efficiency: The
Government's Plan for
Action 2004)
Energy White Paper
2003 (Our Energy
Future-Creating a Low
Carbon Economy 2003)
National energy Tax Tax incentive measures Various tax
Financial support system
conservation guidelines incentive/assistance based on the Finance incentive/assistance
concerning energy
by European Commission measures based on the Law for 2003 measures
conservation
Cogeneration-Act
Directorate-General for Federal Ministry of Ministry of the Department of Trade
Energy and Transport (In Economics and Economy, Finance, and and Industry-DTI
the European Technology-BMWi Industry-MINEFI
Commission) Federal Ministry of Ministry of Ecology and Department for
Governmental Transport, Building, Sustainable Transport-DfT
organizations having and Housing-BMVBW Development
jurisdiction over energy Office of the Deputy
conservation Prime Minister-ODPM
Directorate-General for Federal Ministry for the Department of the
Environment (In the Environment, Nature Environment, Food and
European Commission) Conservation, and Rural Affairs-DEFRA
Nuclear Safety-BMU
Deutsche Energie Agency for Energy Saving
Energy conservation related Agentur-DENA Environment and Trust-EST
propulsion institution Energy Carbon Trust
Management-ADEME
Ratification of Kyoto Ratification (May 2002) Ratification (May 2002) Ratification (May 2002) Ratification (May 2002)
Protocol
Greenhouse gas reduction −8% −21% 0% −12.5%
target set by Kyoto Protocol
(1990-basis)
Extension and Utilization of Utilization of Implementation of
reinforcement of environment tax environment tax stricter construction
equipment efficiency standard
standards

Major domestic measures Increase in efficient Approach by voluntary Promotion of Extension of EEC
for promotion of energy buildings agreement development of scheme/expansion of
conservation energy-saving subjects
technology
Promotion of Utilization of Implementation of Promotion of the
procurement/introduction spontaneous labeling stricter construction diffusion of CHP
of efficient equipment by standards
the government
Utilization of emissions Extension of the use of Extension of the use of Extension of the use of
Other domestic measures trading system recyclable energy recyclable energy recyclable energy
for reduction in greenhouse
Extension of the use of Promotion of the Improvement of Utilization of Climate
gas emissions
recyclable energy diffusion of CHP domestic infrastructure Change Levy (CCL)

23
(2) Overview of energy conservation measures in the foreign countries
Date Country Summary
Aug.23, 2005 U.S. U.S. revises light truck fuel efficiency standard
Aug.8, 2005 U.S. U.S. Energy Policy Act of 2005 (HR.6) enacted
Jul.11, 2005 U.S. U.S. HUD, EPA and DOE announce “Partnership for Home Energy
Efficiency”
Jul.1, 2005 Australia Australia commences water efficiency labeling system on a voluntary
basis
Jun.30, 2005 U.S. U.S. announces CO2 emissions in 2004
Jun.27, 2005 Korea Korea announces CO2 reduction measures
Jun.22, 2005 EU EU announces draft energy conservation target of total 20% reduction
by 2020
Jun.9, 2005 EU EU begins media campaign for sustainable society
Jun.9, 2005 UK UK considers nationwide introduction of road pricing
Jun.2, 2005 Thailand Thailand begins media campaign for energy conservation
Jun.1, 2005 U.S. U.S. considers revising fuel efficiency measuring method
Jun., 2005 Taiwan Taiwan considers introducing stand-by electricity standard into MEPS
standard
May 27, 2005 U.S. Major freight train operators newly join the U.S. Smartway Transport
System
Apr. 10, 2005 U.S. Twelve U.S. states file lawsuit against EPA in relation to greenhouse
gas emission regulations
Apr. 5, 2005 Canada Canadian automotive industry signs a memorandum with the national
government concerning greenhouse gas emission reduction
Feb.24, 2005 U.S. 64% of U.S. respondents are familiar with Energy Star System and
approximately 10% of the houses pass the standards under the System
Feb. 10, 2005 UK UK moves to begin automobile labeling system
Feb. 7, 2005 U.S. U.S. budget proposal for the next fiscal year shows 2% reduction in
energy conservation budget
Nov. 7, 2004 Canada Canada proposes introducing regulations on emission of CO2 and other
gasses from automobiles
Oct. 28, 2004 U.S. U.S. begins commendation program for energy conservation activities
of federal agencies and government employees
Oct.18, 2004 EU EU begins campaign to promote Eco-Label
Oct. 14, 2004 EU European Commission proposes tighter CFC regulations (HFCs, PFCs
and SF6) for global warming prevention
Oct. 13, 2004 UK British Telecom, UK’s largest communications company, announces a
plan to cover all its power requirements by renewable energy
Oct. 7, 2004 U.S. U.S. oil major Exxon does not set CO2 reduction target and records
approximately 50% more CO2 reduction than its UK counterpart
British Petroleum
Oct. 6, 2004 UK UK sets new procurement policy for the national government and other
bodies with regard to green products
Oct. 4, 2004 China Chinese Environment Minister makes a comment that energy
conservation and resources efficiency will be emphasized

24
2.6 Japan’s policy 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 to Prevent 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 more than 100 measures and action plans.

What needs to be stressed here is that the Guideline sets a reduction goal for each green house effect
gas respectively. For instance, in terms of the CO2 originating from the use of fossil fuels, the emission
level should be reduced to exactly the same level as that of 1990. And the emission level of CO2 from
non-fossil fuels (e.g. waste incineration), methane and dinitrogen 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, it has been actively promoting the
implementation of measures to reduce greenhouse gas emissions, including measures for energy
conservation and new forms of energy, based on the Outline for Promotion Effects to Prevent Global
Warming (2002). 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 a plan
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 Outline for Promotion of Efforts 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 reduce greenhouse
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 and partnership between them as
well as the securing of transparency and the sharing of information to ensure the participation and
partnership, the utilization of various policy tools, emphasis on the process 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 energy supply-demand structure of Japan to a structure
of a CO2 reduction type.

Source : Materials 3-1 for the 27th Meeting of the Global Environment Subcommittee of the Industrial Structure Council

25
 Creation of a CO2 reduction type society

CO2 reduction type of urban design

• Promotion of Spatial utilization of energy (District heating and cooling, etc.)
Spatial or network measures

• Joint efforts between different entities (Joint energy management of integrated facilities or several
buildings by utilizing IT)
• CO2 reduction through improvement of the environment deterioration by heat by implementing
socio-economic systems of CO2 reduction type

measures against heat island effects, including the planting of trees

Creation of regional/urban structures and

Designing of a CO2 reduction type of transportation system

• Utilization of public transportation systems (Improvement in public transportation systems and

convenience, and commuting transportation management, etc.)
• Use of eco-friendly automobiles (Dissemination of idling stop and eco-friendly driving, etc.)
• Establishment of a system to ensure smooth road traffic (Regulation of the demand for automobile
traffic and the introduction of intelligent transportation systems)
• Realization of environmentally sustainable transportation (EST) (Trial in leading areas)

Formation of a CO2 reduction type logistics system

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

Spatial utilization of new energy and the accommodation of energy

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

Efforts by Efforts by CO2 reduction in CO2 reduction in

manufacturers transportation offices and stores households
• Steady implementation of
Measures taken by a company

• Steady • Use of eco-friendly • Improvement in

individual action plans
or other individual entities

implementation of automobiles (described the energy

individual action • Thorough energy
above) conservation
plans management based on
• CO2 reduction by joint performance of
• Thorough energy the Energy Conservation
efforts between cargo housing
management in Law
owners and • Dissemination of
factories • Improvement in the
transportation HEMS (Home
• Efforts in the energy conservation
companies (described energy
residential and performance of buildings
above) management
transportation • Dissemination of BEMS
• Furthering of more systems)
divisions in the (building energy
efficient transportation
industrial sector management systems)
(described above)

CO2 reduction in the energy supply sectors

• Steady promotion of nuclear power generation • Shift to natural gas
• Promotion of efficient use of oil and LP gas • Promotion of introduction of new energy
• Lowering of CO2 emissions intensity in the • Realization of society using hydrogen
electric power field

Measures by Measures for equipment in

equipment in the Measures for equipment in the offices, stores and
industrial sector transportation sector households
Individual measures

Measures for machinery

• Introduction of • Dissemination of vehicles that meet the

• Improvement in the efficiency of
machinery and top runner standards
equipment based on the top
equipment with high • Dissemination of fuel-efficient
runner standards
energy conservation automobiles
• Provision of information on energy
performance • Dissemination of clean energy
conservation type equipment
• Highly efficient automobiles
• Support for dissemination and
industrial furnaces • Control of the running speed of large
technological development of
• Next generation trucks
energy conservation type
coke ovens • Introduction of equipment for idling stop machinery, including highly
• Introduction of sulfur-free fuel efficient water heaters
• Improvement in energy efficiency in the • Reduction of standby energy
railroad, vessel and aircraft sections

26
3. Energy Situation in Japan
3.1 Demand of energy sources and GDP
(1) Trend of energy sources and GDP

Energy Demand (1018J) GDP (base year 1995) (trillion yen)

First Oil Crisis

Second Oil Crisis

Total Energy Demand

Oil Demand

Electricity Demand (Left Axis:100 billion kWh)

Coal Demand

Natural Gas Demand

(2) Changes in Energy / GDP elasticity

Fiscal Year 1965～73 1973～80 1980～90 1990～2000 2000～02

GDP Growth Rate 9.05％ 3.45％ 4.17％ 0.96％ -0.16％

Annual Average Growth Rate of

10.86％ 0.43％ 2.04％ 1.58％ -1.07％
Energy Demand

Energy/GDP Elasticity 1.2 0.13 0.49 1.65 －

Source) "Energy Production, Supply and Demand Statistics", "Annual Report on National Account", "Outline of Electric
Power Supply and Demand"

27
3.2 Transition of percent distribution of primary energy supply
(1955- 2010)

Hydro/geothermal Nuclear

Natural gas

New Energy etc.

Coal

Oil

Year

Note) The estimated figures of FY 2010 are based on the long-term energy supply and demand outlook published by

General Resource Energy Investigation Committee (2004).

The figure of “New Energy etc.” after the fiscal year of 1990 includes amount of “waste heat and others.”

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2006)”

28
3.3 Final energy consumption by sector

1018 J

2001

Fiscal Year

Fiscal Year 73 79 82 85 90 92 94 96 97 98 99 2000 2001

11.10 11.70 10.42 11.33 13.32 13.85 14.56 15.36 15.50 15.36 15.81 15.98 15.79
Final Energy
Consumption
2.3 -3.2 1.2 2.3 2.0 4.6 2.7 0.9 -0.9 2.9 1.1 -1.2

Industrial 6.94 6.61 5.45 5.80 6.67 6.69 7.00 7.39 7.44 7.11 7.38 7.53 7.34

Sector 1.8 -6.2 -0.4 -3.1 0.7 6.8 3.8 0.7 -4.4 3.8 1.9 -2.4

2.01 2.45 2.41 2.76 3.44 3.66 3.89 4.10 4.12 4.33 4.46 4.54 4.53
Civil Sector
2.3 0.5 3.7 8.6 2.8 1.5 0.8 0.5 5.1 2.9 1.8 -0.1

Transportation 1.82 2.33 2.29 2.47 3.21 3.49 3.65 3.87 3.92 3.92 3.97 3.91 3.92

Sector 3.8 0.6 2.5 7.6 3.2 3.7 2.7 1.3 -0.1 1.3 -1.4 0.1

Note) The values at the lower column are the growth rate.
Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2004)”

29
3.4 Outlook of final energy consumption
(Unit : million kL of crude oil equivalents)

2010
Fiscal Year
1990 2000
Reference Current Measures Additional Measures

Items
% % % % %

Final Consumption Total 344 100% 413 100% 420 100% 411 100% Approx. 402 100%

Industrial Sector 172 50% 195 47% 188 45% 187 46% Approx.187 Approx.46%

Civil Sector 89 26% 117 28% 127 30% 123 30% Approx.118 Approx.29%

Household Sector 43 12% 55 13% 60 14% 58 14% Approx.55 Approx.14%

Commercial Sector 46 13% 63 15% 67 16% 65 16% Approx.63 Approx.16%

Transportation Sector 83 24% 101 24% 106 25% 101 25% Approx.97 Approx.24%

Passenger 43 13% 61 15% 64 15% 62 15% Approx.60 Approx.15%

Truck 39 11% 40 10% 42 10% 39 10% Approx.37 Approx.9%

Source) Midterm report of “Outlook of Energy Demand and Supply in 2030” issued by Demand &Supply Subcommittee of
Advisory Committee for Natural Resources and Energy in October 2004

3.5 Outlook of primary energy supply

(Unit : million kL of crude oil equivalents)

Fiscal Year
2000 2010

1990 Cuurent
Items Rreference Additional Measures
Measures

Primary Energy Supply 512 588 602 585 569

Fuel Amount % Amount % Amount % Amount % Amount %

Oil 271 53% 274 47% 258 43% 247 42% Approx.236 Approx.41%

LPG 19 4% 19 3% 19 3% 19 3% Approx.17 Approx.3%

Coal 86 17% 107 18% 111 18% 105 18% Approx.101 Approx.18%

Natural Gas 53 10% 79 13% 91 15% 86 15% Approx.81 Approx.14%

Nuclear power 49 10% 75 13% 85 14% 85 14% Approx.87 Approx.15%

Hydro power 22 4% 20 3% 21 3% 21 4% Approx.21 Approx.4%

Geothermal 0 0% 1 0% 1 0% 1 0% Approx.1 Approx.0%

New Energy,etc 12 2% 14 2% 16 3% 22 4% Approx.27 Approx.5%

Source) Midterm report of “Outlook of Energy Demand and Supply in 2030” issued by Demand &Supply Subcommittee of
Advisory Committee for Natural Resources and Energy in October 2004

30
3.6 Outlook of CO2 emissions originating from energy use

(Unit: 1 million t-CO2)

2010

1990 2000
Fiscal Year Reference Additional Measures
Items
Growth rate Growth rate Growth rate
compared to compared compared to
FY90 to FY90 FY90

Total of CO2 emmission 1,048 1,161 + 10.7% 1,115 + 6.4% 1056 .+ 0.8%
Increasing and decreasing
－ 113 － 67 － 8 －
comapred to FY1990
Industrial Sector 476 470 ▲ 1.3% 450 ▲ 5.6% 435 ▲ 8.6%

Civil Sector 273 344 + 26.0% 333 + 22.2 302 + 10.8%

Household 129 158 + 22.5% 155 + 20.0% 137 + 6.0%
Commercial 144 186 + 29.2% 178 + 24.1% 165 + 15.0%

Transportation 217 264 + 21.7% 260 + 19.6% 250 + 15.1%

Conversion 82 83 +0.7% 73 ▲ 11.8% 69 ▲ 16.4%

Rate of emmission
- +9.1% + 5.4% + 0.6%
compared with base year

Source) Material-2 in the 11th meeting of Demand &Supply Subcommittee of Advisory Committee for Natural Resources
and Energy

31
4. Energy Conservation Policy in Japan

4.1 Outline of energy conservation policies

(1) Brief history of energy conservation policy in Japan
Japan has made impressive achievements in the energy conservation. It is mostly because of the
combined efforts made by the both public and private sectors since the first oil crisis. As of the year
1973, when the first oil crisis occurred, Japan’s dependence on oil resources was as high as 80% of its
total primary energy demand.

Although the oil crisis revealed Japan’s fragile supply- demand structure of energy, the
government took advantage of it as a precious lesson and has since been making full efforts to build a
robust supply-demand structure.

Specifically, on the supply level, the diversification of energy sources has been pushed forward
with by switching to alternative energies such as natural gas or nuclear power. On the demand level,
on the other hand, the industrial sector is playing a central role in terms of energy conservation.

As the result of those tireless efforts, the dependence on oil has declined to 52%, which enables
Japan to realize an energy-conservation-oriented society while staying in an economic power at the
same time. And in terms of energy consumption per GDP, our country has been successful in curbing
increasing the consumption, even compared with that of other major developed nations.

In the meantime, the member nations reached an agreement with the target that required
developed nation to cut their GHG emissions at the 3rd Session of the Conference of the Parties
(COP3) in Kyoto 1997. Therefore, in order to reach the goal and conserve the environment on a global
level, further efforts of energy conservation have since been perceived.
More than 90 % of GHG consists of carbon dioxide and approximately 90% of carbon dioxide is
emitted from combusting fossil fuels. That means nearly 80 % of GHG emissions originates from
energy use. For that reason potent and effective energy policies are thought to be the key player in
resolving environmental problems.

In order to achieve the goal of 6% GHG emission reduction set by the Kyoto protocol, the
Japanese government decided to design measures covering the both supply and demand of energy. In
terms of the demand level, for example, it will urge the industrial, the commercial and residential and
the transportation sector to promote more energy conservation, though considerable efforts have
already been taken since the oil crisis. If these measures are put into place, an aggregate of 56 million
kL energy is estimated to be saved in the year of 2010, which is almost equivalent to the annual energy
consumption in all of the households in Japan. This tells us how ambitious the goal of the energy
conservation measures will be.

However, the energy consumption in the commercial sector and the transportation sector has kept
rising partly due to the changing the lifestyles of the Japanese people. Based on this recent trend, the
Advisory Committee for Energy put forward additional measures aimed at the promotion of energy
conservation in the commercial sector and the transportation sector in 2001.

32
(2) Promotion of energy conservation measures
1) Introduction and promotion of energy conservation equipment and systems
For promoting energy conservation equipment, investment in industry and commerce, loan
programs and tax reduction have been established (low interest loans by the Japan Development
Bank and Smaller Business Finance Corporation and a tax system for promoting investment to
reform energy supply 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 of
technologies 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 Fuel consumption
standards for trucks.
(c) Commercial and residential sector:
Guidelines for buildings
Guidelines for residential housing
Addition of designated appliances and formulation of energy efficiency guidelines

4) Enhancing people's awareness of energy conservation by publicity activities.

(a) Being thoroughly informed of various measures by the Council for Promotion of Energy
and Resources Conservation Measures, such as "energy conservation campaign in summer
and winter."
(b) Preparing and distributing posters and pamphlets, holding symposiums and offering
information through mass media.

5) Active promotion of an energy conservation labeling system

In June 1995, Japan and the U.S.A. agreed to unify the standard and the indicating system
of the International Energy Star Program which is an energy conservation standard for
office automation equipment from personal computers and the program was enforced on
October 1, 1995. Each of the industrial, residential and commercial, and transportation
sectors is endeavoring to promote energy conservation through careful measures such as the
above.

33
(3) Promotion of international energy conservation measures
Under the policy and support of the Japanese Government, ECCJ has been conducting energy
conservation training programs for developing countries mainly in the Asian region for the
purpose of promoting energy efficiency and conservation of those countries as well as
enhancing the stable supply of energy of Japan. The programs include lectures, practical
trainings at trial plants, factory tours, etc. aiming at transferring Japanese successful
experiences and information (energy conservation policy, energy management, highly
energy-efficient technology, etc.) for energy efficiency and conservation to those countries
which could serve as useful reference for their planning/implementation/spread of energy
efficiency and conservation. .

1) For bilateral cooperation

- Dispatch of experts
- Acceptance of trainees
- Implementations of model projects of energy conservation, for example, waste heat recovery
in plants where large amounts of energy are consumed, such as iron and steel works and
power stations.

2) For multilateral cooperation

Make full use of the opportunities to exchange information and opinions through
international organizations, such as IEA and APEC, and to establish international cooperation
as much as possible.

34
4.2 The Basic Energy Plan

The Agency for Natural Resources and Energy (ANRE) reported the Basic Energy Plan to the
Diet in October, 2003. This plan defines the next 10-year direction of measures on the demand and
supply based on the three principles of the Fundamental Law on Energy Policy Measures. Here are the
details of the three principles.

(1) Securing the stable energy supply

In order to deal with the future growth of energy demand in the Asian region and Japan’s
dependence on the Middle East oil, the following measures should be promoted: (i) Energy
conservation, (ii) Diversifying imported energy resources and strengthening the relationship with
major oil exporting nations. (iii) Diversifying energy resources, such as developing domestically
produced fuels, (iv) Securing the oil and LP gas reserves.

The supply-demand problem of electricity in the Kanto area should be considered, and reliability
and stability of domestic supply should be secured. And securing energy is a prerequisite for the stable
energy supply. The government and business owners should make full efforts to secure the stable
supply.

(2) Environmental sustainability

In addition to reducing the emissions of NOx and SOx, the following measures will be promoted
to combat 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) Utilizing the market mechanism

Promote the institutional reforms and design plans to utilize market principles in the framework
that 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

35
4.3 Law concerning the Rational Use of Energy

(1) Objective
This law aims to contribute to the sound development of the national economy through
implementing necessary measures for the rational use of energy in factories, buildings, and machinery
and equipment, and other necessary measures to comprehensively promote the rational use of energy,
while it seeks to ensure the effective utilization of fuel resources that would meet the economic and
social environment of energy at home and abroad.

(2) Energy defined by the Law

“Energy” in this law means fuels such as oil, flammable natural gas, and coal, as well as heat and
electricity produced by using such fuels (excluding electricity generated by the renewable energy such
as photovoltaic cells, wind power, etc.).

(3) Basic policies and obligations of energy users

The Minister of Economy, Trade and Industry (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 account of the fundamental policy and make efforts to
rationalize their energy use.

This is to comprehensively promote the rational use of energy through the systematic formulation
and the public announcement of the basic matters pertaining to the measures to promote the rational
energy utilization.

(4) Measures for factories

Japan’s final energy consumption in the industrial and civil business sectors accounts for as much
as 60% of the total energy consumption. Therefore, more proactive actions to promote the rational
energy utilization in factories and business premises are important. To implement the law effectively,
the following provisions were established;

1) Evaluation criteria for business operators

METI shall establish and announce the subject of evaluation criteria regarding the measures to be
taken deliberately in order to achieve the goals towards the rationalization of fuel combustion,
utilization and recovery of waste heat, prevention of electricity loss by resistance etc, and the relevant
goals: the subject of evaluation criteria are targeted to those who conduct business activities and utilize
energy in their factory / business premises (hereafter referred to as Factory) and are purposed that the
rational utilization of energy in Factory would be implemented appropriately and effectively. (Refer to
the item 4.4 ”Evaluation Criteria” and the item 4.5 “Standards and Target Values”.)

This is to show a guideline of the individual and concrete measures about the basic matters stated
in the basic policy and to guide business operator to judge and conduct appropriate and effective

36
implementation of the rational energy utilization in Factory. (The revised criteria was announced on
10 January, 2003.)

2) Guidance and advice

The competent minister (METI and other minister(s) who are responsible for the programs of the
relevant Factory), may provide business operators with guidance and advice about the rational energy
use with the consideration of the things concerning the evaluation criteria when judged necessary by
the minister
3) Type 1 Designated Energy Management Factories
The 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 equivalents) and belong to the five manufacturing
industries 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 for reinforcement in April, 2006.

Type 1 Designated Energy Management Factories shall appoint an energy manager to monitor the
work related to the rational energy utilization, prepare and submit a mid-to-long term plan, and report
the status of their energy utilization to the competent minister every year.
However, the buildings in the category of Type 1 Designated Energy Management Factories may
appoint an energy management officer, instead of an energy manager, who has completed a designated
training course that were conventionally conducted in the past. In those buildings, an energy
management officer is conducting day-to-day energy management, but they shall have a participation
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 Factory is judged to be in egregious breach of the
evaluation criteria for energy rationalization, the competent minister may instruct Type 1 Designated
Energy Management Factory to prepare a rationalization plan, and if the operator does not obey the
instructions, they can announce to that effect or give an order for taking any action to respond to the
instructions, after hearing the opinion of the council concerned.

4) Type 2 Designated Energy Management Factories

The factories whose energy consumption is a medium scale (the total consumption of fuel and
electricity is 1,500 kL or more per year in crude oil equivalents) shall promote the rational use of
energy 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 prescribes that Type 2
Designated Energy Management Factory shall appoint an energy management officer, who takes an
energy conservation course, and keep the record of the conditions of energy use, etc. However, the
amended law in June 2002 imposed an obligation to report on energy use to the competent minister on
an annual basis, instead of the obligation of recording the energy use situations stipulated by the
former version of the law.

<Recommendation>
If Type 2 Designated Energy Management Factory is judged not to comply with the evaluation
criteria for energy rationalization, the competent minister may submit a recommendation to the
operators and request them to take necessary steps for the rational use of energy.

37
5) Category of designated energy management factory

Annual Energy Consumption Industrial Category

・ All industries other than those
Following 5 industries: listed at left
Manufacturing e.g. office buildings,
Mining department stores, hotels,
Total of Fuel and Electricity Electricity supply schools, hospitals, government
Gas supply offices, and amusement parks)
Heat supply ・ Head office / office bldg. of
the left listed industries.

Type 1 Designated Energy Type 1 Designated Energy

Management Factory Management Factory
3,000 kL
Type 2 Designated Energy Management Factory
1,500 kL

Regulatory obligations Regulatory obligations

* Appointment of qualified Energy Manager * Appointment of Energy Management Officer

* Submission of medium- to- long- term plan * Submission of medium- to- long- term plan

* Periodical report (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 De signate d Ene rgy Manage me nt Factorie s producing Coke and

supplying Ele ctricity, Gas and He at
Annual Fue l Consumption Numbe r Re quire d
3,000 or le ss than 100,000 kl-oe 1
100,000 kl-oe or more 2

Type 1 De signate d Ene rgy manage me nt Factorie s othe r than above

Annual Fue l Consumption Numbe r Re quire d
3.000 or le ss than 20,000 kl-oe 1
20,000 or le ss than 50,000 kl-oe 2
50,000 or le ss than 100,000 kl-oe 3
100,000 kl-oe or more 4

38
7) Certified Energy Manager System
In Japan, factories belonging to any of the five designated industries with a total of fuel
and electricity consumption of at least 3000 kL of crude equivalent are designated as Type 1
designated energy management factories under the Law concerning Rational Use of Energy,
and are subject to the obligation to appoint one or more energy managers according to the
level of their energy consumption. Such energy managers must be selected from the holders of
a license of qualified person for energy management.

A license of qualified person for energy management is awarded to any person who has
passed an examination for qualified person for energy management, or who has been authorized by
the Minister for Economy, Trade and Industry upon completing a qualification course of qualified
person for energy management. The process works in the following manner:

(a) Examination of Qualified Person for Energy Management

a) Category
i) Examination of qualified person for heat management
ii) Examination of qualified person for electricity management Heat

b) Prerequisites
None

c) Examination subjects
i) Examination of qualified person for heat management
Introduction to heat management and regulations, basics of flows of heat and heat fluid, fuel
and combustion, and heat-utilizing equipment and its management
ii) Examination of qualified person for electricity management
Introduction to electricity management and regulations, basics of electricity, electrical
facilities and equipment, and electric power applications

d) Application destination
Examination Department, Energy Management Examination and Training Center, Energy
Conservation Center of Japan

e) Examination date and sites

The examination is held in August in every year and at 10 locations - Sapporo, Sendai, Tokyo,
Nagoya, Toyama, Osaka, Hiroshima, Takamatsu, Fukuoka and Naha.

f) Announcement of successful applicants

The examinee’s number who passes the examination will be announced on the Official Gazette

g) 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.

39
(b) Qualification Course of Qualified Person for Energy Management

a) Category
i) Heat management course
ii) Electricity management course
b) 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 - Sendai, Tokyo,
Nagoya, Osaka, Hiroshima and Fukuoka.
d) Application destination
Training Department, Japan Energy Management Examination and Training Center, The
Energy Conservation Center of Japan

(5) Measures for buildings

Most of the energy consumed in the civil sector is used in buildings. The measures focusing on
the insulation of buildings are highly effective for the rational use of energy. Thus, the Law provides
the following rules for rational energy use in buildings.

1) Obligations of building owners

Those who intend to construct a building must take appropriate measures to prevent heat loss
through external walls, windows, etc. and to utilize efficiently the energy for building facilities such as
air conditioners, mechanical ventilation systems, lighting, water heaters and elevators, with the basic
policies in mind, in efforts 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 shall establish and announce standards
which building owners should refer to in making decisions for rationalizing energy use in their
buildings. The new standard for the buildings was announced on 24 February, 2003. (Refer to the item
4.6 ”Evaluation Criteria for Buildings”.) And the standard for houses was announced on 30 March,
1999.

2) Guidance and advice

The Minister of Land, Infrastructure and Transport may, whenever necessary, give necessary
guidance and advice on building design and construction to the owners of buildings other than private
dwellings 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 their design
and construction in accordance with the criteria which the building owners should refer to in making
decisions. In addition to these rules, the Minister of Economy, Trade and Industry may give insulation
and other construction material manufacturers necessary guidance and advice for improving the
insulation properties of their construction materials in order to ensure the improvement of the quality
of insulation materials, which constitute a basic element in improving the total insulation capability of
buildings.

40
3) Instructions for specified buildings
Furthermore, if the Minister of Land, Infrastructure and Transport deems that any building (not
for dwelling) of 2,000 m2 or more in total floor area is notably insufficient in the measures taken for
rationalization of energy use in terms of the standards to be referred to, he can give necessary
instructions to the buildings owner on the matters concerning design and construction work, and if the
building owner does not comply, the minister can announce to that effect.

(6) Measures for equipment

Another energy-consuming area consists of automobiles, air-conditioners and other equipment
that require large amounts of energy. These machines and appliances are mostly purchased by general
consumers after being produced systematically in large quantities. For rational energy use relating to
such equipment, it is important to call for the consumers energy conservation effort in their use, but a
more drastic way is to improve their energy efficiency itself at the production stage. Based on this idea,
the Law provides for various rules to follow in using 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 the energy
consumption efficiency of the equipment which they produce or import. Concerning automobiles and
other equipment as specified in the Government Ordinance, the Minister of Economy, Trade and
Industry (and also the Minister of Land, Infrastructure and Transport for automobiles) shall establish
and announce standards for energy consumption efficiency improvement which manufacturers should
refer to in making decisions. Further, 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 where he considers a considerable improvement is needed in the
energy consumption efficiency of their specific products in view of the standards which they should
refer 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).

The target value of the standard is set up on the basis of the product having the highest energy
efficiency of all the products of the same group sold on the market. (“Top Runner Program”)

The year when the specific equipments were designated is as following;

1 April 1999 : gasoline and diesel passenger vehicles, air conditioners, fluorescent lights,
television sets, copying machines, computers, magnetic disk drives,
gasoline-fueled and diesel powered trucks and VTRs

22 December 1999 : Electric Refrigerators, Electric Freezers

27 December 2002 : Space Heaters, Gas Cooking Appliances, Gas Water Heaters, Oil Water
Heaters, Electric Toilet Seats, Vending Machines, Transformers

15 July 2003 : LPG passenger vehicles (This is categorized in the passenger vehicles.)

1 April 2006 : Microwave Oven, Electric Rice Cooker, DVD Recorder

41
2) Labeling
Equipment described above shall be marked to show its energy consumption efficiency so that
general consumers can selectively purchase equipment of high energy consumption efficiency based
on the marked correct information of the energy consumption efficiency. The Minister of Economy,
Trade and Industry (and also the Minister of Land, Infrastructure and Transport for automobiles) shall
establish 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.

Furthermore, if the minister(s) deem(s) that the labeling does not conform to the notification, he
(they) can give a recommendation to the manufacturer, etc., and if the manufacturer, etc. does not
comply, the minister(s) can announce to that effect and give an order to take an action conforming to
the recommendation.

(7) 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) to
provide support for introducing energy use rationalization technologies, etc.

(8) Supporting measures and penalties

In addition to the above provisions, the Law 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 and technology, and measures to deepen the awareness of consumers.
The Law also specifies provisions concerning the submission of reports, on the spot-inspections, and
penalties.

(9) Amendment of the law concerning the rational use of energy

The Law enacted in 1979 was amended for reinforcement in 1983, 1993, 1998, 2002 and 2005.
Especially, the amended version promulgated in August 2005 and enforced in April 2006 included big
issues; such as the integration of heat and electricity, which were separated in the past, for control
purposes in view of today's actual circumstances at factories and business establishments, and the
addition of .measures for the transportation sector.

The Chronicles of revisions of the law are shown in the table on the page. 43.

The outline of the latest version of the law is shown in the table on the page 44.

42
43
44
45
(10) Structure of the “Law Concerning the Rational Use of Energy”
Enforced on 1st Oct. 1979, Revised on 10th August 2006 ( is the revised part)

Source: The First Meeting of Factory Judgment Criteria Group, Energy Efficiency Standards Subcommittee (April 28, 2005)

46
47
48
49
50
51
52
53
54
55
(3) Standard and target rates of waste heat recovery for industrial furnaces
(including waste gas temperatures for reference)

Standard waste Target waste Reference

Exhaust gas Capacity
heat recovery heat recovery
temperature(℃) category Waste gas
rate % rate (%) Preheated air (℃)
temperature (℃)
Less than 500 A　・B 25 35 275 190
500 - 600 A　・B 25 35 335 230
A 35 40 365 305
600 - 700 B 30 35 400 270
C 25 30 435 230
A 35 40 420 350
700 - 800 B 30 35 460 310
C 25 30 505 265
A 40 45 435 440
800 - 900 B 30 40 480 395
C 25 35 525 345
A 45 55 385 595
900-1,000 B 35 45 485 490
C 30 40 535 440
A 45 55 - -
1,000 or more B 35 45 - -
C 30 40 - -

* 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 to less
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: The standard waste heat recovery rates mentioned in the table above define the
percentage of recovered heat in relation to sensible heat of the exhaust gas emitted from
the furnace chamber when fired at a level of load around the rated.

<Targets>

Note 1: The target waste heat recovery rates mentioned in the table above define the percentage
of recovered heat in relation to sensible heat of the exhaust gas emitted from the furnace
chamber when fired at a level of load around the rated.

Note 2: The waste gas and preheated air temperature values indicated above as reference are
those resulting from calculations of waste gas temperatures during waste heat recovery
at the corresponding 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 heat
exchanger: 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

56
 (4) Standard values and target values of furnace wall outer surface temperatures
(for industrial furnaces with furnace temperatures of 500℃ and higher)

Furnace wall outer surface temperature (℃)

Item Furnace temperature (℃)
Ceiling Side wall Bottom in contact with open air

1,300 or more 140 120 180

1,100-1,300 125 110 145
Standard
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
Target
900-1,100 100 90 110
Less than 900 80 70 90

<Standards>
Note 1: The standard 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.

<Targets>

Note 1: 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.

(5) Equipment to be improved in power factor

Category of equipment Capacity: (kW)

Cage-type induction motor 75

Coil-type induction motor 100

Induction furnace 50

Vacuum melting furnace 50

Induction heater 50

Arc furnace -

Flash butt welder (excluding portable type) 10

Arc welder (excluding portable type) 10

Rectifier 10,000

57
58
4.6 Evaluation Criteria for Building on rational use of energy
(Ministry of Economy, Trade and Industry/Ministry of Land, Infrastructure

and Transport, Notice No. 1, partially revised on February 24, 2003)

(1) Prevention of heat loss through outer walls, windows, etc. of the buildings
(a) Proper measures shall be taken to prevent possible heat loss through outer walls, windows, etc. of
the buildings with due considerations to the following approaches.

i) Developing plot and ground plans of the buildings based on the directions of the outer
walls, layouts of the rooms, etc.

ii) Using highly efficient thermal insulation materials for outer walls, roofs, windows and
openings

iii) Reducing heat load by adopting a system capable of properly controlling solar radiation
coming through windows, promoting greening, etc.

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
regarding outer walls, windows, etc. of the buildings (except factories, etc.) shall be determined in
accordance with (c). However, the assessment on the walls, windows, etc. of the buildings of less
than 5,000 square meters in gross area may follow (d) as well as (c).

(c) "Conventional PAL standard values" (Appendix)

(d) Important ones in terms of energy use among the outer walls, windows, etc. of the buildings of the
category cited in the conditional clause of (b) shall be assessed based on the values that are
obtained by adding a total of marks of the following i) to iv) and the specific values determined
according to the use of the building concerned and the area classification, which are respectively
calculated so as to become numbers over 100.

i) Marks regarding plot and ground plans of the building

Points shall be determined depending on the measures regarding the main direction, the shape,
the air location and the average floor height.

ii) Marks regarding heat insulation efficiency of the outer walls and roofs

In the general region (other than the cold region (Hokkaido, Aomori, Iwate and Akita
prefectures) and the hot region) and the cold region, points shall be added up according to the
area classification and the measures taken respectively for the outer walls and roofs of the
building concerned, while the point for the hot region shall be zero. However, when the
measures taken for one assessment item serve for more than two items, the area-weighted
average of the thickness of the insulation material shall be used for assessment.

iii) Marks regarding insulation efficiency of the windows

In the general region and the cold region, points determined according to the area
classification and the measures taken shall be used and that for the hot region shall be
regarded as zero.
59
 iv) Marks regarding sunray-shielding efficiency of the windows

Points determined according to the area classification and the measures taken shall be used.

(2) Efficient use of energy regarding air conditioning equipment

(a) Efficient use of energy for air conditioning equipment shall be ensured with due considerations to
the following approaches.

i) Designing air conditioning systems by taking into account characteristics of air

conditioning loads of the rooms and other fact

ii) Developing heat transfer equipment plans designed for little energy loss in air ducts,
piping, etc.

iii) Adopting appropriate control systems of the air conditioning equipment

iv) Adopting heat source systems with highly efficient energy use

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
regarding the air conditioning equipment installed in the buildings (except factories, etc.) shall be
determined in accordance with (c). However, the assessment on the air conditioning equipment of
the buildings of less than 5,000 square meters in gross area (package air-conditioners (limited to
air-cooling system) specified under JIS B8616-1999 (package air-conditioner) and gas heat pump
heating/cooling equipment specified under JIS 8627-2000 (gas heat pump heating/cooling
equipment) may follow (d) as well as (c).

(c) "Conventional CEC/AC standards" (Appendix)

(d) Important ones in terms of energy use among the air conditioning equipment cited in the
conditional clause of (b) shall be assessed based on the values drawn from the addition of a total of
marks of the following (i) to (iii) and specific values determined depending on the use of the
building concerned and the area classification, which are calculated so as to become numbers over
100.

i) Marks regarding reduction of outside air load

Points determined depending on the measure taken shall be summed up.

ii) Marks regarding places for installation of outdoor machines and lengths of piping from
the outdoor machines to indoor machines

Points shall be determined depending on the condition.

iii) Marks regarding heat source equipment efficiency

Points shall be determined depending on the measures taken.

(3) Efficient use of energy by mechanical ventilation equipment

(other than air conditioning equipment)
(a) Efficient use of energy shall be ensured by mechanical ventilation equipment other than air
conditioning equipment with due considerations to the following approaches

i) Developing plans designed for little energy loss in air ducts, etc.

60
 ii) Adopting appropriate control systems for the mechanical ventilation equipment other
than air conditioning equipment

ii) Adopting energy-efficient equipment that has proper capacity for necessary amount of
ventilation

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
regarding the mechanical ventilation equipment (except air conditioning equipment, hereinafter the
same in (3)) installed in the buildings (except factories, etc.) shall be determined in accordance with
(c). However, the assessment of the mechanical ventilation equipment of the buildings of less than
5,000 square meters in gross area may follow (d) as well as (c).

(c) "Conventional CEC/V standards" (Appendix)

(d) Those that are installed in rooms not air-conditioned and are important in terms of energy use out
of the mechanical ventilation equipment cited in the conditional clause of (b) shall be assessed
based on the values drawn from the addition of 80 points to a total of marks respectively
determined depending on the condition of the relevant items, which shall be calculated so as to
become numbers over 100 respectively.

(4) Efficient use of energy regarding lighting equipment

(a) Efficient use of energy for lighting equipment shall be ensured with due considerations to the
following approaches

i) Using high efficiency lighting fitting

ii) Employing proper lighting equipment control methods

iii) Using installation methods that facilitate easy maintenance and management

iv) Properly arranging lighting equipment, setting illumination intensity, selecting shapes
and interior finish of rooms, etc.

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
regarding the lighting equipment of the building concerned shall be determined in accordance with
(c). However, the assessment of the lighting fixture of the buildings of less than 5,000 square
meters in gross area may follow (d) as well as (c).

(c) "Conventional CEC/L standards" (Appendix)

(d) The lighting equipment cited in the conditional clause of (b) shall be assessed by lighting zone that
is important in energy use, based on the values respectively drawn from the addition of 80 points to
a total of marks of the following i) to iii), which are calculated so as to become numbers over 100.

i) Marks regarding illumination efficiency of lighting equipment

Points determined depending on the measures taken regarding each given item shall be
aggregated.

ii) Marks regarding control systems of lighting equipment

61
 Points shall be determined depending on the measures taken.

iii) Marks regarding layout of lighting equipment, setting of illumination intensity and
decision on forms and interior finish of rooms, etc.

Points determined depending on the measures taken regarding each given item shall be
aggregated.

(5) Efficient use of energy regarding hot water supply system

(a) Efficient use of energy for hot water supply system shall be ensured with due considerations to the
following approaches.

i) Developing proper piping system plans taking into account shortening of supply lines,
insulation of piping, etc.

ii) Adopting proper control systems of the hot water supply systems

iii) Adopting highly energy-efficient heat source systems

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
regarding the hot water supply systems of the building concerned shall be determined in accordance
with (c). However, the assessment of the hot water supply systems of the buildings of less than
5,000 square meters in gross area may follow (d) as well as (c).

(c) "Conventional HW standards" (Appendix)

(d) Out of the hot water supply systems in the conditional clause of (b), those that are important in
terms of energy use shall be assessed based on the values respectively drawn from the addition of
70 points to a total of marks of the following i) to v), which are calculated so as to become numbers
over 100.

i) Marks regarding piping system plans

Points determined depending on the measures taken regarding each given item shall be
aggregated.

ii) Marks regarding control systems of hot water supply facilities

Points determined depending on the measures taken regarding each given item shall be
aggregated.

iii) Marks regarding heat source equipment

Points determined depending on the measures taken shall be used.

iv) Marks in the case of utilizing solar heat as heat source

Heat quantity from use of solar heat (in kilojoules/year) divided by hot water supply load (in
kilojoules/year) shall be multiplied by 100.

v) Marks in the case of preheating supply water

62
 Yearly average increase in water temperature from preheating (unit: Celsius degree(°C))
divided by the difference between the temperature of hot water used (°C)and yearly average
supply water temperature (°C) by region shall be multiplied by 100.

(6) Efficient use of energy regarding lifting equipment

(a) Efficient use of energy for lifting equipment shall be ensured with due considerations to the
following approaches.

i) Adopting proper elevator control systems

ii) Using highly energy-efficient drive systems

iii) Adopting appropriate installation plans depending on the required transport capacity

(b) Whether or not specific measures for the approaches mentioned in (a) above are properly taken
particularly regarding elevators out of the elevating machine installed in the buildings (limited to
those for use of office, etc. and hotels, etc.) shall be determined in accordance with (c). However,
the assessment of the elevators out of the elevating machines installed in the buildings of less than
5,000 square meters in gross area may follow (d) as well as (c).

(c) "Conventional CEC/EV standards" (Appendix)

(d) Out of the elevators cited in the conditional clause of (b), those that are important in terms of
energy use shall be assessed based on the values drawn from the addition of 80 points to a total of
marks of the following i) and ii), which are calculated so as to become numbers over 100.

i) Marks regarding elevator control systems

Points shall be determined depending on the measures taken.

ii) Marks regarding the number of elevators installed

10 points for up to 2 elevators installed and 0 point for 3 and more elevators installed.

For details of the standard values and marks, please see the statute book of "Law concerning the
Rational Use of Energy" revised in 2003. (May, 2003 The Energy Conservation Center, Japan)

63
 Appendix
(1) (2) (3) (4) (5) (6) (7) (8)
Stores for

merchan-
Hospitals, Business Schools, Restau- Assembly Factories,
Hotels, etc. dising
etc. offices, etc etc. rants, etc. halls, etc. etc.
business,

etc.

cPAL 420 340 380 300 320 550 550 –

dCEC/AC 2.5 2.5 1.7 1.5 1.5 2.2 2.2 –
eCEC/V 1.0 1.0 0.9 1.0 0.8 1.5 1.0 –
fCEC/L 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
In the case of 0 < l x ≤ 7 1.5
In the case of 7 < l x ≤ 12 1.6
gHW In the case of 12 < l x ≤ 17 1.7
In the case of 17 < l x ≤ 22 1.8
In the case of 22 < l x 1.9
hCEC/EV 1.0 – – 1.0 – – – –

Note:
1) "Hotels, etc." include hotels, inns, and other facilities having energy use statuses similar to those.
2) "Hospitals, etc." include hospitals, nursing homes for elderly people, welfare homes for physically disabled people and
other facilities having energy use statuses similar to those.
3) "Stores for merchandising business, etc." include department stores, supermarkets and other facilities having energy use
statuses similar to those.
4) "Business offices, etc." include business offices, tax offices, police offices, fire stations, offices of local public
organizations, libraries, museums, post offices and other facilities having energy use statuses similar to those.
5) "Schools, etc." include elementary schools, junior high schools, high schools, universities, technical colleges, higher
vocational schools, "miscellaneous" schools and other facilities having energy use statuses similar to those.
6) "Restaurants, etc." include eating and drinking places, restaurants, coffee houses, cabarets and other facilities having
energy use statuses similar to those.
7) "Assembly halls, etc." include public halls, assembly halls, bowling allays, gymnastic halls, theaters, movie houses,
pachinko parlors and other facilities having energy use statuses similar to those.
8) "Factories, etc." include factories, livestock barns, garages, bicycle-parking houses, warehouses, pavilions, wholesale
markets, crematoriums and other facilities having energy use statuses similar to those.
9) In this table, l x means a total of the lengths of circulation pipeline for hot water supply and primary pipeline (both in
meters) divided by the daily average of a total volume of hot water consumed (in cubic meters).

64
4.7 Top Runner Program

(1) Background
In order to diffuse appliances and vehicles that are highly energy efficient, the revised Energy
Conservation Law makes it obligatory for manufacturers and importers to ensure their products to meet
energy-saving target standards.

The Japanese government launched the Top Runner Program based on the amended Law in 1999, under
which the standards are set based on the efficiency level of the most efficient product commercially available
in a given category. For each manufacturer and importer, the weighted average efficiency of all units
shipped within the same category must meet the standards for that category by the target year decided for
each category.

(2) What is the Top Runner Program?

1) Target Designated Products:
Target products are ones designated as machinery and equipment which are commercially used in large
quantities in Japan, consume significant amount of energy on use and intensively required with energy
consumption efficiency.

2) Target Standard Value:

As for the designated products, manufacturers and importers etc. are obliged to meet the target standard
values concerning “energy consumption efficiency” of those products. Target standard values are set on the
basis of the value of the most energy efficient products of the same in the market.

3) Classification of Target Standard Value:

Target standard values are set in classifications considering a variety of models with different sizes and
functions etc. for each product.

4) Target Fiscal Year:

Target fiscal years by which the target standard value must be achieved are set up through taking into
consideration of future technological development forecasts and the development period of products and so
on, usually in the range of 4 to 8 years from the base fiscal year.

5) Judgment Method of Achievement:

In the target fiscal year, achievement of the target is judged based on energy conservation figures as a
weighted average of shipment by product for each product category per manufacturer and importer etc. Top
Runner Standards are different from the concept of MEPS.

6) Measurement Method:
The measurement method primarily uses JIS (Japan Industrial Standards).

65
7) Indications:
Responsibility is assigned to indicate the energy consumption efficiency of the device in catalogs, on the
device itself, etc.

(3) List of target designated products in the Top Runner Program

Passenger vehicles Space heaters

Air conditioners Gas cooking appliances
Fluorescent lights Gas water heaters
TV sets Oil water heaters
Video Casset Recorders Electric toilet seats
Copying machines Vending machines
Computers Transformers (molded)
Magnetic disk units Additional 7 products above were designated in 2002.
Freight vehicles
Electric refrigerators Microwave Oven
Electric freezers Electric Rice Cooker
11 products above were designated originally in 1999. DVD Recorder
Additional 3 products above were designated in 2006.
LPG passengervehicles were added to the category
of a passenger vehicle in 2003. Total 21 products are designated as of July 2006.

(4) Expected energy conservation by the target fiscal year

Expected energy conservation effects as of the

Equipment Target Fiscal Year
previous fiscal year of the target

Gasoline passenger vehicles FY2010 Approx. 23% compared to FY1995

1 Diesel passenger vehicles FY2005 Approx. 15% compared to FY1995
LPG passenger vehicles FY2010 Approx. 11.4% compared to FY2001
Frozen at FY2007
Frozen at FY2004: Frozen at FY2004 Approx. 63% compared to FY1997 for
2 Air conditioners
for blower/wall type items for coolers/heaters; approx. 14% for dedicated cooler
cooling/heating under 4kW
3 Fluorescent lights FY2005 Approx. 16.6% compared to FY1997
4 TV sets FY2003 Approx. 16.4% compared to FY1997
5 Video cassette recorders FY2003 Approx. 58.7% compared to FY1997
6 Copying machines FY2006 Approx. 30% compared to FY1997
7 Computers FY2005 Approx. 83% compared to FY1997
8 Magnetic disk units FY2005 Approx. 78% compared to FY1997
Diesel freight vehicles FY2005 Approx. 7% compared to FY1995
9
Gasoline freight vehicles FY2010 Approx. 13% compared to FY1995
10 FY2004
Electric refrigerators and freezers Approx. 30% compared to FY1998
11 FY2004
Approx. 1.4% compared to FY2000 for gas space
12 Space heaters FY2006
heaters; approx 3.8% for oil space heaters
13 Gas cooking appliances FY2006 Approx. 13.9% compared to FY2000
14 Gas water heaters FY2006 Approx. 4.1% compared to FY2000
15 Oil water heaters FY2006 Approx. 3.5% compared to FY2000
16 Electric toilet seats FY2006 Approx. 10% compared to FY2000
17 Vending machines FY2005 Approx. 33.9% compared to FY2000
FY2006: oil-filled transformers
18 Transformers Approx. 30.3% compared to FY1999
FY2007: mold transformers
19 Microwave oven FY2008 Approx. 8.5% compared to FY2004
20 Electric rice cooker FY2008 Approx. 11.1% compared to FY2003
21 DVD Recorder FY2008 Approx. 22.4% compared to FY2004

66
 (5) Merits of Purchasing Top Runner Machinery and Equipment
Prices of Top Runner machinery and equipment are generally higher compared with conventional popular
machinery and equipment due to the latest energy conservation technological features. To encourage
purchases of these machinery and equipment that appear expensive at first glance, to raise consumer
awareness of concept of overall costs, which are acquired by adding running costs (annual costs of electricity
or fuel) to the purchase price is necessary. One example is shown below.

[Air Conditioners]
Comparison of Overall Costs over the Annual Operational Costs of an Energy Efficient Model and a
Popular Model (Cooling Capacity 2.8kW)

Overall Cost
Overall cost savings over a
13-year period for an energy
¥600,000 efficient air conditioner amount
to approximately 204,000 yen.
¥500,000

¥400,000 Cost Reversal

Energy Conservation Standard Achievement
Percentage 55%
¥300,000
Annual Electricity Fee 40,106 yen
¥200,000
Purchase Sales Price 55,089 yen
¥100,000
Energy Conservation Standard Achievement
¥0 Percentage 122%
3 years 13 years Annual Electricity Fee 19,910
At the time (number of
of purchase years of use) Purchase Sales Price 113,460

Comparison:
Comparing air conditioners that energy conservation standard achievement percentage of 55% ( )
and 122% ( ), the difference in the volume of electricity consumed is 918kWh per year after
subtracting 905kWh per year from 1,823kWh per year. If a consumer selects the more energy-efficient air
conditioner model, he will save approximately 20,200 yen on his electric bill over a one-year period.

*To calculate electricity consumption volume, periodic electricity consumption volume (as of end of
October 2003) specified in manufacturer’s catalogue was used.
*Purchase price derived from July 2003 aggregate sales data.
*Air conditioners are used for an average of 12.8 years according to a September 2003 cabinet office
consumer operation survey.

(6) 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 must achieve a standard value by the target
fiscal year. To confirm 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 for each product name and
type) × (energy consumption efficiency per unit)} ÷ the total number of units shipped domestically.

To confirm display implementation, product catalogues, as the primary source for displays, are periodically and
continuously collected. For displays on products themselves, submission of name plates, etc. or retail store surveys are
conducted to confirm the implementation.

67
(7) Measures to be taken in case the Target Values are not Achieved
If the results obtained from the energy efficiency surveys mentioned in the previous paragraph appear 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 and Industry (in cases involving cars, the Minister of Economy,
Trade and Industry and the Minister of Land, Infrastructure and Transportation) offer recommendations to the
manufacturer in question as required. Further, if this advice is not followed, the recommendations are made public 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.
Also, targets should be limited to manufacturers whose organizational capacity is economically and financially firm
enough, that is, limited to manufacturers for which there will be no problems regarding social appropriateness. For each
machinery 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 government decree.
Moreover, 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 not achieved, other companies’
achievement records in the same field, achievement records in other categories 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 all companies are subject to these measures
in spite of small volume in production and import.

(8) 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 the category of machinery and
appliance.
The details of the evaluation criteria for machinery and equipment are shown in the web-site of ECCJ.
(http://www.eccj.or.jp/top_runner/index.html)

68
4.8 Law for Energy Conservation and Recycling Support
The law is designed to support business operators who will voluntarily implement projects to promote the
rationalization of the use of energy and natural resources. The description concerning the rational use of energy of
the law will be summarized below. In this law, the concept of "the rational use of energy” included the use of
substitute energy sources for oil

(1) Guidelines for efforts

The competent minister shall establish guidelines for business operators and building owners who will
voluntarily implement projects for the rational use of energy.

(2) The definition of specified projects

There are three categories of projects which will be defined as "specified". Business operators etc. who are
going to take 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 or other
business sites1.
b. Use any building materials or install or improve any equipment that can contribute to the rational use
of energy at the time of building construction. .
c. Conduct R&D on the manufacturing technology of industrial products that can contribute to the
rational use of energy.

(3) Approval of projects

The competent minister shall approve the projects if he/she recognizes that they meet the requirements of the
guidelines stated in (1).

(4) Assistance measures

The specified business projects that are conducted in conformity with the approved plan will be supported
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-scale cogeneration 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 partially
revised 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 covered by Oil 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).

69
4.9 Financial Supporting Measures
The financial supporting measures are provided to accelerate the introduction of energy efficient technologies
and equipment in the industrial and commercial sectors.

(1) Official Financial Assistance Programs (2005)

1) For Large-sized Enterprises financing percentage

Target Projects Agency Interest rate %

Overall Energy-saving Promotion Projects

1. General Energy Conservation Projects

The following are considered as general energy conservation projects

(financing percentage is 40% for projects identified in (5) below):

(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 the improved use of energy in their energy
conservation projects submitted to and approved by Authority.
DBJ Preferential
(2) Projects for constructions required for achievement of medium- or long-term ODFC rate I
energy conservation plans designed by investors/owners of office buildings, *1
department stores, hotels or other similar facilities according to the Energy
Conservation Act.

(3) Projects for installation or improvement of such manufacturing machinery

and equipment that meet the specific requirements for energy performance
standard provided in the Energy Conservation Act (hereinafter called “Top
Runner Equipment”). 50%

(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 unused energy
such as waste heat or equipment to raise energy use efficiency by 10% or
more, including ESCO/ESP projects. DBJ Preferential
ODFC rate II
(b) Promotion of introduction of the approved equipment for effective energy *2
use type for industries
*3
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 and which is specified by
such enterprises as contributing to the improved use of energy in their
energy conservation projects submitted to and approved by Authority.

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 DBJ Preferential
requirements for energy performance standard provided in the Energy ODFC rate II
Conservation Act (“Top Runner Equipment”). *4 40%

70
5. Electric Power Load Leveling Projects
Projects for selection and installation of such equipment that contributes
most to leveling power load from among regenerative Preferential
air-conditioners/hot-water supply systems, regenerative heaters and city DBJ rate II
gas air coolers. *5

Preferential
Projects for improvement of wind power generation plants (Output of rate II
1200 kW or higher) *6

Projects for improvement of solar power generation plants (Output of

150 kW or higher) 40%
Preferential
rate I
Fuel cell introduction projects (Output of 100 kW or higher, use of waste
heat, and 60% or higher primary energy use efficiency are required.) DBJ

Preferential
Biomass energy plant introduction projects rate I
*6

Projects for introduction of plants that use the heat generated by the Preferential
snow/ice melting system rate I

*1: Projects described in (1), (2) and (3) are provided with interest subsidies from Oil Special Account. The preferential
rate II is applied to these projects if the benefit of interest subsidy is selected.
*2: These projects are provided with interest subsidies from Oil Special Account, applicable exclusively to ESCO/ESP
projects in Category (a). The preferential rate III is applied to the projects in Category (b) if the benefit of interest
subsidy is selected.
*3: The preferential rate III is applied to ESCO/ESP projects.
*4: These projects are provided with interest subsidies from Oil Special Account. The preferential rate III is applied if the
benefit of interest subsidy is selected.
*5: City gas air cooler projects are provided with interest subsidies from Oil Special Account. The preferential rate III is
applied if the benefit of interest subsidy is selected.
*6: The preferential rate II applies until the end of FY2006.

Note : DBJ Development Bank of Japan

ODFC The Okinawa Development Finance Corporation

2) For Small and Medium-sized Enterprises

Target Projects Agency Interest rate
(Promoting the efficient use of energy)
JASME
Projects for acquisition of energy conservation facilities, including remodeling
NFLC Special interest rate
and updating of those existing. For the specified facilities and ESCO
projects, lease and rental of facilities fall within the scope of this funding. ODFC
(Promoting the introduction of specific high energy performance equipment)
JASME
Projects for replacement of obsolete industrial furnaces and/or boilers or for Special interest rate
NFLC
introduction of additional equipment which yields performance comparable to *
those of replacement. ODFC

(Promoting the use of alternative energy sources) JASME

Projects for introduction of the equipment that uses alternative energy NFLC Special interest rate
sources instead of oil.

* Interests are subsidized from Oil Special Account.

Note : JASME Japan Finance Corporation for Small and Medium Enterprise
NFLC National Life Finance Corporation

Source) Ministry of Economy, Trade and Industry : The financial supporting measures on financial and taxation for
introducing energy efficiency and new energy facilities (2005)

71
(2) Tax incentives to promote investment in the energy supply and demand structure
reform (2005)
When business operators purchase the equipment which contributes to efficient energy use and utilize 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.)

2) Special depreciation of 30% of the equipment acquisition cost in the year of acquisition, in addition
to ordinary depreciation.
• Energy-conserving equipment:

Equipment for general industries 74 units

(3) Certification process for the equipment which promotes reform of energy supply
and demand structure.

Ministry of Economy, Trade and Industry

Energy Conservation
Ministry of Public Management, Home Affairs,
Policy Planning Posts and Telecommunications
Office, Agency of Ministry of Health, Labor and Welfare
Natural Resources Ministry of Agriculture, Forestry and Fisheries
Ministry of Land, Infrastructure and Transport
Ministry of Environment

Report on issue Guidance and advice for

Discussion
of certificate application of this system

The Energy Conservation Copy of Certificate Industrial

Center, Japan Associations, etc.

Submission of
certificate Application of Issue of
certificate certificate
sheet

Users of energy Manufacturer of energy

conservation equipment Delivery of equipment conservation
equipment
Application of
tax reduction

Tax office

72
4.10 Commendation Programs to award Energy Conservation Efforts

The Energy Conservation Center Japan is conducting various commendation programs to promote the
awareness of how important the efficient use of energy is. Here are brief lists of those programs.

1) Commendation Program to Excellent Energy Managers: A commendation certificate will be given to

individuals who have long been pursuing energy management and made an outstanding contribution to
efficient energy management. Sponsored by METI.

2) Commendation Program to Excellent Energy Management Factories: A commendation certificate will

be given to factories or business facilities who have long made efforts to rationalize the energy use, have long
been pursuing energy management and made an outstanding contribution to energy management as well as
are acknowledged to be a paragon of successful energy management . Sponsored by METI.

3) The National Contest of Energy Conservation Successful cases: The winner of the contest will be
decided on how well the technology or the procedures will be developed based on theoretical grounds and
elaborate research and can contribute to the further promotion of energy conservation. Sponsored by ECCJ.

4) Commendation Program to Meritorious Energy Management Service Performers: A commendation

certificate will be given to individuals who have long been playing a central role and made an outstanding
contribution to promoting the efficient energy management. Sponsored by ECCJ.

5) Commendation Program to Excellent Energy Management Engineers: A commendation certificate

will be given to individuals who have long provided efforts to the energy management service and made an
outstanding contribution to promoting the efficient energy management. Sponsored by ECCJ.
The prize awarding ceremony will be held in February and prize certificates will be conferred on the
awardees by the Ministry of Economy, Trade and Industry as well as the Director-General of the Agency of
Natural Resources and Energy.
On top of those commendation programs, the ECCJ sponsors contests for the school students in order to
inspire the younger generation with the importance of energy conservation practices. Here we will give a
brief description about the contest.

6) Energy Conservation Poster Contest for elementary and junior high school students. Sponsored by ECCJ.

7) Energy Conservation Essay Contest for elementary and junior high school students. Sponsored by ECCJ.

8) Commendation Program to Excellent Energy Conservation Equipment1: A commendation certificate

will be given to companies or teams for their strong commitment to promoting the efficient use of energy. The
commitment to the global environment and security can be a crucial variable for judging. Sponsored by JMF2.

9) The Energy Conservation Grand Prize will be awarded to equipment, resources or systems which have
already or likely to be launched into markets and have high excellence in energy conservation. The prize has
three genres: i) home-use, ii) commercial use, and iii) automobiles. Entries are judged on energy efficiency,
originality, marketability and environmentality. Sponsored by ECCJ.

1 “Energy Conservation Equipment” represents, i) devices, facilities and systems in addition to

“equipment” 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

73
4.11 Publicity activities
- Energy conservation day, energy conservation month, and general check-up day for energy conservation

In order to promote energy conservation as a nationwide activity, the government has

established ”Energy Conservation Day” on the 1st of every month, “Energy Conservation Month” in
February and “General Check-up Day for Energy Conservation” on the 1st of August and December.
Educational and publicity activities are conducted in cooperation with the local governments and private
companies.

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

Energy Conservation Day (First day of every month)

● ● ● ● ● ● ● ● ● ● ● ●

○ ○ ★
General Check-up Day for Energy Energy Conservation Month
(First day in August and December)

Commencing
Description Objectives and Contents Governing Body
from
Energy and
Resources
Energy 1. Creating greater opportunity to review energy Conservation
Conservation conservation activities and ensuring their results March, 1980
Measures
Day 2. Working to promote energy conservation activities Promotion
Conference

1. Nationwide movement involving general consumers Energy and

Energy and public institutions Resources
Conservation 2. Implementing energy conservation programs in the Conservation
Month industrial sector March, 1976 Measures
3. Holding energy-conservation exhibitions Promotion
4. Various campaign events Conference

1. Total check-up and review concerning daily energy Energy and

conservation activities Resources
General 2. Deepening nationwide understanding of daily energy Conservation
Check-up Day conservation habits and the importance of energy October, 1980 Measures
for Energy 3. The Summer General Check-up Day for energy Promotion
Conservation Conservation was determined by the Energy and Conference
Resources Conservation Measures Promotion
Conference on June 28, 1990

74
4.12 Energy Audit Program

(1) Energy audit for small and midsize companies

Energy audit service for small and midsize factories took place in 1955 and approximately 5,600 cases
of energy audit service have since been conducted in the factories around Japan.

1) Target factories: A firm whose capital is less than 100 million yen or whose total number of
employees is less than 300.

2) Cost: Free of charge

3) Number of auditors and auditing period: Number of experts: 1-2; Period: 1-2 days

4) Audit

(a) Advice on heat energy

(b) Advice on electric energy

5) Organization: The Energy Conservation Center, Japan

(2) Energy Audit for commercial buildings

1) Target buildings: Buildings designated as “1st class designated Building” according to the Energy
Conservation Law.

2) Cost: Free of charge

3) Details of audit: Two or three audit experts will make an interview with the persons in charge
about the management standards for the building which is going to have an energy audit. Then, they
will make an on-the-spot survey how the facilities in the building are operated. After the survey, they
will draw up a list of areas which need remedies. And they will give advice for energy saving.

4) Organization: The Energy Conservation Center, Japan

75
4.13 The international ENERGY STAR Program

The international Energy Star program is a voluntary energy-efficiency labeling program designed to
promote energy-efficient products. It was established in the US in 1992. Japan reached agreements to
promote certain ENERGY STAR qualified products in 1995.

To participate in the program, contact an agency in charge, and it will respond with further information.
Once it has been approved that the products of a manufacturer or a firm meet the standard, and then the
manufacturer or the firm will be eligible to use the ENERGY STAR label.

(1) Product categories

Personal computers, monitors, printers, fax machines, copying machines, scanners and
multifunction devices.

(2) Scheme

76
5. Energy Conservation by sector

5.1 Energy conservation in the industrial sector

(1) Situation of energy use in the industrial sector

1) Energy consumption by manufacturing industry

Unit : 1016 J

Other

Machinery/Metal
Nonferrous Metal

Iron & Steel

Ceramics

Chemicals

Paper & Pulp

Textile
Food

Fiscal Year

Note) The figures in the parentheses are %.

Source) "Energy Production, Supply and Demand Statistics"

77
2) Energy intensities in major industries (IIP)

Index : Fiscal 1973 = 100

(1973F.Y.=100)
120

110

100

Ceramics & Cement

90
86.1
Metals & Machinery
80

67.9
70
Iron & Steel
67.5
Paper & Pulp
60 59.3
Manufacturing
53.6
50
53.1
Chemicals

40
1973 1975 1980 1985 1990 1995 2000 2004
(F.Y)

Note) IIP means Indices of Industrial Production (Energy consumption, calorie / production, yen)

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2004)”

78
3) The ratio of energy costs to variable costs in major industries

Ceramics
Iron & Steel
Paper & Pulp
Chemicals
All Manufacturer
The Rate of Energy Cost in Variable costs

Year

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

79
4) Energy conservation equipment investment and crude oil price

80
5) Effects of energy conservation and investment payback period

Trend of Energy use (kl/year) Investment payback period (year)

Industries
FY 1998 FY 1999 FY 2000 FY 1998 FY 1999 FY 2000
Textiles 10,521 7,288 9,592 8.54 6.37 5.80
Paper, pulp 40,097 17,036 27,471 2.93 7.45 12.33
Chemicals 12,261 11,319 39,794 5.29 10.64 6.05
Oil refining 9,982 24,963 24,207 5.14 2.91 4.44
Ceramics, earth and rock 1,431 1,593 3,704 9.08 6.73 7.10
Steel 4,492 27,051 32,571 3.00 5.08 5.41
Nonferrous metals 4,995 2,172 1,058 4.44 12.27 10.75
General machinery 3,916 6,643 4,890 11.20 11.72 8.08
Electronic machinery 10,026 9,695 1,243 6.65 7.13 4.93
Electric machinery 3,092 311 227 4.32 6.47 5.70
Automobiles 32,121 48,914 30,514 4.76 4.15 6.23
Other manufacturing 5,951 6,579 4,587 6.50 8.90 7.93
Electricity 1,365 16,118 11,752 6.00 19.00 5.00
Gas --- --- 954 --- --- 16.00
Heat supply --- 1,034 421 --- 69.25 10.43
Wholesale, retail 121 324 386 9.25 6.22 2.75
Lease --- --- --- --- --- ---
Service 1 212 0 5.50 5.00 0.00
Manufacturing Total 138,885 163,564 179,858 5.99 7.49 7.06
(Basic materials industry) (83,779) (91,422) (138,397) (5.49) (7.35) (7.41)
(Processing assembly industry) (55,106) (72,142) (41,461) (6.69) (7.67) (6.57)
Non-manufacturing 1,487 17,688 13,513 6.92 24.87 6.84
Total 140,372 181,252 193,371 6.17 11.83 7.00
FY = Fiscal Year

Source) “Equipment Investment Plans in Major Industries,” by the Ministry of Economy, Trade, and Industry

81
6) Energy demand analysis for the industrial sector

a) Factors affecting energy consumption in the manufacturing industry

Energy intensity Structural factor

Output factor Confounding factor
Total change

Fiscal Year

b) Trend of factors of energy consumption change in the manufacturing sector

(Unit: 1016 J)

Fiscal Year '90 '92 '94 '96 '98 '00 '01 '02 ’03

Energy Consumption Changes 13.5 -13.3 26.1 10.7 -13.7 10.7 -24.7 14.3 6.7

Output Effect 29.0 -35.9 18.2 21.5 -45.2 28.7 -62.0 18.1 23.7

Factor Structure Effect -2.7 10.9 3.1 -10.4 -3.9 -7.9 27.7 -2.1 -17.2

Intensity Effect -12.3 13.4 4.4 0.1 38.6 -8.8 13.5 -0.7 1.2

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)”

82
(2) Energy conservation measures in the industrial sector

1) History of energy conservation measures for factories

Since the oil crisis, Japan’s industrial sector has been playing a central role in the efficient use
of energy. Thanks to its efforts, the sector has successfully maintained almost the same energy
consumption level as in the oil crisis in spite of the growing output. Nonetheless, it is also true that
the sector accounts for nearly 40 % of the total 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 Environmental Voluntary Action Plan“,
aiming to promote the efficient use of energy on a voluntary basis.

On the policy level, the Law Concerning the Rational Use of Energy (Energy Conservation
Law) was revised in order 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 all industries. Also
through the revision business operators became necessary to submit periodic reports, who own
factories classified as “Type 2 Designated Energy Management Factory”. The revised law came into
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 to control
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 also financial incentives, such as low interest loan programs, to boost
investment in developing energy saving products and technologies under the law concerning energy
conservation and recycling assistance, and tax breaks under the tax measures to promote the
investment in the restructuring of energy supply-demand.

2) Relevant legislation

i) Measures based on the Law Concerning the Rational Use of Energy

a) Enactment of a basic policy concerning the rational use of energy

(The Cabinet decision, Announced 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 for undertakings
of manufacturers among the Type 1 Specified Business Operator’ (Announcement No.1,

83
 Ministry of Finance, Ministry of Health and Welfare, Ministry of Agriculture, 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 for undertakings
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 measures

a) Support based on the Energy Conservation and Recycling Support Law

b) Low-interest financing by the Development Bank of Japan, etc.

c) Tax system to promote investment to reform the energy supply and demand structure

d) Support for business operators who introduce leading-edge energy conservation equipment

e) Advisor business regarding introduction of leading-edge energy conservation technologies

iii) Commendation, dissemination and publicity activities

a) Commendation toward excellent energy control-designated factories

b) Conduction of the ENEX Exhibition, a general exhibition of energy conservation technologies

and equipment, etc.

iv) Technological development

a) Study to lead basic technologies for the rational energy utilization

b) Development of practical application of technologies to rationalize energy utilization

84
 3) Outline of main voluntary technical action plan by Nippon Keidanren 1)

a) Manufacturing industry
Name of
Measures to attain goals
organization
The Federation of 1. Introduction and expansion of LNG thermal power generation and improvement of
Electric Power utilization rate of nuclear power generation
Companies of 2. Diffusion and expansion of natural energy (water, geothermal, wind, and solar energy)
Japan 3. Improvement of efficiency in thermal power generation (combined cycle power
generation, high-efficiency coal-fired power generation)
4. Promotion of nuclear power generation based on security and confidence-building
5. Diffusion and expansion of energy conservation appliances and efforts to provide
information on energy conservation
The Japan Iron 1. Improvement of efficiency of heating furnaces (introduction of regenerative burner,
and Steel strengthening of thermal insulation)
Federation (JISF) 2. Improvement of exhaust heat recovery rate in CDQ, TRT, sintering, converter, etc.
3. Improvement of efficiency of privately owned electrical power facilities and oxygen
plants
4. Introduction of rotational speed control of dust catcher fan, etc.
5. Integration of facilities
6. Improvement of hot charge rate
7. Improvement of efficiency of coal moisture control system
8. Utilization of waste plastics in blast furnaces and coke ovens, etc.
Japan Chemical 1. Efficiency improvement of facilities and equipment
Industry 2. Improvement of operation methods
Association 3. Recovery of waste energy
4. Rationalization of process
5. Introduction of cogeneration
6. Fuel switch
Petroleum 1. Revision of operation management
Association of 2. Mutual utilization of waste heat among refining facilities
Japan 3. Promotion of computer control
4. Introduction of cogeneration
5. Continuation of the conventional measures (waste heat recovery from waste
gas/effective utilization of low temperature waste heat, introduction of cogeneration,
introduction of high-efficiency turbine, heat integration, switch into high-efficiency
heat-exchangers)
6. Efforts among entities (promotion of “combinat renaissance,” that is cooperative,
efficient, and mutual utilization of heat and energy emitted in neighboring plants of
different industrial category)
Japan Paper 1. Introduction of energy conservation system (heat recovery equipment, utilization of
Association inverter control)
2. Introduction of high-efficiency equipment (high-temperature high-pressure recovery
boiler, high-efficiency cleaning equipment, low-differential pressure cleaner, etc.)
3. Revision of manufacturing process (shortening and integration of processes)
4. Fuel switch to biomass energy (black liquor, waste woods, paper sludge, etc.) and waste
energy (waste oil, scrap tires, etc.)
5. Strengthening of management (revision of control values, decrease in fluctuation)
Four major 1. New/unutilized energy
entities relating to 2. Cogeneration, thermal storage
electronics and 3. Introduction of high-efficiency equipment
electricity 4. Strengthening of management
5. Improvement of control methods (automatic control)
6. Utilization of waste heat
7. Improvement of production process and product quality
8. Loss prevention (thermal insulation/heat-retention)
9. Fuel switch
10. Improvement in operation management
11. Construction of production system with high-efficiency in energy consumption rate

1) Materials for the Industrial Structure Council and the Advisory Committee for Natural Resources and Energy (FY2004)
Note) Keidanren : Japan Federation of Economic Organizations

85
 Name of Measures to attain goals
organization
Japan Cement 1. Diffusion and promotion of energy conservation equipment
Association 2. Expansion of utilization of waste as alternative energy source
3. Expansion of utilization of waste for the other purposes
4. Improvement of production rate of mixed cement
5. Introduction of energy conservation appliances (high-efficiency clinker cooler,
kiln burner, etc.)
6. Utilization of vertical mills for milling raw cement materials, preliminary
milling for finishing, and high-efficiency separator)
7. Expansion of utilization of waste as alternative energy (waste plastics, waste
wood)
Japan 1. Introduction of cogeneration
Automobile 2. Decrease in supply pressure and leakage prevention of compressed air
Manufacturers 3. Improvement of combustion efficiency of boiler, utilization of smaller boiler,
Association, Inc. and utilization of surplus steam for cogeneration
4. High-efficiency compressor, high-efficiency boiler
5. Improvement of thermal insulation of drying furnace, waste heat recovery
6. Individual control of air conditioning, inverter control of air conditioning
7. Production process (process reduction, line abolishment and integration,
reduction of material use)
8. Group control for appliances (boilers, compressors, etc.)
9. Introduction of wind power generation
10.Energy conservation of air-conditioners and lighting fixtures
11.Energy conservation and abolishment/integration of production processes,
energy conservation of coolant and cooling water system
12.Operation management (shut-down of unused facility, through control of
energy consumption)
13.Fuel switch
Japan Auto 1. Energy conservation activities through daily management and improvement
Parts Industries propositions
Association 2. Improvement of operation management items/management methods of
equipment and appliances
3. Improvement of production process, renewal of related appliances,
abolishment/integration of processes/appliances
4. Change in heat source/fuels, introduction of energy conservation system by
waste heat recovery, etc.
5. Adoption of smaller and lighter products/parts
6. Introduction of energy conservation system including cogeneration and sharing
of energy conservation technology
7. Adoption of energy conservation, high-efficiency, restructured and integrated
production processes
8. Acquisition of ISO14001 and spiraling up
9. Obedience to voluntary action plan of the Association
10.Switch to alternative energy, renewal of facility (adoption of LNG energy,
adoption of electricity)
Japan Mining 1. Optimization of boiler operation (abolishment/integration)
Industry 2. Reduction of coke consumption by various improvement activities
Association 3. Heat recovery by construction of new sulfuric acid converter boiler
4. Increase in power generation by additional construction of steam turbine
5. Reduction of coal consumption by furnace operation with low internal
temperature
6. Reduction in electric power consumption rate by additional construction of
oxygen plant
7. Integration of facilities including waste heat boilers, etc.
8. Strengthening of heat recovery of sulfuric acid converter
9. Additional construction of new waste heat boiler to blast furnace
10.Improvement of combustion efficiency of kiln
11.Utilization of waste plastics as fuels
12.Reduction in electric power consumption rate for electrolyzing by various
improvements

86
b) Service and commercial sector

Name of Measures to attain goals

organization
Scheduled 1. Replacement by new airplane with improved fuel consumption efficiency and
Airlines promotion of its introduction
Association of 2. Optimization of routes and time by introducing new air traffic control support
Japan system, etc.
3. Loading most suitable amount of fuel, adoption of lighter equipment loaded in
the body, restraining use of auxiliary power units
4. Reduction of training duration, etc., by use of simulators
The Real Estate 1. Energy conservation of air-conditioning (individualization, total enthalpy heat
Companies exchanger, optimal control, VAV)
Association of 2. Lighting (adoption of high frequency bulbs, automatic dimmer control)
Japan 3. Adoption of inverter control and group control system for elevators
4. Adoption of inverter controlled pumps
5. Energy conservation for the window area (air barrier system, thermal
insulation, outdoor air cooling)
6. Rooftop greening
7. Improvement efforts of operation
Japan 1. Holding environment committee
Department 2. Survey implementation of actual condition on energy consumption in each
Stores store
Association 3. Holding seminar on energy conservation study of department stores
4. Demonstration experiment of electric tag system (improvement of efficiency of
distribution system, etc.)
Japan Chain 1. Appropriate temperature control of air-conditioners and refrigerating/freezing
Stores showcases
Association 2. Introduction of night cover after shops closed
3. Application of thermal insulation coatings to window panes
4. Introduction of cogeneration, desiccant-based air-conditioning system, and ice
thermal storage system
5. Transition to kitchen system using electromagnetic energy (electrification of all
energy sources)
6. Utilization of surplus power at night (from water cooling type
freezers/air-conditioners to air-cooling types)
7. Reuse of waste water (for flushing toilet, watering)
Japan 1. Introduction of energy conservation appliances (phase advance capacitor,
Association of electronic expansion valve, demand control, energy conservation lighting
Refrigerated appliances, high-efficiency compressors, high-efficiency heat exchanger,
Warehouses high-efficiency transformer)
2. Improvement of equipment (thermal insulation, prevention of cool air leakage,
adoption of closed deck type platform)
3. Dairy operation management (appropriate temperature, enforcement of
cleaning, etc.)
NTT group 1. Promotion of energy management
2. Introduction of high-efficiency power supply appliances, air-conditioners
3. Promotion of adopting broadband-related appliances with low electricity
consumption
4. Introduction of clean energy (solar power generation, wind power generation)
Japanese 1. Appropriate temperature control and reduction of operation time of
Bankers air-conditioners
Association 2. Restraint and voluntary restraint of elevator use between close floors
3. Thinning out of lighting
4. Resource conservation (recycled paper, paperless business operation), energy
conservation (electricity)
The General 1. Appropriate temperature control of air-conditioners
Insurance
Association of
Japan

87
 Name of Measures to attain goals
organization
Japan Franchise 1. High-efficiency lighting appliances, inverter controlled lighting appliances,
Association lighting control (timer, dimmer control)
2. High-efficiency freezer, inverter controlled freezer
3. Utilization of waste heat by integrating air-conditioning/refrigerating systems
4. Introduction of cogeneration
5. Keeping optimal temperature by air-conditioning, reduction of operation hours
of air-conditioners
6. Introduction of comprehensive maintenance and management system of stores
and appliances
7. Introduction and operation of ISO14001
8. Introduction of soft energy (wind power generation, solar power generation,
fuel cells)
9. Introduction of ESCO-method energy conservation system
10. Comprehensive management system of energy for store operation
11. Introduction of energy conservation stabilizer for lighting, inverter controlled
lighting, and dimmer control system
12. Research of clean energy (solar power generation, fuel cells)
Japan 1. Regenerative air conditioning system
Broadcasting 2. Introduction of total enthalpy heat exchanger
Corporation 3. Attaching sunshine control film
(NHK) 4. High-efficiency motor
5. High-efficiency inverter controlled lighting
6. Water conservation system (utilization of rainwater, sound effect appliances for
toilet)
7. Rooftop greening
8. Air-conditioning (variable air volume system, variable water volume system)
9. Fresh air volume control system

88
4) Measures taken in factories and buildings based on the Energy Conservation Law1)

a) Systematic and voluntary energy management

Based on the Law concerning the Rational Use of Energy (Energy Conservation Law),
thorough implementation of systematic and voluntary energy management is demanded
for the target factories and buildings by obliging them to appoint energy managers and
formulate and submit periodical reports of energy use and medium-/long-term plans for
achieving goals as shown below.

Type 1 designated energy management factory which consume a large amount of energy
(Annual energy consumption is 3,000 kL or more in crude oil equivalent.)
○ Factories ○ Buildings

Measures Measures

• Appointment of an energy manager (who is • Appointment of an energy management officer (who is

required to have a license of qualified person required to take a seminar for qualified person of energy
for energy management of type 1 designated management of type 2 designated factory)
factory) • Formulation and submission of periodical reports
• Formulation and submission of periodical • Formulation and submission of medium-/long-term plan
reports (the appointed energy manager should participate in the
• Formulation and submission of plan formulation)
medium-/long-term plan

Type 2 designated energy management factory which consume a medium amount of energy
(Annual energy consumption is 1,500 kL or more in crude oil equivalent.)

○ Factories and buildings Measures

• Appointment of an energy management

officer for the type 2 designated
management factory
• Formulation and submission of periodical
reports

Factories Buildings

Department School Office

store Hotel

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

89
 b) Overall factory check

A field investigation targeting Type 1 designated energy management factories (overall

factory check) has been conducted since FY 2001 guided by METI.
In the investigation, the observance 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.
When the 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.

The flow diagram of full factory check is shown below.

of Economy, Trade
Regional Bureau
of investigation

Field investigation
Target factory

and Industry

(1) Preliminary

of factories
investigation
sheet is sent

Setting status of When the

(2) (1) is sent back management evaluation
standards, records, points are
and maintenance less than 50
check files are
inspected based on
the assessment
criteria.
On-the-spot inspection
Instruction to formulate
Publication/directive

rationalization plan

When the When rationalization

factory/building is achievement is
not following the extremely insufficient
given instruction compared to the
judgment standards

90
c) Dissemination and promotion of energy conservation technology (Spill-Over)

i) What is Spill-Over?
As energy conservation is an important policy for Japan, the energy conservation
technology strategy was formulated in June, 2002 by the Japanese government, the
Agency for Natural Resources and Energy. This strategy stressed the importance of
promoting “spill-over,” to actively spread existing energy conservation technologies to meet
technological needs across various sectors and fields.
The technical term “spill-over” is originally used to indicate the overflow of water, but
now used in various specialized fields. In the telecommunications sector it indicates a
condition in 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 a reaction; 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 in which cross-sectional/basic technology has impacts on other fields and
categories, where further development and improvement will generate 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
and expanding its utilization has advantages in that: It does not require duplicated
investment in development 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.

ii) 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 of conservation energy or showed originality in selecting
improvement themes. Some cases focused on 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 from spill-over from
other fields and introduced new production methods, and especially those based on
development or introduction/application technology development of new processes and
innovative 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 the following.

91
 1. Understanding of current conditions by an energy management system which makes
the conditions visualized
2. Finding an energy conservation theme by abolishing the existing ideas and reviewing
designed values and management criteria
3. Use of surplus energy, or effective use of energy that has been left unused
4. Introduction of cogeneration, improvement of operation methods, raising utilization
rate
5. Remodeling equipment into or replacing one with high-efficiency equipment
6. Utilization of energy conservation methods introduced by the Energy Service Company
(ESCO) projects
7. Reduction of the consumption of the fixed consumption of energy
8. Effective use of heat, and mutual effective use of heat and materials
9. Energy conservation measures for water

iii) Reduction of the fixed consumption of energy, which is highly needed from the demand
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 themes that 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, the case 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.

92
 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 a variable 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 steps
2) 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 processes
5) Cut-down or omission of post treatment duration by improvement of production technology
(high precision processing and high quality processing)
6) Cut-down of heating/melting duration by improvement and rationalization of energy
consumption rate
7) Cut-down of duration by raising production efficiency through raising production
technology by basic technology
8) 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 the variable energy by using booster pump and buffer tank
4) Lowering temperature level of the retention furnace, and adopting induction heating at
pouring gate and additional heating by DC torch
5) 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/cooling processes in the same production line to preheating and pre-cooling process
7) 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, and adopting localized lighting and natural light
4) 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 and dividing 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, and other appliances that consume the constant amount of energy
2) 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, water leakage, etc.
6) Reduction of holding energy by improvement of adiathermancy of furnace wall, etc.

93
 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 required
2) Reduction of pumping energy by rationalizing pressure utilization in decompression and
compression chambers in the same production line
3) 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 heat in clean rooms, etc., for drying
5) Reduction of number of appliances consuming the fixed consumption of energy amount by
time-sharing

d) Energy conservation by coordination among factories and work places

Comprehensive energy conservation can be attempted by mutual utilization of exhaust

heat and waste 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 hydrogen to be supplied
to neighboring plants and communities.

Cement
Securing inexpensive raw
Steel industry
material
Smelting slag Industrial waste treatment
Full-scale iron making
method using blast furnace Gas purification
Coke oven gas (H2, CO) Waste
Gas separation catalyst
Blast furnace gas,
converter gas (CO, CO2) Oil refining industry
Energy Center
(Common power
Combustible waste generation plant) Large demand for
plastics, etc. Hub function inexpensive hydrogen
Increase of additional
Petrochemical value of heavy oil
industry
Gasification
Increase in demand for Fuel oil
chemical raw materials Paper/pulp
(H2, CO)
Conversion of raw Evaporation/
materials and processes dehydration
energy

94
 e) Dissemination of high-efficiency industrial furnaces and high-efficiency boilers

i) 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 in flame temperature. Accordingly, it had been thought that
achieving energy conservation and reduction 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 is sprayed 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 compared to simple
high-temperature combustion by raising the preheating temperature of combustion air.

III. New combustion range

Range of stable (high-temperature air
Temperature of combustion air (°C)

combustion combustion)

II. High-temperature High-temperature

flaming range flaming
(high-temperature
combustion)
Range of unstable
combustion

I. Ordinary flaming range Ordinary flaming High-temperature

(ordinary combustion) air combustion
flaming

Density of oxygen in combustion air (%) Temperature of combustion air (°C)

Temperature of combustion air and combustion Density of NOx emission in

range (conceptual diagram) high-temperature air combustion

In the “Field test project on high-efficiency industrial furnace introduction,”*2

high-temperature air combustion technology was applied to commercial furnaces. The

*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 from
FY1998 to FY2000, receiving a governmental subsidy for one-third of the cost.

95
 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). The great difficulty in
introduction and popularization of the high-efficiency industrial furnaces is that 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 and NOx, 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 the world. Currently, development research is being
conducted in order to practically apply this technology to non-industrial combustion and
heating facilities that consume a large amount of energy.

ii) 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. However, its energy consumption accounted
for a large portion in the industrial 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 the existing 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).

Among the future challenges are 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 of heat-exchange appliance of condensed
*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).

96
 exhausted gas (economizer using steam’s latent heat recovery). 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.

f) Dissemination of cogeneration and fuel cells

i) 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 the exhaust heat that is generated in the energy conversion process
is then effectively used for thermal 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
oxide type), PEFC (polymer electrolyte type)

Drivers used for cogeneration are mainly internal combustion engines. The number
of the engines with cogeneration installed, the capacities, fuel used, and the main uses are
shown in the table below. 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 burden including CO2, SOx,
NOx, etc., and are more environmentally-friendly.

Main drivers and features of cogeneration

Diesel engine Gas engine Gas turbine

Number of in stallion Approx. 60% Approx. 30% Approx. 10%

Capacity Approx. 40% Approx. 10% Approx. 50%

Mainly city gas,

Fuel used Diesel oil, Crude oil City gas, LNG
LNG

Main use Civil use Civil use Industrial use

97
 The total heat efficiency of a cogeneration system is 70 - 80%, which corresponds to
25% of the energy conservation of a thermal power generation boiler system. However,
this value can be obtained under the condition that 100% of the exhaust heat is effectively
used. Accordingly, the point is that the exhaust heat should be applied to facilities that
are expected to demand heat, such as factories, business offices, hospitals, stores, etc.

The introduction of cogeneration is expected to be pushed forward, because it will

improve energy security and contribute to measures against global warming. The future
challenge is to develop compact and high-efficiency gas engines and gas turbines (micro
gas turbines) for civil use. Fuel cells, which are able to generate highly efficient
electricity as well as exhaust heat, can make highly effective cogeneration motors. The
future challenge for fuel cells is to lower the price.

ii) Fuel cells

Fuel cells work based on a chemical reaction in which the fuel cells generate
electricity and water at 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, and
applicability 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 MCFC PEFC
SOFC
(phosphoric-acid (molten carbonate (polymer electrolyte
(solid oxide type)
type) type) type)

Charge carrier Hydrogen ion Carbonate ion Oxygen ion Hydrogen ion

Operating
Approx. 200°C 600 - 700°C Approx. 1,000°C 80 - 100°C
temperature

Facility capacity 20 - 500 kW 500 kW - 1,000 MW 50 kW – 100 MW 1 - 100 kW

Efficiency at
Approx. 45% 50 - 65% 55 - 70% 35 - 45%
generating end
Distributed and Distributed and
Power source for
Distributed power mass-concentrated mass-concentrated
household use and
Main use sources power source power source
driving source for
(cogeneration) substituting fire substituting fire
automobiles
power power
Poisoning of Reformer is not Poisoning of
platinum catalyst; Catalyst is not required. platinum catalyst;
Points to note
CO should be 1% required. Catalyst is not CO should be 10
and less. required. ppm and less.

98
 Fuel cells are regarded as a prospective technology to solve global warming problems
in a future hydrogen-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 office buildings, distributed power generation systems installed in places
needing to replace mass-concentrated commercial power generation systems, and power
sources to replace secondary 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.

99
 g) Important check points concerning technical energy conservation measures
Business
category Steel Petrochemical Paper/pulp
Items
Operation management of Optimization of Optimization of
major production facilities naphtha-cracking furnace temperature, pressure, and
Advanced combustion Combustion control of material density in each
control by computers, etc. furnaces such as process
Optimization of electricity
naphtha-cracking furnace
consumption by operation
(1) Operation Optimization of reflux ratio control of power generation
management of distillation towers and facility and processing
optimization of steam appliances
pressure Optimization of steam
Optimum operation control pressure
by computers, etc. Reinforcing of water
conservation
Effective use of waste heat
(2) Conditions of waste energy Waste heat recovery from Installation of high dew
recovery (sensible heat naphtha-cracking furnace point sealing hood in paper
recovery for cokes and Insulation of pipes and machine
sintered ore) furnace casing Installation of
Introduction of Effective recovery of high-efficiency heat
high-efficiency heating reaction heat exchanger
Thermal furnaces Collection of steam drain Installation of automatic
Temperature control of Construction of additional combustion control
Additional facilities

furnace wall high-efficiency heat appliances

Moisture control of coal exchanger Use of heat pump
charge Installation of waste
Reduction of coking time kiln-heat recovery appliance
and coking temperature Use of waste as fuels
Idling prevention and speed High-efficiency compressor Rotation speed control of
control of electric motor for Control of number of motor
a roller of rolling mill operating units Use of medium and low
Power generation by Control of rotation speed pressure surplus steam for
Electrical exhaust gas pressure from Intake air temperature power generation using
the furnace, exhaust heat control of gas turbine mixed pressure turbine
recovery power generation Rotation speed control of Electricity conservation of
Introduction of CMC steam motor dust extracting process
control expansion turbine
Continuous casting High-efficiency radiation Sealing of process,
equipment tube of naphtha-cracking strengthening of
Direct rolling equipment furnace pressurization, raising
Continuous annealing Introduction status of density
equipment low-temperature Heat cascade use control of
Optimization control of low-pressure process by paper machine
(3)Production
intervals of regenerative changing catalysts
facilities
burner Low density
polyethylene
production plant
Gas phase
polypropylene
production plant
Application of waste Utilization of pinch Efficient use of black liquor
plastics for blast/coke technology recovered from pulp
furnaces processing
Multiple-effect
(4) Others condensed and canned
black liquor
High-temperature
high-pressure recovery
boiler
Sludge combustion boiler
Source: survey by the Energy Conservation Center, Japan

100
 Business
category Cement Plate glass Textiles Automobiles
Items
Kiln combustion Management of Operation Operation
control solution tank management of management of major
(conditions of boilers (automatic production facilities
burner) control of O2) (high-efficiency
Operation under the operation, etc.)
(1) Operation
optimal conditions
management
by attaching
temperature and
moisture sensor
Control of dyeing
heat pattern
(2) Strengthening of Installation of waste Exhaust heat Heat insulation of/heat
thermal insulation heat boiler recovery recovery from oven in
of kiln and Operation condition Drain recovery painting process
suspension Strengthening of Heat recovery from Waste heat recovery
preheater thermal insulation waste fluid and heat insulation of
Renovation of of solution tank Insulation for pipes furnace in heat
Thermal preheater Shortening pipes treatment process
Power generation Operation with
using medium-/low constant loading
Additional facilities

temperature waste (accumulator)

heat
High-efficiency
clinker cooler
Computer control of Rotation frequency Rotation frequency Load control of motor
motive energy control of motor control of motor in machine processing
(rotation frequency Low-pressure loss process
control, etc.) type transformer Switch from electric
heating (heater, etc.)
Electrical
Vertical mill to direct heating
Mill with Control of number and
preliminary milling rotation speed of
High-efficiency hydraulic/pneumatic
separator motor
NSP kiln Short-liquor dyeing Reduction of air
SP kiln device circulation amount in
High-efficiency mill Water-saving washer painting booth in
Fluidized bed Heat setter painting process
cement calcination High-efficiency dryer Reduction of standby
furnace electricity by
conversion of
hydraulic/pneumatic
(3) Production driving into electric
facilities driving
Prevention of
generating surplus
electricity by rapid
high-precision control
of welding current
Rationalization of
painting/drying
process
Improvement of Installation of Heat recovery of solid
defect rate in distribution type waste incinerator
quality control boiler (power generation
(4) Others
Introduction of steam, etc.)
cogeneration system Introduction of
cogeneration system

101
 h) Challenges in typical energy conservation technology development
Business Future challenges in energy conservation technology development
category Points for attention Typical techniques Problems
Steel Rationalization of Integration of high-speed Development of zero defect mold
production process continuous casting process and casting technology
hot rolling process
Cut-down of reduction Utilization of scrap (electric Production of virgin iron for
energy furnace, cold iron-resource dilution of electric furnace (DR, IC)
melting furnace)
Exhaust heat recovery Lateral production of iron and Establishment of optimal process
hydrogen
Development of new iron Direct iron ore melting reduction Establishment of optimal process
producing method technology
Development of new cokes Future generation cokes Establishment of optimal process
production method technology Establishment of optimal process
Multi-purpose converter
Development of materials Material technology for extremely Improvement in extremely high
for enabling high temperature/highly critical temperature tolerance/durability
high-efficiency turbine based on hyperfine structure
observation technology
Petro- Rationalization of Gas phase polypropylene Development of low-temperature,
chemical production process production technology low-pressure, and high selectivity
catalyst
Development of low Separation by membrane, Development of optimal process for
energy decomposition extraction, and absorption high-performance membrane
technology separation
Development of catalytic cracking
process of naphtha
Reduction of Green chemistry Analysis and evaluation
environmental load technology using
bio-technology/extremely critical
catalyst
Textile Minimization of Nozzle-type dyeing device Stabilization of dyeing quality
circulating stain solution Airborne dyeing device Dyeing measures for fabrics with
heavy weigh per unit
Minimization of washing Counter-current washer
water
Use of drying heat cascade Vacuum drying system Removal of impurities such as lint
Establishment of decompressing
process
Non-aqueous system Processing technology using Improvement of treatment
processing plasma capacity, etc.
Dyeing processing technology Development of treatment
under the condition of critical CO2 appliance
density
Non-heating processing Processing equipment using ozone Improvement of treatment
capacity, etc.
Change in dyeing Ink-jet printing technology Improvement of productivity, etc.
processing system
Paper/pulp Change in paper making Improvement of Development/introduction of new
process dehydration/draining efficiency draining technology
Improving efficiency of High-density paper making Maintenance of paper quality
paper making method technology
Improving efficiency of Direct causticizing technology Prevention of lowering of strength
causticizing process, High-temperature high-pressure of pulp
omission of caustic kiln causticizing technology Development of gout
removal/filtration technology in
high temperature
Energy conservation of Cooking using preliminary Searching for lignin-decomposing
pulping process treatment of microbes in chips fungi and enzymes and increasing
Bio-bleaching technology their reaction speed, and
consideration of their application
to industrial technology
Increase in amount of Increase in amount of power Development of recovered lignin
power generation by generation by gasification utilization and improvement or
high-efficiency use of technology and re-powering efficiency in recovering chemicals
black liquor Decrease in energy required for
gasification

Source: survey by the Energy Conservation Center, Japan

102
5.2 Energy conservation in the residential sector

(1) Energy consumption per household by energy sources

Year Electricity City gas ＬＰＧ Kerosene Coal Other <Total> 〔MJ/（Household・Year）〕

Note) The lower figures in the bar represent percentage distribution.

Source) "Domestic Energy Statistics Annual Report 2003", Residential Environment Planning & Research Center

103
(2) Energy consumption per household by usage

Lighting,
Air conditioning Electric appliances
Year Heating Hot water supply & Others [MJ/(household-Year)]
<Total>

Note) The lower figures in the bar represent percentage distribution.

Source) "Domestic Energy Statistics Annual Report 2003", Residential Environment Planning & Research Center

104
(3) Improvements in energy efficiency of home electric appliances
- Effects of Top Runner Program -
1) Changes in energy conservation performance of freezers/refrigerators

Annual Electricity Consumption per liter (kWh/L)

Annual electricity
consumption per liter of rated
internal volume [kWh/L]

Fiscal Year

Note) The annual electricity consumption per 1litre of rated internal volume, which is measured by JIS (Japan Industrial
Standard), is an average value derived from the value of main refrigerators from each manufacturing company.
The increase of figures in 1994 is because of change of medium of refrigerators from Freon to other materials.
Source) The Japan Electrical Manufacturers’ Association (JEMA)

2) Changes in energy conservation performance of air conditioners

Simple average values of typical models of energy conservation type wall-mounted cooling and
heating air conditioners with 2.8kW cooling capability.

’95 Model 1,492 *

’97 Model 1,201

’99 Model 1,068

’01 Model 990

’03 Model 963

’05 Model 919

(Unit : kWh)
Electricity consumption for air cooling
Electricity consumption for space heating

* = total consumption during term

Note) Based on Japan Refrigeration and Air Conditioning Industry Association standards JRAS4046
(standards for calculating room air conditioner term power consumption)
Source) Japan Refrigeration and Air Conditioning Industry Association

105
3) Changes in energy conservation performance of TVs

<Rated Power Consumption>

Operation Stan-by Annual total

’90 Model ’93 Model ’02 Model ’04 Model

Source) up to 98 models : Electronic Industries Association of Japan

* Weighed average of shipped quantity
from 99 models : Estimated value of the Energy Conservation Center, Japan
* Simple average value of specification catalogues (summer and winter) of 28-inch wide
screen TV in respective years

4) Changes in energy conservation performance of VTRs

<Changes in average per-unit power consumption during stand-by>

FY 1991 FY 1994 FY 1997 FY2000 FY 2002 FY 2003 FY 2004

Note) These values represent weighted averages of all video tape recorders shipped during each of the years
(subject to the Law concerning the Rational Use of Energy).
Source) Electronic Industries Association of Japan

106
(4) Diffusion rate and electricity consumption of home appliances

Item (Fiscal Year) Diffusion rate （％） Electricity Consumption rate（％）

Appliances 1980 1990 2003 1980 1990 2003

Electric Rice Cooker 54.9 61.8 69.1 4.1 3.3 -

Refrigerator 107.1 109.9 110.4 31.1 21.7 16.1

Electric Kotatsu 108.7 111.6 93.1 7.2 4.8 -

Airconditioner 52.1 95.2 149.3 7.8 9.3 10.6

Air-conditioner
- 43.8 116.3 7.6 14.6
(heating&cooling)

Washing macnihe 98.2 98.7 98.7 1.6 1.2 -

Vacuum cleaner 96.1 98.1 98.1 4 3 -

Microwave oven 33.3 64.5 84.6 1.3 1.8 -

Dehydrator - 16.3 27.2 - 1.9 2.8

Electric carpet - 42.2 70.1 - 2.9 4.3

Warmed toilet Seat (with

- - 44.6 - - 3.9
warm water shower)

Dish washer /dryers - - 6.9 - - 1.6

Television
st
Color TV (1 purchased) 97.9 98.5 98.6 13.2 8.4 7.8
nd
Color TV (2 purchased) 36.2 74.1 93.4 1.3 1.7 2.1

TV Total 15 10.1 9.9

Other 5.8 12.7 20.2

Total 80.3 83.1 83.9

For lighting 19.7 16.9 16.1

Total Electricity（A・B) 100 100 100

Instantaneous gas water heater 76.1 65.0 48.5

Note 1) "Television Total" of “Consumption ratio (%)” in 1980 includes black-and-white television.
Note 2) The figures in “Air-conditioner (Heating & Cooling)” are not included in the figures in “Air-conditioner”.
Note 3) Some of the figures of FY2003 include estimated values.
Source) "Outline of Electric Power Supply", "Summary of Electric Power Supply" and "Household Energy Handbook"

107
(5) Energy conservation measures in the residential sector

1) Outline
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 first
measure focuses on improving energy efficiency in machinery and equipment, the second measure
aims to improve the heat insulation performance in residences and buildings and the third 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, 2004. Moreover, in the field of the hot
water supply system, which accounts for 30% of energy consumption in the households, more
energy-efficient system has been developed and commercialized. And the support programs to
make a smooth introduction in the market are underway.

As for the second measure, the activities to promote the energy conservation labeling program
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 the testing 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 houses

b) Dissemination, publicity, etc. To promote energy conservation

i) 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 Measures

ii ) 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,

108
 implementation of a house heat insulation construction engineers’ lecture course, and information
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, and copiers)
- Establishment of a ‘Heat Insulation Spreading and Promotion Liaison Conference’, for general
consumers and builders
- Implementation of a system to acknowledge excellent energy conservation building-construction
techniques, etc.

109
5.3 Energy conservation in the commercial sector

(1) Energy consumption per floor area by energy sources in the commercial buildings

Year
Coal Oil Gas Electricity Solar <Total>

Note) Lower figures in the bars represent percentage.

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2004)
.

110
(2) Energy consumption per floor area by usage in the commercial buildings

（MJ/m2）
Year Cooling Heating Hot water Kitchen Power <Total>

Note) Lower figures in the bars represent percentage.

Source) Prepared from the “EDMC Handbook of Energy & Economic Statistics in Japan (2005)

111
(3) Energy conservation measures for the commercial buildings

Classification Operation control/simple remodeling Equipment remodeling

· Reduction of sunlight
Window shade operation, Attachment of solar · Construction plan
Air-conditioning control film Optimization of direction, construction style
· Reduction of space load · Reduction of skin load
(1)Reduction of Installation of wind shield room, revolving door, Reduction of window space, adoption of
heating and cooling use of airtight sash layered glass, insulation of indoor
load · Concentration of air-conditioned operation area (outdoor)wall, installation of eave/balcony,
Concentration of same load, reduction of etc., adoption of air flow system
partition

· Efficient use of heat source

· Reduction of outdoor air load
Adoption of high-efficiency heat pump,
Reduction of surplus open air intake
introduction of co-generation, heat storage
Cut of open air during preheating/pre-cooling
system
· Heat source efficiency operation control
Air-conditioning · Use of natural energy
Unit control according to load, schedule control,
Use of solar heat, outdoor air cooling, night
water supply temperature change
(2)Efficiency purge
· Change of indoor temperature/humidity set
improvement of · Use of waste heat
· Zero energy band control
equipment system Attachment of total heat exchanger
Increase of using temperature deference (flow
Heat pump system using waste heat (use of
rate /wind volume)
wasted heat from air cooler, & wasted water
· Free cooling
from drainage, river, etc.)
· Cleaning of heat exchanger coil filter, etc.
· Outdoor air intake control (CO2 control)
· Adoption of VAV (variable air volume)
system
· Control of fan operation time · Adoption of high efficient fan
· Inspection/repair of duct air leakage · Improvement of duct pressure damage
Transportation
· Adoption of pump unit control · Adoption of VWV (Variable water volume)
· Adoption of inverters system
· Improvement of friction loss of pipe
· Adoption of great temperature gap system
· Putting out light near window · Adoption of Hf-type lighting equipment
· Putting out light when unnecessary (manual · Task and ambient lighting
switch, timer) · Introduction of automatic control equipment
Lighting
· Light color finishing of interior Daylight sensor, human sensor
· From incandescent bulb fluorescent lamp · Adoption of reflection free VDT, avoiding
· Periodical replacement, cleaning of lamp louver instrument
· Adoption of suitable boiler
high efficiency, small type boiler, suitable
· Control of hot water temperature set
capacity
· Utilizing rest water of storage type boiler
Boiler and Hot water · Optimization of pipe design
· Control of steam pressure
supply Minimal length, suitable diameter
· Heating loss prevention of steam (hot water)
· Heat pump-type hot water heater
pipe
· Condensation heat recovery method water
heater
Source) “Energy Conservation Equipment Summary,” 1995 edition, judgment standards for business operators
regarding rational use of energy at factories (Notification of the Ministry of International Trade and Industry,
January 1999)

112
 (Continued from the previous table)
classification operation control/simple remodeling Equipment remodeling
· Prevention of water left running (opening and
· Adoption of energy conservation type
closing water tap)
equipment (pressure cooker, steamer)
· Replacement of damaged packing
· Adoption of water conservation top
Cooking · Heat control
· Adoption of bubble maker tap
· Cleaning of equipment
· Adoption of single lever mix tap
· Preventing unnecessary preheating of
· Adoption of double tank sink
range/oven
· Adoption of water conservation tap
· Adoption of self closing tap
· Adoption of water conservation feces stool
· Replacement of damaged packing
· Examination of urinal cleaning system
Washroom · Adjustment of wash basin water stop tap
(water supply time control by timer, light
· Water control of feces stool flush valve
sensor equipment automatic water supply
system, light switch connection system,
etc.)

· Control of cooling temperature

· Reduction of door opening (number, time)
· Adoption of air cooled type freezer (water
· Prevention of too much food storage
conservation)
· Letting hot food cool before storage
Freezer/Refrigerator/ · Attachment of back system
· Putting out showcase light after closing time
Showcase · Adoption of energy conservation type
· Frost removal
showcase (double layer air curtain type,
· Check/repair of door packing
swing door, etc.)
· Periodical cleaning of condenser
· Night cover, night set for showcase
· Adoption of energy conservation type
· Speedy door opening/closing
vending machine (automatic switch for
· Allowing back space (10cm or more)
Vending machine fluorescent lamp, energy conservation
· Exact change of "hot" and "cold"
timer, peek cut function, reinforcement of
· Switch off during non-business hours
insulation, etc.)
· Adoption of transformer with suitable
capacity
· Cutting transformer at source side
· Improvement of power factor (Installation of
· Checking ventilation of electricity reception
Electricity reception condenser)
room (prevention of efficiency decline due to
· Adoption of demand control system
high temperature)
· Adoption of a super-high-efficiency
transformer
· Repair/replacement of automatic control
equipment
Damage, bad placement of valve, damper,
sensor, etc.
Equipment maintenance · Improving precision of thermometer
· Additional attachment of measuring device
· Examination of energy consumption
Comparison to previous fiscal year, by
equipment type

Source) "Energy Conservation Handbook for Small Scale Service Industry", etc., Energy Conservation Center

113
(4) Other energy conservation measures in the commercial sector

1) Outline
In the commercial sector, the main factor of the increase of energy consumption stems from the
growing 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 program that sets energy conservation standards
for office equipment.

Meanwhile, 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 include all industries.
Specifically, office buildings, large-scale retail stores, hotels, hospitals, etc., in the commercial sector
came to be included in this category. 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 to the Type 1 designated Energy Management Factory.

2) Relevant legislation, etc.

a)Measures based on the Law Concerning the Rational Use of Energy

i) 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 measures
i) As to buildings for business that meet the effort guidelines in evaluation criteria for buildings:
acknowledgement on equipment investment plans, low-interest financing, and grants for paying a
fixed interest rate, based on the Energy Conservation and Recycling Support Law

ii) 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 conservation

114
 i) Familiarize various measures through the Energy Conservation Measures in Summer and Winter,
which were decided by the Conference to Promote Energy and Resources 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, and
information 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 well for
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)

(thorough energy management utilizing IT)

By using IT technology, BEMS system promotes and facilitates energy demand management for
commercial buildings. The system ensures recognizing real-time room conditions in buildings by
temperature sensors and/or the optimal operation of lighting and air-conditioning responding to
conditions in the room.
BEMS image is shown below.

115
(6) Promotion of ESCO Business

1) Outline of ESCO business

ESCO is a business that offers comprehensive services on energy conservation to clients, who in
return 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 “Shared savings agreement”, where the ESCO business covers business costs. These options
enable service provision according to customer needs.
* ESCO stands for Energy Service Company

Customer gain

conservation effect
Customer
ESCO expenses
Gain

Energy
Interest
Repayment

Initial
investment
Utility charge
payment
ESCO operator shall
Utility guarantee the Utility
achievement.
charge charge
payment payment

Before the introduction During the After the contract

of ESCO business implementation of terms completed
ESCO business

There are two methods of ESCO business as follows.

(a) Guaranteed method

(b) Shared method

116
2) Scale of ESCO-Related Market
The ESCO-related market has been growing rapidly in these years. The amount of orders received
decreased in 2004, because the number of large plans in the industrial division decreased. However,
there is still plenty of scope for the expansion of the scale of market as shown below. (Amount of orders
received in 2004: Approx. 37,400 million yen)
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).

Scale of ESCO business-related market

Source: 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 at
municipalities. With respect to the item (2), we will promote use of the low-interest loans of
Development 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.

117
5.4 Energy conservation in the transportation sector

(1) Energy consumption by type of transport

Unit :

Air

Marine transportation

Rail

Freight Vehicle

Bus

Passenger car for service use

Passenger car for private use

Fiscal Year

75 80 85 90 92 94 96 98 2000 2002
Grand total of Transport sector energy 1,938 2,302 2,465 3,114 3,327 3,516 3,722 3,820 3,799 3,812
consumption (5.3) (-1.2) (2.4) (4.5) (2.3) (4.7) (2.6) (1.1) (-2.2) (0.0)
Total of passenger sector energy
997 1,245 1,417 1,855 2,044 2,193 2,346 2,448 2,431 2,469
consumption

(7.5) (0.9) (3.4) (6.5) (3.5) (5.4) (3.4) (1.8) (-2.7) (0.1)
Passenger car for private use 713 942 1,108 1,485 1,664 1,823 1,955 2,050 2,075 2,109
87
Passenger car for business use 88 78 88 100 104 76 94 64 67
Bus 59 56 55 67 62 64 62 61 58 57
Rail 61 63 64 78 79 81 81 82 80 81
Marine Transportation 6 5 4 5 8 7 9 7 9 7
Air 70 99 98 119 127 143 151 154 145 147
Total of freight sector energy
941 1,058 1,047 1,259 1,283 1,323 1,376 1,372 1,368 1,342
consumption
(3.1) (-3.6) (1.2) (1.6) (0.2) (3.6) (1.3) (0.1) (-1.3) (-0.2)
Motor truck 657 791 826 1,084 1,105 1,147 1,178 1,140 1,116 1,085
Rail 17 13 8 7 7 6 6 6 6 6
Marine transportation 262 244 200 151 153 149 171 203 222 230
Air 5 9 14 17 18 21 21 23 24 22

Note) Values in parentheses represent the increase rate (%) in relation to the previous year.

118
(2) Energy consumption and transportation volume by type of transport (FY 2003)
1) The rate of energy consumption and transportation volume by type of passenger transport
Marine

Passenger vehicle Bus Rail Air

Energy
Consumption

Transportation
volume

Passenger vehicle Bus Rail Air

Marine

Source) Prepared from “the EDMC Handbook of Energy and Economic Statistics in Japan (2005)”

2) The rate of energy consumption and transportation volume by type of freight

transport

Freight vehicle Rail Marine Air

Energy
Consumption

Transportation
volume

Freight vehicle Rail Marine Air

Source) Prepared from “the EDMC Handbook of Energy and Economic Statistics in Japan (2005)”

119
(3) Energy intensity by type of transport (FY 2003)

1) Energy consumption per passenger-kilometer

Rail
(209kJ/passen

Bus

(674kJ/passenger-km)

Marin
(1,528kJ/passenger-km)
Passenger
vehicle
(2,507kJ/passenger-km)

Air
(1,708kJ/passenger-km)

Note) Index Rail =100

Source) Prepared from “the EDMC Handbook of Energy and Economic Statistics in Japan (2004)”

2) Energy consumption per freight ton-kilometer

Rail
(247kJ/ton-km)

Marin

(1,076kJ/ton-km)

Freight
vehicle
(3,349kJ/ton-km)

Air

(22,295kJ/ton-km)

Note) Index Rail =100

Source) Prepared from “the EDMC Handbook of Energy and Economic Statistics in Japan (2004)”

120
(4) Improvements in energy efficiency of vehicles
- Effects of Top Runner Program -

1) Trends in average fuel efficiency of gasoline passenger vehicles

The fuel efficiency of vehicles under the top runner standards has been remarkably improved. The
figure below shows the changes of fuel efficiency of gasoline passenger vehicle.
Fuel Efficiency (km/L)

Fiscal Year

Source) "Energy Conservation handbook 2005”; The Energy Conservation center, Japan

2) Trends in shipment of gasoline passenger vehicles that have achieved fuel efficiency standards of
FY2010
Number of vehicles (10,000unit)

TR achievement rate
Total number of shipped units
TR achieved vehicle percentage (%)

Fiscal Year

Source) "Energy Conservation handbook 2005”; The Energy Conservation center, Japan

121
(5) Measures to improve fuel efficiency of vehicles
- 4 valve system
- Valve control
(Variable valve timing, etc.)
- Supercharger loaded small exhaust has
engine
- Electronic control fuel jet equipment
- A/F feedback three-way catalyst
Improvement of - Electronic ignition system
heat efficiency - Combustion improvement
(Improvement of combustion chamber
etc.)
- Lean burn
- Cylinder injection engine
- Other engine improvement
Engine (High pressure rate, etc.)
Concrete improvement technology for unit fuel efficiency of cars

improvement

- OHC
- Roller cam shaft
- Decrease of friction
Decrease of loss (Piston ring, etc.)
- Low-friction engine oil
- Decrease of idling revolution
- Decrease of auxiliary equipment loss
Reduction of - Variable number cylinder engine
driving
resistance

- Light drive construction (FF, etc.)

Decrease of car weight

Reduction of rolling - Low rolling resistance tire

resistance

Reduction of air resistance - Improved body form

Others
Reduction of drive system - AT lockup
loss

- Electronic control of AT
Optimization of - AT --> 4AT, 5AT
engine range - 4MT --> 5MT, 6MT
- CVT

- Recovery and reuse of braking energy

Hybrid system - Stop of idling

Idling stop mechanism - Stop of idling

Source) Japan Automobile Manufacturers Association, Inc.

122
(6) Energy conservation measures in the transportation sector

1) Energy conservation measures in the transportation sector

The energy consumption in the transportation sector has been in upturn trend since the oil crisis.
This trend accelerated during the 1990s. Its major factor is attributed to the increasing number of the
ownership of passenger vehicles. The energy consumed by passenger vehicles accounts for 90 % of the
total fuel consumption in this sector. Thus implementing the measures that focus on passenger vehicles
is seen very crucial.

Specifically, both gasoline- and diesel-powered automobiles have been designated as specified
equipment, under the Law Concerning the Rational Use of Energy, aiming to improve fuel
consumption of automobiles. And publicity activities have been conducted to promote automobiles that
have high energy efficiency performance or “Stop Idling” campaign.

2) Outline of energy conservation measures in the transportation sector

a) Measures based on the Law Concerning the Rational Use of Energy
i) Establishment of energy conservation target values and requiring indication of energy consumption
efficiency, regarding specified equipment out of energy-consuming machines and tools (revised
in June 1999)

Specified equipment related to the transportation sector: gasoline-powered passenger cars,

diesel-powered passenger cars, gasoline-powered trucks, diesel-powered trucks

* How to set the energy standards

To establish the target values through considering the performance level of equipment
with the best consumption efficiency among presently commercialized products (except
for special products, etc.), in the set division.

ii) Advising, public announcement, commanding, and penalty imposition toward manufacturers of
specified equipment that is significantly below the energy conservation target values (revised in
1998)

iii) Advising, public announcement, commanding, and penalty imposition toward manufacturers of
specified equipment with no indication of energy consumption efficiency.

b) Support measures
i) Spreading and promotion of automobiles which use clean energy as fuel

Preferential measures in terms of the tax rates 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 and
low-air-pollution cars, and low-fuel-consumption cars, and for the development of the related
technology.

123
 ii) Improvement of energy consumption of individual transportation equipment. Implementation of
investment and financing, etc., to introduce equipment with excellent energy consumption
efficiency

c) Dissemination and publicity, etc., on energy conservation

i) To make various measures thoroughly known through the Energy Conservation Measures in
summer and winter, which Measures were decided by the Conference to Promote Energy and
Resources Conservation Measures.

ii) Preparation and distribution of posters and pamphlets, conduction of symposiums, and
information supply through mass media, by related ministries and agencies, and in various 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.

124
5.5 Reinforcement of Energy Conservation Measures in Each Sector
(1) Background
At the Third Conference of the Parties to the UN Framework Convention on Climate Change
(COP3), held in Kyoto in December 1997, an agreement was reached on greenhouse gas emissions
reduction targets for developed countries. As part of this agreement, Japan pledged a 6% reduction in
greenhouse gas emissions from the 1990 level, to be achieved in terms of the average annual value
for the 2008–2012 period. Japan’s target for energy-related carbon dioxide emissions, which account
for about 80% of all greenhouse gas emissions, is the achievement of stabilization at the FY 1990
level by FY 2010.

(2) Additional Measures and Expected Effect

(Unit:1,000kl-oe)

Source) Material-4 in the 8th meeting of Energy Conservation Subcommittee of Advisory Committee for Natural
Resources and Energy

125
6. Related Organization

6.1 Ministry of Economy, Trade and Industry (METI)

(1) Organization of METI

Ministry of Economy, Trade and Industry

Internal Bureaus
Minister
Minister’s Secretariat
Senior Vice Minster
Economic and Industrial Policy Bureau
Parliamentary Secretary Research and Statistics Dept.

Vice Minister Regional Economic & Industrial Policy

Trade Policy Bureau

Vice Minister
Multilateral Trade System Dept.

Trade & Economic Cooperation Bureau

Trade Control Department

Industrial Science and Technology Policy

and Environment Bureau

Manufacturing Industries Bureau

Economic and Industrial Policy Bureau

Research and Statistics Dept.
Regional Economic & Industrial Policy

Internal Bureaus Regional Bureaus & Depts.

Agency for Natural Resource & Energy Regional Bureaus
Nuclear & Industrial Safety Agency Mine Safety & Inspection Dept.
Small and Medium Enterprise Agency

Japan Patent Office

126
(2) Organization of Agency for Natural Resources and Energy (ANRE)

Agency for Natural Resources and Energy

Director - General
Director - General for Natural Resources and Energy

Director-General’s Secretariat
General Policy Division
General Policy Division

Energy Conservation and Renewable Energy Dept.

International Cooperation Office

Policy Planning Division

Energy Efficiency and Conservation Division

New and Renewable Energy Division

Natural Resources and Fuel Dept.

Policy Planning Division
Petroleum and Natural Gas Division
Petroleum Refining and Reserve Division
Petroleum Distribution and Retail Division
Coal Division
Coal Mine Subsidence Division
Mineral and Natural Resources Division

Electricity and Gas Industry Dept.

Policy Planning Division
Electricity Market Division
Gas Market Division
Electricity Infrastructure Division
Nuclear Energy Policy Planning Division
Nuclear Fuel Cycle Industry Division

127
6.2 The Energy Conservation Center, Japan (ECCJ)

(1) Organization of ECCJ

<As of 1 July, 2006>
Administration Dept

Accounting Dept.

The Board of The Board of Management Evaluation Dept.

Directors Councilors
Public Relations Dept

Education & Partnership Dept.

Smart Life
Promotion Division Regional Activity
Chairman President Promotion Dept.

Idling Stop Project Office

Managing
Director
Dissemination Dept.
Auditor
Education Dept.
Head
Office Publication Dept.

Research & Planning Dept.

Energy Conservation Equipment
Promotion Dept.

Eco-Driveling Promotion Dept.

Energy Star Program Office.

ESCO Promotion Dept.

Technology Dept.

Building Energy
Energy Environment Survey Group
Technology Division
Energy Consumption
Assessment Dept.

Energy Audit Dept.

International Engineering Dept.

International Energy
& Environment International Cooperation Dept.
Cooperation Center
International Training &
Communication Dept.

Hokkaido Branch

Tohoku Branch

Tokai-Hokuriku Branch

Hokuriku Office
Branches
Kinki Branch

Chugoku Branch

Shikoku Branch

Kyushu Branch

Energy
Management Examination Dept.
Examination &
Training Center Training Dept.

128
(2) About ECCJ
(as of July, 2006)
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 & 8 branches in Japan
Supporting member: 2,833 members
Number of employees 122 persons
Budget: 4,527 million yen in FY2005 (39 million US$ : @116¥/US$)
Fields of activity: Industrial, Residential / Commercial and Transportation sectors

Major activities: Industry sector ;

1) Energy conservation audits services for factories
2) Education & training on energy conservation
3) State examination for energy managers (assigned by the
government)
4) Dissemination (conference for successful cases of energy
conservation activities, excellent energy conserving equipment,
etc.)
5) Technological development and spillover

Residential / Commercial and Transportation sector ;

1) Energy conservation audits services for buildings
2) Ranking catalogue for energy efficient appliances (dissemination
of Top Runner Program)
3) Promotion of energy labeling system
4) International Energy Star program implementation
5) Energy efficiency product retailer assessment system
6) Dissemination of energy conservation indicator "E-Co Navigator"
7) Energy education at primary and middle schools
8) ESCO research and development

Cross sector ;
1) Energy conservation campaign & exhibition (ENEX)
2) Commendation (grand energy conservation prize)
3) Information & data base, publicity and publishing
4) Survey and monitoring
5) International cooperation & communications

129
 Reference

Energy Calories (Japan)

Energy Unit Average Calorie (kcal) Energy Unit Average Calorie (kcal)
<Coal> F.Y. Jet Fuel L 2000- 8,767
Coking Coal (Domestic) kg 1953-55 7,400 Kerosene L 1953-99 8,900
1956-60 7,500 2000- 8,767
1961-65 7,600 Gas Oil L 1953-99 9,200
1966- 7,700 2000- 9,126
Coking Coal (Import) kg 1953-99 7,600 Fuel Oil A L 1953-99 9,300
2000- 6,904 2000- 9,341
Steam Coal (Domestic) kg 1953-65 5,900 Fuel Oil B L 1953-99 9,600
1966-70 5,800 2000- 9,651
1971-80 5,600 Fuel Oil C L 1953-99 9,800
1981-99 5,800 2000- 9,962
2000- 5,375 Lubricants L 1953-99 9,600
Steam Coal (Import) kg 1953-99 6,200 2000- 9,603
2000- 6,354 Other Petroleum kg 1953-99 10,100
Hard Coal (Domestic) kg 1953-65 5,700 2000- 10,105
1966-70 5,600 Refinery Gas m3 1953-99 9,400
1971-75 6,100 2000- 10,726
1976- 4,300 Petroleum Coke kg 1953-99 8,500
Hard Coal (Import) kg 1953-99 6,500 2000- 8,504
2000- 6,498 LPG kg 1953-99 12,000
Brown Coal kg 1953-99 4,100 2000- 11,992
2000- 4,109 Natural Gas m3 1953-99 9,800
Coke kg 1953-99 7,200 Natural Gas (Domestic) m3 2000- 9,771
2000- 7,191 LNG kg 1953-99 13,000
Coke Oven Gas m3 1953-99 4,800 Natural Gas (Import) kg 2000- 13,019
2000- 5,401 Coal Field Gas m3 8,600
Blast Furnace Gas m3 800 Town Gas m3 1953-99 10,000
Converter Gas m3 1953-99 2,000 2000- 9,818
2000- 2,009 Electricity kWh ( ) is thermal efficiency
Patent Fuel kg 1953-99 5,700 (20.7%) 1953 4,150
2000- 5,709 (22.2%) 1954 3,850
<Oil> (24.0%) 1955 3,600
Crude Oil L 1953-55 9,300 (25.8%) 1956 3,350
1956-60 9,350 (26.8%) 1957 3,200
1961-70 9,400 (28.6%) 1958 3,000
1971-80 9,300 (31.1%) 1959 2,750
1981-99 9,250 (31.9%) 1960 2,700
2000- 9,126 (32.7%) 1961 2,650
NGL L 1953-99 8,100 (33.9%) 1962 2,550
2000- 8,433 (36.0%) 1963 2,400
Gasoline L 1953-99 8,400 (36.5%) 1964 2,350
2000- 8,266 (36.9%) 1965 2,350
Naphtha L 1953-99 8,000 (37.4%) 1966-70 2,300
2000- 8,146 (38.1%) 1971-99 2,250
Jet Fuel 1953-99 8,700 (39.98%) 2000- 2,150
Source) “Energy Production, Supply and Demand”

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