1

Kyoto Mechanism and Kyoto Mechanism and Technology TransferTechnology Transfer

April 9-10, 2003UNFCCC WS

on Technology Transfer

Shigetaka SEKIDirector for Environmental Affairs

Ministry of Economy, Trade and Industry, Japan

2

CO2 emissions from energy use ± 0%

CO2 emissions from non-energy use, methane emissions, and nitrous

oxide emissions－0.5%

Emissions of HFCs, PFCs and SF6 +2.0%

Reductions by innovative technologies and change of lifestely －2.0%

The use of Sinks －3.9%

In the “New Climate Change Program”, domestic quantitative targets were established to achieve 6% reduction commitment.

Note:Japan shall study the utilization of the Kyoto mechanisms while taking account of international situation and bearing in mind the commitment achievement responsibility and the general rule that Kyoto mechanisms stipulated in the Kyoto Protocol are supplementary to

domestic measures.

The new climate change program

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GHGs emissions in 2000 is 8% higher than the base year.

J apan's GHGs emissions (1990- 2000)

1000

1050

1100

1150

1200

1250

1300

1350

1400

Millio

n to

ns o

f C

02 e

quiv

alen

t

SF6PFCsHFCsN2OCH4CO2

1,235

1,333(+8%)

(Source):Japan’s Inventory

14 % reduction needed to meet the Kyoto Target of -6% from 1990　

4

Energy Efficiency Indicators(1)Energy Efficiency Indicators(1)- energy consumption/GDP -- energy consumption/GDP -

119

157149

206 195210

245

447

273 260

100

179203

0.0

0.1

0.2

0.3

0.41990

2000

tons of Oil eauivalent/ 1billionUS$（1995）

※ Figures are index where Japan's level of 2000 as 100

(Source):OECD/IEA, Energy Balances of OECD countries

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Energy Efficiency Indicators(2) - energy consumption/GDP -

(Source):OECD/IEA, Energy Balances of Non-OECD countries

0.0

0.2

0.4

0.6

0.8

1.0

1.2

tons of oil equivalent/ 1000US$(1995)

1222 1200

344 456

700

256

778

478

100

※Figures are index where Japan’s level of 2000 as 100

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Energy Efficiency Indicators (4)Energy Efficiency Indicators (4) - Cement industries -- Cement industries -

820

1,322 1,288 1,241 1,241100

161 157 151 151

-

500

1,000

1,500

2,000

2,500

J apan USA West ernEurope

Average

Asi aAverage

Cent ral andSout h

Amer i caAverage

0

100

200

Energy Consumption/ 1 ton cement productionJ apan 100 right Y axes＝ （ ）

Mcal／Cement ton

(Source):CEMBUREAU, World Cement Directory

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Establishment of ‘Liaison Committee Establishment of ‘Liaison Committee for the Use of the Kyoto Mechanisms’for the Use of the Kyoto Mechanisms’

Established on July 19, 2002 Major Task

- Approval of project applications for

JI/CDM Consists of relevant government agencies - Cabinet Secretariat

- Ministry of Economy, Trade and Industry

- Ministry of Environment

- Ministry of Foreign Affairs

- Ministry of Agriculture, Forestry and Fisheries

- Ministry of Land, Infrastructure and transport

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Establishment of Establishment of ‘JI/CDM Project Approval Guidelines’‘JI/CDM Project Approval Guidelines’

Established on October 16, 2002 Established by the Liaison Committee Procedures Described in the Guidelines

– Application should be submitted to one of the member ministries of the Liaison Committee

– The ministry designated to support the candidate projects examines the application pursuant to the approval criteria and reports the result to the Liaison Committee

– The Liaison Committee decides whether to approve the application based on the report from the ministry

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CDM Project Application Already Received

CDM Project in Brazil Project Participant : Toyota Tsusho CorporationName of the Project : Vallourec & Mannesmann Tubes do Brazil Fuel Switch ProjectOutline of the Project :

Use charcoal for the production of steel instead of using cokesAlter the design of existing carbonization kilns

Targeted Gas : CO2, N2O, CH4Expected Emission Reduction : 1.13 million t-CO2 ／ Year

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JIJI　　 Project Application Already ReceivedProject Application Already Received

JI Project in Kazakhstan

– Project Participant : NEDO

– Name of the Project : The Model Project for Increasing the Efficient Use of Energy Using a Gas Turbine Cogeneration System

– Outline of the Project : Replace the existing low efficiency boiler and steam turbine with a Gas Turbine Cogeneration System (GTCS)

– Targeted Gas : CO2

– Expected Emission Reduction : 62,000 t-CO2／ Year

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Policies of METI to Facilitate CDM projectsPolicies of METI to Facilitate CDM projects

Help Desk for Kyoto Mechanism in METI Kyoto Mechanism Guidebook (in Japanese) Development of Japan’s National Registry System Financial supports Model projects, FS, needs assessment Asia CDM Capacity Building Initiative Cooperation through Climate Technology

Initiative (CTI)

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Category

Number of Inquiries

General Questions on KP

About 150

On Projects

About 80

CDM

（about 60） JI

（about 20）

Operational Entity

About 20

TOTAL

About 240

# of Inquiries Received

As of March 31, 2003

Note: Sum of breakdown is not equal to the total because of rounding.

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CDM/JI Candidates ProjectsCDM/JI Candidates Projectsby Credit Scale by Credit Scale

0

2

4

6

8

10

12

10- 100- 500- 1000-1500-2000-5000-1,000 tons(CO2)/year

Note: The Volume of credit is based on the estimations by project participants.

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CDM/JI Candidates ProjectsCDM/JI Candidates Projectsby Project Type by Project Type

28%

18%

10%

10%

8%

6%

6%

3%11% 0%0%0%0%0%0%

Energy Efficiency

Afforastration,ReforestrationMethane Recovery

RenewableGenerationSequestration

Hydro

HFCs

Fuel Switch

Others

10セグメント

11セグメント

12セグメント

13セグメント

14セグメント

15セグメント

As of the end of February, 2003

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CDM/JI Candidates ProjectsCDM/JI Candidates Projectsby Regionby Region

49%

10%

10%

3%

1%

9%

7%

4%4%3%

Asia(CDM)

Middle East(CDM)

Central and SouthAmerica(CDM)Africa(CDM)

Europe(CDM)

Middle and EastEurope(JI)Australia(JI)

Russia(JI)

Europe(JI)

Cenrtral Asia(JI)As of the end of February, 2003

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Major Barriers to CDM, JIMajor Barriers to CDM, JI Uncertainties associated with institutional

settings, rules and procedures in the host countries (incl. interpretation of SD)

Uncertainties associated with rules and procedures of UNFCC/CDM process

Difficulties in baseline setting Barriers to investment

– Protection of intellectual property rights– Non cost reflective energy pricing– Insufficient enforcement of laws, etc.

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Asia CDM Capacity Building InitiativesAsia CDM Capacity Building Initiatives

Agreed to start the initiatives in 2002 This seminar is the first activity of the

initiatives in Thailand.Drafting and distributing the CDM

manual in Thai languageFurther program will be discussed with

Thai government

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Cooperation through CTICooperation through CTI with JI countries with JI countries

- Technology needs assessments Collaboration with the UNDP in the development and dissemination of technology

needs assessment methodologies - Seminars Seminars involving industry sector in collaboration with UNFCCC and other

relevant international organisations

- Training courses- Information dissemination

Participation & financial contribution to UNFCCC WS etc.