Green IT Initiative in Japan Ministry of Economy, Trande and Industry Japan.

Green IT Initiative in Japan

Ministry of Economy, Trande and Industry Japan

1. Basic concept of Japan’s “Green IT”

Traditional concept of “Green IT” focuses mainly on how to reduce energy consumption of IT equipment and systems including data centers. Japan’s “Green IT” concept focuses on both “Saving energy of IT” and “Energy-efficient society by IT”.

•The advent of a information society has lead to skyrocketing energy consumption by IT devices.

•Electric appliances are getting more energy-efficient year by year.

(e.g.) Energy consumption of fridges has decreased by 40-50% over the past decade.

•Energy consumption factories was successfully cut 20% by introducing energy optimum management systems.

•Introduction of electronic measurement technologies lead to a 60% improvement in CO2 emissions rate over the last 15 years.

•Halving energy consumption of data centers•Reduction in energy consumption for communication to 1/100 by using photonic technologies

More efforts for our society to be energy efficient

•Optimum control of industrial complex by IT•Visualization of environmental contribution by using IT including measurement devices

Saving energy of IT Energy-efficient society by IT

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Industry34%

Transportation20%

7%

Business18%

Home13%

6%Energy Cony

Others

ＩＴ 1.5%

Steel43%

Chemical16%

Petroleu9%

Elec.power8%

Paper 5%

Cement5%

Others 10%IT 4%

2. 2% vs. 98% issue: IT is more contributor than polluter

Total CO2 emissions of Japan in each sectorTotal CO2 emissions of Japan in each sector1.3 billion t

While CO2 emission by IT industry is less than 2% of that of whole Japan, IT contributes to reduction of CO2 emissions in other 98% areas.

While CO2 emission by IT industry is less than 2% of that of whole Japan, IT contributes to reduction of CO2 emissions in other 98% areas.

業務部門（オフィスビル）

運輸部門（自動車、鉄道等）

民生部門（住宅、家電等）

産業部門（工場）

• Ecological driving with the use of ITS, ETC, and other technologies

• HEMS and BEMS

(IT is used to manage energy use) 　　

• Advanced automotive electronics improves fuel mileage 　　　　　　　

3. Overall Energy Savings to Society Created by IT

IT will make an enormous contribution to conserving energy and raising efficiencies across a broad spectrum of social activities.

IT will make an enormous contribution to conserving energy and raising efficiencies across a broad spectrum of social activities.

社会基盤：ITの省エネ

• Use of energy-saving home appliances and LED illumination

• RFID tags lead to more efficient distribution

• Power electronic devices • IT control systems reduce energy consumption 　　　　　　

• Telecommuting, videoconferencing, online sales, and other Internet applications make society more efficient 　　　　　　　　　　

• More energy efficient IT devices and systems

4　Public infrastructure: IT energy conservationPublic infrastructure: IT energy conservation

Consumer areas(homes, appliances, etc.)Consumer areas(homes, appliances, etc.)

Business areas(office buildings)Business areas(office buildings)

Industrial areas(factories)Industrial areas(factories)

Transportation areas(cars, trains, etc.)Transportation areas(cars, trains, etc.)

政府の役割

産学官の連携強化

国際連携・協調

■国際シンポジウム開催

■海外との連携

■ グリーンＩＴ推進協議会の創設

■ 革新技術の開発支援・「グリーンＩＴプロジェクト」の推進

■ 省エネ技術・製品の普及

■ 環境貢献の評価方法の検討

IT関連業界団体、技術開発機関、大学、政府等が連携して取り組む場の創設

・欧米の企業・コンソーシアム・アジア産業界・政府への協力

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4. Development of the Green IT Initiative

The first Green IT Initiative Conference was held in December 2007. At the conference, METI proposed that industry, academic, and government bodies join together in a national partnership to push forward Japan-originated Green IT along two axes: reduce energy consumption in the IT sector itself and harness IT to reduce energy consumption in society at large.

The first Green IT Initiative Conference was held in December 2007. At the conference, METI proposed that industry, academic, and government bodies join together in a national partnership to push forward Japan-originated Green IT along two axes: reduce energy consumption in the IT sector itself and harness IT to reduce energy consumption in society at large.

■ Establishment of the Green IT Promotion CouncilCreated as a venue where IT-related industry groups, technology development bodies, universities, government bodies, and others can come together to work on Green IT

■ Establishment of the Green IT Promotion CouncilCreated as a venue where IT-related industry groups, technology development bodies, universities, government bodies, and others can come together to work on Green IT

■ Assist the development of innovative technologies

■ Promote the widespread use of energy-efficient technologies and products

■ Study ways of measuring environmental contributions

■ Assist the development of innovative technologies

■ Promote the widespread use of energy-efficient technologies and products

■ Study ways of measuring environmental contributions

■ Hold international symposiums■ Form partnerships with overseas bodies

• Western corporations and consortiums

• Collaborations with Asian industries and governments

■ Hold international symposiums■ Form partnerships with overseas bodies

• Western corporations and consortiums

• Collaborations with Asian industries and governments

Goverment’s RoleInternational Partnerships

and Collaborations

Strengthen Cooperation among Industry, Academia, and Government

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Green Cloud Computing Project(Requested a budget of ¥6.8 billion for FY 2009 (FY 2008 budget was ¥3.0 billion))

5. Promote the Development of Innovative Technologies

Energy savings in IT devices and systems

Energy savings at the data-center level

Energy savings at the semiconductor level

• Innovative energy-saving semiconductors (many-core technology, etc.)

• Power electronic devices

METI intends to realize green cloud computing as the next-generation IT infrastructure, which will make it possible to slash energy consumption while significantly raising the efficiency of IT usage in the service industry, the manufacturing industry, and the IT user industry.

METI intends to realize green cloud computing as the next-generation IT infrastructure, which will make it possible to slash energy consumption while significantly raising the efficiency of IT usage in the service industry, the manufacturing industry, and the IT user industry.

• Device-level cooling technologies

• High-density storage technologies

• Ultra-efficient routers

• Optimization of data traffic and storage on networks

• High-efficiency cooling/heat-removal technologies

Lifinity Eco Management System home energy management system, Matsushita Electric Works, Ltd.

Construction and operation of the air-conditioning system at the Sony City Building, Sony Corporation and Sony Life Insurance Co., Ltd. 　

Energy conservation using ITEnergy conservation using IT

Energy conservation within the IT fieldEnergy conservation within the IT field

Minister of Economy, Trade and Industry Award

ECO CENTER energy-saving server, NEC Corporation

Xeon processor, Intel Corporation

Commerce and Information Policy Bureau Director-General Award

Minister of Economy, Trade and Industry Award

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6. Establishment of the Green IT Award

Commerce and Information Policy Bureau Director-General Award

The Green IT Award was established this year to accelerate Green IT endeavors by industry and academic bodies. The Minister of Economy, Trade and Industry Award, Commerce and Information Policy Bureau Director-General Award, and the Green IT Promotion Council Chairman Award, among others, were presented on September 30.

The Green IT Award was established this year to accelerate Green IT endeavors by industry and academic bodies. The Minister of Economy, Trade and Industry Award, Commerce and Information Policy Bureau Director-General Award, and the Green IT Promotion Council Chairman Award, among others, were presented on September 30.

7. Promotion of “Green electronics” by using “Eco Points”

Consumer

Home appliance store・ Air conditioner・ Refrigerator

・ TV（ High Energy efficient product ）

Electronics Maker

Delivery of the product

(1)Purchase of high energy efficient products(2)After the entry of the eco point via PC, cell phone, mail, the eco point is available for the purchase of eco friendly products or service.(3)Delivery of Eco-friendly products or service

Reduction of CO2

Eco Point

Office

1. Purchase of the Product

Government

Request for financial support

Provide financial support

FrameworkFramework

- About 5% of the purchase price of “Green electronics “(energy efficient A/C, Refrigerator, TV) is added as the Eco Point

- An extra 5% is added in case of TV （ for the promotion of the digital broadcast)

- A recycling charge is also added to the eco point

- The eco point is available for the purchase of eco-friendly products or service

Conditions A/C Refrigerator TV

High energy efficient product 5% 5% 5%+5%(for DTV)

In case of recyclingRecycling charge

Recycling charge Recycling charge

Concept of the Eco PointConcept of the Eco Point

2. Entry of the eco point　　　 Order eco friendly products

3. Delivery of Eco friendly products

＊ " Eco-friendly" means "Environmentally-friendly"

8. IT Society in Harmony with the Environment

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The amount of “energy-savings by IT use” will exceed that of “energy consumption of IT devices” and IT can contribute the reduction of energy consumption of whole society if “Green IT” is actively promoted.

The amount of “energy-savings by IT use” will exceed that of “energy consumption of IT devices” and IT can contribute the reduction of energy consumption of whole society if “Green IT” is actively promoted.

2006 2025

Billion kWh

Year

50

240 Billion kWh

100

140

490 Billion kWh

*20million t CO2 equivalent

*110million t CO2 equivalent

Example:

Company A

Develops a cutting-edge energy-efficient air-conditioning unit Due to market demand, A

manufacturers and sells a large number of units

In terms of corporate activities (production), A emits much more CO2

Company B

Produces a standard air-conditioning unit

Neither production nor sales increase

Environmental contributions should be measured with a total lifecycle assessment (LCA) from production to use and finally recycling.

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9. Mechanism to Assess Contributions to Green IT

In terms of corporate activities (production), B emits much less CO2 than A

Whole society

A’s contribution

actually reduces the total amount

of CO2

Whole society

A’s contribution

actually reduces the total amount

of CO2

A’s contribution > B’s contributionA’s contribution > B’s contribution A mechanism is needed that makes proper assessments like thisA mechanism is needed that makes proper assessments like this

To keep Green IT developments moving forward, we need a mechanism that provides accurate assessments of corporations’ efforts to proactively market energy-efficient products and services. This mechanism must be constructed in tandem with international partnerships.

To keep Green IT developments moving forward, we need a mechanism that provides accurate assessments of corporations’ efforts to proactively market energy-efficient products and services. This mechanism must be constructed in tandem with international partnerships.

Last Year Current Year

Company A

Production process: 100kt-CO2

Operation process in homes: 300kt-CO2

Production: 500 thousand units


Company B


Total


Operation process: 375kt-CO2Production process: 200kt-CO2

Operation process: 600kt-CO2

Total

Decrease in production by 500 thousand units affected by the boom of energy-saving air conditioner.

Production: 2 million units

Point 1

Point 2

Point 1

Point 2

Should Company A need to buy emission credit from Company B?

Is this reduction in CO2 emission allowed to be used by Company A as a credit?


CO2 Emissions

CO2 Emissions

CO2 Emissions

Production Item: Air conditioner

9-1. Mechanism to encourage Green IT activities



CO2 Emissions


Operation process in homes: 300kt-CO2

Production: 1.5 million units

Increase in production by 500 thousand units with launching of energy-saving air conditioner which halves CO2 emissions

Confirm recycle via registry defined in household electronics recycling

regulation（ =Guarantee CO2 reduction ）

CO2 credit

Manufacturer

Contribution through product development and

manufacturing

Retail

Contribute to CO2 reduction

through product sales

Net environmental

impact

Consumer

Contribute to CO2 reduction through

product replacement

CO2 emission amount

Environmental contribution

Contribute to industry targetConsider relationship with

emissions trading schemes

Operating Body

Confirm evidenceManagement and sales transaction intermediary

= －

1 ） Quantify impact in an online environment

2 ） Insentivise manufacturer and user energy efficiency National Credit Board

Certification1/6?1/3? 1/2?

sell Sell or purchase

Old product

New product

ElectronicsRecycling Vouchers

Recycle

CO2 emissions

×5 years

(approx 15 years product

life)

Top runner standard

（ e.g ： 10 year use ）

10. Proposal for a new framework

CO ２ CreditCO ２ Credit

（ Note 1 ） Distributing env contribution throughout the supply chain

1. Framework is similar to “carbon neutral” efforts by various corporations. With the new framework, evaluation and measurement methods become standardized and promotes the circulation of reliable information.

2. Carbon labelling already takes manufacturing and use into account for products. The approach is compatible. We have already began displaying reduction throughout the lifecycle for light bulbs.

3. The scheme has been presented to OECD, EU, and the united states and have received praise.

(Note 2) Evolution of net impact approach

CO

2 credit

Env. Contributi

on by manufact

urer

Set manufacturer

A’s contribution

Parts X（ Company A ）

Parts Y（ Company B ）

Parts Z（ Company C)

Company C （ Tier1 ）Parts α （ Company D Tier2 ）parts β （ Company D Tier3 ）

1/2

1/6

1/3

Manufacturer

Retail

Consumer

×1/2=

×1/2=

1/2

1/6

1/6

1/6

Manufacturer A = 2/3×1/2 = 1/3

Company B = 1/6×1/2 = 1/12

C=1/24

D=1/48

E= ･･･×1/2=

×1/2=

Manufacturing(Parts)

Manufacturing(Parts)

DesignDesign

Manufacturing(Products)

Manufacturing(Products)

DistributionDistribution

DisposalDisposal

UseUse

Row MaterialsRow Materials

To other industriesTo other industries

RecyclingRecycling

Virgin materialsVirgin

materials

・ Reduction in CO2 emission by efficiency improvement ・ R&D (Manufacturing process development, product development, etc. ）

・ Reduction in CO2 emission by efficiency improvement・ R&D (Manufacturing process development, product development, etc. ）

・ Environmentally friendly design

・ Enhancement of energy-saving awareness through introducing eco labeling system

・ Saving packaging materials

【 Business 】・ Use of eco-friendly IT equipment and system・ Efficiency improvement by use of Ｉ T (e.g. telework, distribution)【 Home 】・ Reduction in power consumption by use of eco-friendly equipment

・ Improvement of collecting and recycling rate ・ Saving natural resources

Environmental impact of IT should be measured not only by the CO2 emission through the use of IT but also by other factors throughout the product life cycle

・ Improvement of recycled materials utilization ratio

11. Widening the scope in the future

● Make the CO2 emissions visible before and after replacing home appliances in

environmentally active localities● Accelerate the adoption of environmental policies by localities through more accurate

measurements of the benefits of CO2 reductions; also apply the gained benefits to the Home

Appliance CDM (Clean Development Mechanism) System (tentative name), which is now under study

● Gauging CO2 levels is

essential to advancing the Home Appliance CDM System (tentative name)

● This project aims both to accelerate related policies taken by localities and to advance the Home Appliance CDM System (tentative name), which is now under study, by using actual data, which includes local characteristics, in the system

　　　 Make it possible to see the amount of electricity used in homes

Monitors report on the usage of their home appliances ((1) air-conditioning units, (2) refrigerators, and (3) TVs) with energy-saving monitor units that make it easy to see and understand how much home appliances are being used.

　　 Use in local measures

Apply the benefits of switching to energy-efficient appliances to local measures, such as using them for publicity or community currencies as well as establishing CO2-free zones.

Apply in the Home Appliance CDM System

OverviewOverview

Background and Strategic Significance

Background and Strategic Significance

Supplementary budget of ¥250 million for FY 2008Supplementary budget of ¥250 million for FY 2008

*Target localities will be selected by application (expect to select six to 10 localities).The condition on selection is that the locality will use the gained benefits in their environmental policies.

12. Overview of Local Efforts to Make Visible the CO2 Emissions of Energy-Saving Home Appliances

Green IT Initiative in Japan Ministry of Economy, Trande and Industry Japan.

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