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1.
Introduction
4. Other support measures for energy efficiency investments
5. Institutional support for design and implementation of energy conservation measures Back to Part3 MainPage 1. Introduction As a result of the efforts made to promote energy conservation in the aftermath of the two oil crises, by 1991, Japan had achieved an approximately 35 per cent improvement in energy efficiency compared with the level in 1973. Today, Japan's industry is among the most efficient in the industrialized world. Over the past two decades Japan focused its energy conservation measures specifically on the industrial sector, which previously accounted for more than half of Japan's total energy consumption. This led to remarkable improvements in energy intensity. Since 1991, however, energy intensity has shown a tendency to increase, mainly due to raising energy consumption in the residential, commercial and transportation sectors. In the industrial sector too, energy consumption has been somewhat on the rise again as a result of the diversification and development of products. At the Third Conference of the Parties held under the United Nations Framework Convention on Climate Change (UNFCCC) in December 1997, Japan set a goal of reducing its greenhouse gas emissions for the 2008 - 2012 period by 6 per cent below the level of 1990. Thus, further efforts are now needed to improve energy efficiency of the Japanese economy. Under these circumstances, energy conservation measures currently being taken in Japan include both reinforcing regulations, such as the amendment of the "Energy Conservation Law", and providing incentives for investment in energy conservation through financial support. This paper describes the efforts of Japanese government to improve energy efficiency through tax incentives, loans and subsidies. top 2. Regulation In Japan, the first "Energy Conservation Law" was enacted in 1979. It stipulates the measures to be taken regarding facilities and equipment that use large amounts of energy, such as factories, buildings, household electrical appliances and automobiles. The Energy Conservation Law was amended in June 1998 and the amended law came into effect as of April 1999. The full text of the law can be found in the recent ESCAP publication entitled Compendium of Energy Conservation Legislation in Countries of the Asia and Pacific Region. This publication can be found on the ESCAP web site http://www.unescap.org/enrd/energy/ compend/cec.thm. top 3. Financial assistance In
May 1993, the "Energy Conservation and Recycling Assistance Law"
(hereinafter referred to as "Assistance Law"), a temporary legislation
valid for a ten year period, was enacted to facilitate measures
for assisting enterprises in their efforts to improve energy efficiency.
This law provided additional support for energy conservation measures.
top 3.2 Low-interest loans A
system of low-interest financing by governmental financial institutions
is available to promote the installation of specific energy-efficient
equipment. Preferential interest rates or loans for approved energy
efficiency investments are fixed marginally lower than the general
long term payment lending rates.
(High Performance Industrial Furnace Field Test Project)
top
Table 3.1.5 provides a summary overview of energy efficiency demonstration
projects supported by NEDO during the period 1998-1999.
top top 3.3.4 Supporting ESCO enterprises The development and fostering of Energy Services Companies in Japan is expected to promote energy conservation activities as well as provide new business opportunities. ESCO enterprises offer everything necessary for the improvement of energy efficiency, including equipment, technology, personnel and financing. NEDO grants subsidies to finance ESCO enterprises. top
top In the recent amendments to the Energy Conservation Law, energy efficiency standards for energy-consuming equipment and automobiles become more stringent. The target level of energy efficiency for these products (designated products) was formerly defined as their average efficiency. After the amendment, the target level of energy efficiency has been redefined as that of the most energy-efficient product in the same group currently available on the market (Top Runner Programme). For the 12 designated products the introduction of the "Top Runner Programme" is expected to bring about an improvement in the energy efficiency ranging from 7 per cent (for diesel-fueled passenger automobiles) to 83 per cent (for computers).
The Energy Conservation Center of Japan (ECCJ) was established in 1978 by the Ministry of International Trade and Industry (MITI) with the support of some 3,300 members. ECCJ has some 150 staff in the head office and 8 branches. The budget for ECCJ for the financial year 1999 was 6 billion yen (US$ 57 million). The major activities of ECCJ are as follows:
Up-to date and detailed information on current ECCJ programmes can be obtained from the ECCJ web-site.
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