New Policy Measures in Japan that manage HFCs and promote alternatives.

1. New Policy Measures in Japanthat manage HFCs and promote alternatives. Masafumi OKI Ministry of Economy, Trade and Industry, Japan (METI) 12 July 2014, Paris.

2. Agenda • Managing HFCs Emission a) Industrial Voluntary Action Plans ( HFC, PFC, SF6 ) b) “Fluorocarbons Recovery & Destruction Law” ( HFC, CFC, HCFC ) ( New law ) “Act on Rational Use & Proper Management of Fluorocarbons” ( HFC, CFC, HCFC ) 　③　Reducing “In use leakage” ( HFC, CFC, HCFC ) • Periodical check & Reporting total amount of emission ( by users of products for commercial use ) • Restriction of repetitious refilling without repairs ( by users & by refiller ) • Promoting alternatives to lower GWP & Non-Fluorocarbons ( New law ) “Act on Rational Use & Proper Management of Fluorocarbons” ( HFC, CFC, HCFC ) ①　Promoting lower-GWP/non-fluorocarbons in designated products ( HFC ) ( by Manufactures ) ②　Conducting HFCs Phase-down ( HFC ) ( by Gas-producers )

3. Status of emissions per sector by Industrial Voluntary Action Plans Prospective increase of Fluorocarbons emissions in refrigeration & air-conditioning sector （Source Change of HFC emission） Base year level (51mil.t-CO2) 1995 HFC (20mil.t-CO2) HFC23: by-product of HCFC22 2012 HFC (21mil.t-CO2) Refrigerants Air conditioning & refrigerator HFC23: by-product of HCFC22 Refrigerants Air conditioner & refrigerator 2020 BAU The first commitment period of Kyoto Protocol. Source: Industrial Structure Council, METI

4. Status of implementation of “Fluorocarbons Recovery & Destruction Law” RecoveredF-gasesDestructed／Recycled Trend of the amount of recovery from commercial refrigerators & air-conditioners Prospective emissions of F-gases & leakages by sector in 2020 (BAU) “Disposal” “In use leakage” The rate of recovery is about 30% since the enforcement Amount of Leakage from equipment in use is increasing more than expected (mil t-CO2) Small refrigerators 50 Large refrigerators Other middle refrigerators 40 In disposal Package ACs 30 Others, commercialACs 20 In use RAC 10 Showcases Leakage 2020 BAU (note) The amount of recovery at service is not included. Source: Industrial Structure Council, METI

5. ( New Law ) “ Act on Rational Use & Proper Management of Fluorocarbons “ to address issues throughout Lifecycle of Fluorocarbons Concerns 1. Prospective rapid increase of HFCs emission 2. Low rate of Recovery in disposal 3. “In use leakage” 4. Technical development & commerciali- zation of low- GWP/non- fluorocarbon products 5. Global movement of strengthening the regulations on high-GWP fluorocarbons Planning to be effective from April 2015 Refrigerator Air conditioner (1) Phase-down HFCs (2) Promote lower GWP products Lower GWP HFCs Natural Refrigerant Products with alternatives Dust blowers Producers of HFCs Supermarkets Manufacturers of products containing HFCs Log book Periodical check Approved recyclers Maintenance Promoting of recycle Report of leakage Users of products (3) Reduce “In use leakage” Registered fillers/ recovery operators Approved destructors “Fluorocarbons Recovery & Destruction Law”

6. ( New Measure ①) Measures to promote low-GWP/non-fluorocarbons in designated products Manufactures and Importers of products will be required to replace high-GWP products with low-GWP or non-fluorocarbons ones, considering safety, energy efficiency, economic affordability etc. Example) Air conditioning To reduce climate impact by converting refrigerant to the target value which is specified referring to the lowest GWP among the designated products in Japan. High-GWP Index related to environmental impact Evaluate accomplishments for each product category （weighted average ) ・Refrigerants GWP ・Volume of products Target value ・ Refrigerants ⇒ Lower-GWP/non-fluorocarbon ・ Volume of products Low-GWP Base year Target year

7. ( New Measure ①) Possible target of designated products using fluorocarbons （HFC emission） （HFC stock amount） 27,738,000 t -CO2 (2012) 418,450,000 t-CO2 (2012) Source： inventory report of green house gases by METI ※Based on GWP values for the second commitment period - Kyoto Protocol ※Subject to change depending on considered categories of designated products.

8. ( New Measure ① )Target value and year for each designated product ( the first group ) ※ With some exceptions.

9. ( New Measure②)Measures to conductHFCs phase-down Manufacturers and Importers of fluorocarbon gases will be required to make their plans to conduct “HFCs phase-down” with development and production of lower GWP gases considering safety, energy efficiency, economic affordability etc. A guideline can be referred in order for them to make plans to reduce HFCs and will be made based upon their prospective supply to follow the measures on the designated products to lower GWP / non-fluorocarbons gases. “Two Wheels” to drive the reductions • Total target amount set by METI • To set every five years basically • To be calculated automatically • based upon the measures on the • designated products by manufactures (Measures ①) Promoting lower GWP/ non F-gases products (Measure ②) Conducting phase-down HFCs • Evaluation by METI • Every five years basically Total target amount by METI Total actual amount by companies Manufactures of products containing HFCs Producers of HFCs

10. (New Measure③) Measures to reduce “In use leakage” (conducting periodical check, repair before refilling etc.) Users will be required to conduct periodical check, to call services to arrange repair before refilling as soon as leakage is found, to record their maintenance, and to disclose them to their maintenance operators etc. Call a service immediately to arrange repair/refill as soon as leakage is found. Periodical check • “ log book ” to record items below • Type/amount of refrigeration used • Details of maintenance report including periodical check & repair record, date & time, result etc. Maintenance operators ( registered fillers & recovery operators) Record Disclose users Maintenance/refilling Explain its necessity to be repaired when leakage is identified.

11. Summary of New Policy Measures in Japan (Upstream) • Promote lower GWP / Non F-gas Products by Manufacturers of products containing HFCs • Phase-down HFCs by Producers of HFCs considering safety, economic affordability, energy efficiency etc. (Downstream) • Reduce “In use leakage” from commercial products Periodical check Report of leakage by Users of products containing F-Gases Repair before refilling No regulations in the case of using natural refrigerants & HFOs Log book • Making progress to reduce HFCs surely and practically with incentives to: • 1. Manufactures→　to develop and produce products • containing lower GWP /non F-gases • 2. Gas -Producers→　to develop and produce Lower GWP F-gases • 3. Users→　to purchase non F-gases products

12. Thank you very much.