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For Environmentally Sustainable Economy. Shigetaka SEKI Director for Environmental Affairs METI/Japan 11 December 2002. Evolution of Issues. Local Pollution Domestic Environmental Problems Global Environmental Problems. Policy Issues. Policy Approach. Addressing Pollution

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For environmentally sustainable economy l.jpg

For Environmentally Sustainable Economy

Shigetaka SEKI

Director for Environmental Affairs


11 December 2002

Evolution of issues l.jpg
Evolution of Issues

  • Local Pollution

  • Domestic Environmental Problems

  • Global Environmental Problems

Policy Issues

Policy Approach

  • Addressing Pollution

  • Prevention of Environmental Problems

  • Integration of Environmental Consideration into Economy

History of environmental issues in japan 1 l.jpg
History of Environmental Issues in Japan #1

  • Late 19c- Water and air pollution increased

    • mining and refinement

    • combustion of coals

  • ‘50- Pollution by heavy metals, SOX, NOX

  • ‘60- Smoke-Emissions Regulation Law ‘62

  • Environmental Pollution Prevention Framework Law ‘67

  • Air Pollution Control Law ‘68

  • Water Pollution Control Law ‘69

  • History of environmental issues in japan 2 l.jpg
    History of Environmental Issues in Japan #2

    ‘70- Noxious sludge in ponds and bays

    White smog in cities

    PCB, Pollution of soils by heavy metals

    Eutrophication of ponds, etc. (e.g., red tide)

    • Environmental Protection Agency ‘71

    • Assessment and Control of Newly Produced Chemicals Law ‘73

    • Environmental Protection Law for the Inland Sea ‘1973

    History of environmental issues in japan 3 l.jpg
    History of Environmental Issues in Japan #3

    ’80 Eutrophication remained, Organic halides in water

    Waste disposal became a serious problem

    NOX from automobile remained a problem

    Ozone hole

    • Environmental Assessment Ordinances (Tokyo, Kanagawa) ’80

    • Quantitative control of total NOX emissions ’81

    • NOX emissions control to cover gas turbine and diesel engines ‘87

    • Control of tri and tetra chloro-ethanes in water ’87

    • Ozone Layer Protection Law ’88

    90 today l.jpg
    ‘90 - Today

    • Mass production/consumption and disposal

    • Natural resources consumed in mass

    • Disposal of noxious substances increased

    • Capacity for waste treatment limited and illegal dumping increased

    • Significant negative impacts on ecosystem

    Still not on a sustainable path!

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    Current Situation of Wastes

    1. Wastes from Industry(400mt/year)

    mining 7%

    paper & pulp7%

    chemicals 5%

    Public utilities






    Iron &





    food 3%

    2.Wastes from General Sources(50mt/year)

    electric appliances Est.2%



    apparel Est.2%

    furniture Est.2%


    Est. 30%





    others Est.4%

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    Future should be ...

    Recycle-oriented economy

    • Reduce the use of resources

    • Increased use of wastes as resources

    • Reduction of waste disposal

      Prevention of damages by hazardous substances

    • Reduction of chemical use

    • Improved safety use of chemical products

      Fully controlled flows of wastes and chemicals

    • Life cycle monitoring & assessments

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    Path for the Future

    • Rigorously pursue efficient use of resources

    • Change products and manufacturing to be recyclable

    • See the wastes as reusable resources

    • Use the functions instead of possess the goods

    • Actively take ex ante measures

    => 3Rs x 3 Areas

    1 recycle oriented products and services l.jpg
    #1 Recycle oriented Products and Services

    Reducethe use of resources by

    • Increased efficiency of process

    • Switching to recyclable materials

    • Designing easy-to-recycle (reuse) products

    • Greening industrial processes to reduce wastes

    1 recycle oriented products and services continued l.jpg
    #1 Recycle oriented Products and Servicescontinued

    Reuse the products and/or parts by

    • Efficient disassembling of products into parts

    • Decomposition of polymers to monomers

    • Improved assessment of quality and reliability of used parts

    • Improved repair of products and parts

    • Extensive standardisation of parts and materials

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    #1 Recycle oriented Products and Servicescontinued

    Recyclethe products, parts and/or energy by

    • Improved recovery of reusable materials from waste

    • Efficient use of wastes as energy sources

    • Distribution network for recyclable goods and materials

    • Markets for recyclable goods and material

    • Expansion of facilities for recycling of and recovering from wastes

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    #2 Mitigation of Climate Change

    ReduceGHG emissions by

    • Efficient use of energy

    • Conversion to less GHG emitting fuels

    • Efficient energy (and heat) supply systems such as fuel cell

    • Improved city infrastructure for efficient transportation

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    #2 Mitigation of Climate Changecontinued

    Replace GHG emitting fuels/substances by

    • Renewable sources of energy (PV, winds. etc)

    • Nuclear

    • Alternative gases for HFH, PFC and SF6

      Recovery(plus sequestration) of GHG by

    • Carbon sequestration

    • Efficient use of biomass

    • Use of CO2 as chemical materials

    3 environmentally friendly use of chemicals l.jpg
    #3 Environmentally friendly use of Chemicals

    Reducethe use of chemicals by

    • Conversion to biotechnology

    • Conversion to recyclable materials

      Replace the chemicals and products by

    • Environmentally no-affecting substances

    • Hazardous-metals free substances

    • Bio-degradable substances

      Re-mediationof environment by

    • Improved technology

    • Detoxification of chemicals

    • Biotechnology

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    Strengthening the base for environment oriented economy

    • Through LCA (Life Cycle Assessment)

    • Strengthening knowledge and technology base

    • Disclosure of Information

    Lca life cycle assessment l.jpg
    LCA (Life Cycle Assessment)

    • Development of methodologies

    • Monitoring and assessment of distribution and use and the environmental impacts of products and wastes

    • Assessment of environmental performance of economy by LCA criteria

    • Eco-labelling

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    Strengthening knowledge and technology base by

    • Fundamental principles for environment-oriented design

    • Development of hazard assessment measures

    • DB for PRTR(pollutant release and transfer registry)

    • R&D for 3x3R Technologies

    • Standardisation

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    Disclosure of Information

    • Collection and publication of data

      (e.g., CO2 emissions, PRTR, MSDS)

    • Environmental labelling

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    Opportunities for the Business Sector

    Environment means business

    (200mUSD or 2%GDP in ’97 to 360mUSD in ‘10)

    • Recycling

    • Waste treatment to resources

    • Environmental assessment

    • Environmental consultants/ESCO

    • Environmental consideration as a source of competitiveness

      New products & technologies

    • Additional value on environment-friendly products

    • Improved corporate image

    • New system technology (e.g., HEMS, BEMS)

    • Repair, reuse, recycle business

    • Improved productivity

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    Public Policiesfor recycle-oriented economy

    Promotion of Reuse of Resources Law ‘91

    • Environmental consideration in product design

    • Selective collection of used resources (Waste Separation)

    • Labelling, etc.

      Framework Law for Recycle Oriented Economy ‘01

    • Basic principles,

    • Responsibilities of government, business and citizens

    • National Plan, etc

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    Laws for Wastes and Recycle

    For wastes: Wastes Treatment Law (amended in ‘01)

    • Proper waste management

    • Regulation on facilities and business

    • Standard Setting

      For recycle: Effective Use of Resources Law ‘01

    • Promotion of recycle

    • Improved design and materials for recycle

    • Separation of recyclable goods

    • Effective use of byproducts

    Recycle and green purchase l.jpg
    Recycle and Green Purchase

    • Recycle Law for Containers ‘00

    • Recycle Law for Electric Appliances ‘01

    • Recycle Law for Construction Materials ‘02

    • Recycle Law for Foods ‘01

    • Recycle Law for Used Automobile ‘02

      • Preceded by Used Automobile Recycle Initiative ‘97

        Plus sectoral guidelines (35 product areas, 18 industrial sectors)

    • The Law for Green Purchasing ‘01

    • Regional initiative: Eco-towns, 16 areas (‘02/5)

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    Scheme under the Used Automobile Recycle Law


    First owner

    ※1 or current owner


    Flows of used car/parts

    Fee for recycling

    Used car

    Money flows

    Request for


    Fund manger

    Final Owner

    ※2The third parties can take the responsibility in the absence of persons with duty


    Delegation of car registration

    Automobile manufacturers/ importers

    Transfer obligation

    Used car



    hand over,

    take back of freon (obligation)

    Used car

    Transfer obligation

    Recycle for themselves or by commision

    recovery of freon gas




    used parts,

    metals, etc

    Fee for recovery

    Used car

    Transfer obligation

    Had over, take back of

    air-bugs (obligation)

    Parts for




    Fee for disassembling

    Transfer obligation

    Hand over, take back of

    shredder dusts





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    Public Policies forClimate Change Mitigation

    The Framework Law to Address Global Warming (revised in ‘02)

    Comprehensive Policy Package of 2002

    • Dual goals of environment and economic growth

    • Step-wise approach

    • Contribution by all sectors

    • Efforts by all countries

      => Policy performance to be reviewed in 2004

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    GHG reduction targets

    1. CO2 from Energy Use (+0%)

    2. Non CO2 GHG reduction (-0.5%)

    3.Innovative Technology and Behavioral Approach (-2%)

    4. HFC, PFC, SF6 (+2%)

    5. Sinks (-3.9%)

    Breakdown of targets for energy use production l.jpg
    Breakdown of Targets for Energy Use/Production

    End Use Energy Efficiency Improvement (22mtCO2/y)

    • Industrial Sector

      • Voluntary Programmes

      • Introduction of energy efficient technologies

    • Commercial and Households Sector

      • Energy Management

      • Bench-Marking to Top-Runners (products)

    • Transport Sector

      • Bench-Marking to Top-Runners

      • ITS, modal shift to sea shipment, etc.

        New and Renewables Energy Sources (34mtCO2/y)

    • Biomass, PV, solar thermal, wind, fuel cells, etc.

      Fuel Conversion (18mtCO2/y)

    • Conversion to natural gas

    • Extension of gas pipeline and grids


    Limitations l.jpg

    For industry

    • Objectivity of criteria for environment-friendliness

    • Incremental costs > added value

    • Prisoners’ dilemma

    • Conflicts between the laws for waste and recycling

    • Boundary between local governments

      For nation

    • Impacts on competition (absence of equal-footing market)

    • Incomplete loop for recycling due to international trade

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    Solutions (domestic)

    • Solidify environmental values for environment-oriented market

      => standards, SRI, disclosure,

    • Green Purchase

    • Regulations

    • Co-ordination with local governments

      e.g., Environment-friendly industry complex

    • Economic instruments

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    Solutions (International)

    • International rules, guidelines, standardisation

    • Fair, coherent and consistent efforts by all countries

    • Compatibility of products and materials

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    For Global Collaboration

    Technology transfer to and Information Sharing with developing countries

    • Capacity Building (including sharing experiences)

    • Technology and needs assessment

    • Business sector involvement

      New Opportunities

    • Growing awareness of environmental issues in developing countries

    • Kyoto Mechanisms: CDM, JI

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    • For Sustainable Development

      • Environment and Economic Growth: Dual Targets

      • Environment should mean Opportunity

      • Environment should mean Business

      • Environment should be dealt with globally