Contribution to Sustainable Development Japan’s Policy on CDM

1. ＩＧＥＳ－ＵＲＣ　Ｒｅｇｉｏｎａｌ　Workshop in Asia on Capacity Development for CDM ２５ March 2004 Contribution to Sustainable DevelopmentJapan’s Policy on CDM Shinichi Iioka CDM Program Manager Institute for Global Environmental Strategies (Minisitry of Environment , Japan)

2. Contents • Japanese government policy on CDM • MOE’s initiatives to put CDM into place

3. Japanese Government CDM Policy While keeping in mind that the use of Kyoto Mechanism shall be supplemental to domestic measures, Japan is going to use the mechanism • To contribute sustainable development in host countries • To achieve its Kyoto commitment in a cost-effective manner

4. Challenges Ahead: Our Kyoto Target (Source) Ministry of the Environment, Japan

5. Breakdown of Target Targets Classification ① CO2 (energy related) ±０．０％ ②Non-energy CO2, methane, and N2O －０．５％ • Revolutionary technologies, promotion of activities among people －２．０％ ④ HFC,PFC,SF6 ＋２．０％ ⑤ Sinks －３．９％ • Further reduction through ① to ④ , and Kyoto Mechanisms －１．６％ Total －６．０％ Japan’s Administration for Climate Change Policy ( targets are indicated as percentage to base year’s emissions)

6. Japan’s Administration for Climate Change Policy Global Warming Prevention Headquarters Chairman: Prime Minister Koizumi 3 Vice Chairman: Chief Cabinet Secretary, Minister of the Environment, Minister of Economy, Trade and Industry Cabinet Secretariat Ministry of the Environment (MOE) • Planning & coordination of policies (inventory, mitigation adaptation) • implementation Ministry of Economy, Trade and Industry (METI) • economic and energy policies Ministry of Land, Infrastructure and Transport Ministry of Foreign Affairs Ministry of Agriculture, Forestry and Fisheries Ministry of Education, Culture, Sports, Science and Technology Japan Meteorological Agency

7. Japan’s framework to utilize the Kyoto Mechanism ○Established the Liaison Committee for Utilization of Kyoto Mechanism（Cabinet Secretariat, MoE, METI, MOFA, MAFF, MLIT) ○The Liaison Committee will approve CDM/JI projects as a party to the Convention • Guideline for CDM/JI projects approval made on Oct, 2002 • Six projects have been approved so far

8. Japan’s framework to utilize the Kyoto Mechanism ○The Ministry in charge of the project supports the project participants. ○MoE and METI has been working jointly to establish and maintain the Japanese National Registry since 2002.

9. CDM/JI Projects Approved by the Government of Japan

10. MOE’s Initiatives to put CDM into place 1. Project Formation and Information Service 1-1 CDM/JI Feasibility Studies （since 1999） Feasibility studies have been done to find promising CDM/JI projects to be carried out by private companies. These studies include on-site examination, emission reduction calculation and drafting of PDDs. 1-2 Domestic Kyoto Mechanism Support Center （since 2003） The center gathers information on promising CDM/JI projects and provides it to private companies. The center also disseminates information on rules of the Mechanism, how to draft PDDs, situations of host countries, etc.

11. MOE’s Initiatives to put CDM into place (cont’d) 2. Financial Support 2-1 Subsidies for CDM/JI Projects（since 2003） Subsidies are provided to highly feasible and economically efficient CDM/JI projects. Those subsidies are for 1/3 of the cost of construction of facilities (e.g. facilities to convert waste into fuel, wind turbines). 2-2 Establishment of the Japan Carbon Fund DBJ (Development Bank of Japan) and JBIC( Japan Bank for International Cooperation) is establishing the Japan Carbon Fund to invest in CDM/JI projects and acquire credits. Private companies are expected to participate in the Fund.

12. MOE’s Initiatives to put CDM into place (cont’d) 3. Capacity Building and collaboration 3-1 Capacity Building Program for Operational Entities (since 2002) To foster the ability of OEs, MOE selects several draft PDDs and commissions several AEs (Applicant Entities) to validate the PDDs on a trial basis. 3-2 CDM/JI Capacity Building Program in host countries（since 2003） IGES-initiative: ICS-CDM MoE enhances CDM/JI capacity building for stakeholders in host countries through holding workshops, sending experts and so on.

13. CDM/JI Feasibility Studies • Feasibility studies have been conducted since 1999. The Studies are managed by the Global Environment Center Foundation (GEC). • Types of studies are mainly utilization of biomass , waste to Energy management and afforestration/ reforestration. • In FY2003, 20 projects are being implemented.

14. Waste Management Feasibility Studies ＣＤＭ Cambodia (Phnom Penh) Japan Waste Research Foundation Feasibility Study on the Reduction of Greenhouse Gas and the Energy Utilization Project by Collection of the Landfill Gas generated at the Stung Mean Chey Disposal Site ＣＤＭ China (Dalian) Shimizu Corporation FeasibilityStudyon SludgeDigestionandMethane　Ｇａｓ　Co‐generationProject intheWastewaterTreatmentPlantofDalian Economic & Technological Development Area ＣＤＭ Thailand（around Bangkok） Obayashi Corporation Feasibility study on a Landfill Gas to Electricity Project ＣＤＭ the Philippines (Metro Manila) Mitsubishi Securities Co., Ltd. Feasibility study on the landfill gas recovery and gas to power plant project JI Rumania(Timisoara） Power Development Co.,Ltd. Feasibility Study on CH4 Ｇas Extraction and Utilization from Landfill ＣＤＭ ＣＤＭ Malaysia (Johor Baharu) Japan Environmental Consultants, Ltd. Feasibility study on the landfill methane gas reduction project, utilizing composting technology to solid waste treatment Brazil (Sao Paulo) Toyota Tsusho Corporation Study for Carbon credit from Landfill gas capture and electricity generation

15. Biomass Feasibility Studies ＣＤＭ Thailand PowwowPool Co., Ltd. Research of Biodiesel production project using sunflower as resource crops ＣＤＭ Thailand (Ratchaburi province) Kansai Environmental Engineering Center Co., Ltd. A feasibility study on a CDM project of cogeneration using bagasse and rice husk ＣＤＭ Malaysia (Pahang State) EX Corporation Feasibility Study on Reduction of Methane Emission and Effective Utilization of Biomass Resources Discharged from the Palm Oil Mill Consolidating Two Neighboring Mills at Cini District ＣＤＭ Brazil (Sao Paulo State) Association of International Research Initiatives for Environment Studies Brazillian Sugar Industry Waste-to-energy Project

16. Afforestation & Reforestation Feasibility Studies ＣDＭ JI Poland (Elblag) The Kansai Electric Power Co., Inc. Feasibility study on the fuel conversion of the existing heat supply plants from coal to biomass provided through willow afforestation Indonesia (East Kalimantan Province, East Java Province, Central Jave Province) Sumitomo Forestry Co., Ltd. Reforestation/Afforestation and Biomass Energy Projects in 3 Provinces in Inodnesia CDM the Philippines OISCA CDM Feasibility Study：An NGO Participatory Forestation Project ＣＤＭ Cambodia (Mondul Kiri highlands) Marubeni Corporation Feasibility study of CDM project in Mondul Kiri highlands, Cambodia, based on the rubber tree plantation ＣＤＭ Indonesia (West Nusa Tenggara) Japan International Forestry Promotion & Cooperation Center (JIFPRO) Feasibility Study on Participatory Reforestation CDM for Land Rehabilitation in Lombok Island, Republic of Indonesia CDM Madagascar (Toamasina province) Oji Paper Co., Ltd. Feasibility study of the renewable biomass plantation in Toamasina province, Madagascar.

17. Other MOE Initiatives • Environmental Congress for Asia and the Pacific (Eco Asia) • Asia Pacific Seminar on Climate Change • Asia-Pacific Network on Climate Change (AP-NET) • Asia-Pacific Network for Global Change Research (APN)

18. Asia-Pacific Network on Climate Change Internet programs e-Learning Document Library Climate Change Data Center CDM Project-info

20. Thank you for your listening! If you have any question, please contact us. ○The Ministry of Environment Japan E-mail: kyotomecha@env.go.jp Tel:+81-3-5521-8330 Fax:+81-3-3580-1382 ○Institute for Global Environmental Strategies E-mail: iioka@iges.or.jp Tel:+81-46-855-3821 FAX:+81-46-855-3809