JETRO PPT

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Toward E & E Cooperation in East Asia March 4, 2009 Gen Ito President JETRO New York Center 1

World’s CO2 Emissions

US (20%) 5,697Mt

Indonesia 335Mt Thailand

217Mt

Malaysia

154Mt

Vietnam

83Mt

Others (44%)

Philippines 67Mt Singapore

43Mt

Myanmar

10Mt

Brunei

6Mt

Cambodia

4Mt

* “ASEAN” excludes Lao PDR due to lack of applicable data.

New Zealand 37 Mt Australia (1%) 394 Mt

CO2 emission from fuel combustion 28,003Mt (As of 2006)

China (20%) 5,607Mt

India Japan (4%) * (4%) 1,250Mt ASEAN1,213Mt (Source) IEA (3%) 918Mt S. Korea (2%) 476 Mt

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CO2 Emission Forecast Reference case (based on current policies)

(Gt)

14 11.4

12 10

8.6

8 6

5.7 5.6

0

6.9

6.4

3.3

4 2

US China India Japan

1.3 1.2

2006

1.8 1.3

2015

1.2

2030

Source: IEA “World Energy Outlook 2007” 3

Total Primary Energy Supply per GDP (2006) (toe/thousand 2000 US$)

1.2

1.08 0.90

1

0.82

0.80

0.8

0.63

0.6 0.4

Source: IEA

Vietnam

Cambodia

Thailand

Malaysia

Brunei

Phillipines

Singapore

China

India

S.Korea

US

Japan

0

Indonesia

0.25

0.21

Myanmar

0.2

0.10

A S E A N (excluding Lao PDR) 4

Toward E&E Cooperation

9 Promote energy conservation 9 Accelerate RD&D of E&E technologies 9 Contribute to building a future international framework

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International Fora on Energy and Environment with Asian Countries Multilateral

Bilateral

APEC

East Asian Summit

ASEAN+3 (JP, CH, ASEAN etc)

(US, JP, CH, ASEAN-7 etc)

(US, JP,CH, IN, ASEAN etc)

General IEF

APP Japan-India Energy Dialogue

More Specific

Japan-China Energy Conservation Environment Forum

(US, JP,CH, IN etc)

(US, JP,CH, IN etc)

International Partnership for the Hydrogen Economy (IPHE)

Carbon Sequestration Leadership Forum (CSLF)

(US, JP, CH, IN etc)

(US, JP, CH, IN etc)

Generation IV International Forum

Global Nuclear Energy Partnership (GNEP)

(US,JP,CH etc)

(US,JP,CH etc)

= Forum focuses on energy and/or environment 6

Asia-Pacific Partnership on Clean Development and Climate (APP) (1) ・Established in 2005 at the initiative of the U.S. ・7 partners: Australia, Canada*, China, India, Japan, South Korea, U.S. representing about 54% of the world’s CO2 emission *Canada joined at the 2nd Ministerial Meeting on Oct 15, 2007

・Private-public partnership ・Task Forces in 8 sectoral areas ・To promote practical technology cooperation for GHG reduction through sharing of effective technologies and practices for reduction, analysis of reduction potentials, setting of intensity target, etc. Ministerial Meeting Policy Implementation Committee (PIC) Cleaner Fossil Energy



Renewable Energy and Distributed Generation

<S. Korea>



Power Generation and Transmission

Steel

Aluminum

Cement

Coal mining

Buildings and Appliances



<Japan>



<Japan>



<S. Korea>

These sectors account for about 60% of CO2 emissions by the participating countries Business and others 5.4%

64.4%

Power generation 発電 41.9%

Steel 鉄鋼 7.4% Households 6.1%

Automobile 自動車 16.0%

Others その他 22.0%

Cement 3.6%

→ These activities facilitate understanding on what technologies to adopt, what effects certain measures would bring, enabling highly cost-effective technological cooperation. 7

Asia-Pacific Partnership on Clean Development and Climate (APP) (2) z The seven partner countries represent more than half of the global economy and the world’s CO2 emission z Significant emissions-reduction potential in APP countries by energy saving Power (kWh) (2004)

Actual GDP (2004) Japan

AustraliaIndia Canada

U.S.

Others

U.S.

55.3%

Australia India Canada

Japan

S. Korea

53.2%

China S. Korea

Steel (ton) (2005) Primary energy consumption (2004) Japan

Australia

.

U.S

India Canada

China

Others

Japan U.S.

Others

China

India

Canada

China(30. 9%)

Australia 58.8%

Others S.Korea

Cement(ton) (2005) 51.7%

S. Korea

CO2 emissions (2004) Australia

Japan U.S.

Canada

China(44.9%)

India Canada

China

India

Japan USA

Others

Australia

61.8%

Others S. Korea

Aluminum (ton) (2005) Australia

India

S. Korea

54.5%

U.S.

China

48.5%

Canada

Others

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Japan-China Energy Conservation Environment Forum (1) z Promote bilateral projects through public-private partnerships. Tokyo ( 850 participants) z 1st Forum: May 2006 2nd Forum: September 2007 Beijing (1,000 participants) 3rd Forum: November 2008 Tokyo (1,100 participants) z At the third Forum, both countries agreed to cooperate in 19 projects. Examples of projects ○ Model project for commercial (building)

○ Technology cooperation project for the

energy-saving JP side: Japan Facility Solutions, Inc. CH side: Garden Hotel Shanghai

promotion of energy saving and environmental projection in the Chinese industrial boiler industry

○ Project to improve energy efficiency of

JP side: Miura Co., Ltd. CH side: China Special Equipment Inspection and Research Institute

industrial boilers in Dalian JP side: Miura Co., Ltd. CH side: Dalian Boiler and Pressure Vessel Inspection Institute

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Japan-China Energy Conservation Environment Forum (2) Examples of projects ○ Cooperation project for energy-saving and emission reduction among SMEs in Ningbo JP side: Hitachi, Ltd., Hitachi (China), Ltd. CH side: China Center for Business Cooperation Coordination Ningbo Municipal People’s Government

○ Project to introduce a total energy-saving system for building-wide electricity management in China

○ Project for energy-saving promotion in the textile and apparel industry JP side: Kyushu Electric Power Co., Inc CH side: China National Textile and Apparel Council Greenensign (Beijing) New Energy & Technology Co., LTD

JP side: Panasonic Electric Works Co., Ltd. Mitsui & Co., Ltd. CH side: Beijing Tellhow Intelligence Tech. LTD.

○ Joint project to design facilities to improve the energy efficiency and productivity of cement plants

○ Project to conduct energy-saving and environmental diagnoses and renovation of coal-fired power plants JP side: Japan Coal Energy Center Japan Bank for International Cooperation, Japan Finance Corporation CH side: China Electricity Council

JP side: Mitsubishi Corporation CH side: China Triumph International Engineering Co., Ltd.

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Mid-term Strategy and Long-term Strategy Future Estimates (BAU)

Global Efforts in Energy Conservation

Global CO2 Emission Stop and reverse global

Innovative Technology RD&D Halve current global emissions (Cool Earth 50 proposal)

Mid-term Strategy and Long-term Strategy

Long-term Strategy

Mid-term strategy

emissions via a framework that all major economies participates in.

Achievement of the ultimate Goal Current level

2020

2050

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“Cool-Earth Innovative Energy Technology Program” (1) z To achieve the long-term target of “halving the world’s emissions by 2050”, - development of innovative energy technologies is indispensable. - Japan should lead with its world’s top level energy technologies. z To this end, this program identifies technologies which should be tackled by priority, creates road maps and considers international cooperation.

- “2 1 ” T e c h n o lo g ie s t o b e P r io r it iz e d Supply side

E ffic ie n c y im p ro v e m e n t PPoowweer rGGeenneera rat tioionn //trtraannssmmisisssioionn 1 . H ig h - E ffic ie n c y N a t u r a l G a s F ir e d P o w e r G e n e r a t io n

Demand side

TTr raannssppoor rta ta tio tionn

I Inndduusstry tr y CCoommmmeer rc c iaial l

L o w c a rb o n iz a tio n

2 . H ig h - E ffic ie n c y C o a l F ir e d P o w e r G e n e r a t io n

8 . F u e l C e ll V e h ic le

9 . P lu g - in H y b r id V e h ic le / E le c tr ic V e h ic le

1 1 . I n n o v a t iv e m a t e r ia ls , P r o d u c t io n / P r o c e s s in g 1 3 . H ig h - E ffic ie n t h o u s e a n d b u ild in g

1 6 . U ltr a H ig h E ffic ie n c y H eat pum ps

5 . A d v a n c e d n u c le a r P o w e r G e n e r a t io n

4 .I n n o v a t iv e P h o t o v o lta ic p o w e r G e n e r a t io n

6 . H ig h - E ffic ie n c y S u p e r c o n d u c t in g P o w e r T r a n s m is s io n

7 . I n te llig e n t T ra n sp o rt Syste m

3 . C a r b o n D io x id e C a p tu re a n d S to r a g e ( C C S )

1 2 . I n n o v a t iv e I r o n a n d S t e e l m a k in g p r o c e s s

1 4 .N e x t - G e n e r a t io n H ig h E f fic ie n c y lig h tin g

1 7 . H ig h - E ffic ie n c y I n fo r m a tio n D e v ic e a n d S y ste m

1 0 .P r o d u c t io n o f T ra n sp o rt B io fu e l

1 5 . S t a t io n a r y F u e l C e ll

1 8 . H E M S / B E M S / L o c a l-le v e l E M S

CCr ro o ssss-c-cuuttin ttingg 1 9 . H ig h - P e r fo r m a n c e P o w e r sto ra g e

2 0 . P o w e r E le c t r o n ic s

2 1 . H y d r o g e n P r o d u c t io n 1, T r a n s p o r t a n d S t o ra g e

3. CCS (re sta te d )

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“Cool-Earth Innovative Energy Technology Program” (2) -Promotion of International Cooperation- Sharing Technology Road Maps ◯ Work with IEA to check the current progress of technology development, sharing road maps, to create a framework for cooperation.

Promotion of New International Cooperation ○ Carbon dioxide capture and Storage(CCS) ○ Innovative PV power generation

Acceleration in R&D by Cooperation ◯ Work with foreign research institutions to conduct R&D efficiently while complementing research resources.

Notes for promoting cooperation ◯ Consider the protection of IPR and the prevention of unintended leaks of technology. ◯ Consider IPR on a government basis to ensure smooth transfer of technology.

○ High-performance power storage ○ High-efficiency superconducting power transmission ○Innovative iron and steel making process ○High-efficiency information device and system

-Maximum Use of Current International Cooperation Framework - • IEA Implementing Agreement / General / Developed & developing countries including China & India • APP / General / US, Japan, China, India, S. Korea, Australia, Canada • Carbon Sequestration Leadership Forum (CSLF) / CCS/ US, Japan, China, India etc • International Partnership for the Hydrogen Economy (IPHE) / Hydrogen / US, Japan, China, India etc • Generation IV International Forum / Nuclear / US, Japan, China etc • Global Nuclear Energy Partnership (GNEP) / Nuclear / US, Japan, China etc

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“Make the U.S. a Leader on Climate Change” ・Only real solution to climate change requires all major emitting nations to join in the solution. ・Developing nations like China and Brazil must not be far behind in making their own binding commitments. ・To develop an effective and equitable global program, US will reengage with UNFCCC. ・US will invigorate the MEM effort and bring all the major emitting nations together to develop effective emissions reduction efforts. (excerpts from “New Energy for America”)

• We will make it clear that America is ready to lead. To protect our climate, we must call together a truly global coalition. We will ensure that nations like China and India are doing their part, just as we are now willing to do ours. (excerpts from the speech on Energy Independence and Auto Efficiency Standards—Jan 26,2009) 14

Key Concept of Commitment of Future Framework

Bali Action Plan “b(i) b(ii)”, mitigation b(i) Developed Countries ・ Measurable, reportable and verifiable (MRV) nationally appropriate mitigation commitments or actions, including quantified emission limitation and reduction objectives (QELROs) b(ii) Developing Countries ・ Nationally appropriate mitigation actions in the context of sustainable development, in a measurable, reportable and verifiable (MRV) manner ・ Supported and enabled by technology, financing and capacity-building 15

2009 Schedule 18 Feb 25-27 March 29 March-8 April 1-12 June June-July 8-10 July Aug-Sept September Autumn October November 7-18 December

Informal Ministerial (Nairobi; hosted by Denmark) Workshop on Sectoral Approach (Bonn) AWG/KP, AWG/LCA (Bonn) AWG/KP, AWG/LCA (Bonn) Greenland Dialogue (Greenland; hosted by Denmark) G8 Summit/MEM (Maddalena) AWG/KP, AWG/LCA UN General Assembly/ Summit on Climate Change (NY)

APP Ministerial (China) Informal Ministerial? Another Session of AWG/KP, AWG/LCA? APEC Summit (Singapore) East Asia Summit (Thailand) AWG/KP, AWG/LCA, COP 15 (Copenhagen)

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