 Japan’s policy measures for low carbon 
      technology development and investment, and 
      the examples
     The joint crediting mechanism (JCM)
     L2-tech Japan initiative
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                  Japan’s mitigation target in the INDCs
     GHG emissions per GDP: More than              Overall target: A reduction of 26.0% of 
      40% ↓                                         GHG emissions by FY 2030 compared to 
     GHG emissions per capita: About 20% ↓         FY 2013 (25.4% reduction compared to 
     Energy efficiency: 35% ↑                      FY 2005) (approx. 1.042 billion t-CO eq 
                                                                                       2
     Share of renewable energy in total            as 2030 emissions)
      power generation: Approx. 22-24%             1278 TWh
                                                                                   Geothermal: 
                                                  Energy savings:                   1.0-1.1%
           Economic 
           growth:                                    17%                           Biomass: 
           1.7%/a                                                   1065 TWh        3.7-4.6%
                                        Energy                                     Wind: 1.7%
                                       savings +   Renewables:      Renewables: 
              Energy savings:          renewable                     22-24%        Solar: 7.0%
              196.1 TWh                             19-20%
              (-17% from the            energies:
              case w/o                   40%                                       Hydropower: 
              savings)                              Nuclear:         Nuclear:       8.8-9.2%
                                                    17-18%           20-22%
     966.6                   980.8      Power 
     TWh                     TWh      generation   LNG: 22%         LNG: 27%
                                        mix in 
                                       FY2030
              Electricity                           Coal: 25%       Coal: 26%   Electricity 
               demand                                                Oil: 3%    generation
                                                     Oil: 2%
   FY 2013                 FY 2030                          FY 2030                        3
               A mix of policy measures for de-carbonization
          Special account for                     Investment for de-
              energy policy                           carbonization                           Regulation and 
     [MOEJ] JPY 1564 bill. mainly for                                                              standard
     commercial and residential sectors             Approx. JPY 100 trillion 
                                                   through 2030 (cumulative)               e.g., Energy Conservation Law, 
     [METI] JPY 3677 bill. mainly for                                                           top-runner program
     industry and energy conversion                      Renewables
                                                                                                   Taxation
            Other Budget                        Feed-in tariff scheme
                                                                                             incl. tax reduction measures
                                                 Approx. JPY 1 trillion in 2015
                          JPY 289*
                                  “Carbon Tax as Global Warming Countermeasures”                   Add. carbon tax rate
     Petroleum 
     and coal             JPY 
     tax                  779
                                 Crude oil/          JPY  Gaseous                                     Energy tax rate
                                 Oil products        400 hydrocarbon       JPY 
                                                           (LPG/LNG)       301     Coal
     Tax rate: JPY 289/t-CO  for all fossil fuels; Enforcement: Since Oct. 2012, increasing over 3.5 years 
     Tax rate: JPY 289/t-CO2 for all fossil fuels; Enforcement: Since Oct. 2012, increasing over 3.5 years 
                                 2
                                                                      st
                                                                      st
     (Apr. 1, 2014 and Apr. 1, 2016); Revenue: JPY 39 bill. (1  year); JPY 260 bill. (since Apr., 2016); Tax 
     (Apr. 1, 2014 and Apr. 1, 2016); Revenue: JPY 39 bill. (1  year); JPY 260 bill. (since Apr., 2016); Tax 
     use: Earmarked for curbing energy-related emissions.
     use: Earmarked for curbing energy-related emissions.                                                                   4
       MOEJ’s measures for renewable energy development
       For the maximal introduction, measures are taken in all phases of RD&D
       For the maximal introduction, measures are taken in all phases of RD&D
                   → Demonstration of floating offshore wind power generation 
      Wind         → Gathering info of EIA regarding wind and geothermal
   Geothermal      → Promotion of low-carbon society utilizing geothermal power 
                    → Promotion of communities using wood-based biomass power and heat
     Biomass        → Building a regional-recycling biogas system 
                    → Promotion of low emission waste -to-energy system
  Hydropower → Promotion of hydropower generation utilizing in waterworks
      Ocean        → Demonstration of tidal power generation            Maximum usage of regional-based 
                                                                        renewable energy resources
  Utilization of renewables with hydrogen and battery
   Utilize residual renewables to produce and utilize hydrogen for fuel cell and FCVs.
   Utilize batteries to normalize fluctuations of solar and wind power generation.
  Financial support for local municipalities
   ‘Green New Deal’ fund; Create leading low-carbon and renewable-oriented communities.
                                                                                                        5
       An example: Support for building low-carbon society
    Realize an autonomous, distributed and disaster resilient low-carbon communities 
    Realize an autonomous, distributed and disaster resilient low-carbon communities 
    by: Full demonstration of renewables, storage, and interchange with micro-grids
    by: Full demonstration of renewables, storage, and interchange with micro-grids
                                                                                          Schem
                                                                                          Schem
                                                                                          e
                                                                                          e
                                                                                           MOEJ
                                                                                           MOEJ
                                                                                         Nonprofit
                                                                                         Nonprofit
                                                                                        Organization
                                                                                        Organization
                                                                                      Municipalities/
                                                                                      Municipalities/
                                                                                       Private firms
                                                                                       Private firms
                                                                                     Period: Up to  three 
                                                                                     years;
                                                                                     Grant: Up to 75%
         Sites      Period       Renewables              Sites             Period      Renewables
       Nanao,     FY2014-16     PV, BDF, binary   Higashi-matsushima,  FY2014-16      PV, BDF
       Ishikawa                 cycle power       Miyagi
       Suita,     FY2014-15     PV                Nagoya, Aichi         FY2014-16     PV, biomass, 
       Osaka                                                                          gas-CHP           6