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4.1 Basic Scheme of energy conservation policies

(1) Scheme of energy conservation policies

(2) Outline of energy conservation policies
1. Present situation of energy conservation
In Japan, the government and people have been tackling the promotion of energy conservation since the first oil crisis and as a result the energy intensity per GNP was 30% better than it had been during the first oil crisis (FY 1973), which was a remarkable achievement.
However, in recent years, due to low level stabilization of energy price and change in the people's lifestyle caused a pursuit of comfort and wealth, Japan's energy consumption mainly in residential and commercial sector and transportation sector has shown high growth; the annual average energy growth rate of the past six years is as high as 2.0%.
On the other hand, Japan depends on imports as to most of energy supply and its energy supply is mainly supported by fossil fuels, whose reserves are limited. Because of these reasons, Japan needs to increase its energy-saving efforts.
In addition, more than 90% of Japan's emission of carbon dioxide is caused by energy combustion. Thus, with increasing interest in global environment issues worldwide in recent years, it has become essential to promote energy conservation.

2. The present situation of energy conservation policies
In 1998, the Japanese Government already revised "the Law concerning Rational Use of Energy (here-inafter referred to as the Energy Conservation Law)" with a recent change of economic and social situation taken into account, and at the same time it newly established and enforced "a Law concerning Rational Use of Energy and Recycled Resources Utilization (hereinafter referred to as the Energy Conservation Assistance Law)" to solidify the policy basis.

1) Promotion of energy conservation measures
(1) Introduction and promotion of energy conservation equipment and systems
For promotion of energy conservation equipment investment in industry and commerce, loan programs and tax reduction have been established (low interest loans by the Japan Development Bank and Smaller Business Finance Corporation, etc. and a tax system for promotion of investment in reformation of energy supply and demand structure) by the Energy Conservation Assistance Law.
(2) Acceleration of development and practical application of energy conservation
technologies.
To technologically ensure the practice of energy conservation in future, the R&D of technologies concerned with energy conservation have been promoted under close liaison among industry, the government and academy.
(3) Formulation and proper application of guidelines based on the Energy Conservation Law
a. Industrial sector: Guidelines for factories, etc.
b. Transportation sector: Fuel consumption standards for automobiles, etc.
Fuel consumption standards for trucks, etc.
c. Commercial and residential sector:
Guidelines for buildings
Guidelines for residential housing
Addition of designated appliances and formulation of energy efficiency
guidelines
(4) Enhancing people's awareness of energy conservation by publicity, etc.
a. Being thoroughly informed of various measures by the Council for Promotion of
Energy and Resources Conservation Measures, such as "energy conservation in summer and winter."
b. Preparing and distributing posters and pamphlets, holding symposiums and
offering information through mass media.
(5) Active promotion of an energy conservation labeling system
a. In June 1995, Japan and the U.S.A. agreed to unify the standard and the indicating system of the International Energy Star Program which is an energy conservation standard for office automation equipment from personal computers and the program was enforced on October 1, 1995. Each of the industrial, residential and commercial, and transportation sectors is endeavoring to promote energy conservation through careful measures such as the above.
2) Promotion of international energy conservation measures
From an international viewpoint, Japan is engaged in the following activities by offering rich experi-ences, excellent technologies, and know-hows in energy conservation to the developing countries.
(1) For bilateral cooperations
a. Dispatch of experts
b. Acceptance of trainees
c. Implementations of model projects of energy conservation, for example, waste heat recovery in plants where large amounts of energy are consumed, such as iron and steel works and power stations.
(2) For multilateral cooperations
Use of the opportunity to exchange information and opinions through international organizations, such as IEA and APEC, to establish international cooperation as much as possible.

3. Energy Conservation Policies in the Future
The 3rd Session of the Conference of the Parities to the United Nations Framework Convention on Climate Change (COP3) held in Kyoto in December 1997 reached an agreement on an international framework for the prevention of global warming in the year 2000 and after. At the conference, Japan promised internationally to reduce its emission of greenhouse gases by 6% as compared with the 1990 level during the 2008-2012 period. To realize this international pledge, Japan established in December 1997 the Headquarters of Task Force to Cope with Global Warming with the prime minister appointed as its head. This headquarters adopted the "Guideline of Measures to Prevent Global Warming" which defined the policies to be promoted urgently by 2010. In April 1999, the Law Concerning the Promotion of Measures to Cope with Global Warming was enacted, and the Japanese government is now working in one body to prevent global warming. To control the emission of carbon dioxide derived from energy use, it is necessary to reinforce energy saving efforts greatly in the all sectors of industries, consumers and transportation.
In light of these situations, the ministers' meeting for the promotion of comprehensive energy policies adopted, in September 1998, the "Long-term Outlook for Energy Supply and Demand" which aimed at simultaneously achieving the three E's (energy security, environmental protection and economic growth). This outlook includes an energy-saving policy for reducing energy supply and demand by 56 million kL in terms of crude oil, and great efforts will be made to conserve energy according to this policy.


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