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For Environmentally For Environmentally Sustainable EconomySustainable Economy

Shigetaka SEKIShigetaka SEKI

Director for Environmental AffairsDirector for Environmental Affairs

METI/JapanMETI/Japan

11 December 200211 December 2002

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Evolution of IssuesEvolution of Issues

Local PollutionLocal Pollution Domestic Environmental ProblemsDomestic Environmental Problems Global Environmental ProblemsGlobal Environmental Problems

Policy ApproachPolicy Approach

Policy Issues

Addressing PollutionAddressing Pollution Prevention of Environmental ProblemsPrevention of Environmental Problems Integration of Environmental Consideration into Integration of Environmental Consideration into

EconomyEconomy

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History of Environmental Issues in Japan #1History of Environmental Issues in Japan #1

Late 19c- Late 19c- Water and air pollution increasedWater and air pollution increased- mining and refinementmining and refinement- combustion of coalscombustion of coals

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

‘‘60-60- Smoke-Emissions Regulation Law ‘62Smoke-Emissions Regulation Law ‘62Environmental Pollution Prevention Environmental Pollution Prevention Framework Law ‘67Framework Law ‘67Air Pollution Control Law ‘68Air Pollution Control Law ‘68Water Pollution Control Law ‘69Water Pollution Control Law ‘69

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History of Environmental Issues in Japan #2History of Environmental Issues in Japan #2

‘‘70-70- Noxious sludge in ponds and baysNoxious sludge in ponds and baysWhite smog in citiesWhite smog in citiesPCB, Pollution of soils by heavy metalsPCB, Pollution of soils by heavy metalsEutrophication of ponds, etc. (e.g., red tide)Eutrophication of ponds, etc. (e.g., red tide)

Environmental Protection Agency ‘71Environmental Protection Agency ‘71 Assessment and Control of Newly Produced Chemicals LaAssessment and Control of Newly Produced Chemicals La

w ‘73w ‘73 Environmental Protection Law for the Inland Sea ‘1973Environmental Protection Law for the Inland Sea ‘1973

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History of Environmental Issues in Japan #3History of Environmental Issues in Japan #3

’’8080 Eutrophication remained, Organic halides in Eutrophication remained, Organic halides in waterwater

Waste disposal became a serious problemWaste disposal became a serious problemNOX from automobile remained a problemNOX from automobile remained a problemOzone holeOzone hole

Environmental Assessment Ordinances (Tokyo, KanagEnvironmental Assessment Ordinances (Tokyo, Kanagawa) ’80awa) ’80

Quantitative control of total NOX emissions ’81Quantitative control of total NOX emissions ’81 NOX emissions control to cover gas turbine and diesel NOX emissions control to cover gas turbine and diesel

engines ‘87engines ‘87 Control of tri and tetra chloro-ethanes in water ’87Control of tri and tetra chloro-ethanes in water ’87 Ozone Layer Protection Law ’88Ozone Layer Protection Law ’88

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‘‘90 - Today90 - Today

Mass production/consumption and disposalMass production/consumption and disposal

Natural resources consumed in massNatural resources consumed in mass

Disposal of noxious substances increasedDisposal of noxious substances increased

Capacity for waste treatment limited and illegal dumping Capacity for waste treatment limited and illegal dumping

increasedincreased

Significant negative impacts on ecosystemSignificant negative impacts on ecosystem

Still not on a sustainable path!

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GarbageEst. 30%

containersEst.25%

papersEst.25%

electric appliances Est.2%

apparel Est.2%

furniture Est.2%

construction19%.

agriculture19%

Public utilities20%

Iron &steel7%

others13%

paper & pulp　 7％

mining 7％

chemicals 5％

food 3％

Current Situation of Current Situation of WastesWastes

1. Wastes from Industry(400mt/year)1. Wastes from Industry(400mt/year)

2.Wastes from General Sources(50mt/year)2.Wastes from General Sources(50mt/year)automobile Est.10%

others Est.4%

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Future should be ...Future should be ...

Recycle-oriented economyRecycle-oriented economy

- Reduce the use of resourcesReduce the use of resources

- Increased use of wastes as resourcesIncreased use of wastes as resources- Reduction of waste disposalReduction of waste disposal

Prevention of damages by hazardous substancesPrevention of damages by hazardous substances- Reduction of chemical useReduction of chemical use- Improved safety use of chemical productsImproved safety use of chemical products

Fully controlled flows of wastes and chemicalsFully controlled flows of wastes and chemicals - Life cycle monitoring & assessmentsLife cycle monitoring & assessments

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Path for the FuturePath for the Future

- Rigorously pursue efficient use of resources Rigorously pursue efficient use of resources

- Change products and manufacturing to be recyclableChange products and manufacturing to be recyclable

- See the wastes as reusable resourcesSee the wastes as reusable resources

- Use the functions instead of possess the goodsUse the functions instead of possess the goods

- Actively take ex ante measuresActively take ex ante measures

=> 3Rs x 3 Areas=> 3Rs x 3 Areas

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#1 Recycle oriented Products and Services#1 Recycle oriented Products and Services

ReduceReduce the use of resources bythe use of resources by

Increased efficiency of processIncreased efficiency of process

Switching to recyclable materialsSwitching to recyclable materials

Designing easy-to-recycle (reuse) productsDesigning easy-to-recycle (reuse) products

Greening industrial processes to reduce wastesGreening industrial processes to reduce wastes

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#1 Recycle oriented Products and Services#1 Recycle oriented Products and Servicescontinuedcontinued

ReuseReuse the products and/or parts by the products and/or parts by

Efficient disassembling of products into partsEfficient disassembling of products into parts

Decomposition of polymers to monomersDecomposition of polymers to monomers

Improved assessment of quality and reliability of used partsImproved assessment of quality and reliability of used parts

Improved repair of products and partsImproved repair of products and parts

Extensive standardisation of parts and materialsExtensive standardisation of parts and materials

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#1 Recycle oriented Products and Services#1 Recycle oriented Products and Servicescontinuedcontinued

RecycleRecycle the products, parts and/or energy bythe products, parts and/or energy by

Improved recovery of reusable materials from wasteImproved recovery of reusable materials from waste

Efficient use of wastes as energy sourcesEfficient use of wastes as energy sources

Distribution network for recyclable goods and materialsDistribution network for recyclable goods and materials

Markets for recyclable goods and materialMarkets for recyclable goods and material

Expansion of facilities for recycling of and recovering from Expansion of facilities for recycling of and recovering from

wasteswastes

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#2 Mitigation of Climate Change#2 Mitigation of Climate Change

ReduceReduce GHG emissions byGHG emissions by

Efficient use of energyEfficient use of energy

Conversion to less GHG emitting fuelsConversion to less GHG emitting fuels

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

Improved city infrastructure for efficient transportationImproved city infrastructure for efficient transportation

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#2 Mitigation of Climate Change#2 Mitigation of Climate Changecontinuedcontinued

ReplaceReplace GHG emitting fuels/substances by GHG emitting fuels/substances by Renewable sources of energy (PV, winds. etc)Renewable sources of energy (PV, winds. etc) NuclearNuclear Alternative gases for HFH, PFC and SF6Alternative gases for HFH, PFC and SF6

RecoveryRecovery (plus sequestration) of GHG by(plus sequestration) of GHG by Carbon sequestrationCarbon sequestration Efficient use of biomassEfficient use of biomass Use of CO2 as chemical materialsUse of CO2 as chemical materials

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#3 Environmentally friendly use of #3 Environmentally friendly use of ChemicalsChemicals

ReduceReduce the use of chemicals bythe use of chemicals by Conversion to biotechnologyConversion to biotechnology Conversion to recyclable materialsConversion to recyclable materials

ReplaceReplace the chemicals and products by the chemicals and products by Environmentally no-affecting substancesEnvironmentally no-affecting substances Hazardous-metals free substancesHazardous-metals free substances Bio-degradable substancesBio-degradable substances

Re-mediationRe-mediation of environment byof environment by Improved technologyImproved technology Detoxification of chemicalsDetoxification of chemicals BiotechnologyBiotechnology

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Strengthening the base for environment Strengthening the base for environment oriented economyoriented economy

Through LCA (Life Cycle Assessment)Through LCA (Life Cycle Assessment)

Strengthening knowledge and technology baseStrengthening knowledge and technology base

Disclosure of InformationDisclosure of Information

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LCA (Life Cycle Assessment)LCA (Life Cycle Assessment)

Development of methodologiesDevelopment of methodologies

Monitoring and assessment of distribution and use and the Monitoring and assessment of distribution and use and the

environmental impacts of products and wastesenvironmental impacts of products and wastes

Assessment of environmental performance of economy by Assessment of environmental performance of economy by

LCA criteriaLCA criteria

Eco-labellingEco-labelling

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Strengthening knowledge Strengthening knowledge and technology base byand technology base by

Fundamental principles for environment-oriented designFundamental principles for environment-oriented design

Development of hazard assessment measuresDevelopment of hazard assessment measures

DB for PRTR(pollutant release and transfer registry)DB for PRTR(pollutant release and transfer registry)

R&D for R&D for 3x3R3x3R Technologies Technologies

StandardisationStandardisation

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Disclosure of InformationDisclosure of Information

Collection and publication of data Collection and publication of data

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

Environmental labellingEnvironmental labelling

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Opportunities for the Business SectorOpportunities for the Business Sector

Environment means businessEnvironment means business(200mUSD or 2%GDP in ’97 to 360mUSD in ‘10)(200mUSD or 2%GDP in ’97 to 360mUSD in ‘10)- RecyclingRecycling- Waste treatment to resourcesWaste treatment to resources- Environmental assessmentEnvironmental assessment- Environmental consultants/ESCOEnvironmental consultants/ESCO- Environmental consideration as a source of Environmental consideration as a source of

competitivenesscompetitivenessNew products & technologiesNew products & technologies - Additional value on environment-friendly productsAdditional value on environment-friendly products- Improved corporate imageImproved corporate image- New system technology (e.g., HEMS, BEMS)New system technology (e.g., HEMS, BEMS)- Repair, reuse, recycle businessRepair, reuse, recycle business- Improved productivityImproved productivity

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Public PoliciesPublic Policiesfor recycle-oriented economyfor recycle-oriented economy

Promotion of Reuse of Resources Law ‘91Promotion of Reuse of Resources Law ‘91 Environmental consideration in product designEnvironmental consideration in product design Selective collection of used resources (Waste Separation)Selective collection of used resources (Waste Separation) Labelling, etc. Labelling, etc.

Framework Law for Recycle Oriented Economy ‘01Framework Law for Recycle Oriented Economy ‘01 Basic principles, Basic principles, Responsibilities of government, business and citizensResponsibilities of government, business and citizens National Plan, etcNational Plan, etc

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Laws for Wastes and RecycleLaws for Wastes and Recycle

For wastes: Wastes Treatment Law (amended in ‘01)For wastes: Wastes Treatment Law (amended in ‘01) Proper waste managementProper waste management Regulation on facilities and businessRegulation on facilities and business Standard SettingStandard Setting

For recycle: Effective Use of Resources Law ‘01For recycle: Effective Use of Resources Law ‘01 Promotion of recyclePromotion of recycle Improved design and materials for recycleImproved design and materials for recycle Separation of recyclable goodsSeparation of recyclable goods Effective use of byproductsEffective use of byproducts

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Recycle and Green PurchaseRecycle and Green Purchase

- Recycle Law for Containers ‘00Recycle Law for Containers ‘00- Recycle Law for Electric Appliances ‘01Recycle Law for Electric Appliances ‘01- Recycle Law for Construction Materials ‘02Recycle Law for Construction Materials ‘02- Recycle Law for Foods ‘01Recycle Law for Foods ‘01- Recycle Law for Used Automobile ‘02Recycle Law for Used Automobile ‘02

- Preceded by Used Automobile Recycle Initiative ‘97Preceded by Used Automobile Recycle Initiative ‘97

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

- The Law for Green Purchasing ‘01The Law for Green Purchasing ‘01- Regional initiative: Eco-towns, 16 areas (‘02/5)Regional initiative: Eco-towns, 16 areas (‘02/5)

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hand over, hand over, take back of freotake back of freon (obligation)n (obligation)

Fee for recoveryFee for recovery

Final OwnerFinal Owner

Parts for reuse

Used car

Used car

DealersDealers

Recycle for th

emselves or b

y comm

isionR

ecycle for them

selves or by com

mision

Flows of used car/partsFlows of used car/parts

Money flowsMoney flows

Autom

obile manufacturers/ im

porters

paymentpayment

Request forRequest for paymentpayment

Hand over, take back ofHand over, take back ofshredder dustsshredder dusts

Fund Fund mangermanger

First ownerFirst owner

Used car

Fee for Fee for recyclingrecycling

metals

MarketsMarketsforforused parts,used parts,metals, etcmetals, etc

Delegation of car registration

※１※１　 or current owner

Scheme under the Used Automobile Recycle Law

Transfer obligationTransfer obligation

Transfer obligationTransfer obligation

　　 disassemblingdisassembling

Had over, take back ofHad over, take back ofair-bugs (obligation)air-bugs (obligation)

Fee for disassemblingFee for disassembling

　　 recovery of freon gasrecovery of freon gas

Used car

　　 shreddershredder

※２

Transfer obligationTransfer obligation

Transfer obligationTransfer obligation

licence

licence

licence

licence

authorisation

※２T

he third parties can take the responsibility in the absence of persons with duty

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Public Policies forPublic Policies forClimate Change MitigationClimate Change Mitigation

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

Comprehensive Policy Package of 2002Comprehensive Policy Package of 2002

Dual goals of environment and economic growthDual goals of environment and economic growth

Step-wise approachStep-wise approach

Contribution by all sectorsContribution by all sectors

Efforts by all countriesEfforts by all countries

=> Policy performance to be reviewed in 2004=> Policy performance to be reviewed in 2004

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GHG reduction targetsGHG reduction targets

1. CO2 from Energy Use (+0%) 1. CO2 from Energy Use (+0%)

2. Non CO2 GHG reduction (-0.5%)2. Non CO2 GHG reduction (-0.5%)

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

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

5. Sinks (-3.9%)5. Sinks (-3.9%)

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Breakdown of Targets for Energy Use/ProductionBreakdown of Targets for Energy Use/Production

End Use Energy Efficiency Improvement (22mtCO2/y)End Use Energy Efficiency Improvement (22mtCO2/y) Industrial SectorIndustrial Sector

Voluntary ProgrammesVoluntary Programmes Introduction of energy efficient technologiesIntroduction of energy efficient technologies

Commercial and Households SectorCommercial and Households Sector Energy ManagementEnergy Management Bench-Marking to Top-Runners (products)Bench-Marking to Top-Runners (products)

Transport SectorTransport Sector Bench-Marking to Top-RunnersBench-Marking to Top-Runners ITS, modal shift to sea shipment, etc.ITS, modal shift to sea shipment, etc.

New and Renewables Energy Sources (34mtCO2/y)New and Renewables Energy Sources (34mtCO2/y) Biomass, PV, solar thermal, wind, fuel cells, etc.Biomass, PV, solar thermal, wind, fuel cells, etc.

Fuel Conversion (18mtCO2/y)Fuel Conversion (18mtCO2/y) Conversion to natural gasConversion to natural gas Extension of gas pipeline and gridsExtension of gas pipeline and grids

Nuclear Nuclear

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LimitationsLimitations

For industryFor industry Objectivity of criteria for environment-friendlinessObjectivity of criteria for environment-friendliness Incremental costs > added value Incremental costs > added value Prisoners’ dilemmaPrisoners’ dilemma Conflicts between the laws for waste and recyclingConflicts between the laws for waste and recycling Boundary between local governmentsBoundary between local governments

For nationFor nation Impacts on competition (absence of equal-footing Impacts on competition (absence of equal-footing

market)market) Incomplete loop for recycling due to international tradeIncomplete loop for recycling due to international trade

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Solutions (domestic)Solutions (domestic)

Solidify environmental values for environment-oriented Solidify environmental values for environment-oriented

marketmarket

=> standards, SRI, disclosure, => standards, SRI, disclosure,

Green PurchaseGreen Purchase

RegulationsRegulations

Co-ordination with local governmentsCo-ordination with local governments

e.g., Environment-friendly industry complexe.g., Environment-friendly industry complex

Economic instrumentsEconomic instruments

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Solutions (International)Solutions (International)

International rules, guidelines, standardisationInternational rules, guidelines, standardisation

Fair, coherent and consistent efforts by all countriesFair, coherent and consistent efforts by all countries

Compatibility of products and materialsCompatibility of products and materials

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For Global CollaborationFor Global Collaboration

Technology transfer to and Information Sharing with Technology transfer to and Information Sharing with developing countriesdeveloping countries Capacity Building (including sharing experiences)Capacity Building (including sharing experiences) Technology and needs assessmentTechnology and needs assessment Business sector involvementBusiness sector involvement

New OpportunitiesNew Opportunities Growing awareness of environmental issues in developing Growing awareness of environmental issues in developing

countriescountries Kyoto Mechanisms: CDM, JIKyoto Mechanisms: CDM, JI

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ClosingClosing

For Sustainable DevelopmentFor Sustainable Development

Environment and Economic Growth: Dual TargetsEnvironment and Economic Growth: Dual Targets Environment should mean OpportunityEnvironment should mean Opportunity Environment should mean BusinessEnvironment should mean Business Environment should be dealt with globallyEnvironment should be dealt with globally