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Appendix Roadmaps Proposed by WGs and Points to be in Minds

Appendix Roadmaps Proposed by WGs and Points to be in Minds . Manufacturing. 1. Low-Carbon Manufacturing Sector – Roadmap (1). Supporting the development of materials that replace rare metals. 1990. 2010. 2012. 2015. 2020. 2030. 2050. 2005. Objectives.

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Appendix Roadmaps Proposed by WGs and Points to be in Minds

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  1. AppendixRoadmaps Proposed by WGs and Points to be in Minds

  2. Manufacturing 1

  3. Low-Carbon Manufacturing Sector – Roadmap(1) Supporting the development of materials that replace rare metals 1990 2010 2012 2015 2020 2030 2050 2005 Objectives ◆Becoming a "smart" low-carbon manufacturing country Infrastructure development to realize a low-carbon manufacturing sector Energy consumption: -30% to -40% from current level Establishing a system of cooperation among stakeholders National/international expansion of low-carbon business Continuous efforts to make each manufacturing process a low-carbon one Roadmap Fostering and creating personnel and places for low-carbon technology, infrastructure and business development Incentives for low-carbon manufacturing technology ◆Fostering personnel who contribute to low-carbon technology development Gathering wisdom for promotion of low-carbon R&D Improving school education/on-the-job training to foster technicians Establishing educational institutes for low-carbon technology researchers/technicians Fostering researchers/technicians who support low-carbon manufacturing and taking over existing skills/technologies Accepting low-carbon technology researchers/technicians/foreign students (Carbon Passport, etc.) Giving long-term continuous support for fundamental R&D (focusing on materials and equipment) ◆Fostering personnel who contribute to low-carbon R&D 2 Promoting collaborative development w. researchers and businesses nationally/internationally Field test: investing in field tests Special low-carbon districts: Designating prospective cities Active national/international promotion Regularly hosting international conferences and exhibitions Encouraging Japanese businesses to invest in Japan Creating an environment that is attractive to foreign businesses Stimulating the consumption of low-carbon products ◆Fostering low-carbon Japanese lifestyles and values Visualizing CO2 emissions in daily life, such as CO2 emissions for each product Popularizing "Environmental Concierges" Accumulating wisdom and improving services, such as the dispatch of analysts Fostering low-carbon Japanese lifestyles and values Gaining understanding of low-carbon society by improving education and awareness (Such as "Challenge 25") Promoting image-building strategies of low-carbon, cool Japan (products, usage and lifestyle) The Carbon Tax ◆Improving competitiveness oflow-carbon products Technologyselection Program design Green procurement by the government Credits for carbon-offsets and purchase of low-carbon products (a system to circulate money within the country) Developing initial demand and a popularization strategy that takes advantage of market pull Introducing bi-/ multi-lateral government approval FY 2011 Using the funds from the Carbon Tax, strengthening aforementioned measures/programs Program to develop measures Program to promote measures

  4. Low-Carbon Manufacturing Sector – Roadmap(2) 1990 2010 2012 2015 2020 2030 2050 2005 Objectives Infrastructure development to realize a low-carbon manufacturing sector ◆Becoming a "smart" low-carbon manufacturing country Energy consumption: -30% to-40% from current level Establishing a system of cooperation among stakeholders National/international expansion of low-carbon business Continuous efforts to make each manufacturing process a low-carbon one Popularizing low-carbon business management and financing Improving reliability and comparability of environmental reports ◆Promoting consideration of climate change in financing/investing Improving systems for calculating, reporting and publishing greenhouse gas emissions(incl. reports on emission/activity by supply chain) Reviewing information provision items and calculation methods Proper accounting of carbon debt Integration of non-financial reports and financial reports (accountability system that measures the environmental management of a company) Educational program for persons in charge of environmental financing Roadmap Supporting investment in installations that reduce environmental load (incl. through corporate tax reductions, elastic depreciation, and subsidies for interest/leasing fees) ◆ Support through the corporate taxation system and political finance Information provision on guidelines for low-carbon financing of public funds, incl. pensions Fund management based on long-term assessment Development of fund management evaluation 3 Promoting early achievement of targets by combination of min. criteria/recommended criteria and "sunset system" Continuing the “top-runner” system ◆Supporting the development and market penetration of low-carbon products/business Supporting systems for low-carbon venture businesses and business matching Recognizing excellent products and businesses Establishing/awarding economic incentives for excellent products/businesses Thoroughnon-fluorocarbon promotion (promoting the collection of fluorocarbon refrigerants, implementing fluorocarbon mitigation measures, accelerating market penetration of non-fluorocarbon products) System design/technology selection Thorough green procurement by government R&D, production control, quality management, inventory cycle management, ICT use-promotion for equipment and social systems ◆ Sharing wisdom for reducing greenhouse gas emissions Supporting CO2 reduction by using emissions reduction guidelines and introducing credits for the purchase of low-carbon products Designing system for diagnosis technicians Fostering personnel for environmental management diagnosis (advisors) Operating a system for the dispatch of environmental management diagnostic technicians (advisors) Domestic CO2 emissions trading by cap-and-trade ◆Evaluating carbon reductions System design/technology selection Introducing credits for carbon-offset and purchase of low-carbon products (a system to circulate funds within the country) International strategic development of low-carbon technology ◆Strategic involvement in establishing international standards/rules Continuous diplomatic efforts to introduce fair international standards/rules Establishing international negotiation organizations/fostering full-time specialists Mutual accreditation of environmental management systems for small and mid-sized businesses ◆Supporting international penetration of Japan's technology Selecting prospective technology Supporting green ODA and the penetration of low-carbon Japanese technology Fostering specialists in management technology, implementing measures to retain personnel w. technological skills, talent and knowledge, implementing measures to maintain technological skills and provide financial support to establish overseas business Making the most of Japanese technology and expertise for emissions reduction/international contribution by widespread use of non-fluorocarbon products FY 2011 Using the funds from the Carbon Tax, strengthening aforementioned measures/programs Program to develop measures Program to promote measures

  5. Points to Keep in Mind in Designing a Roadmap for the Manufacturing Sector Manufacturing WG • In implementing the roadmap proposed here, it is important tofully verify the effectiveness and feasibility of individual policies.In addition, it is vital to design a roadmap that sufficiently considersthe conditions of each industry and the state of global competition. • To realize a “smart low-carbon manufacturing nation,” continuous efforts and corporation are requirednot only on the part of the central government but also on the part of private firms, consumers and local governments. This will be a great challenge. • In consideration of Japan’s financial situation, it should be noted that governmental subsidies and tax breaks will be limited. Sound business management is essential for the growth of the manufacturing sector, and it is important to build a system that encourages self-sustaining growthby undertaking systemic reforms. • Study for this sector has been conducted to find ways to achieve growth in a low-carbon society strictly from the viewpoint of “manufacturing,” and it should be noted that implementation of the proposed roadmap for the manufacturing sector alone cannot solve all of Japan’s economic issues (employment, economic growth, etc.). The country’s growth strategy needs to be studied comprehensively, together with that of the service industry, which accounts for 70% of employment. • In addition, the roadmap has been studied in view of the manufacturing sector’s current conditions, and any changes in this sector’s conditions are likely to also change the strategy to be taken. It is desirable toregularly assess and review progress while closely observing global trends. 4

  6. Housing/Buildings 5

  7. Daily Life (Housing/Buildings) - Roadmap (Housing/Residential Sector) New buildings: 1999 standard & mandatory standard: 50% recommended criteria: 50% 1990 2012 2015 2020 2030 2050 2010 Existing buildings: promoting energy-saving renovations New buildings: 1999 standard: 85% New buildings: Zero emission: 100% Objectives Zero emission Stock: 100% Photovoltaic power generation: 1.15 mil. kW Solar hot water supply system: 3.4 mil. unit New buildings: recommended criteria: 15% Photovoltaic power generation: 25.00 mil. kW Solar hot water supply system: 1.96 mil. unit Renovation: 1%/year Improving building energy-saving performance Zero emission standard (mandatory energy generation) Mandatory standard/Recommended criteria 1999 standard 1993 standard ◆ Establishing comprehensive primary environmental performance criteria Reducing lifecycle CO2 emission Consideration of passive New buildings: Mandatory information provision When signing tenant contract Mandatory information provision Existing buildings: Mandatory information provision when selling Building primary environmental performance labeling system ◆ Obligating information provision on primary environmental performance Roadmap Widespread use of a Comprehensive Assessment System for Built Environment Efficiency (CASBEE) System to be incorporated into property value Area-wide use of energy (incl. incentives, deregulation, smart grids) Residential “top-runner” system ◆Introducing regulations (Mandatory adoption of primary performance criteria) Mandatory obligation of energy saving standard when building a new house 1999: mandatory of next generation criteria or mandatory standard when building a new housing 　Mandatory obligation to comply with energy saving standard when building a new house High-efficiency air-conditioning, energy creating devices (sunlight/solar heat, ground heat, biomass etc.) Reviewing the "intensity method" (such as total amount criteria by device) ◆”Top runner” devices Lighting/devices 　　　　　　Device “top-runner” system (Continuous revision of criteria) CAFE (Avg. efficiency of a company) Standardization Supporting popularization of energy saving housing/zero emissions buildings 6 Accelerated market diffusion of zero emission buildings Subsidy package for energy saving Subsidy for zero emission buildings Subsidies (new /renovated) ◆Economic support Supporting distribution/installation businesses Disincentive for high energy consumption housing 　Establishing support incl. tax incentives and favorable financing Incentive interest rate Feed-in tariff purchasing price system for photovoltaic power generation Municipal support for regional construction businesses Subsidy for zero emission buildings Hosting educational meetings, study meetings, etc. ◆Supporting skills/engineering capacity of small/medium-size building businesses Regional model program for energy saving buildings School /public office buildings Promoting market penetration of devices by converting public buildings into energy-saving/zero emission one ◆Overseas development Overseas development of zero emission housing/building Visualizing performance of commercial sector, and promoting CO2 emission reduction activities Mandatory obligation of emission reduction planning ◆Promoting CO2 emissions reduction schemes by businesses The Carbon Tax Using guideline for emission control Domestic CO2 emissions trading system Introducing monitoring, evaluating and controlling system (incl. BEMS) [Every business understands its CO2 emissions] ◆Understanding CO2 emissions reduction achievements through monitoring Evaluation of visualization Standardization of device installation Accelerated market diffusion Widespread use of visualization devices Advanced management (incl. BEMS, ESCO and commissioning) Fulfillment of calculation/report system (incl. expansion of subjects to calculation and data made available) ◆Providing data to promote CO2 emissions reduction Low-carbon lifestyle (incl. global warming measure training, life-long environmental education, daylight saving) FY 2011 Using the funds from the Carbon Tax, strengthening aforementioned measures/programs Program to prepare measures Program to promote measures

  8. Daily Life (Housing/Buildings) - Roadmap (Building/Commercial Sector) New buildings: 1999 standard & mandatory standard: 50% recommended criteria: 50% 1990 2012 2015 2020 2030 2050 2010 Existing buildings: promoting energy-saving renovations New buildings: 1999 standard: 85% New buildings: Zero emission: 100% Objectives Zero emission Stock: 100% Photovoltaic power generation: 1.15 mil. kW Solar hot water supply system: 3.4 mil. unit New buildings: recommended criteria: 15% Photovoltaic power generation: 25.00 mil. kW Solar hot water supply system: 1.96 mil. unit Renovation: 1%/year Improving building energy-saving performance Zero emission standard (mandatory energy generation) Mandatory standard/Recommended criteria 1999 standard 1993 standard ◆ Establishing comprehensive primary environmental performance criteria Reducing lifecycle CO2 emission Consideration of passive New buildings: Mandatory information provision When signing tenant contract Mandatory information provision Existing buildings: Mandatory information provision when selling Building primary environmental performance labeling system ◆ Obligating information provision on primary environmental performance Roadmap Widespread use of a Comprehensive Assessment System for Built Environment Efficiency (CASBEE) System to be incorporated into property value Area-wide use of energy (incl. incentives, deregulation, smart grids) Residential “top-runner” system ◆Introducing regulations (Mandatory adoption of primary performance criteria) Mandatory obligation of energy saving standard when building a new house 1999: mandatory of next generation criteria or mandatory standard when building a new housing 　Mandatory obligation to comply with energy saving standard when building a new house High-efficiency air-conditioning, energy creating devices (sunlight/solar heat, ground heat, biomass etc.) Reviewing the "intensity method" (such as total amount criteria by device) ◆”Top runner” devices Lighting/devices 　　　　　　Device “top-runner” system (Continuous revision of criteria) CAFE (Avg. efficiency of a company) Standardization Supporting popularization of energy saving housing/zero emissions buildings 7 Accelerated market diffusion of zero emission buildings Subsidy package for energy saving Subsidy for zero emission buildings Subsidies (new /renovated) ◆Economic support Supporting distribution/installation businesses Disincentive for high energy consumption housing 　Establishing support incl. tax incentives and favorable financing Incentive interest rate Feed-in tariff purchasing price system for photovoltaic power generation Municipal support for regional construction businesses Subsidy for zero emission buildings Hosting educational meetings, study meetings, etc. ◆Supporting skills/engineering capacity of small/medium-size building businesses Regional model program for energy saving buildings School /public office buildings Promoting market penetration of devices by converting public buildings into energy-saving/zero emission one ◆Overseas development Overseas development of zero emission housing/building Visualizing performance of commercial sector, and promoting CO2 emission reduction activities Mandatory obligation of emission reduction planning ◆Promoting CO2 emissions reduction schemes by businesses The Carbon Tax Using guideline for emission control Domestic CO2 emissions trading system Introducing monitoring, evaluating and controlling system (incl. BEMS) [Every business understands its CO2 emissions] ◆Understanding CO2 emissions reduction achievements through monitoring Evaluation of visualization Standardization of device installation Accelerated market diffusion Widespread use of visualization devices Advanced management (incl. BEMS, ESCO and commissioning) Fulfillment of calculation/report system (incl. expansion of subjects to calculation and data made available) ◆Providing data to promote CO2 emissions reduction Low-carbon lifestyle (incl. global warming measure training, life-long environmental education, daylight saving) FY 2011 Using the funds from the Carbon Tax, strengthening aforementioned measures/programs Program to prepare measures Program to promote measures

  9. Points to Keep in Mind in Taking Measures Housing/Buildings WG 1/3 8

  10. Points to Keep in Mind in Taking Measures (Issues involved in formulating systems) Housing/Buildings WG 2/3 9

  11. Points to Keep in Mind in Taking Measures (Re: Non-energy Benefits) Not only can residents benefit from reductions in electricity and heating (EBs), but they can also enjoy NEBs. Stakeholders other than residents (i.e., residential suppliers, governments) enjoy NEBs. Housing/Buildings WG 3/3 Example of EB and NEB by insulation improvement. 10 Source: Shuzo Murakami, “Recommendation of Healthy, Energy-Saving Housing - Economic Benefits from Thermal Environment Realized by Improved Insulation,” Association for Assembly Persons for Promoting Healthy Energy-Saving Housing”

  12. Automobile / Transportation 11

  13. Automobile Sector - Roadmap 2015 2030 1990 2010 2012 2020 2050 Objectives Improving fuel economy of cars by 65% (sales of next-generation vehicles: 250 mil. cars) Making next-generation vehicles available in any type (most new cars are next-generation vehicles). Measures for each vehicle (dissemination of next-generation vehicles, fuel economy improvements to conventional vehicles) Roadmap ○Common programs ◆Operation of auto-related taxation scheme A fine-tuned system that provides tax incentives according to the car's environmental load 2015: Early achievement of fuel economy standards ◆Fuel economy standards 2020: Establishment of fuel economy standards 2020: Early achievement of fuel economy standards Development of a general-purpose kinetic energy recovery system for energy regeneration and exhaust heat energy use ◆Supporting cross-sectoral technology development Promoting the establishment of a supply/distribution system Developing E10-compatiblestandards Supporting development of high-performance cells/next-generation cells Steps Starting accreditation of E10-compatible vehicles ○Low-carbon automobiles Supporting purchases Accelerated market diffusion ◆Market penetration of hybrid vehicles, electric vehicles Establishment of related business models for widespread secondary use of batteries, battery replacement-type EV taxis, etc. Improving the power supply network Market introduction of FCV Technological development, education, field testing, field infrastructure testing Supporting leasing and purchasing Accelerated market diffusion ◆Development and market penetration of fuel cell vehicles CO2 budget and economic evaluation Developing hydrogen stations ○Low-carbon mid-size/large automobiles 12 Popularization of large hybrid trucks ◆Market penetration of green diesel vehicles Subsidy for introducing a business vehicle ◆NGV/HV/FCV development and popularization for mid-size/large vehicles Developing mid-distance vehicles Supporting purchases of urban vehicles ○Developing low-carbon special vehicles Accelerated market diffusion Supporting purchases ◆Market penetration ofhybrid off-road vehicles Low-interest loans Low-carbon fuels Post new long-term regulations/challenging targets Developing production technology ◆Increasing the share of biofuel use ◆Promoting the use of natural gas Increasing NGV fuel stations Low-carbon use of vehicles (eco-driving, car sharing) ◆Changing use awareness Organizing educational activities on low-carbon driving (fostering eco-driving habits and an awareness of avoiding unnecessary vehicle use) Making devices w. eco-driving mode and for idling reduction as standard features Supporting the introduction of eco-driving support devices ◆Promoting eco-driving Introducingeco-driving benchmarking Providing incentivesfor eco-driving Establishing business modelsthat motivate eco-driving Supporting pervasion of EV car sharing ◆Promoting car sharing Furthering corporation w. public facilities and public transportation systems Traffic flow measures (Examined by the Local Development WG) FY 2011 Using funds from the Carbon Tax, strengthening the aforementioned measures/programs Program to prepare measures Program to promote measures

  14. Points to Keep in Mind in Designing a Roadmap for the Automobile Sector Automobile WG 1/3 • International competition over next-generation vehicles is intensifying, and since Japan leads the world in hybrid cars, electric cars and other next-generation vehicles, it is important to provide various support policies in order to maintain the country’s competitiveness in the development and distribution of such vehicles. • International markets are diversifying; thus, policies need to be promoted not only for next-generation vehicles but also for fuel efficiency improvement of conventional cars from the viewpoint of securing competitiveness. • Policies for both the supply side (support for R&D, fuel efficiency regulations, etc.) and the demand side (subsidies, tax systems, dissemination and public awareness raising, etc.) are to be enforced comprehensively, aiming at a low-carbon automobile sector. • To achieve introduction targets under the scenarios proposed in this report (15%-25% reduction), there are issues to be solved, including how to boost consumer willingness to buy automobiles with excellent environmental performance, such as next-generation vehicles, how to ease or eliminate the risk involved in hefty investment in the development and production of next-generation vehicles, etc., and how to facilitate the practical use of technologies undergoing development. It should be noted that the resolution of the above issues is the prerequisite for achieving the targets. 13

  15. Points to Keep in Mind in Designing a Roadmap for the Automobile Sector Housing/Buildings WG 2/3 • For buses and trucks, exhaust gas regulations with a challenging NOx reduction target are scheduled to be applied by the end of 2016; thus, the task of improving fuel efficiency while meeting the regulations needs to be fulfilled. • The diffusion of next-generation vehicles and the fuel efficiency improvement of conventional vehicles are an important combination of measures for each car. It is important that both measures be combined in accordance with each manufacturer’s fuel efficiency improvement strategy. • In addition to the improvement of each car’s fuel efficiency, it is important to comprehensively promote measures to alter driving behavior, such as those that promote eco-driving and those related to traffic flow, while actively using advanced ITS technology to facilitate the fuel efficiency improvement of actual driving. • In urban areas, measures such as car sharing that reduce car use are also effective. For these to be effective, they should be promoted along with urban planning policies. On the other hand, in rural areas, based on the assumption that cars are frequently used, it is important to facilitate low-carbon car use by taking measures that motivate drivers to engage in eco-driving. • For the diffusion of next-generation vehicles such as electric cars that require expensive, high-performance batteries, it is important to develop cars that put less load on the battery and to facilitate the promotion of battery performance improvement and cost reduction by establishing and developing business models related to battery utilization, such as secondary use and leasing of batteries or taxis with replaceable batteries. • Equally important measures for CO2 reductionin the automobile sector are those related to traffic flow and logistics, such as the improvement of freight transportation efficiency, which are subject to study in the Local Development WG, and it is vital for the whole automobile sector to vigorously take action by combining these measures with others mentioned before. 14

  16. Railway, Ship, Air Transportation Sector - Roadmap 2015 2030 2012 2020 2050 1990 2010 Launching zero-emission ships Objectives Developing energy-saving rail carriages and high-fuel-efficiency ships/airplanes, and replacing conventional rail carriages, ships and airplanes. Share of airplane biofuel use: 100% Low-carbon railway sector Roadmap ◆Measures taken by power suppliers (Examined by the Energy Supply WG) (Examined by the Local Development WG) Low-carbon ship transport sector Continuous support for R&D and overseas sales of innovative energy-saving technologies and their use Continuous support for R&D and overseas sales of innovative energy-saving technologies and their application Establishing fuel economy standards Promoting replacement by high-fuel-efficiency ships (incl. tax incentives) Promoting energy saving rail carriages (introduction of tax incentives) 15 ◆Improving the efficiency of operation systems Supporting energy-saving operation practices of ships (incl. crew education, introduction of operation management systems, coordination w. shippers and port businesses) Continuous support for R&D and overseas sales of innovative energy-saving airplanes Continuous support of R&D for alternative energy use technology Promoting replacement by high-fuel-efficiency ships (incl. tax incentives) ◆Developing and disseminating high-fuel-efficiency ships Continuous support for the introduction of alternative energy (incl. tax incentives) ◆Energy saving (electric/diesel) carriages R&D for application of biofuel production technology Promoting the introduction of shore-to-ship power supply systems (expanding the development of power transmission facilities and promoting the introduction of power receiving system on ships) Standardization of jet fuel (Mixing rate of biofuel: 50%) Supporting purchases of biofuel (tax incentives) ◆Development and dissemination of high-fuel-efficiency airplanes ◆Promoting modal shift (Examined by the Local Development WG) ◆Using alternative energy ◆Promoting modal shift Low-carbon air transport sector ◆Establishing and disseminating shore-to-ship power supply systems ◆Conversion to biofuel ◇ Establishing fuel economy standards Standardization of jet fuel (Mixing rate of biofuel : 100%) Supporting practices of energy saving operation by optimizing flying routes ◆Improving the efficiency of operation systems ◆Development and dissemination of ground power units Accelerating the introduction to major airports FY 2011 Using funds from the Carbon Tax, strengthening the aforementioned measures/programs Program to prepare measures Program to promote measures

  17. Points to Keep in Mind in Designing a Roadmap for the Railway, Seaway and Airway Sectors Automobile WG 3/3 • The assessment and review in this report were conducted to identify improvement technologies that are expected to produce promising outcomes in each sector, and the improvement rates of energy consumption per unit that are established are those that are considered attainable by combining the above technologies. The introduction rates of energy-saving trains, ships and aircraft are estimated based on certain assumptions. • To achieve each sector’s introduction targets for energy-saving trains, ships and aircraft under the scenarios proposed in this report (15%-25%reduction), the government needs to provide policy support to businesses that are working toward introducing energy-saving trains, ships and aircraft. Especially in the seaway sector, since shipbuilding has been at a standstill, resulting in the rapid aging of existing ships, the enforcement of additional policies is required to promote the construction of energy-saving ships as alternatives to old ships. • As for the railway sector, since the electrification of trains is making great headway, the realization of low-carbon energy (electricity) supply on the supply side will be effective as well. 16

  18. Local Development<All Regions> 17

  19. Realizing Compact Cities based on Local Development and Public Transportation Systems - Roadmap 1990 2010 2012 2015 2020 2030 2050 30% to 40% reduction ±0 10% reduction Passenger vehicle mileage (person km/year vs. 2005) Objectives Roadmap Strengthening the ability to implement plans through administrative decentralization Securing funds by income from the Carbon Tax, etc. Improving local global warming action plans (every municipality develops its own plan) ◆Supporting program planning by municipalities, and providing incentives By regional characteristic Setting benchmarks Calculating and announcing emissions by municipality (already done in some municipalities) Reviewing and strengthening of local global warming action plans ◆National propagation of best practices developed under the "special zones" system Reviewing the system by residents' participation; visualization for smaller unit than "district” Modifying the system, reforming regulations Implementing the regional model project National propagation of best practices Promoting cooperation between the municipality's environmental and urban planning sections, and fostering personnel ◆Strengthening cooperation with community development Strengthening ties with urban planning, assisting in forming consensus, incorporating low-carbon policy into objectives of every local development plan National propagation of best practices Supporting local liaison councils ◆Making the most of local talent Fostering low-carbon plan practitioners rooted in the local community Establishing "residents' participation" type plans that link administration and businesses (incl. financial support) Community development to create a community that is accessible to pedestrians and cyclists Relocating public facilities to civic cores Establishing a public facility utilization plan ◆ Situating public and private facilities where many people gather within a walkable distance 18 Enforcing restrictions on establishing businesses on arterial roads in suburbs, and providing incentives for locating in civic cores. Networking of pedestrian walkways andcycling roads, and drafting a facility plan Cycling lanes 50 thou. km ◆ Improving the pedestrian/cycling environment Developing pedestrian/cycling spaces　　　　　　　　　　　　　　　　 Setting population density targets Promoting relocation of residents in a station influenced sphere Population density in station influenced sphere: 80 people/ha Reviewing zoning of urbanization promotion areas ◆ Increasing population density in urban areas DID pop. density: 40 to 60 people/ha Supporting and promoting businesses and residential relocation (especially for local core cities) DID pop. density: 60 to 80 people/ha ◆ Utilizing low-density areas and shrinking urbanization promotion areas Visualization of the advantages of being a compact city Introducing sunlight and solar heat utilization by combining open lots and relocation Modal share of public transportation double that of today Active use of LRT, BRT, etc. (Trip share base in a local city sphere) Extension of LRT/BRT: 1,500 km Establishing an extension plan Early construction on extensions of existing routes/planned routes, introduction of BRT ◆Development of LRT, BRT Examination of development/operation systems Financing the construction of new routes ◆Promoting the use and efficiency improvement of existing public transport systems Public cost bearing of operation expenses for increasing services, reducing fares (incl. cities that already have systems) Replacing high-efficiency rail carriages, supporting financing for construction of new stations ◆Improving transit and access at suburban stations Increasing ridership by improving the transit system at suburban stations, improving P&R/C&R facilities, introducing a transit discount system Establishing transit/access in and around stations Promoting the use of public transportation systems by residents' participation Mobility management to encourage the use of public transportation Establishing a mobility management system ◆ Construction of public transportation systems from the users' perspective Supporting activities of community develop- ment association of transportation service Providers (public/private) and residents Introducing ridership promotion measures incl. public transport eco-points, road toll systems incorporating model shift effect, residence funding Comprehensive pricing in view of environment, incl. EV, priority lanes, LRT and greening Establishing a road space sharing plan Restricting vehicle access to city centers Development of fringe parking FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Program to prepare measures Program to promote measures

  20. Local Development/ Development of Low-Carbon District by Utilizing Local Resources - Roadmap 2050 1990 2010 2012 2015 2020 2030 Rate of municipalities that have drafted a natural capital/local resource map (all municipalities) Area where measures are taken based on the low-carbon district plan 100% 50% Target 200 thou. ha 40 thou. ha 20 thou. ha Strengthening the ability to implement plans through administrative decentralization Roadmap Securing funds by income from the Carbon Tax, etc. ◆Supporting program planning by municipalities, and providing incentives Improving local global warming action plans (every municipality develops its own plan) ◆Nationally propagating the best practices developed under the "special zones" system Promoting cooperation between the municipality's environmental and urban planning sections, and fostering personnel ◆Strengthening cooperation with local development Strengthening ties with urban planning, assisting in forming consensus, incorporating low-carbon policy into objectives of every local development plan ◆Making the most of local talent Promoting energy resources in the district (Cooperation w. agricultural and mountain villages incl. carbon offset, green electricity ) Promoting the establishment of subordinate plans suited to the features of the region, i.e., urban area, district/area, agricultural and mountain village　 ◆Developing a low-carbon district that makes the most of local resources Creating a natural capital/local resource demand map Regular review of maps/plans in response to the social situation and technology development Drafting a low-carbon district plan (incl. a space reorganization plan in a shrinking district) Understating the effect of a model project for a low-carbon district development plan 19 Mandatory introduction Strengthening incentives Max. introduction of renewable energy to a district (incl. sunlight, solar heat, ground heat, micro-hydroelectric power generation, biomass) Visualization of the advantages of of being a compact city Introducing sunlight and solar thermal utilization by combining open lots and consolidation Expanding the area where energy is flexibly given/taken among buildings Max. utilization of urban waste heat Reduction rate of waste heat Reduction: 1 mil. t-CO2 Reduction rate of waste heat Reduction: 7 mil. t-CO2 Municipal support for drafting a supply plan by municipality ◆Effective use of urban waste heat Supporting investment in incineration plants　　　　　 Financing installation of new heat supply main pipes　　　　 Promoting technology to utilize urban waste heat (incl. ground heat, sewer heat) Mandatory introduction of use of urban waste heat Setting reduction target by district ◆Organizing systems to make the most of urban waste heat Examination through a model project Introducing the heat supply system of best effort type Introducing incentives to promote development in the promotion district Designation of a promotion district for urban waste heat use ◆Relocating incineration plants to utilize urban waste heat 　　　　　　Relocation of incineration plants to utilize urban waste heat Utilization and regeneration of urban/regional natural capital Supporting financing of municipalities for regeneration project of natural capital Municipal utilization/regeneration plan ◆ Utilizing/regenerating natural capital Promoting greening by reallocating urban spaces resulting from decrease in parking ◆ City planning based on climate change Clarifying future images in city planning and controlling construction Developing a method to asses urban climate change FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Program to prepare measures Program to promote measures

  21. Low-Carbon Local Development, and Physical Distribution and Regional Passenger Transport - Roadmap 1990 2010 2012 2015 2020 2030 2050 Modal splits of vehicles for passenger and freight transport about 60% 40-50% 50-60% Target Low-carbon physical distribution Roadmap Strengthening support for modal shift under the Act for Comprehensive Efficiency Improvement of Physical Distribution Establishing a basic policy for low carbon in regional planning　 ◆Establishing principal policies and strategies Setting transportation fees that reflect CO2 emissions Visualizing CO2 emissions for each mode of transportation ◆ Visualizing CO2 emissions and providing incentives Developing a system whereby a shipper can chose a shipping method with lower CO2 emissions Awarding system for shipping/transportation businesses Supporting SCM business development in which small/mid-sized businesses may participate Establishing SCM information standards ◆Improving efficiency of physical distribution by SCM*1 Dissemination of SCM to integrate distribution networks and consolidate freight ◆Improving efficiency of physical distribution within a city Reducing transport distance by reviewing locations of physical distribution facilities and shrinking urbanized areas Supporting the promotion of urban traffic measures incl. those for loading/unloading facilities Studying methods for long-term improvement of the main distribution network ◆Strengthening transportation of the main distribution network Reducing fixed property tax for rail carriages and ships; providing subsidies for replacement of rail carriages/ships Development of inter-modal facilities/modal network as public facilities 20 Reorganization of main physical distribution network, incl. development of new routes ◆Improving efficiency of transportation systems (air, ship, rail, road) Continuous implementation and scope-expansion of "top-runner" system Low-carbon inter-regional passenger transportation ◆Visualizing CO2 emission and providing incentives Supporting development of carbon offset tourism/overnight business trips Introducing a public transportation eco-points system Mandatory calculation and announcement of CO2 emissions of business travel Visualizing CO2 emissions of each mode of transportation Improving convenience of railroads (high-speed rail, increased transport capacity, punctuality, seamless transit w. other modes, redevelopment of station vicinities, wireless Internet access in every passenger carriage) ◆Improving convenience of railroads ◆Improving efficiency of transportation systems (air, ship, rail, road) Continuous implementation and scope-expansion of "top-runner" system Energy saving, low-carbon lifestyle and work style Changing consumer behavior through use of carbon footprint Visualizing CO2 emissions for each mode of transportation ◆Visualizing CO2 emissions and promoting changes in user traffic behavior Increasing incentives for selecting low-carbon transportation modes through introduction of the carbon tax Amending the Energy-Saving Act to increase obligations and to expand its scope Introducing the qualification of professional advisor, providing continuous environmental education in regions/at businesses *1：SCM (supply chain management): a strategic business management method to achieve optimization of entire business processes by sharing/managing information on product supply among related businesses/sections of a company Strengthening aforementioned measures/programs by making the most of income from the Carbon Tax (enforcement: FY 2011), and domestic CO2 emissions trading by cap and-trade) Program to prepare measures Program to promote measures

  22. Example of a Roadmap of Local Core Cities (Realizing Compact Cities Based on Public Transportation Systems (1) 1990 2010 2012 2015 2020 2030 2050 30% to 40% reduction ±0 10% reduction Passenger vehicle mileage (person-km/year vs. 2005) Objectives Roadmap Establishing comprehensive regional low-carbon implementation plan District global warming measures Establishing implementation plan ◆Establishing a long-term reduction plan and incorporating it into the master plan Reviewing of implementation plan for the district global warming measures Visualization of the advantages of being a compact city Reviewing designation of urbanization promotion areas Specifying cores Population density in the station influenced sphere: 80 people/ha Specifying station influence sphere Changing land use zoning at the core DID pop. density: 40 to 60 people/ha Specifying population density/land-use objectives DID pop. density: 60 to 80 people/ha Specifying structure of natural capital Natural capital utilization plan Establishing city/regional transportation plan Traffic restriction implementation plan for CBD Compiling/Revising manuals for establishing district implementation plan Developing low-carbon land use/transportation model, and supporting the use of the model Improving low-carbon measures in the city planning system Community development to create a community that is accessible to pedestrians and cyclists Securing premises for occupation ◆ Situating public and private facilities where many people gather within a walkable distance Planning relocation of large public facilities Relocating large public facilities to cores Enforcing restrictions on establishing businesses on arterial roads in suburbs, and providing incentives for locating in civic cores. ◆ Increasing population density in urbanized area Promoting living in station influenced spheres of new stations Promoting the location of businesses and residences to the existing CBD Financial assistance to provide incentives Improving pedestrian/cycling spaces at and around existing stations and in urban areas　　　　　　　　　　　　　　　　 ◆ Improving the pedestrian/cycling environment Networking of pedestrian walkways and cycling roads, and drafting a facility plan In spheres influenced by new stations, developing pedestrian/cycling spaces　　 In CBD developing pedestrian/cycling spaces　　　 Visualizing the effects of establishing a model district ◆ Utilizing low-density regions and shrinking urbanization promotion areas Combining of small vacant lots/space within an area/district Visualizing the advantages of being a compact city Providing incentives for large-scale consolidation of vacant lots Reviewing zoning of urbanization promotion area FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy of the national government Program to develop measures Program to promote measures 21

  23. Local Development<Local Core Cities> 22

  24. Example of a Roadmap (Realizing Compact Cities Based on Public Transportation Systems (2) 2012 2020 2015 1990 2010 2030 2050 30% to 40% reduction ±0 10% reduction Passenger vehicle mileage (person-km/year vs. 2005) Objectives Roadmap Active use of LRT, BRT, etc. Extension of LRT/BRT: Development length 20 km Establishing development/ management plan Constructing LRT Operation ◆Developing LRT Establishing development/ management plan Constructing BRT Operation ◆Developing BRT Financing LRT/BRT construction Financing LRT/BRT operation ◆Improving transit and access at suburban stations Establishing transit/access at and around stations Increasing ridership by improving the transit system at suburban stations, improving P&R/C&R facilities, introducing a transit discount system Public cost-bearing of operation expenses for increasing services, reducing fares ◆Improving integration w. existing public transportation systems Supporting financing for replacement by high-efficiency rail carriages Supporting financing for installation of new stations ◆Establishing of new stations on existing railroads Establishing vicinity development plan for a new station Construction of a new station Providing subsidy for operation of existing railroad Mobility management for existing pubic transportation system ◆ Constructing public transportation systems from the users' perspective Encouraging use of public transportation for businesses Supporting activities of community development associations by public transportation operators, businesses and residents Promoting public transportation use by residents' funding, eco-points, local currency, etc. Improving systems for promotion of use by residents Optimizing vehicle use Reviewing locations of parking in urban centers ◆Restricting vehicle traffic flow into the CBD Implementing measures for securing traffic flow of freight vehicles by developing shared-use loading/unloading spaces Introducing restrictions on vehicle traffic to designated areas in CBD Expanding vehicle types (such as freight vehicles) subject to restriction of driving into CBD Providing incentives for driving license cancellation, car sharing and freight receiver actions Expanding CBD subject to traffic restrictions Establishing a road space sharing plan In CBD, developing and increasing pedestrian/cycling spaces　　　　　　　　　　　　　　 FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy of the national government Program to develop measures Program to promote measures 23

  25. Example of a Roadmap of Local Core Cities (Developing Low-Carbon Districts using Local Resources (1) 2050 1990 2010 2012 2015 2020 2030 Share of municipalities that have drafted a natural asset/local resource map (all municipalities) Area where measures are taken based on the low-carbon area/district plan Target Establishing a regional comprehensive low-carbon implementation plan Roadmap Reviewing of implementation plan for the district global warming measures District w. global warming measures 　 Establishing implementation plan ◆Establishing a long-term reduction plan and incorporating in into the master plan 【Cooperation w. agricultural and mountain regions through carbon offsets, green power sources】 Reviewing designation of urbanization promotion areas Specifying local cores Specifying structure of natural capital Natural capital utilization plan Compiling/Revising manuals for establishing district implementation plan Developing a method to asses urban climate change Improving low-carbon measures in the city planning system Creating a natural asset/local resource demand map ◆Establishing a local resources utilization plan Designating subject area for measures and establishing CO2 reduction plan Expanding area of mandatory introduction Promoting establishment of subordinate programs in response to the features of each municipality, such as urban area, area/district and agricultural and mountain region. Regular review of maps/plans in response to the social situation and technological development 　Relocation of incineration plants etc. to utilize urban waste heat Max. use of urban waste heat (especially in CBD) Designating subject area for measures and Mandatory introduction ◆In CBD, promoting use of waste energy (i.e., heat of river water) In CBD drafting a low-carbon area/district plan Constructing facilities using river water heat　　　　 Changing land-use zoning in the subject area Identifying natural/historical capital other than historic sites/parks Clarifying carbon-reduction effects Introducing incentives to promote development in the promotion area Supporting combining energy demand Drafting business plan Financing installation of heat supply pipes Setting reduction target by area/district ◆Organizing systems to make the most of urban waste heat Supporting use of waste energy by incentive system Examination of system modification through a model project ◆Expanding measures targeting wide areas Expanding the area where energy is flexibly given/taken among buildings FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy of the national government Program to develop measures Program to promote measures 24

  26. Example of a Roadmap of Local Core Cities (Developing a Low-Carbon District using Local Resources (2) 2015 2030 2010 2012 2050 2020 1990 Share of municipalities that have drafted a natural asset/local resource map (all municipalities) Area where measures are taken based on the low-carbon district plan Target Promoting use of the district's energy resources (especially in residential areas, at station-influenced spheres of new stations) Roadmap Drafting a low-carbon Area/district plan using sewer heat Constructing sewer heat utiliz -ation facilities and developing a low-carbon area/district 　　　　 ◆Developing a low-carbon area/district that makes the most of local resources (residential area) Additional financial support for model projects Setting CO2 reduction targets and greening targets by area/district Introducing renewable energy to a region/district (incl. sunlight, solar heat, ground heat, micro-hydroelectric power generation, biomass) and developing infrastructure for EVs and car sharing Promoting greening by region/district Promoting energy saving by region/district 25 ◆Developing a low-carbon area/district that makes the most of local resources (a station influenced sphere of new stations) Developing a low-carbon area/district　　　　 Drafting a low-carbon area/ district plan using sewer heat (station-influenced spheres of new stations) Establishing low-carbon concept at and around new stations Setting reduction targets by area/district Introduction of renewable energy to a region/district (incl. sunlight, solar heat, ground heat, micro-hydroelectric power generation, biomass) Promoting use of the district's energy resources (especially in suburban agriculture/forestry-related areas and service withdrawal areas) ◆Developing a low-carbon area/district that makes the most of local resources (suburban agriculture/forestry-related areas) Drafting a low-carbon area/ district plan using sewer heat (suburban agriculture/forestry- related areas) Developing a low-carbon area/district (Minus carbon)　　　　 Additional financial support for model projects Introduction of renewable energy to a region/district (incl. sunlight, solar heat, ground heat, micro-hydroelectric power generation, biomass) Reviewing zoning of urbanization promotion area Providing incentives for large-scale consolidation of vacant lots ◆Making service withdrawal areas into low-carbon ones Visualizing the advantages of being a compact city Implementing low-carbon projects incl. installation of Photovoltaic power generation system in large vacant lots Utilization and regeneration of urban/regional natural capital Supporting financing of municipalities for regeneration projects of natural capital ◆ Utilization/regeneration of natural capital Promoting greening by reallocating urban spaces resulting from decrease in parking Strengthening green conservation area system FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy of the national government Program to develop measures Program to promote measures

  27. Points to Keep in Mind in Implementing Measures and Policies toward the Envisioned Future • To enforce measures and policies toward the envisioned future, a system to support local efforts should be established by taking the following points into account. Local Development WG 1. Regional characteristics and innovations A package of measures based on the classification of each region is an example of a combination of measures, and in view of regional characteristics, it is important to identify the measures that are expected to be the most effective. It is necessary to present ambitious targets and to establish incentives and systems that multiply the effects of emissions reductions. 2. Establishment of systems and areas of cooperation from the viewpoint of multiple benefits,utilizing the characteristics of private businesses, citizens, etc. In forming a framework for an urban city or a regional community, the mere use of a present system with a government taking responsibility would limit areas where measures and policies can be enforced. Thus, it is necessary to properly establish systems and areas of cooperation from the viewpoint of multiple benefits to promote efforts on the part of private businesses and citizens. 3. Studying policies for promoting regional measures, combinations of measures for each item, or both of the above It is necessary to study policies promoting regional measures (establishment of car priority lanes designed for the environment, etc.) that enhance the effects of measures for each item, combinations of measures for each item (measures taken for houses and buildings using local resources, etc.) that multiply the effects of regional measures, or both of the above. 4. Need for policies focusing on the potential of farming, fishing and mountain villages, regions with low-population density, etc. when measures are introduced It is necessary to study the policies best suited for the realization of the envisioned future for the local development sector after taking into account the characteristics of various systems for renewable energy supply and the trade of environmental value such as that of greening efforts, etc. 26

  28. Farming, Fishing and Mountain Village Sector: Outline of Roadmap (1) 1990 2010 2012 2015 2020 2030 2050 • Establishing and announcing regional zero-carbon plansfor every region • Reducing fossil fuel-derived CO2 emissions by 20 – 30% or avg. • Reducing fossil fuel-derived CO2 emissions by 50 – 60% on avg. • Every region achieves its regional zero-carbon plan • Announcing multi-criteria regional evaluation results for each region Studying and establishing methods for evaluating GHG emission/recapture for entire regions Studying /establishing methods for multi-criteria regional evaluation Establishment, implementation and evaluation of regional- planning (intensive investment in a model district) Drafting guidelines for regional planning Reviewing systems based on the experience of model district National propagation of establishment, implementation and evaluation of regional planning Expanding dissemination of conventional forest carbon offsets Expanding offset credits to farmland and HWP Studying/establishing methods for assessing carbon footprints of agriculture, forestry and fisheries products Implementing a system for evaluation/support of low-carbon footprint products (consumption of local/seasonal products) Studying /establishing multi-criteria evaluation methods Implementing multi-criteria evaluation/support systems 27 Establishing/standardizing lifecycle carbon emission reduction for lumber (incl. indirect emission reduction effects) Establishing policy for using lumber and standardization Leading the use of woods for public buildings (realize low cost) Promoting use of domestic lumber for houses and mid-size buildings Fostering distribution coordinators Building distribution system Providing opportunities for matching (information sharing) between producers and consumers Further promoting use at public facilities (for school lunches, etc.) Regional wide promotion Improving fuel efficiency of forestry machinery and energy saving of woodmills (incl. boilers) Mountain forestry village Rural farming village / rural stock breeding village Promoting introduction of heat pump and multi-layered covers to heated greenhouses Fuel-efficient agricultural machinery and promoting shared use of agricultural machinery Converting fishing lights to LED and promoting energy-saving ship operation methods Rural farming village / rural stock breeding village Promoting reduction of nitrogen, conversion to forced fermentation and extending mid-summer drainage of rice paddies

  29. Farming, Fishing and Mountain Village Sector: Outline of Roadmap (2) 1990 2010 2012 2015 2020 2030 2050 Mountain forestry village/rural farming village Promoting introduction of biomass boilers to lumber drying plants and heated greenhouses Studying best collection/reuse system for the region Common features Developing and installing composting/feed production/energy conversion facilities at proper sites Rural stock breeding village Developing regional shared composting system using compost production center Rural farming village Fostering business entities for hydropower generation Installing micro-hydroelectric power generators at canals Common features Promoting use of waste biomass Gathering data to assess potential value of land Studying business models for use of renewable energy that make the most of regional features (incl. installing solar panels on unused land) Implementing model project (incl. utilizing model regions) 28 Fostering business entities for local energy production Reviewing systems based on the experience of model project National propagation of regional energy businesses R&D and developing/establishing assessment methods (incl. study on feasible CO2 sinks) Using biomass energy sources/materials Conducting proper forest management Rural farming village / rural stock breeding village Promoting plowing of compost in farmland/using soil conditioners incl. charcoal Mountain forestry village Common features Promoting domestic lumber/use of cascade Policy to promote programs for reducing GHG emissions Preparatory policies for introducing the policies in the left-most column Agriculture and mountain villages Biomass resource rich municipalities are categorized into agricultural regions on flat land, agricultural regions in mountains, and agricultural regions that have both of flat land and mountain under agricultural statistics. Categorization Regions with high potential of wood biomass, agricultural biomass or livestock biomass are named "mountain forestry villages", "rural agriculture villages" and "rural farming villages," respectively. When a municipality has substantial amounts of different types of biomass resources, then programs of different types of biomass resources, such as cooperation between farming and livestock breeding, should be coordinated.

  30. Points to Keep in Mind in Implementing Measures and Policies toward the Envisioned Future Farming, Fishing and Mountain Village Sub-WG • In general, farming, fishing and mountain villages have the clean image of being located amidst natural verdure. However, certain data suggest that their emissions per capita exceed those of urban areas, and it is believed that there may be room for additional emissions reductions. Thus, while actively promoting emissions reduction measures such as energy saving, it is also necessary to study measures contributing to regional revitalization. • A zoning strategy that assigns to each plot of land and area a role (production of agricultural products, carbon absorption, supply of renewable energy, etc.) needs to be studied in terms of and feasibility. • While promoting the preparation of basic data, continuous study needs to be conducted on the emission mechanism and the identification of emissions reduction potential, etc. in farming, fishing and mountain villages. • As a regional development measure, the establishment of a system (legal system) for the smooth, effective use of land is required, including such a system for the utilization of renewable energy in farming, fishing and mountain villages. Since unused land also includes locations with relatively low utility value, the optimal utilization of renewable energy, etc. needs to be studied in view of the environmental conditions of the land. • In using carbon offset credits, etc., study needs to be conducted on the development of a system for maximizing incentives for credit purchasers, the development and diffusion of methods for controlling initial investment amounts and the establishment of a system for human resource development matching. • In setting a purchase price for biomass power, etc., the cost for biomass collection and transportation needs to be considered. • The uniform promotion of measures in urban areas and farming, fishing and mountain villages is not necessarily appropriate. Regional characteristics should be fully taken into account in implementing measures. 29

  31. Energy Supply 30

  32. Energy Supply Roadmap (Renewable Energy) 1/2 Power Program design feed-in tariff system to induce commercial investment* (*IRR 8% for commercial power generation) Heat Issuing renewable energy certificates for heat from renewable energy Fuel Financial support incl. tax incentives for biofuel Mandatory introduction of solar thermal/photovoltaic power generation for large-scale facilities Mandatory introduction (Green obligation) Common for above Studying financing systems through local financial institutes Establishing financing methods that meet local needs Studying evaluation methods of project financing Establishing assessment systems that incorporate local features Reducing initial cost by incentive leasing, etc. 1990 2010 2012 2015 2020 2030 2050 2005 Objectives Renewable energy capacity/share Renewable energy as a share of the primary energy supply:5％ Use of renewable energy: 29.00 mil. kL Renewable energy as a share of the primary energy supply >10％ Increasing amount of renewable energy to between 140and160 mil. kL Supporting establishment of infrastructure to disseminate renewable energy use ◆Economic measures incl. feed-in tariff system Roadmap Mandatory introduction of renewable energy Developing thermal quantification method and constructing a system in which consumers can chose optimal integration of backup heat source Design and test operation of availability insurance system ◆Reducing financial risk/burden of renewable energy business Transition to commercial insurance system 31 Debt guarantee by public institute:interest support Study for appropriate development sites, assistance to FS, etc. ◆Developing database of related information Compiling information on potential and suitable/non-suitable (zoning) sites Compiling statistics on renewable energy Establishing an action plan for dissemination of renewable energy and reviewing the plan according to its progress Information provision by developing a "one-stop-service" Developing technology that meets the natural environment and local social/natural environment ◆Developing renewable energy technology Technology for inclined geothermal wells, eco-conscious facility design, bird-strike prevention technology for wind turbines, second-generation biofuel technology and designs for these that are accepted by local community Developing innovative technology/waste energy, conducting field experiments, accelerating practical application Power generation by off-shore wind, wave, geothermal, hot spring heat, etc. Easy installation to existing houses/buildings through standardization and unification of attachments Establishing design methods for houses/buildings and fostering installation technicians Establishing a stable biofuel supply system FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy to promote programs to reduce GHG emissions Preparatory policies for introducing the policies in the left-most column

  33. Energy Supply Roadmap (Renewable Energy) 2/2 Prefectures and specially designated large cities Municipalities Model project by comprehensive special district Micro- / mid-size hydropower, geothermal and biomass, biofuel, etc. Requirements of related acts/regulations and their prospect for enforcement; Early standardization of new technology Electric Utility Law, etc. and early standardization of high concentration biofuel, etc. Coordination among stakeholders Water rights, etc. Promoting dissemination of renewable energy by introducing the Carbon Tax Promoting dissemination of renewable energy by introducing the domestic emissions trading system that adoptsthe cap-and-trade method. Policy to promote programs to reduce GHG emissions Preparatory policies for introducing the policies in the left-most column 1990 2010 2012 2015 2020 2030 2050 Roadmap Policy to change the social system to meet the level of dissemination of renewable energy Improving nation's awareness by educational activities ◆Improving social acceptance and awareness Promoting voluntary introduction and understanding of renewable energy use Method to promote understanding of renewable energy use Program design Information disclosure system on impact on local environment Disclosing monitoring data of geothermal use, zoning information Constructing a social system where renewable energy is pervasive Method to promote voluntary introduction Introducing accreditation/registration system for skilled installers, and maintenance obligations Supporting expanding the supply channels of renewable energy equipment for houses/buildings Fostering renewable energy advisers and developing tools Providing advice during house/building construction Providing information on optimal combinations of devices for renewable energy and energy-saving ◆Introducing renewable energy that meets the local features Test introduction of new business model 32 Hybrid model of co-financing by large business, local business and residents, etc. Establishing an association for introducing renewable energythat makes the most of local talent, resources and residents' fund toward regional revitalization Fostering coaches Fostering local professionals of renewable energy introduction Promoting installation to public facilities by public invitation of installation/operation of photovoltaic power generation systems Leading introduction of renewable energy, implementing original support systems and organizing systems in local community Utilizing renewable energy for community development and regional revitalization ◆Reviewing relevant acts and regulations FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs

  34. Energy Supply Roadmap (Energy Supply Infrastructure) 1990 2010 2012 2015 2020 2030 2050 Objectives Energy Supply Infrastructure Rate of introduction of smart meters, etc.:>80% Diffusion rate of Japanese version of smart grid: 100％ Realizing zero-carbon power sources Roadmap Promoting infrastructure development for next-generation energy supply ◆ Measures for existing power grids Utilization of all system power supply Reviewing operation of existing infrastructure (incl. pump-up storage power generation and inter-regional supply (connectors) System power supply Implementing local measures (incl. installations of distribution transformers and voltage controllers) Energy carrier and conversion systems for surplus electricity Analysis of empty capacity of transmission/distribution lines Expanding transmission systems Planned development of access transmission lines Facility/demand-supply planning to reflect demand control effect Making the most of existing infrastructure toward introduction of large capacity for renewable energy Establishing and developing Smart Grids ◆Studying the next- generation grid network Weather information/capacity of renewable-energy-derived electricity Establishing multi-location measurement of output Full-scale operation of power generation output/demand-supply control Starting management Accumulating weather data, trial estimation of power output ◆Installation and development of Smart Grids Development of functions for automatic operation stop/preventing stand-alone operation Dissemination of renewable energy power generation system w. output control Photovoltaic power generation that meet power demand Output control of wind power generation Advancement of output control of photovoltaic power generation and wind power generation 33 Introduction of smart meters and energy management devices Demand control Automatic control by energy management system Dissemination of demand-side technology for energy storage and activation Making most of buttery charge control of plug-in hybrid EV Buttery system, V2G（Vehicle to Grid)： utilization of power supply/demand between vehicle and grid system Introducing buttery system Overseas development of Japanese Smart Grids ◆Developing systems for large-scale renewable energy use System design that meets diversification of stable power supplier Demand control: dynamic pricing Establishing fee system to control demand Developing a system for priority access to renewable-energy-derived electricity Raisinghigh voltagedistribution Providing incentives to power companies for their support of users' energy saving Advancement of business model of power company (Decoupling of sales/profit of power company and electricity sales) Other than power system ◆Infrastructure for biofuel supply Financially supporting production of biofuel Providing financial assistance to make existing fuel distribution infrastructure compatible with high-concentration biofuel ◆Infrastructure for gas supply Developing natural gas pipelines, biogas supply via. city gas infrastructure, support utilization of smart energy networks in which heat and electricity are effectively used, obligation of studying introduction, mandatory introduction ◆Infrastructure for hydrogen supply Studying hydrogen supply concept that takes into account technology development level ◆Providing incentives for next-generation infrastructure development Common Next-generation infrastructure development w. funds from the Carbon Tax Developing next-generation energy supply infrastructure by introducing the domestic emissions trading system that adopts the cap-and-trade method. FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Preparatory policies for introducing the policies in the left-most column Policy to promote programs for reducing GHG emissions

  35. Energy Supply Roadmap (Fossil Fuel and Nuclear Energy) 2015 2030 1990 2010 2012 2020 2050 Objectives Recapturing and sequestering 90.0 to 50.00 thou. t-C/year (3,300 to183 mil. t-CO2/year) Fossil fuel and nuclear energy Roadmap Realizing low-carbon use of fossil energy and increasing nuclear power supply while strictly maintaining safety ◆Disseminating low-carbon technology for thermal power stations Introducing high-efficiency power generation technology to thermal power stations Overseas development of high-efficiency thermal power generation technology Introducing CCS-related acts and regulations and technology, conducting large-scale field tests, offering incentives for introduction Studying CCS-compatible plants (where CCS can be installed later) ◆Introducing carbon recapture and sequestration Introducing CCS 34 ◆Low-carbon construction and operation of power plants/equipment Promoting low-carbon systems taking the opportunity of introduction of the Carbon Tax Promoting low-carbon systems by introducing the domestic emissions trading system that adoptsthe cap-and-trade method. Power source plan that takes into account of prices of coal, oil and natural gas Studying capacity of thermal power stations and reorganization of power supply system Reorganizing the power supply system ◆Increasing nuclear power supply while strictly maintaining safety improving the operating rate of nuclear power plants, responding to aging of existing plants, reviewing operation systems Reviewing operation systems FY 2011 Using the funds from the Carbon Tax, strengthening the aforementioned measures/programs Policy to promote programs for reducing GHG emissions Preparatory policies for introducing the policies in the left-most column

  36. Points to Keep in Mind for Realization of the Roadmap • Renewable energy needs to be introduced at an unprecedented speed, and the amount to be introduced as assumed in this report cannot be achieved by a fixed-price electricity purchase system alone. • The fixed-price purchase system is an important policy for achieving the mid-term targets, and it is necessary to consider in advance the shift to other measures in the event that a certain degree of cost reduction in those is achieved. • The cost for establishing a power system that supports the mass introduction of renewable power needs to be studied while paying attention to competition with other types of energy. • Study needs to continue on mandating the introduction of renewable energy in terms of who will be subject to mandatory introduction, when is should be mandated, and other details. • In view of achieving a renewable energy target of 10% of primary energy supply by the year 2020, policy support is also required for the diffusion and expansion of heat sources and fuels other than renewable energy. • In the future, many renewable energy projects suited to regional characteristics should bear fruit. It is desirable for the projects to be voluntarily initiated in regional areas, and to this end, areas to which the governmental should provide support in the immediate future such as the fostering of human resources in various sectors need to be steadily promoted. • In this WG, all study is conducted from the viewpoint of the supply side. However in principle, the overall energy demand should be surveyed. While maximizing demand control by promoting energy saving on the demand side in accordance with energy supply capacity, energy that is truly necessary should be made low-carbon. • Aiming at the realization of low-carbon energy supply, discussion has revolved around highly prioritized renewable energy. However, the realization of low-carbon utilization of fossil fuels including the use of CCS and the expansion of nuclear energy use are important policies as well, and appropriate policy measures should be enforced after sufficient consideration. • The method for stable energy supply needs to be studied in view of the risk involved in cases such as the diffusion of renewable energy making little progress, the slow improvement of the operation rate of nuclear power plants, or the very rare construction of new nuclear power plants. • Since fossil fuel supply can be secured or increased/decreased through storage or purchase from the market, study also needs to be conducted from the viewpoint that maintaining fossil-fuel related equipment in a balanced manner is possible especially for power generation. • Necessary support measures should be taken for low-carbon energy technologies that are yet to be put into practical use (floating wind power, ocean energy, hot dry rock power generation, and clean coal technology which is currently at the stage of R&D, etc.) so that they can contribute to the realization of low-carbon society in the long run domestically and internationally. 35

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