1. Encourage the trade of Energy Efficient Goods Implication for Climate Change September 23, 2009

2. 1.Promote EGS Trade  At the G8 summit, Leaders agreed with the importance of the trade liberalization of Environmental Goods and Services (EGS). Hokkaido Toyako Summit Leader’s Declaration, July 2008, (Para 34) Efforts in the WTO negotiations to eliminate tariffs and non-tariff barriers to environmental goods and services should be enhanced with a view to disseminating clean technology and skills. L’ Aquila Summit Leader’s Declaration, April 2009 (Para 68) The elimination or reduction of tariffs and non-tariff barriers to trade in environmental goods and services is essential to promote the dissemination of cleaner low-carbon energy technologies and associated services worldwide. Efforts should be intensified to ensure a successful outcome of the ongoing WTO negotiations on the liberalization of environmental goods and services. Encouraging the trade of environmental goods

3. 2. Negotiations on EGS  In 2001, at their meeting in Doha, trade ministers agreed with starting negotiations on the reduction or elimination of tariffs and non-tariff barriers to EGS. Doha Ministerial Declaration (Para 31) TRADE AND ENVIRONMENT 31.With a view to enhancing the mutual supportiveness of trade and environment, we agree to negotiations, without prejudging their outcome, on: (iii) the reduction or, as appropriate, elimination of tariffs and non- tariff barriers to environmental goods and services.

4. 3.Environemental Goods  So far, various products have been proposed as environmental friendly goods in the discussion in CTESS. Criteria illustrated by Chairman Examples of Products Air Pollution Control ●Mufflers ●Air Compressors ●Condensers for steam or other vapor units Renewable Energy ●Combined heat and power system ●Solar water heaters ●Gearboxes for wind turbines ●Wind-powered generating set ●Photovoltaic cells, modules and panels ●Hydraulic turbines Waste Management ●Waste incinerators ●Nonwovens ●Machinery for crushing or grinding earth Environmental Technologies for conservation, monitoring, analysis and assessment. Instruments for Environmental monitoring, analysis and assessment ●Meters, which check and record the level and/or flow of liquids or gases ●Gas analyzer ●Thermostats Environmental Technologies for Conservation ●Solar stoves ●Fuel Cells All others

5. 4.CO2 Emission  CO2 Emission in the world has been increasing.  The Emission from the non-OECD countries has almost doubled since 1980. CO2 emission (kt) Non-OECD OECD Source: World Bank

6. 5.Global GHG Emissions by Sector  According to the IPCC, Energy Supply, Transport, Building and Industry sector emit about 65% of CO2. Source: IPCC (2007), “ Climate Change 2007: Synthesis Report” 1.Energy Supply: 25.9% 5. Transportation: 13.1% 6. Residential and Commercial Building: 7.90% 2.Industry: 19.4% 4.Agriculture: 13.5% 3. Forestry (including deforestation): 17.4% 7.Waste and Waste Management: 2.8%

7. 6.IPCC recommendation  IPCC recommended some key technologies and practices on each sector for addressing climate change. Source: IPCC “Synthesis Report” Sector Key mitigation technologies and practices currently commercially available Energy Supply Improved supply and distribution efficiency Fuel switching from coal to gas Nuclear power Renewable heat and power (hydropower, solar, wind etc.) etc.. Transport Fuel efficient vehicles Hybrid vehicles Cleaner diesel vehicles etc.. Buildings Efficient lighting and day lighting More efficient electrical appliances and heating and cooling Passive and active solar design for heating and cooling etc.. Industry More efficient end-use electrical equipment Heat and power recovery Material recycling and substitution etc..

8. 7.Potential for the CO2 emission reduction  According to the IEA, energy-conservation has higher CO2 reduction potential than renewable energy and nuclear power in both developing and advanced countries. Source: IEA Potential for the CO2 emission reduction in 2030

9. 8.Energy Efficient Products as EGS  In order to address climate change, energy efficient products, which definitely contribute to CO2 reduction, should be listed as the environmental goods. Objectives  Energy conservation has high CO2 reduction potential.  The dissemination of the energy-efficient products could help the mitigation and adaptation effort to climate change.  CO2 emission from industry, building and transport sector could be reduced by the dissemination of energy-efficient products.

10. 9. Example of Energy Efficient Products - 1  About 1 out of 6 people own a car.  The dissemination of environmentally friendly vehicles have a great implication for CO2 reduction.  Environmentally friendly vehicles 3.5 times - Natural gas vehicles - Clean Diesel vehicles - Electric vehicles - Hybrid vehicles Source: Japan Automobile Manufacturer’s Association (JAMA) The number of cars in the world Unit: thousand

11.  Electric appliances such as air-conditioners have rapidly penetrated into households in the world.  Inverter air conditioning machines 10.Example of Energy Efficient Products - 2 Demand for air-conditioners (estimation by the Japan Refrigeration and Air Conditioning Industry Association(JRAIA)) Unit: thousand

12. 11.More Examples of Energy-Efficient Products Inverter air conditioner Environmentally Friendly Vehicle Inverter refrigeratorsEnergy-efficient Copy machine LED LightingFlat Panel TV

13. 12. Conclusion 1.The dissemination of energy-efficient products significantly contribute to the mitigation of the impact of climate change. 2.More energy-efficient products should be qualified as the environmental goods to address the climate change issues more comprehensively by reducing or eliminating tariff of these products. (e.g.) - environmentally friendly vehicles - energy efficient appliances