1. 1 Kyoto Mechanism and Technology Transfer April 9-10, 2003 UNFCCC WS on Technology Transfer Shigetaka SEKI Director for Environmental Affairs Ministry of Economy, Trade and Industry, Japan

2. 2 In the “New Climate Change Program”, domestic quantitative targets were established to achieve 6% reduction commitment. Note:Japan shall study the utilization of the Kyoto mechanisms while taking account of international situation and bearing in mind the commitment achievement responsibility and the general rule that Kyoto mechanisms stipulated in the Kyoto Protocol are supplementary to domestic measures. The new climate change program

3. 3 GHGs emissions in 2000 is 8% higher than the base year. (Source):Japan’s Inventory 14 % reduction needed to meet the Kyoto Target of -6% from 1990

4. 4 Energy Efficiency Indicators(1) - energy consumption/GDP - (Source):OECD/IEA, Energy Balances of OECD countries

5. 5 Energy Efficiency Indicators(2) - energy consumption/GDP - (Source):OECD/IEA, Energy Balances of Non-OECD countries ※ Figures are index where Japan ’ s level of 2000 as 100

6. 6 Energy Efficiency Indicators (4) - Cement industries - (Source):CEMBUREAU, World Cement Directory

7. 7 Establishment of ‘Liaison Committee for the Use of the Kyoto Mechanisms’ Established on July 19, 2002 Major Task - Approval of project applications for JI/CDM Consists of relevant government agencies - Cabinet Secretariat - Ministry of Economy, Trade and Industry - Ministry of Environment - Ministry of Foreign Affairs - Ministry of Agriculture, Forestry and Fisheries - Ministry of Land, Infrastructure and transport

8. 8 Establishment of ‘JI/CDM Project Approval Guidelines’ Established on October 16, 2002 Established by the Liaison Committee Procedures Described in the Guidelines –Application should be submitted to one of the member ministries of the Liaison Committee –The ministry designated to support the candidate projects examines the application pursuant to the approval criteria and reports the result to the Liaison Committee –The Liaison Committee decides whether to approve the application based on the report from the ministry

9. 9 CDM Project Application Already Received CDM Project in Brazil Project Participant : Toyota Tsusho Corporation Name of the Project : Vallourec & Mannesmann Tubes do Brazil Fuel Switch Project Outline of the Project : Use charcoal for the production of steel instead of using cokes Alter the design of existing carbonization kilns Targeted Gas : CO2, N2O, CH4 Expected Emission Reduction : 1.13 million t-CO2 ／ Year

10. 10 JI Project Application Already Received JI Project in Kazakhstan –Project Participant : NEDO –Name of the Project : The Model Project for Increasing the Efficient Use of Energy Using a Gas Turbine Cogeneration System –Outline of the Project : Replace the existing low efficiency boiler and steam turbine with a Gas Turbine Cogeneration System (GTCS) –Targeted Gas : CO2 –Expected Emission Reduction : 62,000 t-CO2 ／ Year

11. 11 Policies of METI to Facilitate CDM projects Help Desk for Kyoto Mechanism in METI Kyoto Mechanism Guidebook (in Japanese) Development of Japan’s National Registry System Financial supports Model projects, FS, needs assessment Asia CDM Capacity Building Initiative Cooperation through Climate Technology Initiative (CTI)

12. 12 # of Inquiries Received As of March 31, 2003 Note: Sum of breakdown is not equal to the total because of rounding.

13. 13 CDM/JI Candidates Projects by Credit Scale 1,000 tons(CO2)/year Note: The Volume of credit is based on the estimations by project participants.

14. 14 CDM/JI Candidates Projects by Project Type As of the end of February, 2003

15. 15 CDM/JI Candidates Projects by Region As of the end of February, 2003

16. 16 Major Barriers to CDM, JI Uncertainties associated with institutional settings, rules and procedures in the host countries (incl. interpretation of SD) Uncertainties associated with rules and procedures of UNFCC/CDM process Difficulties in baseline setting Barriers to investment –Protection of intellectual property rights –Non cost reflective energy pricing –Insufficient enforcement of laws, etc.

17. 17 Asia CDM Capacity Building Initiatives Agreed to start the initiatives in 2002 This seminar is the first activity of the initiatives in Thailand. Drafting and distributing the CDM manual in Thai language Further program will be discussed with Thai government

18. 18 Cooperation through CTI with JI countries - Technology needs assessments Collaboration with the UNDP in the development and dissemination of technology needs assessment methodologies - Seminars Seminars involving industry sector in collaboration with UNFCCC and other relevant international organisations - Training courses - Information dissemination Participation & financial contribution to UNFCCC WS etc.