JP-6:Subsidy scheme for energy efficiency
The government has adopted several subsidy schemes to promote energy efficiency in all sectors of the economy, including industry. For industry, the largest scheme in terms of financial volume is the scheme to promote the installation of energy-efficient facilities. One third of the investment cost for a project can be subsidized with an upper limit per project of ¥500 million.
The government has adopted several subsidy schemes to promote energy efficiency in all sectors of the economy, including industry. For industry, the largest scheme in terms of financial volume is the scheme to promote energy utilisation rationalisation, related to the installation of energy-efficient facilities.
The New Energy and Industrial Technology Development Organization (NEDO) manages the subsidy scheme. The total subsidies disbursed in 2007 were 83 bln YPI. For larger companies in industry, grants can be given for large-scale investment projects introducing energy conservation equipment or technologies into existing factories and business facilities. One third of the investment cost for the project can be subsidized with an upper limit per project of ¥500 million). In fiscal year 2007, 94 projects in industry were supported 
Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.
Policy Instrument Type: Economic, Incentives & Subsidies
Position in the PyramidAbout Us
Start Date: 1978
|Supports||Keidanren Voluntary Action Plan (VAP) (ENDED)||Effort Defining|
|Supports||Japanese Voluntary Emissions Trading Scheme (JVETS)||Effort Defining|
|Supports||Mandatory energy efficiency benchmarking in industry||Effort Defining|
New Energy and Industrial Technology Development (NEDO)
Ministry of Environment
Primary Objective: Energy
Increase the cost-effectiveness of investments in energy efficiency
Driver of energy consumption or emissions affected by policy: Implementation rate of efficient technology.
Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.
Quantitative Target? no
Progress Monitored? yes
Verification Required? no
Requirements on the Target Group
Support by Government
The most important tool providing support to the implementation of the subsidy sheme for energy efficiency are the guidance for applications for a subsidy for energy efficiency measures. This is published on www.nedo.go.jp (in Japanese only).
Complexity of Implementation
Subsidy administration to be established.
Financing engineering of the investment becomes more complex with an additional component. Additional subsidy application procedures to go through.
Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.
|Impact||Quantitative Estimate||Qualitative Estimate|
|Estimated effect on energy consumption or emissions||Not available||Not available|
|Estimated costs/benefits for industry||Not available||Not available|
|Estimated cost for government||Not available||Not available|
|General Benefits||Reduced GHG emissions as well as of other energy-related pollutants, less reliance on imported fossil fuels, cost reduction of production|
|Specific Benefits||Increased avaliability and reduced cost of capital for energy efficiency investment. Incentive for improved condition for energy efficiency commercial financing.|