Japan

JP-6:Subsidy scheme for energy efficiency

Policy Description

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.

Description

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 [2]

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 Categorisation

Policy Instrument Type: Economic, Incentives & Subsidies

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 1978

Policy Linkages

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

Agencies Responsible

New Energy and Industrial Technology Development (NEDO)
Ministry of Environment

Primary Objective: Energy

Objective

Increase the cost-effectiveness of investments in energy efficiency

Target Group

Industry

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.

Coverage

-

Quantitative Target? no

Progress Monitored? yes

Verification Required? no

Enforced? no

Requirements on the Target Group

Not available

Support by Government

-

Implementation Toolbox

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

Government

Subsidy administration to be established.

Target Group

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
Other Benefits
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.

References & Footnotes

References

[1] OECD/IEA (2008). Energy Policies of IEA Countries. 2008 Japan Review. OECD/IEA.

[2] Energy Conservation Centre / Asian Energy Efficiency and Conservation Collaboration Centre. Retrieved from: https://www.asiaeec-col.eccj.or.jp/brochure/pdf/fs-subsidy.pdf