Policies and Measures for HCFCs in Japan

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Policies and Measures for HCFCs in Japan June 16, 2010 Ozone Layer Protection Policy Office Ministry of Economy, Trade and Industry (METI) 1

Measures for HCFCs in Japan 1. HCFC Phase-out in Japan under the Montreal Protocol 2. National Legislative Framework for Fluorocarbons Recovery and Destruction 3. Shift to Alternative Substances in Refrigerators/ Air Conditioners 2

1. HCFC Phase-out in Japan under the Montreal Protocol 3

HCFC Phase-out in Japan HCFC Consumption Reduction Schedule for Developed Countries and Consumption in Japan 6,000 5,000 4,000 3,000 100% 65% Consumption in Japan(ODP-t) Baseline under the Protocol (ODP-t) 2,000 1,000 14.1% 25% 10% 0 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 4

Target to HCFC Reduction in Japan Reduction Schedule for each HCFC in Japan HCFC22 Refrigerants (for new products) HCFC22 Refrigerants (for refills) HCFC141b Cleaning HCFC142b Heat Insulation HCFC141b Heat Insulation HCFC225 Cleaning 2000 2010 2020 5

2. National Legislative Framework for Fluorocarbons Recovery and Destruction 6

National Legislative Framework Fluorocarbons Recovery & Destruction Law (2002, amended in 2007) - Commercial refrigerator and air conditioner in buildings Designed Home Appliances Recycling Law (2001) - Room air conditioner (RAC), household refrigerator End-of-Life Vehicle Recycling Law (2005) - Mobile air conditioner (MAC) 7

Fluorocarbons Recovery & Destruction (ton) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Quantities by Recovery & Destruction Law waste disposal waste disposal waste disposal 66 94 maintainance maintainance maintainance 140 183 1,505 1,458 1,665 1,823 206 1,987 Amended 387 338 298 292 348 241 197 101 93 186 236 1,847 558 199 469 1,879 2002 2003 2004 2005 2006 2007 2008 935 3,773 tons (about 30%) 1.24 mil units 8

Fluorocarbons Recovery & Destruction (ton) 2500 Quantities of Home Appliances (ton) 1,000 Quantities of Vehicles 2000 800 Enforced 1500 995 1,122 1,044 1,089 1,167 1,304 Enforced 1000 860 311 311 298 299 807 299 320 500 467 625 608 593 575 557 544 136 234 287 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 600 400 200 0 828 809 769 676 60 2004 2005 2006 2007 2008 Air-conditioner Insulator Refrigerator/Freezer 2,168 tons (about 30%) ACs : 2.14 mil units Refrigerator s: 3 mil units 828 tons (about 70%) 2.77 mil units 9

(Ref) Scheme of Recovery & Destruction Law Commercial Refrigerators and ACs Waste Disposal Possessors Maintenance Maintenance Service Agents Receipt Manifests Service Agents / Dismantlers s Delivery of Fluorocarbons Fluorocarbons Collectors Collection of Fluorocarbons Fluorocarbons Destructors Destruction of Fluorocarbons 10

(Ref) Scheme of Home Appliances Recycling Waste disposal Collection And transport Disposer Appropriate disposal Payment of costs for collection and recycling Retailer Take-back obligation (1)Appliances sold by the retailer (2)Appliances which theretailer is asked to take back at point of new purchase Local Authorities, Municipal office Recycling Designated intake points (380 designated intake points) Take-in obligation Designated organization (1)No responsible party, etc. (2)Outsourcing by SMEs Manufacturers Importers Appliances manufactured or imported by themselves Recycling Plants (49 designated intake points) Obligation to re-commercialize, with recovery,recycle and destruction of fluorocarbon refrigerant in air conditioners and refrigerators Re-commercialize 11

(Ref) Scheme of Vehicle Recycling Source: Japan Automobile Recycling Promotion Center / JARC ELV : End-of-Life Vehicles 12

Labeling Effort for Achievement of Recovery Action with Industry Groups to advance the understanding of recovery for stakeholders Guidebook Example 13

Containment of Emissions in Use Examination of the actual condition of emissions in use through a sample survey by METI Few emissions compared to IPCC % 40 JAPAN estimates per equipment(2007) 35 Maximum including in maintenance 35 30 IPCC operation emission values in Minimum guideline 2006 25 20 15 10 5 0 17 13 7 5 3 10 10 1 2 1 JAPAN IPCC JAPAN IPCC JAPAN IPCC JAPAN IPCC Commercial Refrigerators/Freezers (Mid-size) Commercial ACs Room ACs Mobile ACs 5 20 10 Source METI & IPCC guideline 2006 14

Technology for Recovery & Destruction Development of Equipment Project with Asada Corp. to improve the recovery percentage Compact, Portable, Speedy, and more! 15

3. Shift to Alternative Substances in Refrigerators/Air Conditioners 16

Japanese Position for Alternatives Key contents Product Safety - Toxicity - Flammability Low Global-Warming-Potential l ti l Energy Efficiency Life-cycle Climate Performance of Product Initial and Running Cost Safety is top Priority and important. 17

Development by METI Project Development of Low-GWP Systems in Refrigerators Project with Sanyo Corp. to introduce both low-gwp refrigerants and energy efficiency Showcase of CO2 Refrigerant Freezer Showcase CO2 Refrigerant Two- Stage Compressor technology for CO2 Refrigerant 18

Conclusion : Our Tasks Further HCFC Reduction and Shift to Alternative Substances and Technologies We lead the shift from HCFC in advance of the world and accelerate the schedule to reduce the production/consumption of HCFC, in corporation with government (MOE, METI) and industries. Fluorocarbons Recovery and Destruction toward more Acceleration of Ozone Layer and Climate Protection We work on not only the reduction of HCFC and the shift to alternatives under the Montreal Protocol, but also ODS-bank disposal actively. R&D in collaboration with Industries As for the alternative substances of refrigerant, safety is the most basic concept. Also, in consideration of low-gwp, efficiency, and cost, it is very important to choose the option to contribute to global warming issue throughout life-cycle performance. From this stance, METI has made efforts of technology development with industries. 19

Thank you for your attention! 20