Energy Saving Obligatory Criteria Set for New Constructions in Japan

Osaka - Monday, September 19, 2011




Nikkei, Japan’s leading newspaper specialized in business and economy reported today that Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has set up a policy of giving obligations to real estate and construction companies to meet a specified energy saving criteria set by the Japanese government for all new housings and buildings to be constructed in the future.



1. What is the overview of the policy?



The government is to set limits to energy consumption according to types of housings and buildings and to request efficiency enhancement of energy consumption such as air conditioning using heat insulators. The government aims to control and reduce Green House Gas (GHG) emission the they believe this kind of policy is effective because according to MLIT, GHG emission from constructions cover over 30% of total GHG emitted in Japan.



After 2020 construction will be not approved unless it meets the requirements set by the government. Until 2020, companies and individuals who have met requirements will be given tax incentives.



2. Isn’t there any energy saving criteria today?



Yes, there is. Such criteria for housings were set in 1999 but it is not obligatory. It costs addition 10% to construct houses meeting the criteria; therefore, only less than 40% of new houses meet the criteria.



3. How will the government proceed with setting and implementing the policy?



MLIT will set up a meeting with authorities from industries and academia in October to discuss concrete measures for obligation of meeting energy saving criteria. MLIT aims to revise the legislation regarding energy saving construction in 2013, discussing and collaborating with Ministry of Economy, Trade and Industry (METI) and Ministry of the Environment （MOE）.



To achieve such a timeline, the government is to draft new criteria by the end of the year, including limits of energy used in air conditioning and lighting depending on the types of housings and buildings. The details of the criteria will be tailored to meet local needs depending on the regions, considering regions with heavy snow in winter.



4. What is the concept of the new criteria?



New criteria will be set so that energy consumption will be 20-30% less than normal housings and buildings. To meet the criteria, heat insulators are to be used in walls and ceilings. When solar battery is implemented, energy generated by solar power will be subtracted from the energy consumption calculated.



5. When will auditing of energy saving construction be implemented?



It will be implemented in 2012. When construction companies make application in building new housings or buildings, local government will check the types of materials to be used.



When energy saving criteria is met, cost of energy saving materials used in construction will be subtracted from income to be taxed.



And for individuals, the government is to study incentives such as increase tax reduction of their housing loans.



Full implementation of the policy requires much preparation and time so the government aims to implement fully in 2020. Until then, the government would like to implement auditing systems and tax incentives to proliferate energy saving materials meeting the criteria.



6. Will obligation to meet the criteria applied to current housings and buildings?



No. This is because it is time consuming to audit all current housings and buildings, and if renovation of current housings and buildings is to be made compulsory it is quite possible that the general public will refuse.



Having said that, MLIT believes that the renovations will take place because in general market value of energy saving housings and buildings are higher.



There is also a concept of distinguishing energy saving housings and buildings from those that are not of energy saving.





Resources:-

MLIT of Japan will set up a policy of giving obligations to real estate and construction companies to meet a specified energy saving criteria set by the Japanese government for all new housing and buildings to be constructed in the future. The government is to set limits to energy consumption according to types of housings and buildings and to request efficiency enhancement of energy consumption such as air conditioning using heat insulators. The auditing system will be implemented in 2012. The policy will be fully implemented from 2020 and until then incentives will be given to companies and individuals that meet the criteria.