1. Legal framework for improvement of energy efficiency and conservation

(1) Law
A. Act on the Rational Use, etc. of Energy (enacted in 1979)
(in generally, called “Energy Conservation Law”)
*Latest amendment of the Energy Conservation Law : 2013

(2) Regulatory Measures
1) Regulatory Measures based on the law
A. Measures Pertaining to Factories
Obligation on factories and business operators to submit periodical report of energy consumption status and medium- and long-term plans to achieve energy conservation targets, and appointing energy manager, energy management control officer and energy management planning promoter at the specified business operators. (Based on the “Act on the Rational Use, etc. of Energy”)

B. Measures Pertaining to Transportation
Obligation on specified freight carriers and consigners to prepare energy conservation plans and to report the energy consumption and other related matters. (based on the “Act on the Rational Use, etc. of Energy”)

C. Measures Pertaining to Buildings
Obligations on specified buildings owners and constructors (including residential) to the submission of notifications pertaining to energy conserving measures implemented by construction clients in relation to large scale modifications and obligations relating to reporting the status of overall maintenance. (based on the “Act on the Rational Use, etc. of Energy”)

D. Measures Pertaining to Machinery and Equipment (Top Runner Program)
Obligation on manufacturers and importers to manufacture or import the machinery and equipment by improving the performance in light of energy conservation.
(based on the “Act on the Rational Use, etc. of Energy”)

E. Energy Conservation Labeling Program (Voluntary)
Voluntary to be indicated in labels by manufacturers/importers with regard to energy efficiency of specified equipment(based on the “Act on the Rational Use, etc. of Energy”)

2) Other regulatory measures

(3) National plan for promoting energy efficiency and conservation
A. Energy Conservation Plan (aiming to improve energy efficiency by at least 17% over the 2013 level by 2030) (“Long term Energy supply and demand outlook 2015”)


2. Financial measures taken by the government

(1) Tax scheme
A. Tax incentive of promoting investments in reduction of environmental load.
B. Tax incentive of purchasing fuel-efficient cars.

(2) Low-interest loan
A. Investment and loan system

(3) Subsidies and budgetary measures
A. Support for introduction of energy efficiency equipment for factories and business operators (FY2015)
B. Support for promotion of energy-efficiency transportation (FY2015)
C. Support for diagnose of energy efficiency/ conservation for SMEs (FY2015)
D. Support for high-energy efficiency houses and buildings (project to promote introduction of high-efficiency energy systems into houses and buildings) (FY2015)
E. Promotion of development of energy efficiency technology (FY2015)


3. Energy prices

A. Outline of electricity prices
-Household ¥20.54 per kWh (FY2009)
-Industries ¥13.77 per kWh (FY2009)

Monthly electricity rates are the sum of “a. Demand charge”, “b. Energy charge”, “c. Renewable Energy Power Promotion Surcharge”. The demand charge will be determined by the contracted ampere or contracted power, while the energy charge will be calculated according to the amount of energy consumption. The energy charge to be adjusted under the fuel cost adjustment system, however, it will be the sum plus or minus the fuel cost adjustment amount.

<Formula for calculation of electricity charge>
Electricity price=(“a. Demand Charge”)+{“b. Energy charge (±fuel cost adjustment amount)}+(c. Renewable Energy Power Promotion Surcharge)
B. Outline of gasoline prices

135.2 Yen /liter — as of Sep 2015
Gasoline prices are decided by the oil price (A) that is decided by those other than taxes such as crude oil prices and refining and distribution costs, the petroleum tax and coal tax (B = 2.54 yen as of 2015), the gasoline tax (C = 53.8 yen as of April 2015) and the tax on transactions of gas oil (D = 32.1 yen as of 2015).

Gasoline = (A + B + C) x 1.08 (*)
Gas oil = (A + B) X 1.08 +D
Kerosene = (A + B) x 1.08 (*)

(*) Consumption tax = 8% (as of 2015)


4. Others

(those efforts that are made by various foreign countries, international organizations, local governments, private sectors, etc., and that have effects to promote energy conservation in one’s own country)
A. Keidanren Voluntary Action Plan on Environment (Japan Business Federation)
B. Voluntary program for reduction in stand-by power consumption


5. Contact

Energy Efficiency and Conservation Division,
Agency for Natural Resources and Energy (ANRE),
Ministry of Economy, Trade and Industry (METI), Japan
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8931, Japan
tel: +81-3-3501-9726
fax: +81-3-3580-8439