CO2 Emissions Reduction

in Japan’s
Road Transport Sector

Noboru Oba
Chairman, Climate Change Subcommittee,
Environment Committee
Japan Automobile Manufacturers Association, Inc.

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Contents
 Background and Introduction of international CO2
reductions
 CO2 reduction target of Japan
 CO2 reduction activities in Japan
 Integrated approach to reduce CO2 emissions:
1. Fuel-efficient vehicles
2. Efficient vehicle use
3. Improving traffic flow
4. Diversified fuel supply
 Conclusions

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 Back Ground
Introduction of international CO2
reductions

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3 Measure Issues Related to Automobile

Urban air quality Energy security Global warming

Reduce Exhaust emissions Reduce CO2 emissions

Improve Fuel Economy
Expand Alternative Energy

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UNFCCC[1] Paris Agreement

COP 21 in December 2015

(21st Conference of the Parties of the UNFCCC in Paris)

[1] UNFCCC : United Nations Framework Convention on Climate Change

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UNFCCC[1] Paris Agreement
Next step
Paris Agreement

 Countries that ratified the agreement are required to set a

target for emission reduction or limitation, called a
"nationally determined contribution,“ by 2020
(the amount will be voluntary.)

 Governments have to report every 5 years to each other and

the public on how well they are doing to implement their
targets and set more ambitious targets. (first evaluation in 2023)

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 INDCs (GHG reduction target)
Country Target Year
Japan 26% reduction from 2013 2030
EU 40% reduction from 1990 2030
USA 26-28% reduction from 2005 2025
Thailand 20% reduction from BAU (25% with international support) 2030
1st
NDC
Indonesia 29% reduction from BAU (41% with international support) 2030
Viet Nam 8% reduction from BAU (25% with international support) 2030
Philippines 70% reduction from BAU with international support 2030
Singapore 36% reduction of emissions Intensity from 2005 2030
Malaysia 45% reduction per GDP from 2005 2030
Cambodia 27% reduction in key sectors** 2030
Brunei, Mitigation Activities for Energy sector, Forestry, 2035
Myanmar, Lao Renewable energy, Transport, etc. 2030
China 60-65% reduction per GDP from 2005 2030
India 33-35% reduction per GDP from 2005 2030
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* BAU: Business As Usual ** Industries, Manufacturing, transport, Others
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CO2 reduction target of Japan

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Contributing to Terms of Paris Agreement

Paris Agreement
・Keep global temperature rise “well below 2℃”.
・Make best efforts to limit rise to 1.5℃. [and others]

Contribution

Japan’s National Target

・A 26% reduction in GHGs
by 2030 compared to fiscal 2013.

Contribution

Japan’s Transport Sector Target

・A 28% reduction in CO2 emissions
by 2030 compared to fiscal 2013.
Sources: UNFCCC; Japan`s INDC

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 Transport Sector Measures to Meet
Japan’s 2030 GHG Reduction Target
A 28% reduction by 2030 compared to FY 2013 FY is required.

1600

1400 -26% (Japan’s overall target)

GHG emissions (million t-CO2 eq.)
(including CH4, N2O, fluorinated gases)

Non-energy originated CO2 & other gases

1200 Energy conversion
Reductions will be achieved
1000
through:
Industry
800
1. Vehicle FE improvement,
600 wider use of
Commercial next-generation
400 vehicles
Residential A 62 million t-CO2 2. Ecodriving
reduction
200 3. Improved traffic flow
Transport
（225）
-28% （163） 4. Fuel diversity
0
2013年度
FY 2013 2030年度
FY 2030 Source: Government of Japan

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CO2 reduction activities in Japan

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 Trends in Japan's Transport Sector CO2
CO2 emissions in Japan’s transport sector have declined significantly
since the early 2000s.
(million t-CO2)
1 trillion yen

Factors contributing to
reduced CO2 emissions
in road transport:

 Vehicle FE improvement
 Wider use of
next-generation
vehicles
 Greater efficiency in
truck use

Source: Ministry of the Environment

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Integrated approach to reduce
CO2 emissions

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 Integrated approach by four pillar
Integrated approach is important action that is known well in ASEAN too.
An effectiveness becomes bigger by participating many stakeholders with their effort.
We have implemented this approach for long time on road transport sector.

Fuel-efficient Efficient Improving Diversified

vehicles vehicle use traffic flow fuel supply

 Improvement of  Practice of eco-  Electronic toll

fuel economy driving collection(ETC)  Bio-fuel
 Development of  Improve load  Intelligent  Hydrogen fuel
next generation efficiency in transport  Electricity supply
vehicles truck use system(ITS)
Auto industry Driver Government Fuel supplier
【Government】 【Auto industry】 【Auto industry】
【Government】 【Auto industry】 Develop
Incentive for Develop
Promote Connected car EV, HFCV
eco-car eco-drive
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1. Fuel-efficient vehicles

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Development & Market Introduction
of Fuel-Efficient Vehicles
Japan’s automakers are developing new technologies for fuel-efficient conven-
tional (internal combustion engine) vehicles and next-generation vehicles.
Certified
Fuel-efficient fuel-efficiency Hybrid vehicles
conventional vehicles labelling (example):
37.0 km/L
(JC08 test cycle-based)

Fuel-cell vehicles

Electric vehicles Clean diesel vehicles

Plug-in hybrid vehicles

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Trend in the share of Next-Generation
Vehicles in New Car Sales
Thanks to the government's incentives and subsidies programs, next-
generation vehicles have held a 25% share of the new car market in
Japan in recent years. Almost all those vehicles are HEVs.

Source: JAMA

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Impact of Incentives on Next-Generation
Vehicle Sales in Japan
Comparison table of Incentives for Fuel-Efficient and Low-Emission
Vehicles between 2008-2009
2008 (partial listing) 2009 (partial listing)
Fuel Incentive Fuel Incentive
Efficiency Acquisition Tonnage Efficiency Acquisition Tonnage Eco-car
Passenger Criteria and Tax Tax Passenger Criteria and Tax Tax subsidy
cars Emissions 5% of \6,300/ cars Emissions 5% of \6,300/
Performance purchase 0.5t/Year Performance purchase 0.5t/Year
Criteria price Criteria price
36% Electric
Low Hybrid
reduction No Fuel-cell
emission Next- Hybrid
Electric 54% incentive
Vehicles Generation Plug-in Exempt Exempt \100,000/
Natural gas reduction
Vehicles hybrid Vehicle
Compliant Clean diesel Or
+25% with Natural gas \250,000/
\15,000 No
2005 fuel Vehicle
reduction incentive Compliant
efficiency With
standards +25% with
Passenger 75% 75% scrap
2005 fuel
Cars Compliant reduction reduction vehicle
efficiency
+15% with which
\7,500 No Passenger standards
2005 fuel 13 years
reduction incentive Cars Compliant old or
efficiency
standards +15% with more
50% 50%
2005 fuel
reduction reduction
efficiency
“Thestandards
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Impact of Incentives on Next-Generation
Vehicle Sales in Japan
Example (2009)
 Popular passenger car 1.5t>GVW(without incentives)
Car price 1,500,000yen
Acquisition tax 67,500yen
Tonnage tax 56,700yen
Total 1,624,200yen

 Hybrid passenger car (with incentives) Hybrid passenger car (without incentives)
Car price 2,000,000yen Car price 2,000,000yen
Acquisition tax 0yen Acquisition tax 90,000yen
Tonnage tax 0yen Tonnage tax 56,700yen
Subsidy △250,000yen Subsidy 0yen
Total 1,750,000yen Total 2,146,700yen

In case of vehicle
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Increasing Vehicle Fuel Efficiency
Average certified vehicle fuel efficiency is increasing yearly as a
result of the efforts of the automobile manufacturers.
However, it takes about 8 years for the average FE of the total in-use
fleet to catch up with new cars average FE.
(km/L)
24.0

22.0
販売モード燃費（JC08モード）
Average FE (JC08 test cycle-based) of
20.0
all new passenger cars
18.0
保有モード燃費（JC08モード）
Average FE (JC08 test cycle-based) of
16.0 all in-use passenger cars
14.0

12.0

10.0

8.0
Source: JAMA
6.0

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2. Efficient vehicle use

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Adopting Ecodriving: Japan’s
Green Eco Project (for Trucks)

Source: Tokyo Trucking Association

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Benefits of Implementing (Truck)
Ecodriving Management Systems
Onboard ecodriving During vehicle
In-vehicle
equipment operation
excessive speed  Fuel consumption
warnings,
(subsidized commands to down by an average
by MLIT) shut down of 26.3%
engine (idling
prevention)  Rapid adoption of
Insertion of
memory
card
ecodriving practices
Truck by drivers
operation
 Reduced fuel costs
 Greater safety in truck
Company HQ operation, reduced
Data accident occurrence
Data
viewing
relay  Reduced maintenance
costs
Ecodriving
Guidance Evaluation of
training course
driving behavior
Source: Ministry of Land, Infrastructure, Transport and Tourism

Evaluation results-based guidance

to driver by ecodriving manager
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Main Benefits of Ecodriving Program
Ecodriving program is a driver education & a management program,
that contributes not only to increased fuel efficiency but also to
reduced accident occurrence in road transport.
Fuel efficiency and accident occurrence (over 12-month period)
at 11 transport companies deploying 1,310 trucks:
Before/After Comparisons Following the Implementation of an Ecodriving Program
Fuel No. of
efficiency 8.7% increase accidents 49% reduction

FE comparison before/after Accidents comparison before/after

Sources: Asua Corporation, Japan Society of Automotive Engineers Annual Congress 2006
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Improve logistics efficiency in truck use

Company Private Company Outsourcing

Private truck operation
Outsourcing
Costs Outsourcing Costs
・Driver cost
・Transportation fee
・Vehicle purchase
Eg:71% cost saving
・Maintenance, repair
・Fuel & toll road cost Products Cost reduction 1/3
Products ・Insurance, tax
・Parking area Transportation Company
Risk CO2 reduction 1/7
・Accident

Private trucks
Delivery Network:
100% load Empty mixture with other cargo
Outbound Inbound
Customer

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3. Improving traffic flow

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Improving Traffic Flow
Increased vehicle speed, as shown in the graph below, reduces
vehicle CO2 emissions. Measures to improve traffic flow are
needed in order to curb CO2 emissions in road transport.
250
CO2 emissions (g/km)

200

150

100

50

0
10 20 30 40 50 60 70 80 90 100

Average vehicle speed (km/h)

Source: Japan Automobile Research Institute

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 Electronic Toll Collection in Japan

ETC gates:
Approx. 1,000 sites
Electronic Toll Collection (ETC)

Tollgate bottleneck volumes

ETC usage rate % Before ETC installation

Bottleneck volumes
ETC usage rates

After ETC installation

Source: Ministry Land, Infrastructure, Transport and Tourism “The 12 GAIKINDO International Automotive Conference”
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Intelligent Transport Systems (ITS)
Vehicle sensors,
infrared beacons:
Approx. 34,000 sites
ITS provide route guidance and
real-time road traffic information.
Optimal route guidance to drivers
via in-vehicle screen displays

Real-time
traffic
information
communi-
cation to
drivers helps Accident
reduce road
Starting
congestion.
point Congestion

Destination

Roads equipped with beacons

Alternate route
Source: Ministry of Land, Infrastructure, Transport and Tourism

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Effect of ITS (case of Japan)
ITS contributes 12% time reduction, and 9% CO2 reduction.

Time reduction CO2 reduction

Average CO2 emission (kg)

5.5
Average travel time (min.)

65
-8.7%
-11.9%
60 5.0

55
4.5

50
4.0
No traffic info. With VICS No traffic info. With VICS
(road sensor (road sensor
based) traffic info. based) traffic info.

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Factors Contributing of CO2 Reduction
by Integrated Approach
Main factors to reduce CO2 in the road transport sector in Japan.

x 1 million tons CO2

310
300
21%
290
280
270
260 24% 55%
250
240
230
220
210
200
1990 1995 2000 2005 2010 Current status

Passenger cars Trucks

・Improved vehicle fuel efficiency ・ Improved load efficiency in truck use
・Improved traffic flow (reduced congestion)
Trucks
・Eco-driving
・Improved traffic flow
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 4. Diversified fuel supply
and next generation vehicles

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Bio fuels
• Conditions & Requirements for High-Ratio FAME-Blended Diesel
Fuel Use
 Conditions of Use
– Climatic conditions : Warm or hot climates
– Feedstock: PME (palm methyl ester) only
– Maximum FAME concentration: Must not exceed 20%
– Exhaust emission standards compliance level applicability:
Vehicles complying with up to Euro 4/IV standards of R83/R49 in the UN
regulations.
• Conditions & Requirements for Ethanol-Blended Gasoline Fuel
Use
 Conditions of Use
– Maximum Ethanol concentration: Must not exceed 10%
– Ethanol-blended gasoline of more than 10% ethanol content is to be
introduced, clear labeling of specific ethanol content at the fueling pumps
is required
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 Well to wheel CO2 emissions by vehicle type

HEV and EV have high potential to reduce CO2 emissions.

CO2 reduction of EV depends on the energy source.
100%
CO2 reduction ratio (%)

80%
Well to Wheel

60%

40%
Utilize
renewable
20% energy

0%
Gasoline Diesel Hybrid Electric
vehicle vehicle vehicle vehicle
Source: METI The Long-term Global Warming Countermeasures Platform ;
Ms. Asahi “The 12th GAIKINDO International Automotive Conference”
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Japan’s Target for EV & PHV Fleet Share
(in Units)

2020 target:
1 million
(EVs + PHVs)
Number of EVs & PHVs in Use

Estimate
HEV in Use
5.8million

Source: Ministry of Economy, Trade and Industry

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Current Status of Public Charging Access in Japan
As of September 2016, the total number of public charging units
(quick chargers and normal chargers(without private chargers))
in Japan was 23,406.

Quick
chargers

Normal
chargers

Source : ZENRIN

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HEV and EV policy for long-term CO2 reduction
 HEV and EV will be an essential technology to help reduce CO2
emissions for mid- to long-term (e.g. 2030 - 2050).
 Therefore, we believe it is appropriate to set a mid- to long-term
target for HEV and EV sales.
 A step-by-step approach is important ; government support is
crucial to expand the HEV and EV market, especially in the early
stage:
1. Tax exemption and subsidy (Including custom duty exemption
for HEV and EV (CBU) and related Parts)
2. Establishment of charging infrastructure for EV
(standardization, subsidy etc.)
3. Evaluation of HEV and EV market potential and identification of
unique issues to be solved.

We believe that a governmental pilot project is important as a first

step to identify the possibilities of HEV and EV market in Indonesia.

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Conclusions

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Conclusion

 Implementation of an integrated approach is the most effective

way to reduce CO2 emissions in road transport because of its
adaptability to all countries/regions.

 Next generation vehicles (HEV and EV) have big impact to reduce
CO2 emissions for mid- to long-term. Government support and a
step-by -step approach is important to introduce these vehicles.

 The Japanese automobile industry will continue to contribute

towards achieving the Paris Agreement target through continuous
efforts to supply fuel-efficient conventional and next-generation
vehicles worldwide.

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