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Policy Measures
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Basic Guideline for New Energy Introduction |
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In December 1994, Japan adopted Basic Guideline for New Energy Introduction as a cabinet decision, laying out the Government's approach to tackling new and renewable energy for the first time.
The Basic Guideline calls for the mobilization of government-wide efforts to introduce new and renewable energy at the national level, the invigoration of local level efforts by local governments, and understanding and co-operation by private businesses and the general public.
The Basic Guideline sets the following numerical target for the introduction of new and renewable energy for FY 2010: 19.1 billion liter oil equivalent (loe) or 3% new and renewable energy share of the total primary energy supply. |
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Action Plan for Economic Structure Reform |
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In May 1997, Japan adopted a program for the "Development of an Environment Favorable to New Business Activities" as a cabinet decision as part of a government action plan running up to around 2010 which was based on the coordinated implementation of policy measures by ministries and agencies. The program included the new/renewable energy industry as one of the 15 new industries to be promoted, paving the way for the development of a one-stop fast-track system aimed at addressing problems encountered in the course of the commercialization of new/renewable energy sources.
The program envisages the following basic policy directions for the introduction of new and renewable energy:
- Cost reduction through demand stimulation
- Active R&D efforts to overcome cost, handling and performance limitations
- Establishment of regulatory framework for market creation
- Fostering of public awareness
The implementation of the program is expected to lead to an expansion in the size of new energy related employment and market as follows:
- Current employment size estimated at approx. 400,000 and current market size estimated at approx. 2 trillion yen (16.6 billion USD)
- Employment size in 2010 forecast to be 1,300,000 and market size in 2010 forecast to be approx. 7 trillion yen (8.3 billion USD)
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3. |
The Law on Special Measures for Promotion of the Utilization of New Energy |
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In June 1997, a law was enacted to facilitate the introduction of new and renewable energy (Fig. 3). The basic standpoint of this law is that "any person involved in energy has an obligation to strive for the introduction of new and renewable energy," and on that basis the Government has been implementing policy measures geared towards accelerating the introduction and popularization of new and renewable energy.
The law paved the way for the introduction of various policy measures aimed at developing an environment favorable for the introduction and popularization of new and renewable energy, such as low-interest loans for the establishment of new businesses, subsidies, loan guarantees and supply of information/know-how. NEF shares the task of implementing these measures. |
Fig. 3 : Scheme of the "Law on Special Measures
for Promotion of New Energy Utilization"
[ Explicit of basic structure ]
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[ Supports for enterprises utilizing new energy ]
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