GREEN PROCUREMENT, ENERGY/ENVIRONMENTAL LABELS Japan

GREEN PROCUREMENT

The principal regulation influencing green procurement and green purchasing matters in Japan is the “Law Concerning the Promotion of Procurement of Eco-friendly Goods and Services by the State and Other Entities” (Law on Promoting Green Purchasing – LPGP).

Law on Promoting Green Purchasing

Objectives
The principal objectives of the LPGP are to establish necessary provisions for:

• realisation of the procurements by the public and state entities according to the procedures considering eco-friendly products,
• providing a common dissemination and information actions on eco-friendly products,
• encouraging a shift in demand towards eco-friendly products,
• influencing citizens towards eco-friendly lifestyle.

Eco-friendly products
The eco-friendly products are defined in the LPGP as goods or services which satisfy criteria of being possible to be recycled and including materials or parts/components and technologies which contribute to the reduction of environmental impact (incl. energy efficient products).

Duties
According to the LPGP the basic duty of public and state entities is to endeavour to choose eco-friendly products while giving consideration to the appropriate use of the budgets as well as through educational and public relations and dissemination activities to encourage businesses and citizens to deepen their understanding of the significance of a shift in demand towards eco-friendly products and also take the necessary measures to accelerate cooperation between the state and local governments, businesses and citizens to convert demand toward eco-friendly products.

Control and reporting
All public and state institutions are obliged to prepare and publish at the end of fiscal or business year, a summary report of its procurement track record of eco-friendly products and submit it to the Ministry of Environment. The Minister of Environment may request the public and state institutions to take measures which are deemed particularly necessary to promote the procurement of eco-friendly products.

All entities which manufacture, import or sale products or render services are obliged to endeavour to provide, in an appropriate manner, the necessary information in order to enable understanding of its environmental impact to those who purchase or otherwise acquire the products or services.

Basic Policy on Promoting Green Purchasing
The LPGP had also laid the State under an obligation to determine the basic policy for the promotion of procurement of eco-friendly products (green purchasing). The document requires of governmental approval and stipulates the detailed directions of the promotional activities as well as determines (defines) the evaluation criteria for green purchasing.
Actually binding document, published in February 2006 is entitled “Basic Policy on Promoting Green Purchasing” The document defines the basic policies for promoting comprehensive and planned procurement of materials, components, products and services with low environmental impact (eco-friendly products). This is the basic policy of the national government and corporations with reference in the LPGP and there is expected that will also be committed by local governments, enterprises, and citizens.

The documents includes more detailed definitions and Basic Direction for Green Purchasing in the Government and Independent Administrative Institutions, description of the environmental policy targets as well as detailed description and explanations regarding the green purchasing philosophy and approach.
An integral component of the document is a comprehensive set of evaluation criteria for each potential procurement item could be a subject of (public) procurement. The evaluation criteria comprise of several factors and information, related to the particular products and services, which are important for reducing environmental impact. The factors that are not appropriate to apply as uniform evaluation criteria are additionally specified in the document as “factors for consideration” when making purchasing decisions.
The list of evaluation criteria is prepared for almost all products and services commonly used in public sector and covers the following products and goods: paper (different types), stationary, office furniture, office automation machines (copiers, printers, fax machines monitors, etc.), home electronic appliances, refrigerators, air conditioners, space heaters, water heaters, gas cooking appliances, lighting, fluorescent lighting equipment, vehicles, ITS adaptable car accessories, tires, engine oil, fire extinguishers, uniforms and work clothes, interior fixtures and bedding (curtains, carpets, blankets, beds, etc.) and others.
The services covered by the evaluation criteria are following: public-works projects, energy conservation diagnosis, printing, cafeteria, recapped automobile tires, automobile repair and management of government office buildings.

Useful links
http://www.env.go.jp/en/index.html
http://www.meti.go.jp/english/

ENERGY SAVING LABELING PROGRAM AND TOP RUNNER PROGRAM IN JAPAN

Energy Saving Labeling Program
Energy Saving Labeling Program ESLP was launched on August 21, 2000 in Japan under the Energy Conservation Law (launched in 1999). According to the Energy Conservation Law, energy efficiency labeling of designated products is mandatory. The label has to contain the product name, model, energy consumption efficiency ratio and power/fuel consumption. In this case the label does not require presentation of energy consumption performance parameters for product as a relative comparison with other products but an achievement rate in relation to the Top Runner target. This approach allows providing consumers with information on energy consumption efficiency that is easier to understand for them and can lead consumers to compare energy efficiencies so that they can select products with higher energy efficiency when making a purchase.

The energy efficiency label template is presented on figure below.

An energy conservation label typically consists of the energy conservation logo in combination with information on target year, achievement rate of energy efficiency standards, and energy consumption efficiency.
The energy conservation logo is colored in orange for a product which does not achieve the target standards of energy efficiency, and while colored in green for a product achieves over 100% of the target standards.
The "achievement rate of energy efficiency standards" is given as a percentage ratio indicating how far the product's energy efficiency is improved from the target value. The Minister of Economy, Trade and Industry designates and promulgates the criteria to serve as judgment guidelines for each product.

Since August 2004 there are 13 target products for the voluntary labeling program. Originally 5 products that are air conditioners, florescent lights, TVs, refrigerators, and freezers were designated in August 2000, and 5 more products including space heaters, gas cooking appliances, gas burning heaters, oil burning water heaters and electric toilet seats were additionally designated in June 2003, and then 3 more products including computers, magnetic disk units and transformers were additionally designated in May 2004.

Top Runner Program in Japan
Because the ESLP is based on the Top Runner Program TRP, it is necessary to underline, that TRP differs from similar programs in most other countries because it does not impose minimum energy performance standards for particular appliances. The Japanese standards set a lower limit for the sales-weighted average efficiency for each product category per manufacturer and importer, while each appliance has to meet the standards with most other country systems.
With TRP based on the revised Energy Conservation Law, the standards are set in Japan according to the efficiency level of the most efficient product commercially available in particular categories. For each manufacturer, the weighted average efficiency of all units shipped within the same category must meet the standards for that category. It also concerns the appliances imported to Japan.
When TRP was launched in 1999, 11 products (air conditioners, fluorescent lights, television sets, copying machines, computers, magnetic disk units, video cassette recorders, passenger vehicles, freight vehicles, electric refrigerators and electric freezers) in machinery and equipment including automobiles, electric appliances and office equipment were originally designated as those to which the Program is applicable.  Then, since April 2003, when the Energy Conservation Law was amended, the TRP was expanded to additional 7 products, which are: space heaters, gas cooking appliances, gas burning water heaters, oil burning water heaters, electric toilet seats, vending machines and transformers (molded). Since August 2005, 18 products are designated.