The election of this summer in Japan took the Liberal Democratic Party (LDP) out of power and brought in the Democratic Party of Japan (DPJ) to take over the Japanese national government for first time in history. This is a revolutionary change in comparison to the U.S. system, where there is a chance for party shifts every few years.
The DPJ has brought a number of new policy ideas, but green policies are especially ones to note. At the UN conference in September this fall, new Prime Minister Hatoyama reported on the new administration’s commitment to a 25% reduction of greenhouse gases by 2020 from what was measured in 1990. This is twice as ambitious a goal when contrasted to the previous LDP administration’s goal and the Kyoto protocol goal. As can be expected, there are strong industry opposition to such a commitment by the new administration, and this is an area that requires a close watch.
Starting this year, there have been various policies put in practice at both the national and the local levels. One example of this is the national solar buy back system, which started on the first of November. As a consumer-based renewable energy incentive, this policy now mandates utility companies to implement a system and provide net metering buy back at twice the regular electricity rate for those who provide solar energy to the grid. This system is funded through a rate hike in regular electricity and calculated so that a homeowner with solar could gain a return on investment in ten year’s time after setup. In recent months, there has been a task force team established within the national government to study an even more drastic policy move towards a total buy back of renewable energy, so as to encourage green industry growth.
Furthermore, government incentives have been put in place for installing solar systems since April of 2009. Due to the discussion about the above mentioned renewable energy buy back, this incentive package is being considered for termination. Heavy lobbying efforts by industries can be expected when it comes to various incentives that will alter consumer behavior. Beyond these big policy moves, there are many more including energy efficient vehicles subsidies and tax incentives, as well as incentives for energy efficient consumer electronics.
The City of Osaka has also implemented various policies and we can say that all green policies in Japan are motivated by these four goals beyond direct emissions reduction.
1) Encourage solar energy generation
2) Encourage energy efficient vehicle markets
3) Encourage businesses to take on green initiatives
4) Raise the awareness of citizens about energy use
Due to an overwhelming number of applicants for the subsidies for solar installation in Osaka, the cutoff date for this year had to be set earlier than initially planned.
Under the new DPJ administration, governments both at the national and local levels are put in a position to continue with the implementation of effective green policies, and it seems that groundbreaking growth can be expected in green industries despite the severe economic situation.