Policy development and perspectives on circular economy in Japan

Japan-EU Cooperation in the Era of International Order Transformation: In Search of a Stable World System

The 20th Annual Japan EU ConferenceBrussels

Masachika Suzuki, Ph.D.Graduate School of Global Environmental Studies

Sophia UniversityInstitute for the Advanced Study of Sustainability

United Nations University

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Outline:

1. Policy development in Japan: Basic Act on Establishing a Sound Material-Cycle Society

2. Material flow (plastics and E-waste) and resource circulations within and outside of Japan

3. How can we cope with circular economy in the EU and Japan?

4. Suggested areas for co-operations between EU and Japann Global supply chainn Labelling

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Policy development in Japan

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Law for the promotion of effective use of resources Designated 69 products including personal computers

Establishing a voluntary collection and recycling system by manufacturers

Promotion of activities on 3R

on the whole

Basic Law on establishing a sound material-cycle society Basic Plan on establishing a sound

material-cycle society (revised in May 2013)

Basic Framework

①reduce generation (reduce)②Reuse③Recycle④thermal recovery⑤appropriate disposal

Basic principles

Appropriate treatment of

wasteWaste management and public cleansing law

Responsibility of municipality in treatment of household garbage, permit system for waste management companies, and setting up of standards for waste management, etc.

Containers and packaging material

recycling law

Home appliances

recycling law

End-of-life vehicle

recycling law

Food matters recycling law

Construction materials

recycling law

Glass bottles, PET bottles, paper and plastic

containers and packaging materials

Air-conditioners, refrigerators/freezers,

TVs, washing machines/dryers

Food residues

automobiles Wood, concrete and asphaslt

Cost sharing by manufactures and

distributors

Cost sharing by generators

(consumers)

Cost sharing by generators (operators)

Legal system addressing individual

issues facing challenges

Measures on Containers & packaging accounting for 60% of household waste

Measures on bulky and large waste

Measures on other large and mass disposed waste

Special measures for designated

businesses under waste mgt. law

Utilization of rare metals contained in small electrical devices

Small electric devices

Small elec. Devices

recycling law

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Legal Framework on RE(Resource Efficiency)○Recycling law on individual products are devised for the products facing issues and challenges after disposal.

(Source: Ministry of Economy, Trade and Industry)

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Policy development in Japan

Key points in the draft paper for the next Basic Act on Establishing a Sound Material-Cycle Society (����������) (released on Sept. 13 2017)

n To promote the items adopted under the Toyama Framework and SDGs.

n Sound Material Cycle Society: coordination with Low Carbon Society, Society in Harmony with Nature.

n Focus on region-specific needs and characteristics: To better understand each flow of recyclable materials including plastics and consider ”regional resource circulation models” that may be suitable for conditions in each region.

n Based on the needs of developing countries, to promote the use of Japanese environmental technologies and (infrastructure) systems such as waste-to-energy system, recycling, and treatment of household wastewater.

n To promote the concept of sharing economy.

(Source: Ministry of the Environment Japan)

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Policy development in Japan

Key points in the draft paper for the next Basic Act on Establishing a Sound Material-Cycle Society

n To encourage resource circulations based on life-cycle perspectives.

n To promote industries with high resource productivity as well as industries for 2R such as sharing and re-manufacturing.

n To highlight policy mix including the adoption of EPR, promotion of voluntary actions, use of economic incentives, information dissemination, and building partnership with business.

n To cope with the issues related to microplastics in the marine environment, reduce the volume of disposable plastic packages, enhance awareness for separate after use, and implement policies for proper disposal.

(Source: Ministry of the Environment Japan)

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Policy development in Japan

Draft Paper Section 3: Resource circulations based on life-cycle perspectives

n Resources among various materials including plastics.

n Food: reduction of food waste linked to SDGs.

n Metals including base metals and rare metals: For 2020 Tokyo Olympics, to encourage interests in society for recycling small household electronic appliances and produce Olympics medals (gold, silver, bronze) from the materials collected from “urban mines.”

n Construction materials: To reduce construction waste through refurbishment of existing houses considering the direction for the low carbon society and resilient society.

n Products and materials promoted as mitigations efforts for climate change.

Many points and areas in common with EU’s circular economy?

(Source: Ministry of the Environment Japan)

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Overall material flow in Japan

(Source: Ministry of the Environment Japan)10

Material Flow in Japan

source：Annual Report on the Environment, the Sound Material-Cycle Society and Biodiversity in Japan 2015(Ministry of Environment)

z Circularity usage is increasing (213 -> 244 Million tons)

FY2000Imported products(48)

Imports(800)

FY2012

Imported resources

(752)

Domestic resources(1.125)

Input of natural resources(1.925)

Input of all materials(2.138)

Water content, etc.

(299)

Circularity usage(213)

Exports(120)

Accumulated net increase

(1.110)

Energy consumption and industrial process

emissions (500)

Food consumption (97)Natural reduction(85)

Generation of

waste(595) Waste reduction

(241)

Fertilization(16)

Final disposal

(56)

(Unit: Million tons)

Imported products(60)

Imports(800)

Imported resources

(741)

Domestic resources

(561)

Input of natural resources(1.361)

Input of all materials(1.606)

Water content, etc.

(260)

Exports(179)

Accumulated net increase

(529)

Energy consumption and industrial process

emissions (504)

Generation

of waste(554)

Waste reduction

(209)Final

disposal (18)

Fertilization(14)

(Unit: Million tons)

(Note) Water content, etc.: Water content in waste (sludge, animal manure, excrement, waste acid, and waste alkali) and input of earth and sand accompanyingeconomic activities (sludge from the mining industry, construction industry, and water supply business, and slag from the mining industry)

Circularity usage(244)

Natural reduction(82)

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Regional resource circulation models

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農山村、漁村を中心とした循環圏で、農林業や水産業に由来するバイオマス資源の地産池消的な利活用を推進します。また、都市や動脈産業と連携した循環システムを構築する。

里地里山里海地域循環圏のイメージ

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人口集積の多い都市エリアでは多種多様な循環資源を排出。都市近郊の農村地域、静脈産業集積地（エコタウン等）や動脈産業の集積（臨海部工業地帯等）のエリアとも連携をはかりながら、効率的な資源循環を構築していく。

都市・近郊地域循環圏のイメージ

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静脈産業地域循環圏のイメージ

セメント、鉄鋼、非鉄精錬、製紙等の基幹産業の基盤やインフラをこれまで以上に活用しながら、循環資源を大量に抱えもつ大都市エリアとの物流システム等を高度化させ、より効率的な循環システムの構築やエネルギーの利活用システムを高度化させていく。

地域循環圏とは、「地域の特性や循環資源の性質に応じて、最適な規模の循環を形成することが重要であり、地域で循環可能な資源はなるべく地域で循環させ、地域での循環が困難なものについては循環の環を広域化させることにより、重層的な循環型の地域づくりを進めていく」という考え方。

つまり、廃棄物等の適正な処理を前提としつつ、循環資源そのものや地域特性などに対し、従来からの見方や捉え方を変えることで、これまで未活用であった循環資源を最適な規模で循環させることができ、重層的な循環型の地域を作ることができるといったものである。

平成25年5月に策定された「第三次循環型社会形成推進基本計画」では、「循環型社会形成に向けた取組の中長期的な方向」の一つとして資源効率性の高い社会経済システムの構築を掲げており、この実現に向けた国の取組として「地域循環圏の高度化」が挙げられている。

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図 地域循環圏がもたらす効果 図 地域循環圏の広がりイメージ

地域循環圏とは

(Source: Ministry of the Environment Japan)

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How can we cope with circular economy in the EU and Japan? (my views)

n Understanding new technologies, products and services from the holistic social perspectives.

n Understanding changing trends of people’s values, perceptions and expectations.

n Understanding changing trends of possible policy instruments.

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Conceptual framework

(Source: Geels, F. W., & Schot, J. (2007). Typology of sociotechnical transition pathways. Research Policy, 36(3), 399–417. )

(Source: Wustenhagen, R., Wolsink, M., & Burer, M. J. (2007). Social acceptance of renewable energy innovation: An introduction to the concept. Energy Policy, 35(5), 2683–2691. )

Understanding social acceptance Transition management

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n Leasing economy or sharing models are more popular: car sharing, house sharing, rental businesses for electronic products

n Household waste separation and the charging system are widely diffused.

n Improved housing design with better insulation and double glazed windows.

n Excessive (plastic) packaging: the charging system is not diffused yet.

n Green consumerism in Europe is not being developed yet in Japan: low level of interest in labelling schemes such as RSPO and FSC.

Changes in people’s values, perceptions and expectations in Japan

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Changes in policy trends

(Source: Hotta, Y. and Koide, R. (2017), "Repackaging Sustainable Consumption and Production (SCP) Policies into Sufficiency Approach" in ISIE/ISSST 2017, Chicago, June 25-29, 2017)

2.EfficiencyApproach

BasicInfrastruc

ture

Production

Waste/Recycling

Policyforchangeinprovisionsystem

Conventional Transition-oriented

Pollutionpreventio

n

Eco-efficiency

Industrialecology,eco-design,

refurbish/remanufacture/reproduce

Soundtreatmen

tRecycle Reduce,

reuse

Zeroemissions,zerowaste

PublicTransport

Smart/compactcity

Awarenssraising

Informationprovision/green

procurement

Oneplanetliving

CircularEconomy

1.Pollutionprevention/basicneedsApproach

Socialmedia/IoT/Big-data

ProductLifecyclePolicy

3.Sufficiency Approach

ShiftinPolicyTrends

Infrastructure

lifestyleCarsharing,ridesharing,sharehouse

Reflectiveconsumptio

n

Multi-platformincollaborationwithAI

Order-madeproductbasedonconsumer’s

demand

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Existing differences and possible areas for co-operations between EU and Japan

n Comparative analysis of recycling efforts between EU and Japan

n Possible impacts of EU’s circular economy policies on Japanese business

n Working on the global supply chain together: more integrated labeling and certification schemes

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Management of global supply chain is the key.

Developing countries

(Production & Consumption)

Developed countries

(EU, Japan)

(Consumption & Production)

Diamond: Kimberly certification

Palm oil: Roundtable certification

Coffee: Shade-grown coffee

E-waste: Prior Informed Consent

Products with High GHG emissions:

How do we count the emissions?

Labor conditions: Fair trade

How can we make sure the conditions?

Global supply chain

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n Labelingp Organic

n Certificationp FSC (timber)p RSPO (palm oil)

n Ratingp LEED (building)p Energy Star (energy efficiency

rating)n Membershipn Award

(Source: worldwildlife.org)

(Source: blogs.colgate.edu/)

Voluntary schemes are being used in many sectors including food, energy, service (hotel) and retail.

Labeling and certification schemes

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Concerns: The growth in Environmental Labeling Information Schemes (ELIS) may reduce environmental performance relative to a single label with strict environmental goals (OECD, 2016). Some harmonization are underway but more harmonization is necessary (ex. ASEAN SHINE partnership between UNEP and ICA) but not enough. --- EU’s experience in the coordination among member states are valuable.

Malaysia Malaysia Philippines Singapore Thailand Japan

Singapore Thailand Vietnam Japan

Labeling and certification schemes

Possible inter-linkages and nexus with other SDGs--- “SDG certification”?

(Source: Malaysian Palm Oil Certification Council)

Labeling and certification schemes

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Thank you so much! For questions and discussions, please contact:

Masachika Suzuki. Ph.D.Graduate School of Global Environmental StudiesSophia UniversityEmail: suzuki@genv.sophia.ac.jp

Acknowledgement: Mr. Go Kobayashi at the Mission of Japan to the European Union kindly provided some materials that are used in this presentation. The presenter wishes to thank for his support.

Disclaimer: Some of the notes in this presentation material are translated by the presenter from Japanese to English. Some of the translation may not be accurate and shall not be cited.

Policy development and perspectives on circular economy in Japan

Japan-EU Cooperation in the Era of International Order Transformation: In Search of a Stable World System

The 20th Annual Japan EU ConferenceBrussels

Masachika Suzuki, Ph.D.Graduate School of Global Environmental Studies

Sophia UniversityInstitute for the Advanced Study of Sustainability

United Nations University