Sectoral Benchmarking

The Industry and Commercial Sector Benchmark System In 2009, revisions to the Energy Conservation Act were made to establish new national energy efficiency benchmarks for selected sectors. Sectors covered include iron and steel, cement, and thermal power plants, pulp-papers, petroleum refinery, petrochemicals and soda chemicals. The benchmarks are set and used as the target standard of the best performing companies (top 10%–20%) in each subsector. Companies in these subsectors are subject to annual mandatory reporting on the status of their performance on the benchmarks. This has to be included in the mid-term reporting to the government required by the Energy Conservation Act. In 2016, the benchmark system was expanded to the commercial sector, starting from the convenience stores. Continually, the government plans to gradually expand the benchmark system to the other commercial sub-sector, such as department stores and tenant offices. Additionally, the benchmark levels for cement, thermal power plants and paper and pulp industry were amended in 2016. Follow-up and Evaluation As for evaluation, survey forms sent in advance to factories are completed by them, and then METI and the Energy Conservation Center carry out an on-site survey at each factory and cross-check the evaluations. If the evaluation shows results are below a certain level, an on-the-spot inspection is carried out, and if the situation is not satisfactory, the factory will be instructed to draw up a rationalization plan in accordance with the article 12 of the law. After FY2017, the benchmark system was expanded to the commercial sector, such as hotel, department store (since FY2017), supermarket, shopping center, rental office businesses (since FY2018). The government plans to introduce the benchmark system for university, pachinko parlor and national government building in FY2019. Altogether, the benchmark system will cover 70% of energy consumption in industry/commercial sectors. Current coverage of sectors are described below. (1) iron and steel, (2) thermal power plants, (3) cement, (4) pulp-papers, (5) petroleum refinery, (6) petrochemicals and soda chemicals, (7) convenience stores, (8) hotel, (9) department store, (10) supermarket, (11) shopping center, (12) rental office businesses, (13) university, (14) pachinko parlor (Japanese pinball game) and (15) national government building.

Want to know more about this policy ? Learn more