JP 's Energy Conservation System (Energy Conservation Act Framework)

Under the Act on Rationalizing Energy Use, businesses whose annual energy consumption reaches 1,500 kiloliters or more in crude oil equivalent are designated as specified businesses. Based on the periodic reports these businesses submit, the Ministry of Economy, Trade and Industry rates and publishes their energy conservation efforts on a four-tier scale (S, A, B, and C) under the SABC rating system. For certain industries, a benchmark system is also applied, setting medium- to long-term energy efficiency targets that businesses are expected to work toward more concretely.

Under the Act on Rationalizing Energy Use and Shifting to Non-Fossil Energy, the Top Runner Program requires manufacturers and importers of specified equipment, including vehicles, home appliances, office equipment, and building materials, to meet an energy efficiency target set by a target year, based on the performance of the most energy-efficient model currently on the market in each category, the "top runner."

Under the Act on Rationalizing Energy Use and Shifting to Non-Fossil Energy (Energy Conservation Act), regulatory measures apply to "specified cargo owners" with annual freight volume of 30 million tonne-kilometers or more and to "specified freight carriers" of a certain scale. Under the amended act effective April 2023, the scope of evaluation was fundamentally expanded from simply reducing fossil fuel consumption to rationalizing energy use across the board, including a shift to non-fossil energy. In addition to improving transport efficiency across their own supply chains, through measures such as modal shift, higher load factors, and joint delivery, specified cargo owners are required to submit medium- to long-term plans and periodic reports on their use of non-fossil energy, such as electric and fuel-cell trucks, biofuel, and sustainable aviation fuel (SAF).

The Act on Rationalizing Energy Use and Shifting to Non-Fossil Energy (amended Energy Conservation Act), which took effect in April 2023, is a fundamental reform that shifts the focus of evaluation from reducing fossil energy consumption to promoting a shift to non-fossil energy and optimizing electricity demand (demand response). Specified business operators with annual energy use of 1,500 kl or more per year in crude oil equivalent are required to submit medium- to long-term plans and periodic reports on increasing their use of non-fossil energy sources, such as solar and wind power, hydrogen and ammonia, and biomass.