Promoting Green IT in Asia

Yasushi Sumitani Director

Office for Environmental Affairs and Recycling Digital Consumer Electronics Strategy Office

Commerce & Information Policy Bureau METI, Japan

25 October 2012

Contents

1. Need to Promote Green IT

2. Green IT Initiative in Japan

3. Challenges and Solutions in Promoting Green IT in Asia

4. Promotion of International Collaboration and Cooperation

1. Need to Promote Green IT

IT’s Contribution to Combating Climate Change

1

Outline of Information Technology Agreement (ITA)

The ITA is an arrangement eliminating ITA member countries’ tariff concessions for 144 IT products classified based on six-digit HS codes. The ITA was concluded by 29 participants (accounting for 83% of world trade in IT

products) at the Singapore Ministerial Conference in December 1996 and entered into force in 1997. At the Symposium on the 15th Anniversary of the Information Technology Agreement

held 14-15 May 2012 in Geneva, 75 countries and regions agreed to launch negotiations on the expansion of product coverage.

Membership: 75 countries and regions currently participate in the ITA (accounting for 97% of world trade in IT products) 75 countries/ regions participating in the ITA (EU includes 27 countries; Switzerland includes Lichtenstein.)

Albania Guatemala Malaysia Singapore Australia Honduras Mauritius Switzerland Bahrain Hong Kong, China Moldova Chinese Taipei Canada Iceland Montenegro Thailand China India Morocco Turkey Colombia Indonesia New Zealand Ukraine Costa Rica Israel Nicaragua United Arab Emirates Croatia Japan Norway United States Dominican Republic Jordan Oman Vietnam Egypt Korea Panama El Salvador Kuwait Peru European Union Kyrgyz Republic Philippines Georgia Macao, China

Saudi Arabia

2

3

Outline of ITA

Robust Growth in ITA Trade

00.5

11.5

22.5

33.5

4(trillion:$)

(year)

$1.2 trillion

$4.0 trillion

Source: US International Trade Commission

>3 times

ITA and non-ITA total trade, 1996-2008

ITA products >3 times

1996 2008

Since the ITA was established, it has contributed to the expansion of world trade and the advance of the world economy.

Trade in IT products tripled in volume over 12 years. Participation also expanded to 75 countries/regions, accounting for 97% of world trade.

2. Green IT Initiative in Japan

Green IT Initiative In Japan ○ METI hosted the Green IT Initiative Meeting in December 2007, proposing that government,

industry and academia join forces to develop a national green IT movement pursuing energy efficiency in IT and energy efficiency in society through green IT. The Green IT Promotion Council was established in February 2008 to coordinate this movement.

Enhanced collaboration among industry, academia and government

International collaboration and cooperation

■ Education on and promotion of green IT

■ Consideration of methods for evaluating the environmental contribution to society

■ Green IT International Symposium

■ Collaboration with overseas organizations

■ Green IT Promotion Council (established 1 Feb. 2008)

■ Breakthroughs using innovative technologies

・Collaboration with US & European companies and consortia

Collaboration among IT and electronics-related associations, technology development institutions, universities, government departments and other parties. Around 300 groups and companies currently participate in the GIPC.

・Cooperation with Asian industry and government

Government initiatives

Green IT Initiative

4

Promotion of the Green IT Project

5

1. Top Runner Program

○ The Energy Conservation Law stipulates energy conservation standards for consumer electronics and vehicles, etc., based on the top runner method. Manufacturers and other parties must comply with these standards. Non-compliance is addressed with recommendations, public announcements, orders and/or penalties.

Specific Equipment (23)

1. Passenger vehicles

2. Freight vehicles

3. Air conditioners

4. TV sets

5. Videocassette recorders

6. Fluorescent lights

7. Copying machines

8. Computers

9. Magnetic disk units

10. Electric refrigerators

11. Electric freezers

12. Space heaters

13. Gas cooking appliances

14. Gas water heaters

15. Oil water heaters

16. Electric toilet seats

17. Vending machines

18. Transformers

19. Rice cookers

20. Microwaves

21. DVD recorders

22. Routers

23. Switches

Fuel Economy (km/L)

Energy conservation standard based on the Top Runner Program

Standard Setting FY Target FY

19km/L

18km/L

17km/L

15km/L 15km/L

14km/L

13km/L

12km/L

16

Achievement is judged by weighted average per product category.

Example of Top Runner Program

*Top Runner Program: The concept of the program is that fuel economy standards for vehicles and energy conservation standards for electric appliances, etc. shall be set exactly the same as or higher than the best standard value of each product item currently available on the market.

Fujitsu Limited

FGCP/S5 cloud computing platform that helps conserve the global environment

Internet Initiative Japan Inc.

Matsue Data Center Park

NTT Data Intellilink Corporation, Japan Radio Co., Ltd.

and NTT Data Corporation

Ultra energy-saving power supply system for data centers

2. Promoting Energy-saving Technologies and Products (2/2) (Establishing Green IT Award)

○ The Green IT Promotion Council established the Green IT Award in 2008 to promote green IT efforts by industry and academic bodies. The award consists of “The Minister of Economy, Trade and Industry Award” and “Commerce and Information Policy Bureau Director-General Award”, etc. for “of IT” and “by IT”

of IT Minister of Economy, Trade

and Industry Award Minister of Economy, Trade

and Industry Award

Commerce and Information Policy Bureau Director-General

Award

Commerce and Information Policy Bureau Director-General

Award

by IT

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【Aims】(1) Reduce carbon emissions; (2) stimulate the economy; and (3) encourage the diffusion of digital terrestrial broadcasting TVs

3.1 Home Appliance Eco-Point Scheme

7

Home appliance store

Air conditioner

TV

Fridge

Guarantee, receipt, etc.

CO2 reduction

Purchase/replacement of energy-saving home appliances As of 15 May

Delivery PC

Eco-Point Office ＜Exchange menu＞

(1) Gift cards and pre-paid cards usable nationwide (provided by businesses making an environmental donation or otherwise considering the environment) (2) Local product vouchers or products contributing to regional prosperity (3) Products with excellent energy efficiency or eco-friendly performance (4) Donations to environmental organizations

Eco-point application

Eco-point exchange product

Request financial support

Consumer

Provide financial support

Provide financial support

Fund Government

Environmental Partnership Council < No. of Eco-Points > Air conditioner Fridge Television

Purchase of product with four or more stars on the unified eco-label

6,000-9,000 (Three levels according

to cooling capacity)

3,000-10,000 (Four levels according to

capacity)

7,000-36,000 (Five levels according to

screen size) + recycling of used product 3,000 5,000 3,000

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≪ Diffusion of DTB TVs ≫ ○ Aggregate shipments of DTB TVs in Japan have increased approx. 2.2 times. ○ Aggregate DTB TV shipments have greatly exceeded the diffusion target.

■ A scheme issuing “eco-points” for purchasers of DTB TVs, air conditioners and refrigerators with eco-labels indicating four or more stars was launched in May 2009 for the purpose of (1) effecting global warming countermeasures, (2) stimulating the economy and (3) diffusing DTB TVs. The purchase deadline was March 2011. (Since January 2011, points have been issued only for the replacement of home appliances with five-star appliances.)

■ Using a budget of about ¥693 billion, eco-points have been issued in about 45 million cases totaling about ¥640 billion. ■ Environment conservation donations have reached about ¥1.05 billion and donations to support areas affected by the

Great East Japan Earthquake about ¥100 million.

System Outline

≪ Promoting global warming countermeasures ≫ ○ Major increase in ratio of green home appliances with 4 or more stars on the unified eco-label to total shipments

○ Diffusion of green home appliances estimated to have reduced CO2 emissions by about 2,700,000t-CO2/year.

≪ Stimulating the economy ≫ ○ Sales of three green home appliances (flat-panel TVs, air conditioners & refrigerators) up by approx. ¥2.6 trillion. ○ An economic ripple effect of about 5 trillion yen, or approx. sevenfold the budget ○ This economic effect is maintaining and creating employment for about 320,000 persons/year.

Policy Effects ■ Increased sales of DTB TVs, as well as air conditioners and refrigerators, and a major contribution to

the replacement of existing home appliances with more energy-efficient appliances

3.2 Effects of the Home Appliance Eco-Point Scheme

Smart meters (Low-quantity consumers: medium-ranked firms and SMEs, etc.)

Government Corporations, etc.

Subsidies (1/3 if commitment to 15% power-saving is achieved, etc.)

Energy use information

BEMS system provision

9

4. Energy-Related Measures in Japan Support for power-saving in households and SMEs

1. Concentrated introduction of home solar power generation systems Subsidies to support the introduction of photovoltaic generation in homes and fund-creation projects for recovery measures - Subsidizes part of the cost for parties installing residential solar power generation systems 2. New support measures for introduction of fixed-type lithium-ion batteries Project supporting the introduction of fixed-type lithium-ion batteries - Promotes the introduction of fixed-type lithium-ion batteries into households and businesses to reduce power use peaks on the demand side and provide a back-up during power cuts. 3. New support measures for the introduction of HEMS and BEMS Project supporting the introduction of energy management systems* - To promote power demand constraint efforts in conjunction with the introduction of smart meters, subsidies are provided to high-pressure, low-quantity power consumers (like SMEs) and households, etc., for the introduction of energy management systems (BEMS, HEMS*). * Products using sensors and IT to enable consumers to use energy more efficiently. Individual devices are linked together into a system for smart and efficient energy management and control. Building energy management systems (BEMS) are being introduced into SMEs, and home energy management systems (HEMS) into households.

BEMS introduction (Commitment to 15% power-saving)

(Energy use information Energy management and

control business

Subsidies

10

5. Examples of Leading-Edge Infrastructure Development in Japan

Outline of EV/PHV Town Concept

Networking charging stations

he EV/PHV Town Concept is a model project for trials toward full-fledged dissemination of electric vehicles (EV) and plug-in hybrid vehicles (PHV), and is part of the Action Plan toward a Low-Carbon Society.

Creating initial demand for EVs and PHVs will require working intensively to improve charging infrastructure and educate the public, so local authorities leading the way in EV and PHV dissemination have been selected as model regions, or EV/PHV Towns.

EV/PHV Towns work with local companies and other parties on intensive EV/PHV introduction and development of the necessary environment, establishing dissemination models tailored to regional characteristics which can then be pursued elsewhere in Japan.

Osaka Prefecture

Some EV/PHV Towns are looking to the future and leading the way in developing charging facilities linked into communications networks with reservation and authentication systems.

Town-building: Osaka Charging Infrastructure Network Early introduction of a reservation/authentication system toward full EV dissemination and future billing In March 2008, Osaka led the world in using telecommunications infrastructure to link different

manufacturers’ charging stations, enabling drivers to make charging reservations from their mobile phones and handle authentication using their FeliCa cards.

Connecting up the three system vendors had the system operating across 35 charging stations—29 in Osaka (24 rapid chargers) and seven in the Kobe/Kyoto area (four rapid chargers)—as at the end of December 2009.

Nissan Leaf’s car navigation system supplies information on the status of rapid chargers in real time. Efforts are underway to link the whole Kansai area and then widen the network still further out to the

Kinki area and elsewhere.

Communications network Data center EV user Commercial facilities, etc.

3. Challenges and Solutions in Promoting Green IT in Asia

11

Challenges in Green IT Dissemination in Asia

1. Dissemination of green IT in Asian countries Dissemination of green IT in Asia will require the creation of a framework within which Asia Green IT Forum participants can pursue their own measures. 2. Elimination of barriers to green IT dissemination Dissemination of green IT products will require establishing the right conditions for trade expansion, including eliminating tariffs.

3. Offering incentives Companies need to be offered incentives that reduce initial investment costs and electricity charges when green IT products are introduced. 4. Trialing green IT Companies don’t know about green IT and buy non-green IT products on the basis of price alone, not realizing that they could face steeper costs as a result. They need to actually try using green IT and confirm what human resources they will need.

5. Standardizing data center metrics Global standards for data center metrics are needed to confirm data center efficiency.

6. Human resource development Companies can boost safety, save energy and improve power efficiency through the introduction of green IT, but they also need human resources with the knowhow to operate those technologies.

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Solutions 1. Establish joint government-private sector organizations Countries need to cooperate with each other, including sharing information on best practices, to encourage the establishment of

joint government-private sector organizations on a national basis. They also need to hold green IT seminars to boost awareness and understanding of green IT and encourage further dissemination.

2. Mutual cooperation to promote ITA expansion Expansion of the ITA will boost the unimpeded distribution of IT and electronic products with outstanding environmental performance and contribute significantly to promoting green IT. The Asian countries should therefore work together toward the early conclusion of ITA expansion negotiations. 3. Implementing dissemination measures and support for green IT introduction Creation of compulsory energy efficiency policies like those of Japan, including the front runner method and penalties for non- compliance. The environment needs to be developed to facilitate green IT introduction, such as awards for companies introducing green IT, subsidies and other incentives for green IT introduction, and systems such as eco-points. 4. Energy-saving analyses It will be important to subject as many products as possible to energy-saving analyses, providing a first-hand understanding of the need for green IT. 5. Standardization of data center metrics Because PUE has little clear role or effect in terms of energy-saving or reducing carbon emissions, DPPE will be established as a new energy-saving standard for data centers that reflects the efficiency of IT devices. 6. Human resource development Human resources need to be developed with the knowhow to operate green IT.

4. Promotion of International Collaboration and Cooperation

○我が国の取組みを2国間、多国間など多様な場を活用して、推進。

EU

Asia

APEC (Asia Pacific Economic Cooperation)

Japan–US–EU cooperation on data center energy efficiency metrics

Standardization at IEC, ISO and ITU

U.S.

OECD

・ Asia Green IT Forum ・Asia Green IT Seminars

GIPC participation in the ICT4EE in Europe

Korea

MOU between GIPC* and its Korean counterpart

Japan

*GIPC＝Green IT Promotion Council

International Cooperation and Collaboration

○ Japan is pursuing efforts in a range of arenas, including bilateral and multilateral formats.

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4.1 International standardization of DPPE as data center energy efficiency

metric

○The Green IT Promotion Council has concluded memoranda of understanding with the Green Grid (US) and BCS (The Chartered Institute for IT) (Europe).

○The 7th workshop on effective metrics for measuring and assessing the energy efficiency of data centers was held in Japan in October 2012, with delegates from public and private-sector entities from Japan, the US and Europe.

METI 2 workshops held

every year

Cooperation Results of the October 2012 workshop: Confirms that DPPE proposed by Japan is an important approach to evaluate the entire data center Issues a written agreement that DPPE, along with other metrics, is to be examined in detail globally

US：EPA/DOE

Europe：CoC

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Promoting DPPE（Datacenter Performance Per Energy）as an international standard: Partnership amongst Japan, the US and Europe

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① Promote energy conservation in facilities（PUE） ② Promote the utilization of natural energy （GEC) ③ Promote energy conservation in IT equipment used in data

centers （ITEE) ④ Promote energy conservation through operations （ITEU)

Data Center

① Air-conditioners, power supply devices, power generators, lighting

Electricity Gas Fuel Cold water

Exhaust heat

Input energy

Output

Photovoltaic energy Wind energy

Energy

Natural energy

Facility

IT equipment ③ Servers, storage, network devices

Work ④ Operations, virtualization, power-saving operations

Work

Input energy

＝ ＤＰＰＥ

Goals of DPPE （Datacenter Performance Per Energy）

All Rights Reserved, Copyright © GIPC 2012

Definition of DPPE and its Four Sub-metrics

All Rights Reserved, Copyright © GIPC 2012

IT Equipment Utilization (ITEU)

IT Equipment Energy Efficiency (ITEE)

Power Usage Effectiveness

Green Energy Coefficient

(PUE)

(GEC)

Sub-metric name Basic definition Corresponding action

= • Effective operation of IT equipment

Σ (IT equipment rated capacity) Σ(Rated Energy Consumption of IT equipment)

= • Installation of energy efficient IT equipment

DC Total Energy Consumption Σ (Energy Consumption of IT Equipment) =

• Energy saving in facility

= Green energy

DC Total Energy Consumption

• Use of Green Energy

DPPE＝ITEU×ITEE×（1／PUE）×（1／（1－GEC）

IT energy measured

IT energy max

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4.2 Support from Japan

Dissemination of Best Practices collections

Green IT seminars

Dispatch of green IT energy-saving survey missions

Green IT workshops, training for surveyed companies

The government of Japan arranges surveys on energy saving “by IT” which utilize advanced Japanese energy saving/control technologies in Asian countries.

GIPC member companies conduct surveys in the following facilities.

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① Survey on Energy Saving “by IT” in Asia

For projects of Energy Saving program

Toshiba

Economic and energy-saving operations of power generations

Stabilization and energy-saving operations of transmission systems

Communication infrastructure requirements for power-energy-saving

<Brunei>

NTT Data Intellilink Facility of data center

(power supply, air-conditioning, lighting)

Countermeasure to power supply losses

Proposal of High Voltage Direct Current(HVDC) Power Supply system

- Implementation of measurement of DPPE

<Malaysia>

Azbil Possibility of

replacement of equipment and introduction of BEMS (building energy management system) for office building by visualizing power consumption for heat source , air-condition equipment, lighting etc.

<Malaysia>

Yokogawa Electric

Plant with no integrated management of equipment and operation

Estimation of energy saving by IT solutions without significant replacement of facility

<Malaysia>

Data Center Public facilities/Buildings Plants/Factories

18 All Rights Reserved, Copyright © GIPC 2012

As part of the “Support Project for Using IT to Enhance a Knowledge Economy in Asia (Green IT promotion),” METI and GIPC promoted energy-saving surveys in Asian countries and helped Japanese companies develop business there by emphasizing energy-saving effects with their energy-saving and control technologies. We also held seminars and assisted business meetings in Vietnam and China, where 8 diagnosing companies reported their survey results and potential in energy saving for data centers, public facilities and plants.

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Holding Asia Green IT Seminars

All Rights Reserved, Copyright © GIPC 2012

Dates: February 13, 2012 in Hanoi, Vietnam February 16, 2012 in Beijing, China

Trainees of green IT professionals from industry, business and government sectors from Asian countries were invited to Japan to learn about green IT initiatives and cases.

<2011 October 7-14 > Trainees: 30 people / China, Singapore, Vietnam, Malaysia, Thailand, India, Indonesia and the Philippines.

<2012 October 1-5 > Trainees: 20 people / Malaysia and India

All Rights Reserved, Copyright © GIPC 20

② Developing Green IT professionals in Asia 1/2 – Training in Japan –

An expert from Japan was sent over to conduct seminars and site visits to Local companies, presenting an overview of green IT in Japan and some specific cases.

◆ Period 1) 2011 Dec and 2012 Jan: Malaysia KL 2) 2012 Aug : India Delhi, Bangalore ◆ Counterpart 1) Malaysia Green Technology Corporation 2) Manufactures’ Association of IT (MAIT) Petroleum Conservation Research Association (PCRA) ◆Seminar Program Content ・Japan’s green IT policies, GIPC efforts ・Measuring and predicting the energy-saving effect of green IT ・Specific green IT cases （data centers, plants, buildings）

All Rights Reserved, Copyright © GIPC 2012 21

② Developing Green IT professionals in Asia 2/2 – Expert Dispatch Program –