[Title] Joint Statement between the Planning Commission of India and the Ministry of Economy, Trade and Industry of Japan on the Occasion of the Second Meeting of the India-Japan Energy Dialogue
H.E. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission of India and H.E. Akira Amari, Minister of Economy, Trade and Industry of Japan held the second meeting of the "India-Japan Energy Dialogue," a periodic ministerial-level energy policy dialogue between India and Japan, in Delhi.
The issues of climate change, energy efficiency and energy security were discussed at the G-8 Heiligendamm Summit in June as one of the top priority issues, to which H.E. Dr. Manmohan Singh, Prime Minister of India was also invited. H.E. Mr. Shinzo Abe, Prime Minister of Japan shared the importance of 'Cool Earth 50' at this Summit.
This second meeting of the India-Japan Energy Dialogue had considerable significance in view of the importance that both sides attach to cooperation in the area of energy.
1. Both sides discussed and arrived at a common recognition on the following points during the meeting:
(1) Humanity faces a very important challenge of concurrently achieving response to climate changes and sustainable economic development, and implementation of measures in the energy sector, including improvement of energy efficiency, is essential for addressing this issue.
(2) The most efficient and effective means of creating a virtuous cycle of energy security, economic development and environmental protection is to promote energy efficiency and conservation measures, as well as further development of the energy infrastructure.
(3) Cooperation in the energy sector is important to the relationship between India and Japan, and further cooperation in this sector between the two countries at both the government and industry levels would be mutually beneficial. It is important for both countries to develop specific cooperation projects in the energy sector, including cooperation in clean energy and in energy efficiency and conservation through exchange of experts and capacity building, as well as through the participation of Japanese companies in the power sector in India. Therefore, both sides will work to actively promote cooperation in these fields.
(4) Partnership efforts will be strengthened in the East Asia Summit (EAS), the Asia-Pacific Partnership on Clean Development and Climate (APP), and the Five Energy Ministers Meeting, which is scheduled to be held in Japan in June 2008, in order to ensure energy security and improve energy efficiency through these multilateral frameworks. Based on the "Cebu Declaration on Energy Security in East Asia" adopted at the Second East Asia Summit, both sides agreed to set individual goals and formulate action plans voluntarily for improving energy efficiency.
(5) The Ministry of Economy, Trade and Industry of Japan (METI) will actively support enhanced cooperation between the International Energy Agency (IEA) and India in areas such as promotion of energy efficiency and conservation , oil stockpiling and so on.
(6) Both sides recognized that India is actively pursuing energy efficiency enhancement measures through a range of policy initiatives, including labelling of appliances, launching of an energy conservation building code and establishing a process of audit and reporting of energy use in energy intensive industries and establishments.
2. In the meeting, both sides reached a conclusion on the following cooperation in order to concretize the common recognition set forth in 1 above and to build cooperative relationship in environment and energy sectors between the two countries. Ahead of the meeting, the five Working Groups and the Steering Committee established under the Energy Dialogue held meetings on June 28 and 29. A Joint Report prepared by the two chairs of the Steering Committee on the outline of the results of these meetings is attached hereto as an Annex.
(1) Cooperation in the energy efficiency and conservation sector
(i) Both sides will enhance cooperation on energy efficiency and conservation between India and Japan by effectively using the Energy Efficiency Working Group established under the Energy Dialogue.
(ii) METI highly values that India has enacted the Energy Conservation Law in 2001, which obligates reports on energy consumption and audit by energy auditors for 15 designated energy-intensive sectors and, by stipulating an approach using energy consumption norms, obligates these designated sectors to reduce their specific energy consumption through the enhancement of these policies eg.{sic} appointment or designation of energy managers, energy audits conducted by accredited energy auditors, implementation of techno-economically viable recommendations and submission of the reports on steps taken. India will accelerate this policy implementation and METI will support promotion of such efforts through capacity building and other measures described in v){sic} and vi){sic}.
(iii) Both sides will accelerate the formulation of energy efficiency and conservation policy respectively and will prepare collaborative working plans to enhance the policy implementation, that will be reviewed from time to time.
(iv) METI, the New Energy and Industrial Technology Development Organization (NEDO), the Energy Conservation Center, Japan (ECCJ) and other organizations will actively cooperate on energy efficiency and conservation issues with Ministry of Power / Bureau of Energy Efficiency and with other stake holders, as decided mutually to achieve the efficiency and conservation policies and activities on the basis of the above Working Group discussions.
(v) METI will cooperate to support energy audit evaluations in specific industrial sectors (iron & steel, cement, etc), which can also serves as APP projects and to facilitate the smooth implementation of model projects (e.g., the ongoing Coke Dry Quenching [CDQ] Model Project in the iron and steel sector), which will be carried out by NEDO. In addition, METI will provide training on energy efficiency and conservation policy and technology for 200 trainees over the next three years as well as dispatch experts and hold workshops on industrial energy efficiency and conservation technology through relevant organs and/or bodies including the ECCJ.
(vi) METI will dispatch an expert on a long term basis to the Bureau of Energy Efficiency (BEE) of the Ministry of Power of India through the ECCJ, considering that the long-term dispatch of an energy efficiency and conservation expert to the BEE for half year since from October 2006 was highly valued by the Indian side.
(2) Cooperation in the electricity and coal sectors
(i) Both sides highly value the India Coal Preparation Workshop held by the Japan Coal Energy Center (JCOAL) in December 2006, the Workshop of the India-Japan Electricity Task Force held in Delhi in March 2007 by the initiation of METI, and the seminar and the presentations on coal and electricity, including clean coal technology (CCT), ultra-supercritical coal-fired power generation technology and grid management technology, held in Delhi as Working Group meetings ahead of this Energy Dialogue.
(ii) Both sides welcome with great expectations the commencement of a new feasibility study on coal preparation model project, with relevant parties confirming their intention, in this Energy Dialogue, to make efforts for the implementation of the model project, which would be conducted by NEDO and the Ministry of Coal of India as a significant project in the electricity and coal sectors.
(iii) The Indian side highly values the fact that the CCT training project implemented by NEDO has accepted 34 trainees from India to date (FY2001 to FY2006). METI and NEDO will expand the CCT training project with the launch of a small expert training exclusively for Indian trainees starting this fiscal year, based on requests from the Indian side. Information exchange for further cooperation in strengthening coal mining safety features in Indian coalmines with specific reference to underground wireless communication, instrumentation and monitoring systems for mine gases, fires, inundation and strata monitoring would be explored.
(iv) Both sides welcome conclusion of the exchange agreement on fields including power generation and the environment between Japanese and Indian electricity companies in February 2007.
(v) Both sides welcome establishment of companies that manufacture and/or sell high-efficiency coal-fired power generation facilities (supercritical coal-fired power generation facilities) by private companies of the two countries.
(3) Cooperation in the renewable energy sector
Both sides will explore ways and means to further cooperation in the field of new and renewable energy.
(4) Cooperation in the petroleum and natural gas sectors
(i) Both sides welcome the smooth implementation of the Joint Statement by METI and the Indian Ministry of Petroleum and Natural Gas and the Six Memoranda of Understanding (concerning "Cooperation in Exploration & Production sector in third countries, "Collaborative Research on Methane Hydrates", "Energy Studies in Asian Market", "Cooperation and Information Exchange on Hydrogen", "Cooperation for Energy Efficiency and Conservation" and "Strategic Oil Reserves") concluded between the relevant implementing ministries of the two countries in accordance with the above Joint Statement.
(ii) Both sides welcome the steady development of the cooperation between ONGC Videsh Limited and Japan Oil, Gas and Metals National Corporation (JOGMEC), through holding the second meeting based on the MOU between both institutions on June 28 in time with this Energy Dialogue.
(iii) Both sides highly value the results of the "Study on Asian Oil Market: Scope for Improvement of Asian Markets for Crude Oil and Petro-products" jointly carried out by the Institute of Energy Economics, Japan (IEEJ) and the Petroleum Planning & Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas of India, and confirm to further implement research and study on a new theme.
(iv) Both sides welcome the conclusion of a Memorandum of Understanding on cooperation in the methane hydrate field between the implementing organs of the two countries in February 2007.
(v) METI makes proposal for bilateral cooperation on oil stockpiling through dispatching related experts to India and accepting the delegation to the relevant facilities in Japan by JOGMEC.
(vi) Both sides welcome the extension of a Memorandum of Understanding on Energy Efficiency & Conservation between Petroleum Conservation Research Association, India and Energy Conservation Centre, Japan.
(5) Facilitation of the activities of the projects by Indian and Japanese companies in each sector
In order to support activities of projects carried out between Indian and Japanese companies in the energy sector, both sides will exchange information promptly on relevant policies of central and local governments among relevant Working Groups if
i) the request for information has been made by both Indian & Japanese organizations/private companies involved in the project, and ii) both heads of the said Working Group recognize the project related to the request to be making major contributions to the enhancement of cooperation in the energy sector.
(6) Cross-sectoral cooperation
(i) Both sides highly value the fact that the First India-Japan Energy Forum co-hosted by NEDO and The Energy and Resources Institute (TERI) of India and held in Delhi in December 2006, immediately before the visit of H.E. Dr. Manmohan Singh, Prime Minister of India, to Japan, has greatly contributed to the launch of this Energy Dialogue. Both sides also welcome the decision by the two organizations to hold the Second India-Japan Energy Forum in Delhi this coming winter and confirm that the related ministries and agencies of the two countries will make active contributions for the success of the Forum.
(ii) Both sides welcome with great expectations the new agreement concluded in time with this Energy Dialogue between the IEEJ and TERI for implementing academic and comprehensive joint research and study on various energy situations and challenges currently facing the world and those specifically facing India and Japan, and confirm that the related ministries and agencies of the two countries will make active contributions to the carrying out of the said joint research and study and the dissemination of the results thereof.
(iii) Both sides re-recognized the importance of the role of private and public business operators in the two countries for promoting the clean development mechanism (CDM) projects based on the Kyoto Protocol.
Bilateral cooperation based on the India-Japan Energy Dialogue will not be limited to what has been described above, and adjustments in connection with the implementation of activities under this Dialogue will be made as necessary.
For the Planning Commission of India
Montek Singh Ahluwalia (Deputy Chairman, Planning Commission)
For the Ministry of Economy, Trade and Industry of Japan
Akira Amari (Minister of Economy, Trade & Industry)
(Annex)
Joint Report of the First Steering Committee Meeting
Ahead of the Second Meeting of the India-Japan Energy Dialogue, India and Japan held meetings of the Electricity & Power Generation Working Group, Energy Efficiency Working Group, Coal Working Group, Renewable Energy Working Group and Petroleum & Natural Gas Working Group on June 28 and 29, 2007, and held the First Steering Committee Meeting on June 29, 2007 based on the results of the Working Group meetings.
Vijay Gokhale, Joint Secretary (East Asia) of the Ministry of External Affairs of India and Tomofumi Hiraku, Director-General for Natural Resources and Energy Policy of the Agency for Natural Resources and Energy of Japan who are co-chairs of the Steering Committee prepared the Joint Report on the First Steering Committee Meeting as follows.
1. Reports on meeting results from the Working Groups
At the First Steering Committee Meeting, the committee first heard the reports on the meeting results from the Working Groups as follows.
(1) Electricity & Power Generation Working Group (9:30 - 12:00, June 28 at Ministry of Power)
(i) After welcome and opening remarks, Indian side made presentations as follows; (a) NTPC (On improving efficiency of power plants and introduction of new generation technologies), (b) PGCIL (On expansion of the National Grid and adoption of latest technologies), (c) CEA (On improving efficiency of pumped storage projects) and (d) CII (On industry perspective)
(ii) Then, Japanese side made presentations as follows; (a) METI (On the results of the "Workshop of the India-Japan Electricity Task Force" held in Delhi on March 9, 2007), (b) Mitsubishi Heavy Industries, Ltd. (on Ultra-supercritical coal-fired power generation technology, etc.), (c) The Federation of Electric Power Companies of Japan (on Innovative Technologies for Power Grid), (d) Japan Machinery Center for Trade and Investment (on Advantages of Japanese plant engineering in power sector) and (e) Institute of Energy Economics, Japan (on the future outlook of supply and demand of electricity and energy in India and the whole of Asia)
(iii) After the above presentations, both sides held discussions on way forward in line with the "Joint Statement between the Planning Commission of India and the Ministry of Economy, Trade and Industry of Japan on the Launch of the India-Japan Energy Dialogue"(hereafter referred to as the "First India-Japan Joint Statement on Energy"), on the 23rd April" and concluded the Working Group.
(2) Energy Efficiency Working Group (15:30 - 17:00, June 28 at Ministry of Power)
(i) At the Working Group, both sides discussed on the expectation toward and the scope of the Working Group in conformance to the matters set forth in the First India-Japan Joint Statement on Energy on the 23rd April.
(ii) Then, both sides introduce its energy efficiency policy, and exchange views on effective energy efficiency policy.
(iii) After that, related agencies in both sides made reports on the past and current cooperation between Japan and India in the area of energy efficiency. From Japanese side, NEDO explained her projects in India such as CDQ project, ECCJ presented the results of training program and expert dispatch to the BEE and IEEJ talked on own research of energy efficiency potential in India. From the Indian side, BEE made three presentations on promoting end-use energy efficiency in India, ongoing cooperation between India and Japan and future areas for cooperation between both sides.
(iv) Finally, both sides discussed the possible future cooperation in the area of energy efficiency.
(3) Coal Working Group (9:00-17:30, June 28 at the Marriott Welcome Hotel)
(i) The Japanese participants of the Working Group visited and inspected the Dadri Coal-fired Power Plant and Centre for Power Efficiency & Environmental Protection (CenPEEP) operated by the National Thermal Power Company Limited(NTPC) on June 27, and held an opinion exchange meeting with the persons concerned.
(ii) At the Working Group meeting, discussions were held on the future direction of the India-Japan coal cooperation in the form of a one-day seminar, in conformance to the matters set forth in the First India-Japan Joint Statement on Energy.
(iii) The Japan Coal Energy Center (on Cooperation progress relating to coal between India and Japan) (on Japanese underground communication technology) (on Adequacy and advantageous effect of Japanese coal preparation technology for Indian coal), NEDO (on NEDO's initiative to disseminate Japanese clean coal technology with Asia), AIST (on new developments of coal utilization technology), the JBIC (on the JBIC's operation for coal sector for India), and Mitsubishi Heavy Industries Ltd. (on Technology which makes use of coal fitting with environment) on Japan's side respectively made presentations.
(iv) Central Mine Planning & Design Institute Ltd (on Possibility of clean coal technology- introduction & deployment), Coal India Ltd, (Beneficiation of non coking coal), and Central Electricity Authority ( on Possibility of technical cooperation on CCT) on India's side respectively made presentations.
(v) To conclude the seminar, both sides stated opinions on the future proceedings of the Working Group.
(4) Renewable Energy Working Group (13:00 - 15:00, June 28 at Ministry of New & Renewable Energy)
(i) At the Working Group, both sides stated opinions on the purpose and scope of the Working Group in conformance to the matters set forth in the First India-Japan Joint Statement on Energy on the 23rd April.
(ii) Then, both sides provided systematic explanations on the current status and challenges of their respective renewable energy policies.
(iii) After that, related agencies made reports on the past and current cooperation between Japan and India in the area of renewable energy. NEDO presented possible cooperation project in the area of biomass, AIST explained the cooperation project on standardization of bio-diesel fuel, and IEEJ presented the results of training program on renewable energy.
(iv) Both sides will explore ways and means to further cooperation in the field of new and renewable energy.
(5) Petroleum & Natural Gas Working Group (9:30 - 12:00, June 29 at Hotel Le'Meridien)
(i) At the Working Group meeting, discussions were held in conformance with the matters set forth in the First India-Japan Joint Statement on Energy.
(ii) First, both sides stated opinions on how resources development cooperation should be promoted in India and third countries, based on the results of the meeting held with ONGC Videsh Limited and JOGMEC on June 28.
(iii) Secondly, JOGMEC once again explained the proposal for cooperation on oil stockpiling, which it had announced in December 2006, and the Indian side stated opinions on the said proposal.
(iv) Then, both sides stated opinions on evaluation of the study on Asian oil market jointly conducted by the IEEJ and the PPAC, and agreed that both sides will continuously carry out joint study on appropriate themes concerning the petroleum and gas sectors.
(v) After that, DGH, India and JOGMEC explained each other the way to make mutual cooperation on Methane Hydrates Technology.
2. Common projects concerning all five Working Groups
Then, discussions were held on common projects concerning all five Working Groups at the First Steering Committee Meeting.
(1) Second Energy Forum
Both sides highly valued the First Energy Forum that was held in December 2006, and welcomed the decision by NEDO and TERI to hold the Second Energy Forum in Delhi this coming winter as well as confirm that the related ministries and agencies of the two countries will make the necessary contributions. (For the purpose of explaining this matter, the representatives of TERI and NEDO participated in the Steering Committee meeting as observers.)
(2) Joint research and study by the IEEJ and TERI
Both sides welcomed the agreement on joint research and study concluded between the IEEJ and TERI for implementing academic and comprehensive joint research and study on various energy situations and challenges currently facing the world and those specifically facing India and Japan, and for releasing the results thereof to the two countries as well as the rest of the world. Both sides also confirmed that the related ministries and agencies of the two countries will make active contributions to the carrying out of the said joint research and study and the dissemination of the results thereof. (For the purpose of explaining this matter, the representatives of TERI and IEEJ participated in the Steering Committee meeting as observers.)
Vijay Gokhale
Joint Secretary (East Asia) Ministry of External Affairs
Tomofumi Hiraku
Director-General Natural Resources and Energy Policy, Agency for Natural Resources and Energy