June 13, 2009Director, Policy Coordination/Evaluation and

Public Relations Division, Government of Japan

Hidetoshi KIMURA

The Innovation for Green Economy and Society－ Green Innovation Japan －

Contents

I Japan’s Policy to Establish Sustainable SocietyComprehensive measures that integrate the three aspects of sustainable societyLegislative frame work of environmental protectionThe third basic environment planThe second fundamental plan for establishing a sound material cycle society The Kyoto target achievement planThe third national biodiversity strategy

II The Innovation for Green Economy and SocietyProcess of making “Green Innovation Japan”Outline of “Green Innovation Japan”Policy package to address economic crisisAmount of the national budget and tax reform to go towards environmental presentation matters in FY2009Future development strategyGrowth initiative towards doubling the size of Asia’s economy

2

3

I Japan’s Policy to Establish I Japan’s Policy to Establish Sustainable SocietySustainable Society

　　

　　

A Society in Harmony with NatureA Society in Harmony with Nature

Reduce GHG drastically

Enjoy and pass on nature’s blessings

A Sustainable SocietyCyclical use of resources through the 3Rs

Climate change and ecosystems

Climate change and energy/ resources

Ecosystems and the environmental loads

A Low-Carbon SocietyA Sound Material-Cycle Society

Comprehensive measures that integrate the three aspects Comprehensive measures that integrate the three aspects of sustainable societyof sustainable society

Coexist in harmony with the Earth’s ecosystems and realize an economic society with enjoying sustainable growth and economic development

From “Becoming a Leading Environmental Nation in the 21th Century” (June 30, 2007: Cabinet Decision)

4

Legislative Framework of Environmental ProtectionLegislative Framework of Environmental Protection

Waste Management

and Public Cleansing Law

(1970~)

Law for Promotion of

Effective Utilization of Resources

(1991~)

Fundamental Environmental Law

Basic Environmental Plan

Kyoto Protocol Target

Achievement Plan

Fundamental Plan for Establishing A Sound Material-Cycle Society

Fundamental Law for Establishing a Sound

Material-Cycle Society

National Biodiversity Strategies

Basic Law Concerning Biodiversity

Law for Recycling of Container and Packaging, Home Appliances,

Construction materials, Food Waste, End-of -life Vehicles

•Nature Conservation Law (1972~)•Natural Park Law (1957~)•Wildlife Protection and Proper Hunting Law•Invasive Alien Species Law (2004~)•Law for the Promotion of Nature Restoration •Low for the Promotion of Eco-tourism etc.

Other Environmental

Regulation Laws

(i.e.)

•Air Pollution Control Law(1968~)

•Water Pollution Control Law(1970~)

•Chemical Substances Control Law(1973~)

•Law Concerning the Rational Use of Energy (1979~)

etc.

Law Concerning the Promotion of the

Measures to Cope with Global Warming

(1993~)

(1st 1994~ /2nd 2000~/3rd 2006)

(2000~)(2000~)

(1998~)

5

The structure of The structure of thethe third basic environment plan third basic environment plan

① Integrated improvements of the environment, economy and society

②Formation of sustainable national land and nature

③Enrichment of R&D and measures considering uncertainly

④The new role of national and local governments and citizens, and the promotion of their participation and collaboration

⑤Strengthening of efforts with international strategies

⑥Formation of policy measures from a long-term perspective

①Efforts for global warming issues

②Efforts to establish a sound material cycle society

③Efforts to secure a good air environment in urban areas

④Efforts to secure an environmentally sound water cycle

⑤Efforts to reduce environmental risks from chemical substances

⑥Efforts for the conservation of biodiversity

⑦Building a system where values of the environment are activity evaluated in the market(i.e. Emission trading system, carbon offset)

⑧Promotion of fostering human resources and communities for environmental conservation

⑨ Improvement of infrastructure such as science and technology, environmental information and policy method with a long-term perspective

⑩Contribution for the formulation of international frameworks and rules

Strengthening environmental consideration and coordination by each entity Monitoring the Plan’s progress by numeric indicators, etc

Current environmental status and directions for environmental policy development

Effective implementation of the plan

Specific implementation of environmental policies in the present quarter century

(April 17, 2006 Cabinet decision)

6

Realize “Sustainable Society” by integrating with activities to realize “low carbon society” and “nature harmonious society”

Realize “Stock-based Society” by stocking and utilizing goods to achieve wealthy society

　 Regionally-characteristic SMS(Spheres of sound material cycle) , Lifestyle along the concept of Mottainai, Collaboration and partnership between stakeholders, and dissemination of the 3Rs into economic activities including manufacturing

All three indicators; “resource productivity”, “cyclonical use rate” and “final disposal amount” improves towards year 2010 targets set by the 1st fundamental plan and are expected to achieve the targets. However, reduction of household waste progresses rather slowly.

Need to respond to global environmental issues such as worldwide resource limitation as well as global warming

Thus, it is necessary to further develop sound material cycle societies both domestically and internationally by implementing the 3Rs thoroughly

　（ a ） Waste generation per capita per day

　（ b ） Household generation per capita per day

　（ c ） Generation of commercial waste

Current situation and Issues

Mid-to-long term image of SMS

・ Campaign of life style change such as “my chopsticks” and “my bag”

・ Partnership with stakeholders and implementation of nation-wide activities

・ Prevention of illegal dumping and implementation of the 3Rs

・ Advanced waste management, inter-industrial collaboration

・ Interface of collaboration and partnership・ Accumulation of knowledge and reliable information

Mutual collaboration of every stakeholders to establish sound material cycle society

・ Partnership among stakeholders and implementation of nation-wide activities

Activities of stakeholders

Indicators and targets

○NGO/NPO and Universities and others

○Citizens

○Local governments

○Businesses

○National government

○ Partnership and Collaboration

(1) Numerical target setting （ FY 2015 ） ① 「 Input 」： Resource Productivity → 420 thousand yen/ton

（ 60% increase from FY2000 ）

② 「 Recycle 」： Cyclical use Rate → about 14-15% （ 40-50% increase from FY 200

0 ） ③ 「 Output 」： Final Disposal Amount → about 23 million tons

（ about 60% reduction from FY2000 ）

(2) Setting supplementary indicators such as indicators on Collaboration with the action for low carbon society

(3) Setting indicators to monitor progress such as “Hidden flow and TMR” to promote awareness on global environmental problems

(1) Numerical target setting ① Reduction of municipal solid waste ② Reduction of final disposal of industrial waste → About 60% reduction from FY 2000 ③ Changes in awareness and actions of citizens → awareness: about 90% actions: about 50% ④ Promotion of Sound Material Cycle Businesses → Double the market for Sound Material Cycle businesses from FY 2000

(2) Indicators to monitor progress of stakeholders efforts such as “refuse rate of plastic bag” and “ranking of municipalities active in the 3Rs”

【【 11 Material Flow–based Material Flow–based

IndicatorsIndicators 】】

【【 2 2 Indices related to Indices related to

efforteffort 】】

① Integrated efforts with low carbon and nature-harmonious society （ waste power generation and biomass utilization ）、

②Establishment of “spheres of sound material cycle”, ③National campaign on the 3Rs, ④Promotion of sound material cycle business through various measures such as green purchasing, ⑤Development of 3R mechanisms focusing on reduction, ⑥Advanced 3R technology and system, ⑦ Information gathering and development of human resources,

⑧Establishment of international sound material cycle society based on action plan to promote global zero waste societies, East Asia vision of sound material cycle society, or improving resource productivity

Overview of the 2Overview of the 2ndnd Fundamental Plan for Establishing a Sound Material Cycle Society Fundamental Plan for Establishing a Sound Material Cycle Society(March 28, 2008 Cabinet decision)

7

The

fin

al

disp

osal

am

ount

Res

ourc

e pr

oduc

tivity

&

The

cyc

lical

use

rat

e

32.41 M tons Approx. 23 M tons

●Aiming to reduce by another 30%, compared to the current level

●Aiming to reduce by another 30%, compared to the current level

-70% ●Target in the previous plan●Target in the previous plan

1990 2005 2015

Approx.28 M tons

2010

-30%

●The target for 30% improvement in FY 2005

●Target in the previous plan

●Result in 60% improvement in 15 years

(12.2 ）

(14 ）

(14 ～ 15 ）

　（ 42 ）（ 37 ）

（ 33 ） 30% increase

（ 26 ）

●World-class results in reducing the final disposal amount

●World-class results in reducing the final disposal amount

2000

●The target for 20% improvement in FY 2005

The base year

Current situation

The target year in the previous

plan

The target year in the new

plan

109.09 M tons

57.10 M tons

In FY 2000 → In FY 2010・ Resource productivity 26 million yen per ton → 37 million yen per ton ( about 40% improvement )・ The cyclical use rate 10% → 14%( about 40% improvement )・ The Final disposal 5.700 million ton → 2.800 million ton ( 50% reduction )

In FY 2000 → In FY 2015・ Resource productivity 26 million yen per ton → 42 million yen per ton ( about 60% improvement )・ The cyclical use rate 10% → 14 ～ 15%( about 40~50% improvement )・ The Final disposal 5.700 million ton → 2.300 million ton ( 60% reduction )

The 2nd Plan

The 1st Plan

Material Flow Indicators: Indices to set a targetMaterial Flow Indicators: Indices to set a target

8

9

The government of Japan, as one of the most advanced countries across the globe in implementing measures on climate change, is aspired to take a leading role in the international community.

1. Ensure achievement of 6% reduction commitment under the Protocol

2. Steady implementation of a continuous as well as long-term GHG emissions reduction on a global scale

21st Century is a century of the environment.Climate change is a common issue to all human

beings.

TheThe Aims of the Kyoto Target Achievement Plan Aims of the Kyoto Target Achievement Plan (April 28, 2005 Cabinet decision)

1. Measures and Policies relating to Greenhouse Gas Emissions Reduction, Removal, etc.

(1) Measures and Policies relating to Greenhouse Gas Emissions Reduction [Examples of Primary Additional Measures] Promotion of voluntary action plans Increased energy-saving performance of houses and buildings Improvement of energy efficiency of equipment that meets Top-runner

Standards, etc. Ensuring thorough energy management at factories and offices, etc. Improvement of automobile fuel efficiency Promotion of emissions reduction measures amongst small and medium-sized

enterprise Measures for the agriculture, forestry and fisheries, water and sewage, traffic

flow, etc. Measures for urban greening, waste, and Three Fluorinated Gases (HFCs,

PFCs and SF6), etc. Promotion introduction of new energy sources(2) Greenhouse Gas Sink Measures Forest management such as tree thinning, promotion of the “Beautiful Forest

Building National Campaign”

2. Cross-sector Policies Systems for Calculation, Reporting and Public Disclosure of Greenhouse Gas

Emissions Development of national campaigns

Issues needing to be addressed promptly Domestic Emissions Trading System Environment tax Departure from late-night work and lifestyles Introduction of daylight savings

Measures and Policies for Achieving Targets Targets of Greenhouse Gas Emissions and Removals

Emissions Targets for 2010*

Million tons of CO2

Base YearTotal Emissions

ComparisonCO2 from Energy 1,076~1,089 +1.3%~+2.3%

Industry 424~428 -4.6%~-4.3%

Commercial and Other 208~210 +3.4%~+3.6%

Residential 138~141 +0.9%~+1.1%

Transportation 240~243 +1.8%~+2.0%

Energy Conversion 66 -0.1%

CO2 from non-Energy, CH4, N2O 132 -1.5%

HFCs, PFCs SF6 31 -1.6%

Greenhouse Gas Emissions 1,239~1,252 -1.8%~-0.8%

For definite progress towards 6% reduction commitment under the Kyoto Protocol, all measures, including sink measures and Kyoto mechanisms, will be implemented.

(*) As a target guide for emissions, a maximum predicted effect and a minimum predicted effect for reduction measures have been established. Naturally, the goal is to try and achieve the maximum effect; however, even if only the minimum effect is achieved, it has been formulated so that it will at least meet Japan’s targets under the Kyoto Protocol.

10

The Framework of the Kyoto Target Achievement Plan The Framework of the Kyoto Target Achievement Plan

（ November, 27, 2007 Cabinet Decision ）

Biodiversity supports life and livelihood

【 Long-term perspective 】 【 Involvement of various stakeholders 】

Involvement of local governments and the private sector・ Needs for efforts by local governments and businesses are emphasized with a view to linking biodiversity conservation to local areas

Grand design, targeting 100 years ahead・ Ground design of the national land from the viewpoint of biodiversity is presented as the “Centennial Plan,” which aims to recover the nations’ ecosystem over the next century

Crisis 1: Species and habitat degradation due to excessive human activitiesCrisis 2: Degradation of satochi-Satoyama due to insufficient level of management *Satoch-Satoyama: Rural landscapes formed by sustainable use of natural resourcesCrisis 3: Ecosystem disturbances caused by the introduced alien species and chemical contaminations

【 Importance of Biodiversity 】

Crisis caused by Climate Change・ Huge potential for species extinction and ecosystem collapse 　

【 Challenge 】

④Security of livelihood

①Basis for existence of all life on earth 　　

　② Use value including future options 　　　 　③ Basis for enriching culture 　　

Four Basic Strategies

The Outline of the Third National Biodiversity Strategy The Outline of the Third National Biodiversity Strategy

11

Four Basic Strategies

Mainstreaming Biodiversity in our daily life

1) Launching “our life on biodiversity” project which aims to enhance the involvement of local governments, businesses, NGO and the public

2) Hands-on nature experiences for school kids, and primal experiences to “feel with the five senses”

Securing linkages among forests, countryside, rivers and the sea

1) Realizing the ecological network at national scale

2) Promoting a comprehensive review of national and quasi-national parks, and promoting nature restoration

3) Studies on marine protected areas to secure sustainable fishery activities

Taking action with global perspective

1) Hosting COP10 of the convention on biological diversity

2) Conducting a country-wide comprehensive ecosystem assessment (Japan biodiversity outlook)

3) Proposing the “SATOYAMA Initiative” to the world

4) Consideration of mitigation and adaptation measures for climate change in the context of biodiversity

Re-building sound relationship between man and nature in local communities

1) Selecting “important satochi-satoyama areas have to be inherited by next generation”

2) Developing communities coexisting with wildlife through separating habitat and capacity building

3) Promoting sound activities of agriculture, forestry and fisheries

4) Managing habitat for endangered fauna and flora; combating alien species issues

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II The Innovation for Green II The Innovation for Green Economy and SocietyEconomy and Society

Announced the draft of "The Innovation for Green Economy and Society" at the council on economic and fiscal policy.

Gather Public comments

（ From June 16 to February 16 ）＜ Total 823 ＞

　　 Related to Low-Carbon Society ：459　　 Related to Nature ： 67　　 Related to Sound Material-Cycle ：88　　 Others ： 455

Exchange ideas with specialist s ①Environmental Specialists 　 ②Economists 　 ③Mayors Mayer of Sakai City, Toyama City, Shimokawa City, and Yusuhara City (Parts of 13 Eco-model Cities) 　

④Representatives of the economic world　

Ministrerof the Environment Proposed “The Innovation for Green Economy and Society on April 20,

2009

Future Development Strategy(April 17, 2009 Decision of Council on

Economic and Fiscal Policy)1. Low-Carbon Revolution2. Healthy and Long-lived Society3. Promote Attractiveness of Japan

Policy Package to addressing Economic Crisis (April 10, Cabinet and

government party)

Supplementary Budget

Cooperate with other

related Ministries

Economic and Fiscal Reform 2009

The Process of making “Green Innovation Japan”The Process of making “Green Innovation Japan”

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Japan’s World- Class Environmental Resources

World-leading environmental technologiesBeautiful seasonal changes of natural

sceneryThe spirit of “mottainai” Become a forerunner of

overcoming the environmental crisis

The investment to keep Japan’s advantage and continue to be the environmental superpower for the future

Create present and future demand and jobs

Integrated improvement of environment and economy

Integrated realization of a “low carbon society,” a “sound material-cycle society,” and a “society in harmony with nature”

Participate every actor Best-mix of policy

Measures for Asia and whole world

Delay in measures for climate change will cause the serious environmental crisis which will bring the collapse of our social activity and the enormous expense for adaptation

Biggest and worldwide economic crisis since the war

Environmental investment all over the world

（ Green New Deal ）＋

Basic idea

15

Realize compact city and beautiful land

Point of “the innovation for green economy and society”

Promote energy-saving home appliance, next-generation vehicles and energy-efficient houses

World-leading industry introduced high efficient facilities and management systems

Full utilize local resources and talents

Secure resource and energy by promoting 3R and renewable energy

The goal of this

innovationIn 2020In 2020

1. Innovation toward green social capital

2. Innovation toward green local community

3. Innovation toward green consumption

4.Innovation toward green investment

6. Contribution for green Asia

Use local wood for building materials

Environmental market will increase from 70 to 120 trillion yen and

environmental jobs will increase from 1.4 to 2.8 million by 2020 in Japan

The proportion of renewable energy in total energy consumption will be 20%The volume of solar power generation will be 20 times of today’s levelHalf of new cars sales will be Eco-cars

5. Innovation toward green technology

16

Maintenance sidewalk and bicycle road

Photovoltaic power generation installed in the school

1. Innovation toward green social capital 　　　　　 Create the demand through “green public works.”Eco- reform across the nation starting

with public facilities such as schools Install photovoltaic systems in schools and public facilities around Japan and use them for environmental education.Realization of a “Kasumigaseki Low-carbon Society” then expand it to other national buildings (ex. Increasing the use of wood, Promoting renewable power generation. etc.) Promote eco-reform in local government’s facilities.

Eco-reform in cities and transportationDevelop eco and human friendly compact cities ・ Produce “cool cities” 　・ Utilize unused resources and energy

Develop eco-friendly transportation infrastructure ・ Maintenance sidewalk and bicycle roads・ Promote wireless LRV(Light Rail Vehicles)・ Strengthen function of “Super-hub Port” 　・ Energy-saving transportation system using GPS

Clean up our landUntying illegal dumping ・ Treat past illegally dumped waste 　　 ・ Strengthen watching and patrollingUntying marine litterMeasures against PCB and Asbestos・ Treatment of waste electric machinery containing small amounts of PCB・ Promoting the detoxification of Asbestos

Save beautiful nature and waterside

Measures to adopt abnormal climate caused by climate change

Maintenance of national parkSecure beautiful waterside ・ Regenerate and preserve water- friendly riverside ・ Maintenance the Moat of Imperial Palace

LED lighting Produce good urban environment exploit “water” “green” and “wind”

The Moat of Imperial Palace

Collect marine litter

Maintenance and preserve forest to mitigate climate change ・ Forest maintenance such as thinning ・ Proper management of preservation of reserved forest・ Use local wood for housing ・ Promote the use of wood biomass

・ Promote wastewater treatment system such as septic systems

17

2. Innovation toward green local communities 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 Activate “local power”

OffsetsCapitalCO2 emissions

from companies and local governments

Reduce & absorb CO2 emissions utilizing wood biomass and forest maintenance

Measures by local governmentFinancial support by the establishment of “local Green New Deal Funds”Develop Eco-friendly transportation system by introducing the community bicycle program etc.Prevent pollution such as water and air pollution

Measures by local communitiesPreserve and utilize nature resources　・ Preserve “Satoyama” 　　 ・ Divide the living area for wild animals and humanDevelop active local communities using various human resources 　・ Establish local consortiums to train and utilize Eco-specialist　・ Support environmental NPO and environmental actions by private company ・ Support for utilizing local environmental activities

Develop healthy forest and active farm, mountain, and fishing village　Maintenance and preserve forest with using urban

power　・ Utilize “Carbon Offset”

New challenge utilizing dormant faculties of agriculture and farm village

Velib in ParisGrowing rape blossoms by students of Nishi-yodogawa high school;

Preserving “Satoyama”

Growing sunflower by students of Nakashibetsu Agricultural high school

Establishing sound material-cycle societyActivate sound material-cycle communities・ Recycle of rare metal

Promote “reduce” and “reuse”Circulatory utilization of biomass Promote circulatory use of water Promote circulatory use of nitrogen and phosphorous

District heating and cooling system

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3. Innovation toward green consumption　　　　　　　　　　　　　　　　　　　　　　　Support the creation of the green demand from household

Promote purchasing energy-saving home appliances simultaneously Dramatically popularize energy-saving home appliances Promote energy-saving home appliances using the “Eco-point”

Promote green purchasing and contract　・ Secure reliability of products labeling by the “test of products”　・ Secure proper products labeling by guideline for environmental labeling

Promote energy-saving houses and buildings

Support the thermal insulationMake LCA guideline for remodeling buildings Promote “200-year housing”Promote fuel cell and heat pomp

Promote next-generation vehicles etc.Promote next-generation vehicles by subsidies, tax incentive, etc.

Introduce proper regulation of biofuel・ Find problems and examine standard through practicing models

Stipulating measures to curb GHG emissions relating to the work of the government 　・ Promote national measures and support local measures

Model projects in Miyake island

Double-glazed window

Nanbu Clean Center (Kyoto city)

Apartments introduced the heat pumps

19

4. Innovation toward Green Investment 　　　　　　　　　　　　 Foster leading-edge environmental industries responsive to the green demand

Create systems encouraging green economic activities

Examine the domestic emission trading system　・ steady operation of trial practice (including JVETS) ・ Utilize the domestic CDM scheme

Greening the tax systemPromote carbon offset and carbon foot-print

Finance fostering green investment Establish an interest-free environmental finance systemExpand the investment in environmentally sound businesses 　・ Promote proper public information　・ Promote green investment by public pensions　・ Promote NPO bank, community fund, and fund for environmental projects ・ Develop the scheme to evaluate company’s environmental consideration “Kankyo-ryoku”

Promote environmentally sound management Promote green IT

Foster sound material-cycle industry Greening energy structure

•Promote ISO140001, Eco-action 21, and other environmental management system•Promote environmental communications such as environmental reports •Make the guideline for private companies to forward the preservation of biodiversity

Green IT using advanced telecommunication with leading edge environmental technology・ Achieve an international consensus and standardization of technology and evaluation for GHG reduction using telecommunication・ Environment-oriented country by ubiquitous

Improve system and technology for recycling　・ Resolve the “miss-match” of recycling market　・ Promote recycling of “rare metal”Improve reliability and transparency of sound material-cycle business Foster the low carbon waste treatment 　・ Introduce high-efficient waste-to-power generation

Aim for the superpower of renewable energy　・ introduce ambitious goal about the introduction of renewable energy　・ Introduce “Feed in tariff”　・ Massive introduction of renewable energy such as solar power, wind power, biomass, and small hydraulic power ・ Demonstrate the “smart grid”

Safe and secure nuclear power plant　・ Increase the equipment utilization rate 　・ Steady construction of new generation ・ Establish nuclear fuel cycle and early realization of the fast breeder reactor

Nuclear power generation

small hydraulic power plant

Wind turbine using civil investment

→

Waste- to-power generation

Measures utilizing local resources 　・ Wooden pellet utilizing waste and thinned wood 　・ Promote small hydraulic power 　・ Utilize waste heat of hot spring

5. Innovation toward green technology Strengthen leading-edge environmental

technologies

Basic research for improve and develop both environment and economy

Technology development considering dramatic GHG reduction in 2050

Technology development considering practical use within 10 to 20 years

Promote and utilize environmental technology

Research about the adaptation of climate change

Promote monitoring, administration, and information gathering and offering

Promote the research on environment and economy for policy development

Make middle and long term roadmap for building a “Low carbon society”

• Develop high-efficient and low-cost solar batteries • Develop low-cost and easy-to-use electric car

• Develop distributed energy system, and hydrogen production from non-fossil fuel

• Utilize nuclear fusion and space light energy

Technology for renewable energy such as PV, solar heat, biofuel, wind power, small hydraulic power, geothermal, substantiation of CCS (Carbon Capture and Storage) Energy efficient technology such as LED lighting, non-fluorocarbon and high-performance insulation, and energy-saving refrigerators, freezers and air conditioners using low-GWP(Global Warming Potential) refrigerant

Promote leading edge technology and utilize existent technology　・ Aggressive participation on international standard 　・ Modify and promote technology to developing countries 　・ Announce the result of Ibuki’s observation internationally　・ Advance research of environmental technology

Research about the impact on local water environment by climate changeResearch and development about adaptation　・ Predict and evaluate the impact of climate change focused on food, water, ecosystem, disaster prevention, and so on

Expand the area and target of monitoring and environmental administrationPreparation for the 10th Conference of the Parties to the Convention on Biological Diversity (COP 10)

Greenhouse gases observing satellite “Ibuki”

• Research about CCS and Methane hydrate

Electric Bus

21

6. Contribution for Green Asia Prosperous societies constructed together with a sustainable developing Asia

Develop strategic, systematic, and local based environmental cooperation

Establish environmental morel city in Asia

Promote “co-benefit approach”Support for building environmentally sound water cycle society

Found Asian sound material-cycle society

Found society in harmony with nature in Asia

Measures against trans-boundary air pollution

Promote measures based on “Clean Asia Initiative”Integrated introduction of talents, technology, and system 　　Make “Asian standard “of environmental technologyPromote international cooperate researchPartnership and cooperation with various subjects such as universities in Asian countries

Choose some cities and islands as environmental model city or island, and support their activities Promote Japan’s advanced environmental technology to Asian and Pacific countries

Establish platform for information sharing with various subjects Promote long-term utilization of talent and technology Promote “Good water governance”

Cooperation with international institutions such as “Network of Asian River Basin Organization”Promote septic system and human waste treatment facilities

International cooperation through Asia 3R promotion forumSupport the practice and improvement of waste treatment and 3R in Asian countries

Popularize SATOYAMA initiativeSupport for making national biodiversity strategies in Asian countries Make and practice the strategy for international coral reef networkPromote the measures against illegal cutting, forest fire and reforestation

Investigate air pollution in East Asia and support the measures against the pollution Support the measures against yellow sands such as reforestation

Polluted Asian river Decentralized sanitary sewage system

Indonesian cement factory equipped with destruction equipment for fluorocarbon with Japan’s support

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Total Size

I. Immediate Measures

-Avoiding a negative spiral-

4.9 44.4

1. Measures to support employment 1.9 2.5

2. Financial measures 3.0 41.8

II. Growth Strategy –Investing for the future- 6.2 8.8

1.The low-carbon revolution 1.6 2.2

2. Health, longevity and child-rearing 2.0 2.8

3. Realization of the potential of the

Japanese economy and development of

infrastructure to deal with the challenges

of the 21st century

2.6 3.8

III. Easing anxiety and enhancing vitality 4.3 5.0

1. Revitalization of regions 0.2 0.4

2. Safety and security 1.7 2.2

3. Support for local governments 2.4 2.4

IV. Tax reform 0.1 0.1

Total 15.4 56.8

（ billion yen ）　○Promote Photovoltaic Power Generation 610　　・” School’s New Deal” Plan 490　　 including ・ Eco-friendly renewal of school building 　 260　 ・ The creation of an ICT-friendly school 210　　・ Support to introduction of solar power (Offices and residential sector) 　　　　 500 ○Promote fuel-efficient cars and energy -efficient home appliances 870　　・ Support for eco-friendly vehicles 　 370　 ・ Dissemination of eco-friendly home appliances (TVs, air conditioners, and refrigerators) by “eco point” scheme 290

○Revolution in transportation and infrastructure 30

○Turning Japan into resource-rich country 70

Concerning Low-carbon revolution 　　 1,580

（ Trillion yen ）Government Expenditure

Size of the Policy Package to Address Economic CrisisSize of the Policy Package to Address Economic Crisis

Global environment management 867

Air environment management 234.2

Water, soil and ground environment management 743.2

Waste management and recycling 114

Management of chemicals 8.2

Nature conservation 261.2

Others 78

・ Policies to reduce carbon emission ・ Measures for carbon sink of climate change 　・ Promoting Long-life housing

・ Environmental improvement of roadside, surrounding of airport ・ Preparing facilities for road safety

・ Preparing sewage-works and rural community sewages ・ Protecting fishery

・ Exploiting local biomass ・ Promoting sound material-cycle society ・ Preparing ocean oriented waste treatment facilities

・ Research for the risk of chemicals ・ Inspecting environmental safety of chemicals

・ Maintaining urban parks and natural parks ・ Restoration of nature

・ Establishing evaluation system of carbon footprint ・ Promoting and developing environmental technologies

Investment tax reduction for the investment in energy-saving and new-energy facilities and in production facilities for goods such as energy-saving home electric appliances Introduce new measures to allow tax deduction for housing investment relating to newly built long-term quality houses at one’s own expenses and renovation aimed at improving energy conservation and barrier-freeTemporarily reduce tax burden on the automobiles that have passed higher environmental standards

FY2009 Tax Reform

(billion yen)

Amount of the national budget and tax reform to go towards Amount of the national budget and tax reform to go towards environmental preservation matters in FY 2009environmental preservation matters in FY 2009

25

　　　　　　 Japan will become a nation that plays world-leading roles through low-carbon emission revolution, a nation where all the citizens, irrespective of age and gender, are able to lead an active life without anxiety, and a nation where citizens and local communities are able to fully exercise their potentials and attractive characteristics at home and abroad.

Future Vision for the Year 2020

Basic policy concept: Smart investment

　

　　

Sustainable growth

Taking off from

econom

ic recession

(1) Selecting a project with double-barreled effects: Pulling out from economic recession in the short run and encouraging sustainable economic growth in the medium- and long-run

　　　 Aiming at “J”-shaped economic recovery and economic growth (J recovery)

(2) Identifying the potentially competitive sectors of Japan (“underlying strength”) that will yield significant positive economic impacts and have great significance in the society, rather than simply taking economic-stimulus measures 　

　　　　 Working on concentrated investments and accelerated reforms for the next 3 years

(3) Achieving sustainable growth by breaking away from recession, expanding domestic demand, and drawing on energetic economic performance in Asia and dynamism of the world economy

　　　 Offering ideal future societal models to Asian nations that are facing constraints from environmental/resource perspectives

[Economic impacts in the next 3 years (on a cumulative basis)]

Demand creation: \40–60 trillionJob creation: 1.4–2.0 million jobs

[Year 2020] 　Gross domestic product (GDP): up \120 trillionJob creation in strategic sectors: 4 million jobs

* Estimated by the Ministry of Economy, Trade and Industry (METI)

Future Development Strategy (J Recovery Plan)Future Development Strategy (J Recovery Plan)

26

Three Pillars 　

<Low-Carbon Revolution>A series of projects for

leading low-carbon revolution

○ Further beefing up the highest environment energy technologies of the world such as energy-saving, new energy, eco-car,, and water treatment technologies○ Taking a leading role in “low-Carbon Revolution” through the renewal of lifestyles and infrastructures○ New “three holy durables” will generate new market demand and job opportunities

[Examples of main projects]■New programs for purchasing solar-generated electricity

■Encouraging photovoltaic facility and energy-saving refurbishing works at public facilities, schools, etc.■Explosive diffusion of the new “three holy durables”

■Developing technologies on next-generation batteries, superconducting linear motors, etc.

■Constructing/improving three major belt freeways: Elimination of missing links

■Developing urban mines (recycling of mobile phones)

<Health and Longevity>A series of projects that take

advantage of medical and nursing-care demand for

expanding domestic demand

○ Improving medical/nursing-care services to dispel anxieties about the future and encourage consumer confidence○ Creating new job opportunities in the medical/nursing-care sector and festering the sector to a domestic demand-oriented industry○ Encouraging innovations in medical-related industries to create a new high-value added market

[Examples of main projects] ■Emergency measures for improving labor conditions of nursing-care staff

■Concentrated investment in municipalities forming alliance in medical services

■Reinforcing neonatal intensive-care units and emergency medical care centers and beefing up seismic retrofitting works for hospitals

■Supporting intensive research programs for anti-cancer curative drugs, granting quicker approvals for non-approved anti-cancer curative drugs, and developing technologies of iPS and livelihood support robots

■Shortening examination process for medical drugs and medical equipment

<Promoting the Attractiveness of Japan>

A series of projects to take advantage of the

“underlying strengths” of Japan fostered by rich traditions and cultural

background○ Turning into a job creative and growing industry the agriculture, forestry,, and fisheries industries that support local economies○ Sending out the soft powers of Japan overseas, including fashion, media videos, and animations○ Achieving the status of a “Tourism nation” through the traditional “hospitality” mindset of Japan○ Awakening the hidden potentials of Japan by investing in human resources and thoroughly making use of IT solutions

[Examples of main projects] ■Recovering a quarter of cultivation abandonment farmland (approximately 100,000 ha) in the next 3 years Tripling plant factories (24-crop system)

■Expanding contents industry to overseas markets

■Selectively investing in elimination of electric poles in tourist spots

■Significantly shortening the waiting time of immigration examination process at Narita Airport and halving access time between Haneda Airport and Narita Airport

■Providing the top-level research environment of the world (making use of post-doctoral researchers and research assistants)

☆The new “three holy durables:” ・ Energy-saving houses equipped with solar panels; ・ Eco-cars (electric cars, etc.), and ・ Environmental-friendly consumer electronics

Low-Carbon Revolution 　　　　　　　　　　　 The environment, natural resources, and energy fields, encompassing activities such as tackling global warming through

energy conservation and new and renewable forms of energy; 3R; and water treatment systems, should be seen not so much as placing restrictions on Japan’s development as providing opportunities for the nation’s growth. Japanese technology, among the world’s most advanced, is a pioneer in the establishment of “low-carbon, sustainable society” models, and in providing such models to other countries in Asia and other regions. Japan will become both a leader country for “Low-Carbon Revolution” and a “Resource Power” as a result of its development of “urban mining” and of marine resources.

Plan to become the world’s number-one Solar Power and Energy Conservation Nation　 In regard to the proportion of renewable energy (including heat pumps, etc.) in its final energy consumption, Japan has the target of achieving 20%

more than the current level by 2020, referring to the EU methodology (approx 10% in 2005). It is also planned to increase the output of solar power to 20 times the current level by 2020. In order to do this, the Japanese government will support

the development of advanced technology that enables the realization of a stable electric power supply, such as power control systems. ■ Establish a “new purchasing system of solar power.” Write-off from creating demand. The cost of power generation will be halved in 3 to 5 years

through existing policies and innovation.■ Set up solar panels in public schools and buildings (54,000 places). (immediate priority in the next 3 years) Accelerate zero-emission buildings. Check energy conservation and conduct repairs of public buildings (immediate priority in the next 3 years) Accelerate house modernization (modernizing more than 50% by 2019) Promoting replacement of home appliances with energy-saving appliances (green appliances) Future-oriented energy social system model project (enhance next-generation energy park and select 100 projects) Promote cooperative research, demonstration and standardization in the fields of photovoltaic cells, fuel cells, superconductivity, and so on.

(demonstration in USA, etc.)

The first nation to popularize Eco-Cars 　- Attempt to make half of new car sales be eco-cars(electric cars, hybrid cars, etc.)

by 2020 Promoting replacement of official cars with eco-cars Promoting replacement of old cars with eco-cars Starting electric car advanced model areas (approx. 10 places)

Low-carbon transportation and urban revolution Fastest development and popularization of low-carbon transportation in the world　　 Implementation of practical evaluation for free-gauge train by the summer of 2010　　 Establish practical application technology for cell-type tram by 2012, superconductive linear by 2016Concentrate measures for low-carbon infrastructure development　－ Build ring road system for three large urban areas and resolve missing links　－ Charging infrastructure to avoid idling in ports for ships

Resource power Developing institutions for correcting old mobile phone (100 million mobiles = 3 tons of gold) → 　 urban mining Promoting waste plastic recycling (attempt to achieve a recycle rate of at least 90% by 2020) Entering world water market (establish first Japanese major water company and support its business overseas) Enhancing support to secure upstream interest, strengthen development of resources that lie in adjacent waters (methane hydrate)

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Thank you very much for your kind attention