June 13, 2009

1
The Innovation for Green Economy and Society -
Green Innovation Japan-

• June 13, 2009
• Director, Policy Coordination/Evaluation and
• Public Relations Division, Government of Japan
• Hidetoshi KIMURA

2
Contents I Japans Policy to Establish
Sustainable Society

• Comprehensive measures that integrate the three
  aspects of sustainable society
• Legislative frame work of environmental
  protection
• The third basic environment plan
• The second fundamental plan for establishing a
  sound material cycle society
• The Kyoto target achievement plan
• The third national biodiversity strategy

II The Innovation for Green Economy and Society

• Process of making Green Innovation Japan
• Outline of Green Innovation Japan
• Policy package to address economic crisis
• Amount of the national budget and tax reform to
  go towards environmental presentation matters in
  FY2009
• Future development strategy
• Growth initiative towards doubling the size of
  Asias economy

3
I Japans Policy to Establish Sustainable
Society
4
Comprehensive measures that integrate the three
aspects of sustainable society
A Sound Material-Cycle Society
Coexist in harmony with the Earths ecosystems
and realize an economic society with enjoying
sustainable growth and economic development
A Low-Carbon Society
From Becoming a Leading Environmental Nation in
the 21th Century (June 30, 2007 Cabinet
Decision)
5
Legislative Framework of Environmental Protection
Fundamental Environmental Law
(1993)
(1st 1994 /2nd 2000/ 3rd 2006)
Basic Environmental Plan
Law Concerning the Promotion of the Measures to
Cope with Global Warming

• 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.

Fundamental Law for Establishing a Sound
Material-Cycle Society
Basic Law Concerning Biodiversity
(2000)
(2000)
National Biodiversity Strategies
(1998)
Fundamental Plan for Establishing A Sound
Material-Cycle Society
Kyoto Protocol Target Achievement Plan

• 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.

Waste Management and Public Cleansing Law (1970)
Law for Promotion of Effective Utilization of
Resources (1991)
Law for Recycling of Container and Packaging,
Home Appliances, Construction materials, Food
Waste, End-of -life Vehicles
6
(April 17, 2006 Cabinet decision)
The structure of the third basic environment plan
Current environmental status and directions for
environmental policy development
Specific implementation of environmental policies
in the present quarter century
?Efforts for global warming issues
?Integrated improvements of the environment,
economy and society
?Efforts to establish a sound material cycle
society
?Formation of sustainable national land and nature
?Efforts to secure a good air environment in
urban areas
?Enrichment of RD and measures considering
uncertainly
?Efforts to secure an environmentally sound water
cycle
?The new role of national and local governments
and citizens, and the promotion of their
participation and collaboration
?Efforts to reduce environmental risks from
chemical substances
?Strengthening of efforts with international
strategies
?Efforts for the conservation of biodiversity
?Building a system where values of the
environment are activity evaluated in the
market (i.e. Emission trading system, carbon
offset)
?Formation of policy measures from a long-term
perspective
?Promotion of fostering human resources and
communities for environmental conservation
Effective implementation of the plan
?Improvement of infrastructure such as science
and technology, environmental information and
policy method with a long-term perspective
Strengthening environmental consideration and
coordination by each entity Monitoring the Plans
progress by numeric indicators, etc
?Contribution for the formulation of
international frameworks and rules
7
Overview of the 2nd Fundamental Plan for
Establishing a Sound Material Cycle Society
(March 28, 2008 Cabinet decision)
Current situation and Issues
Activities of stakeholders

• 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

?Partnership and Collaboration
Mutual collaboration of every stakeholders to
establish sound material cycle society
Prevention of illegal dumping and
implementation of the 3Rs Advanced waste
management, inter-industrial collaboration
?Businesses
Campaign of life style change such as my
chopsticks and my bag
?Citizens
?NGO/NPO and Universities and others
Interface of collaboration and
partnership Accumulation of knowledge and
reliable information
?Local governments
Partnership with stakeholders and
implementation of nation-wide activities
Mid-to-long term image of SMS
?National government
Partnership among stakeholders and
implementation of nation-wide activities

• 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

?Integrated efforts with low carbon and
nature-harmonious society(waste power generation
and biomass utilization)? ?Establishment of
spheres of sound material cycle, ?National
campaign on the 3Rs, ?Promotion of sound material
cycle business through various measures such as
green purchasing, ?Development of 3R mechanisms
focusing on reduction, ?Advanced 3R technology
and system, ?Information gathering and
development of human resources, ?Establishment 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
Indicators and targets
?1 Material Flowbased Indicators?
?2 Indices related to effort?
(a)Waste generation per capita per day
(b)Household generation per capita per day
(c)Generation of commercial waste
(1) Numerical target setting(FY 2015) ?
?Input?Resource Productivity ? 420 thousand
yen/ton (60 increase from
FY2000) ? ?Recycle?Cyclical use Rate ? about
14-15 (40-50 increase from FY
2000) ? ?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 ? Reduction of
municipal solid waste ? Reduction of final
disposal of industrial waste ? About 60
reduction from FY 2000 ? Changes in awareness
and actions of citizens ? awareness about 90
actions about 50 ? 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
8
Material Flow Indicators Indices to set a target
The 2nd Plan
Resource productivity The cyclical use rate
?The target for 20 improvement in FY 2005
The 1st Plan
The target year in the previous plan
The base year
Current situation
The target year in the new plan
?World-class results in reducing the final
disposal amount
The final disposal amount
109.09 M tons
?Target in the previous plan
-70
Approx. 23 M tons
32.41 M tons
57.10 M tons
-30
?Aiming to reduce by another 30, compared to the
current level
Approx.28 M tons
1990
2005
2015
2010
2000
9
The Aims of the Kyoto Target Achievement Plan
(April 28, 2005 Cabinet decision)

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.
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.
10
The Framework of the Kyoto Target Achievement
Plan
Measures and Policies for Achieving Targets
Targets of Greenhouse Gas Emissions and Removals

• 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

Emissions Targets for 2010 Emissions Targets for 2010
Million tons of CO2 Base YearTotal Emissions Comparison
CO2 from Energy CO2 from Energy 1,0761,089 1.32.3
Industry 424428 -4.6-4.3
Commercial and Other 208210 3.43.6
Residential 138141 0.91.1
Transportation 240243 1.82.0
Energy Conversion 66 -0.1
CO2 from non-Energy, CH4, N2O CO2 from non-Energy, CH4, N2O 132 -1.5
HFCs, PFCs SF6 HFCs, PFCs SF6 31 -1.6
Greenhouse Gas Emissions Greenhouse Gas Emissions 1,2391,252 -1.8-0.8
() 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 Japans targets under
the Kyoto Protocol.
For definite progress towards 6 reduction
commitment under the Kyoto Protocol, all
measures, including sink measures and Kyoto
mechanisms, will be implemented.
11
The Outline of the Third National Biodiversity
Strategy
(November, 27, 2007 Cabinet Decision)
?Importance of Biodiversity?
?Challenge?
Biodiversity supports life and livelihood
Crisis 1 Species and habitat degradation due to
excessive human activities Crisis
2 Degradation of satochi-Satoyama due to
insufficient level of management
Satoch-Satoyama Rural landscapes formed by
sustainable use of natural
resources Crisis 3 Ecosystem disturbances caused
by the introduced alien species and
chemical contaminations
?Basis for existence of all life on earth
?Use value including future options
?Basis for enriching culture
?Security of livelihood
Crisis caused by Climate Change Huge potential
for species extinction and ecosystem collapse
?Long-term perspective?
?Involvement of various stakeholders ?
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
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
Four Basic Strategies
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Four Basic Strategies
Mainstreaming Biodiversity in our daily life
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

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

Taking action with global perspective
Re-building sound relationship between man and
nature in local communities

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

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

13
II The Innovation for Green Economy and
Society
14
The Process of making Green Innovation Japan
Gather Public comments (From June 16 to February
16) ltTotal 823gt Related to Low-Carbon
Society459 Related to Nature67 Related to
Sound Material-Cycle88 Others455
Exchange ideas with specialist s ?Environmental
Specialists ?Economists ?Mayors Mayer
of Sakai City, Toyama City, Shimokawa City,
and Yusuhara City (Parts of 13 Eco-model Cities)
?Representatives of the economic world
Cooperate with other related Ministries
Future Development Strategy (April 17, 2009
Decision of Council on Economic and Fiscal
Policy) 1. Low-Carbon Revolution 2. Healthy and
Long-lived Society 3. Promote Attractiveness of
Japan
Announced the draft of "The Innovation for Green
Economy and Society" at the council on economic
and fiscal policy.
Policy Package to addressing Economic Crisis
(April 10, Cabinet and government party)
Supplementary Budget
Ministrerof the Environment Proposed The
Innovation for Green Economy and Society on April
20, 2009
Economic and Fiscal Reform 2009
15
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
Environmental investment all over the
world (Green New Deal)
Biggest and worldwide economic crisis since the
war

• Japans World- Class Environmental Resources
• World-leading environmental technologies
• Beautiful seasonal changes of natural scenery
• The spirit of mottainai

Become a forerunner of overcoming the
environmental crisis
Create present and future demand and jobs
The investment to keep Japans advantage and
continue to be the environmental superpower for
the future
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
Basic idea
Participate every actor
Best-mix of policy
Measures for Asia and whole world
16
1. Innovation toward green social capital
2. Innovation toward green local community
3. Innovation toward green consumption
Point of the innovation for green economy and
society
5. Innovation toward green technology
4.Innovation toward green investment
6. Contribution for green Asia

• The proportion of renewable energy in total
  energy consumption will be 20
• The volume of solar power generation will be 20
  times of todays level
• Half of new cars sales will be Eco-cars

Promote energy-saving home appliance,
next-generation vehicles and energy-efficient
houses
Use local wood for building materials
World-leading industry introduced high efficient
facilities and management systems
The goal of this innovation In 2020
Realize compact city and beautiful land
Full utilize local resources and talents
Secure resource and energy by promoting 3R and
renewable energy
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
17
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
Eco-reform in cities and transportation

• Develop eco and human friendly compact cities
• Produce cool cities Utilize unused resources
  and energy

• 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 governments
  facilities.

• 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

Produce good urban environment exploit water
green and wind
LED lighting
Photovoltaic power generation installed in the
school
Maintenance sidewalk and bicycle road
Clean up our land
Save beautiful nature and waterside

• Untying illegal dumping
• Treat past illegally dumped waste
• Strengthen watching and patrolling

• Maintenance of national park
• Secure beautiful waterside
• Regenerate and preserve water- friendly
  riverside
• Maintenance the Moat of Imperial Palace

• Untying marine litter

Collect marine litter

• Measures against PCB and Asbestos
• Treatment of waste electric machinery containing
  small amounts of PCB
• Promoting the detoxification of Asbestos

The Moat of Imperial Palace
Promote wastewater treatment system such as
septic systems
Maintenance and preserve forest to mitigate
climate change
Measures to adopt abnormal climate caused by
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
18
2. Innovation toward green local communities

Activate local power
Measures by local government
Measures by local communities

• Preserve and utilize nature resources
• Preserve Satoyama
• Divide the living area for wild animals and
  human

• Financial support by the establishment of local
  Green New Deal Funds

• Develop Eco-friendly transportation system by
  introducing the community bicycle program etc.

• Develop 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

• Prevent pollution such as water and air pollution

District heating and cooling system
Growing rape blossoms by students of
Nishi-yodogawa high school
Velib in Paris
Develop healthy forest and active farm, mountain,
and fishing village
Growing sunflower by students of Nakashibetsu
Agricultural high school

• Maintenance and preserve forest with using urban
  power
• Utilize Carbon Offset

Preserving Satoyama
Establishing sound material-cycle society

• Activate sound material-cycle communities
• Recycle of rare metal

• Promote reduce and reuse

• Circulatory utilization of biomass

• Promote circulatory use of water

• New challenge utilizing dormant faculties of
  agriculture and farm village

• Promote circulatory use of nitrogen and
  phosphorous

18
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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
Promote energy-saving houses and buildings

• Dramatically popularize energy-saving home
  appliances
• Promote energy-saving home appliances using the
  Eco-point

• Support the thermal insulation
• Make LCA guideline for remodeling buildings
• Promote 200-year housing
• Promote fuel cell and heat pomp

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

Double-glazed window
Apartments introduced the heat pumps
Promote next-generation vehicles etc.

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

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

Model projects in Miyake island

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

Nanbu Clean Center (Kyoto city)
20
4. Innovation toward Green Investment
Foster leading-edge environmental industries
responsive to the green demand
Create systems encouraging green economic
activities
Finance fostering green investment

• Establish an interest-free environmental finance
  system
• Expand 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 companys
• environmental consideration Kankyo-ryoku

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

• Greening the tax system

• Promote carbon offset and carbon foot-print

Promote environmentally sound management
Promote green IT
Wind turbine using civil investment

• 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

Greening energy structure

• 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

Foster sound material-cycle industry

• Improve system and technology for recycling
• Resolve the miss-match of recycling market
• Promote recycling of rare metal

small hydraulic power plant

• Improve reliability and transparency of sound
  material-cycle business

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

• Foster the low carbon waste treatment
• Introduce high-efficient waste-to-power
  generation

• 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
?
Waste- to-power generation
21
5. Innovation toward green technology
Strengthen leading-edge environmental technologies
Technology development considering dramatic GHG
reduction in 2050
Basic research for improve and develop both
environment and economy

• Develop high-efficient and low-cost solar
  batteries

• Develop low-cost and easy-to-use electric car

• Promote the research on environment and economy
  for policy development
• Make middle and long term roadmap
  for building a Low carbon
  society

• Research about CCS and Methane hydrate

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

• Utilize nuclear fusion and space light energy

Promote and utilize environmental technology

• Promote leading edge technology and utilize
  existent technology
• Aggressive participation on international
  standard
• Modify and promote technology to developing
  countries
• Announce the result of Ibukis observation
  internationally

Greenhouse gases observing satellite Ibuki
Technology development considering practical use
within 10 to 20 years

• Technology for renewable energy such as PV, solar
  heat, biofuel, wind power, small hydraulic power,
  geothermal, substantiation of CCS (Carbon Capture
  and Storage)

Electric Bus

• 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

Advance research of environmental technology
Promote monitoring, administration, and
information gathering and offering

• Expand the area and target of monitoring and
  environmental administration

Research about the adaptation of climate change

• Preparation for the 10th Conference of the
  Parties to the Convention on Biological Diversity
  (COP 10)

• Research about the impact on local water
  environment by climate change

• Research and development about adaptation
• Predict and evaluate the impact of climate
  change focused on food, water, ecosystem,
  disaster prevention, and so on

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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

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

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

Indonesian cement factory equipped with
destruction equipment for fluorocarbon with
Japans support
Promote co-benefit approach
Support for building environmentally sound water
cycle society

• 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

Found Asian sound material-cycle society

• Promote septic system and human waste treatment
  facilities

• International cooperation through Asia 3R
  promotion forum

• Support the practice and improvement of waste
  treatment and 3R in Asian countries

Found society in harmony with nature in Asia

• Popularize SATOYAMA initiative

• Support for making national biodiversity
  strategies in Asian countries

Decentralized sanitary sewage system
Polluted Asian river
Measures against trans-boundary air pollution

• Make and practice the strategy for international
  coral reef network

• Investigate air pollution in East Asia and
  support the measures against the pollution

• Promote the measures against illegal cutting,
  forest fire and reforestation

• Support the measures against yellow sands such as
  reforestation

23
(No Transcript)
24
Size of the Policy Package to Address Economic
Crisis
Government Expenditure
Total Size
I. Immediate Measures -Avoiding a negative spiral- 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- 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 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 IV. Tax reform 0.1 0.1
Total Total 15.4 56.8
(Trillion yen)
Concerning Low-carbon revolution

1,580
(billion yen)
25
Amount of the national budget and tax reform to
go towards environmental preservation matters in
FY 2009
(billion yen)
Nature conservation 261.2
Global environment management 867
Policies to reduce carbon emission Measures
for carbon sink of climate change Promoting
Long-life housing
Maintaining urban parks and natural parks
Restoration of nature
Air environment management 234.2
Others
78
Environmental improvement of roadside,
surrounding of airport Preparing facilities
for road safety
Establishing evaluation system of carbon
footprint Promoting and developing
environmental technologies
Water, soil and ground environment management
743.2
FY2009 Tax Reform

Preparing sewage-works and rural community
sewages Protecting fishery

• 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 ones own expenses
  and renovation aimed at improving energy
  conservation and barrier-free
• Temporarily reduce tax burden on the automobiles
  that have passed higher environmental standards

Waste management and recycling 114
Exploiting local biomass Promoting sound
material-cycle society Preparing ocean
oriented waste treatment facilities
Management of chemicals 8.2
Research for the risk of chemicals Inspecting
environmental safety of chemicals
26
Future Development Strategy (J Recovery Plan)
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

• 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

Sustainable growth

Taking off from economic recession

Year 2020 Gross domestic product (GDP) up
\120 trillion Job creation in strategic sectors
4 million jobs Estimated by the Ministry of
Economy, Trade and Industry (METI)
Economic impacts in the next 3 years (on a
cumulative basis) Demand creation \4060
trillion Job creation 1.42.0 million jobs
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Three Pillars
ltLow-Carbon RevolutiongtA 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)
ltPromoting the Attractiveness of JapangtA 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)
ltHealth and LongevitygtA 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
?The new three holy durables Energy-saving
houses equipped with solar panels Eco-cars
(electric cars, etc.), and Environmental-friend
ly consumer electronics
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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 Japans development as
providing opportunities for the nations growth.
Japanese technology, among the worlds 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 worlds 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

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Thank you very much for your kind attention