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Green Economy Policy in Japan: After East Japan Disaster and Fukushima Nuclear Accident

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Green Economy Policy in Japan: After East Japan Disaster and Fukushima Nuclear Accident Xin Zhou, Ph.D., Deputy Director & Satoshi Kojima, Ph.D. , Director – PowerPoint PPT presentation

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Title: Green Economy Policy in Japan: After East Japan Disaster and Fukushima Nuclear Accident


1
Green Economy Policy in Japan After East Japan
Disaster and Fukushima Nuclear Accident
International Workshop on Green Economy Ministry
of Environmental Protection of China
UNEP Beijing, 30-31 October 2012
  • Xin Zhou, Ph.D., Deputy Director
  • Satoshi Kojima, Ph.D. , Director
  • Economy and Environment Group
  • Institute for Global Environmental Strategies
    (IGES)

2
Outline
  • Green economy and green investment
  • Green economy policy in Japan
  • Lessons learned from east Japan disaster and
    Fukushima accident
  • New policy directions for Japan
  • Strengthening collaborations on green investment
    in China, Korea and Japan

3
Green Economy and Green Investment
  • UNEP gave the working definition of a green
    economy as one that results in improved human
    well-being and social equity, while significantly
    reducing environmental risks and ecological
    scarcities.
  • The essence of a green economy is to pursue
    harmonization of inclusive economic growth and
    environmental sustainability.
  • Green investment is vital in gradually changing
    the fundamental structure of conventional
    economic infrastructure, create new jobs and help
    economic recovery.

4
Green Economy in the Context of Japan
  • On 31 October 2011, Japan gave its definition to
    a green economy for the first time in its
    preparation for the Rio20.
  • A green economy is an economic system which
    promotes sustainable growth while improving human
    welfare, by pursuing economic growth and the
    environmental conservation in tandem, properly
    utilizing and conserving natural resources and
    ecosystem services.
  • A green economy is regarded as a useful tool to
    achieve Sustainable Development.
  • Government of Japan (2011) Input to the Rio20
    Outcome Document http//www.mofa.go.jp/mofaj/pres
    s/release/23/10/1031_05_01.pdf

5
Japans Policy Aiming at Green Economy
  • 3 pillars in the vision of becoming a leading
    environmental nation in the 21st century (2007)
  • Low carbon society (Challenge25 25 reduction
    by 2020)
  • Sound material-cycle society (3R initiative)
  • Society in harmony with nature (Satoyama
    Initiative)

6
Japans Green New Deal
  • Minister of the Environment announced Green
    Economy and Social Change (Japanese Green New
    Deal) in April 2009.
  • Greening social overhead capital (public
    investment)
  • Renovation of public buildings e.g. schools to
    eco-building
  • Renovation of transportation/city to eco-friendly
    system
  • Investment in forestry for carbon mitigation
  • Greening consumption (mainly through eco-point
    schemes)
  • Promotion of energy-saving home electric
    appliances
  • Promotion of next generation eco-housing
  • Promotion of next generation vehicles and
    biofuels
  • Greening investment (through carbon market and
    green tax)
  • Introduction of domestic cap-and-trade
  • Greening tax
  • Carbon offsetting, carbon foot-print

7
Japans New Growth Strategy
  • Cabinet approved New Growth Strategy as the
    direction of Japanese economic/industrial policy
    on 18 June 2010.
  • Aim to create new demand and employment in 4
    priority areas
  • Economic growth through green innovation

New demand Job creation
Green innovation JPY 50 trillion (USD 415 billion) 1.4 million jobs
Life innovation JPY 50 trillion (USD 415 billion) 2.8 million jobs
Asian economy JPY 12 trillion (USD 100 billion) 0.2 million jobs
Tourism JPY 12 trillion (USD 100 billion) 0.6 million jobs
8
Green Innovation in New Growth Strategy
  • ltEnergy Sectorgt
  • Renewable energy
  • Nuclear power plant
  • Efficiency improvement in power generation
  • Smart grid
  • ltTransportationgt
  • Promotion of modal shift
  • Next-generation vehicle
  • Targets by 2020
  • 50 trillion of environment related new market
  • 1.4 million new environment related employment
  • Emissions reduction by 1.3 billion t-CO2 at the
    global level
  • ltBuildinggt
  • Energy-saving home electronics
  • Eco-house
  • Heat-pomp
  • LED and organic EL
  • Environmental concierge
  • ltResourcegt
  • Promotion of recycling
  • Invention of alternative materials for rare metals

9
Contributions to Green Economy in Asia
  • Utilise green innovation in Japan to greening
    economies in Asia
  • Promote infrastructure development, e.g.
    Shinkansen for urban transportation, water
    infrastructure, energy infrastructure, and
    eco-city.
  • Not only increased exports of green products but
    also consequent economic growth in Asian
    countries will provide large markets for Japanese
    producers.
  • Clean Asia Initiative (Ministry of the
    Environment)
  • Help achieve the transition towards green economy
    (low carbon economy, sound material-cycle economy
    and economy in harmony with nature) in Asian
    countries through ODA.

10
Classification of Green Industry
  • Matured industry
  • well-developed technology
  • market share in both domestic and foreign markets
  • Example hybrid car

Supportive Industry which support industrial
sectors listed left for their contributions to
green activities Example Financial
institution, Trading company
  • Matured industry with limited market share
  • well-developed technology
  • home markets
  • no entry or only a recent entry in foreign
    markets
  • Example energy (nuclear energy), transportation
    (high-speed rail), construction (low-carbon
    housing), water, recycling

Premature industry Industries with small
domestic market Example electric cars, biomass
energy
11
Lessons from 3.11 and Fukushima
  • Japan is still vulnerable to serious disasters
  • Japan is very advanced in seismic engineering and
    technologies.
  • Have experienced serious Tsunami damages nearly
    every 50 years and have rich experiences in
    preventing Tsunami damages.
  • Still, more than 20,000 died and Japan did not
    prevent the Fukushima accident.
  • Precautionary principle is key to avoid uncertain
    catastrophes
  • Immediate cooling by sea water could have avoided
    hydrogen explosion of Fukushima No.1 reactor,
    however nobody could have made such a decision
    without a social acceptance of the precautionary
    principle.

12
Lessons from the Rolling Blackout of TEPCO
  • Overconsumption of electricity
  • After adapted to darker illumination in stations
    and trains, many people think previous
    illumination was too bright.
  • Rolling blackout raises general awareness in
    energy saving.
  • Vulnerable electricity supply to lifelines and
    medical services
  • TEPCOs rolling blackout seriously affected
    lifelines such as railway services, car traffic
    due to no traffic signals, etc. and medical
    services in hospital as well as at home.
  • Disadvantages in centralised and monopolistic
    electricity system are presented. Serious
    discussions started on the separation of
    electricity generation from distribution and
    transmission as well as introduction of
    decentralised generation and distribution system
    using renewable energy.

13
New Policy Directions for Japan
  • Discussions are ongoing including
  • Ecological tax reform to promote investment in
    renewable energy and smart grid that enable more
    renewables in the energy mix.
  • Not only resource efficiency improvement but also
    reductions in absolute resource use should be
    achieved such that economy and life style is
    compatible with the carrying capacity of our
    planet.
  • Application of payment for ecological services
    and green accounting to support sustainable
    agriculture and green supply chains.
  • Key success factors
  • Development paradigm shifting from economic
    efficient growth to ecologically resilient growth
    based on precautionary principle.
  • Progress indicators reflecting quality of life
    and resilience (or vulnerability) of the society
    and economy.

14
Strengthening Collaborations on Green Investment
in China, Korea and Japan
  • Japan and Korea represent developed countries and
    China is an emerging economy. The three countries
    have different visions and priorities in
    achieving a green economy. Experiences from the
    three countries can be referred to other
    countries.
  • Proposal for a comparative study on green
    investment in China, Korea and Japan
  • IGES are conducting several projects related to
    green economy, e.g. SDG, pathway of low carbon
    growth, resource management and recycling, and
    indicators, etc. The Economy and Environment
    Group applies several analytical tools, CGE,
    MRIO, GIS, MESSAGE models, to conduct policy
    assessment.

15
Output Effects of New and Renewable Energy
Investment (preliminary estimation)
JPN JPN KOR KOR CHN CHN ROW ROW
ME Ely ME Ely ME Ely ME Ely
Global output effect (u/u investment 2.47 1.93 2.65 1.91 3.04 2.44 2.42 2.03
JPN 88.5 87.4 7.1 1.2 3.7 1.9 2.0 0.6
KOR 0.6 0.2 73.5 76.8 2.1 1.1 0.7 0.2
CHN 2.3 0.9 3.1 3.0 79.0 87.4 1.9 0.8
ROW 8.6 11.5 16.3 19.0 15.2 9.6 95.4 98.4
Total 1 1 1 1 1 1 1 1
16
Income effects of New and Renewable Energy
Investment (preliminary estimation)
JPN JPN KOR KOR CHN CHN ROW ROW
ME Ely ME Ely ME Ely ME Ely
Global income effect (u/u investment 0.50 0.27 0.39 0.20 0.39 0.28 0.47 0.30
JPN 90.9 87.8 9.0 2.1 5.4 3.1 2.0 0.8
KOR 0.4 0.1 69.7 69.4 1.8 1.0 0.4 0.2
CHN 1.3 0.9 2.5 4.6 73.1 82.8 1.1 0.6
ROW 7.5 11.1 18.7 23.9 19.6 13.1 96.5 98.4
Total 1 1 1 1 1 1 1 1
17
Thank you for your kind attention!
Zhou_at_iges.or.jp Kojima_at_iges.or.jp http//www.iges
.or.jp
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