Embassy of Japan in the United States of America
在米国日本国大使館

CSIS Environment

February 2010
Ichiro Fujisaki

First of all, Mr. Fukuyama, State Secretary for Foreign Affairs and architect of Japan’s environment policy, regrets he cannot be here with you today.
He also sends his best regards to his old friends President Hamre and Dr. Green.

A flash of lightning has struck Japan.
This was on September 7 when then new Prime Minister-to-be Mr. Hatoyama stated that the new government of Japan will aim to reduce greenhouse gases by 25% by the year 2020 from the 1990 level.

This should not have been news.
Because this was already stipulated in Index 2009, the campaign commitment document of the Democratic Party of Japan.

But still many people thought “Is this serious?”
Two reasons.

One, the commitment made three months ago by the previous LDP government was a 15% cut from 2005.
This was already seen by some as such an ambitious target, but this was equivalent to an 8% cut from the 1990 level.

By the way, the US Congress proposal of a 17% cut from the 2005 level is the same as a 4% cut from the 1990 level.

Two, Japan has had the No.1 energy-efficient economy for more than two decades.
According to the IEA (International Energy Agency), in order to produce one dollar of GDP, if Japan needed one unit of energy, the US and EU needed twice as much, Russia 17 times and China 9 times.
It was thought the same as asking Kate Moss to go on a diet.

Some top Japanese business leaders grumbled that if the restrictions imposed on industries in Japan were stricter than elsewhere, the industries will have no other alternative than to go out of the country to operate.

However, new Japanese leaders maintained the original position.
The Prime Minister stated in New York at the UN Summit on Climate Change as follows:

“I believe that the developed countries need to take the lead in emissions reduction efforts. For its mid-term goal, Japan will aim to reduce its emissions by 25% by 2020, if compared to the 1990 level. However, Japan's efforts alone cannot halt climate change, even if it sets an ambitious reduction target. It is imperative to establish a fair and effective international framework in which all major economies participate. The commitment of Japan to the world is premised on agreement on ambitious targets by all the major economies. ”                                                     

This was seen as a surprise for some other world leaders who were not expecting such bold leadership from Japan.
But it was well received.

This new initiative was backed by two reasons.
One, a sense of urgency.
No time to waste in view of the seriousness of the effects of global warming.
An agreement for the next legal framework on climate change at COP15 was being sought.
By announcing this initiative Japan intended to lead the international negotiation.

Two, the conviction that this will help the economy.
Green job creation, development of new technology, etc.
This was backed by our own experiences.
As you all know, the oil shocks of the 1970s were a big blow to our economy, but in hindsight, they have helped to shape the Japanese economy today.

Japan thus became one of the key players in the Copenhagen process.

Copenhagen may not have achieved everything, but given the circumstances, I do not hesitate to call it a limited success.
At least, it provided a good basis for the future agreement.

Now let us talk about the future.
I know there are skeptics who think the steam is already gone.
They would say, “If even the top world leaders were not able to come up with more than the Copenhagen Accord, how can we make any substantial advancement from here?”

We do not take such a pessimistic view.
We think such attitude should be labeled as a self-fulfilling prophecy.

We think agreement is possible.
We think we must make it happen.
The Japanese strategy is to attain the goal of a “fair and effective international framework with ambitious targets by all major economies.”
This can be categorized into four components.
You may call it Japan’s ABCD towards Mexico.

• A for Ambitious goal to be maintained
• B for Broad participation
  
• C for Comparability and transparency
  
• D for Development assistance

Let me elaborate.

Ambitious Goal
Japan will keep its commitment of a 25% cut from 1990.
We have already registered this figure to the Secretariat of the Framework Convention in accordance with the Copenhagen Accord.
Now our task is to come up with concrete plans to domestically realize this goal.
This is indicated in the New Growth Strategy announced in December 2009.
 In this new strategy, the Japanese government will mobilize all available policy tools promoting electric power feed-in tariffs, smart-grids, next generation automobiles, and so on.
I think these measures were discussed in the morning session today.
It is expected that this strategy will create 50 trillion yen (equivalent to more than 500 billion dollars) in new environment-related markets.
It is expected to create 1.4 million environment sector jobs.
Also, it will reduce worldwide greenhouse gas emissions by at least 1.3 billion tons of CO2 equivalent using Japanese private-sector technology.
Other countries are expected to be as ambitious as possible in setting their goals.

Broad Participation
Kyoto was a historic milestone.
However, it has a limited effect.
Because it covered only 30% of the current global emissions.
China and the US, both respectively having a share of 20% each, are not under any obligation to reduce GHGs under this agreement.
India as well.
We cannot let that happen again.
We will not have an effective framework without major emitters joining it.
It has to have broad participation.
It must be comprehensive.
We hope a climate bill will be passed shortly.
We welcomed President Obama’s State of the Union address in which he encouraged passage of the bill that would allow the U.S. to consolidate its negotiation position.

Comparability and Transparency
When countries set targets, these have to be comparable.
Only setting goals is not sufficient.
We all have to know how it will be implemented.
We have to know that the results reported are verifiable and trustworthy on a scientific basis. This would lead us to confidence-building.
Comparability and transparency are thus required.
 　
Development Assistance
Emissions from developing countries have been increasing to 50% of the global emissions in 2005.
However, three points have to be mentioned.
One, it is true that the largest concentration of GHGs in the air, the direct cause of global warming, has been caused by the economic activities of developed countries.
Two, developed countries have more funding and technology than developing countries. 
Three, many small countries are vulnerable to the impacts of climate change such as floods.
They keenly recognize the needs for prompt action against climate change.
Thus it is all the more natural for developed countries to help developing countries from the standpoint of fairness.
Many developing countries deserve assistance for mitigation from developed countries including technical cooperation.
Japan announced at COP15 the $15 billion Hatoyama initiative in 2010-2012 for assisting developing countries to carry out mitigation actions as well as adaptation actions. This amount includes $11 billion public finance.
If you recall that the collective financial commitment by developed countries for 2010-2012 was $30 billion, our commitment was pretty large.

Last but not least, cooperation between Japan and the US.
According to the IEA, 72% of world public investment in R&D in
the energy sector was done by two countries, 31% by the US and
41% by Japan.

This shows that the two countries have special responsibilities.
We have the “Fact Sheet on Japan-US Cooperation on Clean
Energy Technology” issued at President Obama’s visit to Japan.　
It set a good roadmap for deepening bilateral cooperation on clean
energy.
The cooperation projects stipulated in the fact sheet, such as
smart-grid, and CCS (Carbon Capture Sequestration) should be
steadily implemented.
Japan’s bullet train technology could also contribute to high speed
railway plans in the U.S.
On the international negotiation front, Japan and the U.S. should　
cooperate for the success of COP16 in Mexico.
We should enhance our outreach to major developing countries,
especially China, India, Brazil and South Africa (BASIC countries).
We should support Mexico as the chair of COP16.
Mexican President Calderon visited Japan this month and received
full support from us.
Coordination on financial assistance to developing countries
between the two countries is also critical.

Ladies and Gentlemen,
I think many of us here share a hunch.
A hunch that we are entering a new chapter in our history.
As auto-industries have changed the world and as computers have
changed the world, this whole concept of energy-efficiency may
create a new and dynamic industry.
In American history, this may be comparable to the great
exploration of the West.
Those who go get the golden share.
So, our effort is not only for others—this is for us.
Let us not miss the bus.
The name of the bus is post-Kyoto.
The next stop is Mexico.
Thank you.