Global economic development and environmental preservation through transfer and diffusion of leading-edge technologies

Akira Chihaya Vice Chairmen, Nippon Keidanren Representative Director & Chairman of the Board of Directors, Nippon Steel Corporation

One of the important issues which mankind faces is the global environmental issue. The Japanese industry has attained the world-class energy-conservation and environment-protection technologies as evidenced by the achievement of over 20% reduction of energy consumption since the oil crises in 1970s. Japan Business Federation on its part has been implementing countermeasures against the global warming in line with its voluntary action program. In fact, the target of restraining CO₂ emissions at the level of 1990 has already been attained. The industry is determined to pursue environmental issues by further brushing up the technologies and know-how for the purpose. Together with the commercial utilization of new energies such as wind power and biomass, the industry will step up its endeavor for continuing technical innovations from a long-term viewpoint such as the establishment of a low-cost hydrogen production process and CO₂ separation and fixation technology.

Despite these steady efforts on the part of the industry, recently discussions are under way in Japan for the strengthening of restrictions such as the dealing of domestic emissions (Cap & Trade) on the premises of introducing environmental tax and emission limits as short-term measures to tackle global warming. We are deeply concerned about such a trend because trying to deal with environmental issues that are really global simply by the enforcement of severer domestic regulations not only impairs the international competitiveness of the Japanese industry but also hampers its voluntary effort towards long-term technological innovation.

The route that we ought to take and which will directly lead to Japan's international contribution is to transfer our technologies and know-how to developing countries to promote the worldwide "economic development and environmental preservation". For example, the Netherlands tries to attain its target set under the Kyoto Protocol and simultaneously contribute to the global warming problem by the government's purchase of emission credits which will be obtained under the clean development mechanism (CDM) and joint implementation (JI) schemes carried out by private companies.

The Japanese industry intends to search out and promote concrete energy-saving projects in other countries and link them to CDM and JI.

Therefore, we request that the government provide an appropriate framework that will support such industry activities by, for instance, expanding the environmental ODA. We are convinced that such a joint effort by the government and industry is indispensable for Japan to do its part for the global society as a science- and technology-oriented nation.