White Paper

Quality of the Environment in Japan 1992

4-2-2 Ensuring Long-Term Benefits

  (1) Difficulty of Taking Account of Long-Term Benefits

  The environment is elaborate but fragile. If the present genera-tion makes inconsiderate use of the power it has, the environment will be disrupted. Its recovery is extremely difficult, and there is a danger in some cases that the damage might become irreversible. The environ-ment has such properties, and long-term impacts on the environment are not necessarily weighed in individual cases of decision-making--for example, in assessing the propriety of, say, development projects, despite the necessity of formulating conservation measures in a long-term perspective. Moreover, this is not fully incorporated in the decision-making process. The market economy is a very efficient sys-tem which makes possible the participation in it, but as the future generation is unable to involve itself, it cannot be said that the distribu-tion of resources in this process is favorable for future generations. Even if attempts are made to accurately foresee the future, a certain degree of uncertainty cannot be avoided in technical terms.
  In a practical sense, moreover, the question is how to compare values at present and those in the future. As long as nobody exists who may be able to speak for the future generation, the comparison is something which is economically done but is closely tied in with the assessment of values.
  The next figure represents the computation on a trial basis of the pecuniary values of agricultural development projects in Thailand (Fig. 4-2-1). The figures suggests that the assessment of the projects varies significantly, depending on how one looks at the "discount rate" which show values in the future as they are reduced in terms of values at present. As for development methods with consideration given to the environment, it is assessed in cases with the discount rate reduced to a small value and with future benefits taken into relatively serious account that the values are higher than in other cases. In development methods which lack consideration of the environment, it is assessed in cases with the discount rate set at a large value and with present values taken into relatively serious account that the values are relatively higher than in other cases. Discount and interest rates are the concepts which are indispensable for the comparison of a wide variety of pro-jects. Their use leads to looking at future values less significantly than present values, and it is eventually assessed that there will be virtually no values after the elapse of a considerable span of time. Thus, the more insignificantly the future values are looked at, the greater the apparent benefits of development with a lack of consideration to the environ-ment. In a perspective of environment conservation, it is desirable to reduce the discount rate in making an assessment and, actually, con-crete proposals are made in line with this concept.

Fig. 4-2-1 Amount of the benefit

Fig. 4-2-1 Amount of the benefit

  (2) Improvements in Methods for Analysis of Costs and Benefits

  As there are so many difficulties as we have just seen, how can we make a sound assessment which assures the long-term conservation of the environment?
  In its guideline on the advance of loans, for example, the World Bank has decided to project environment assessments over longer periods (25-50 years or longer) than in the cost and benefit analysis which is used in making decisions on normal development projects. The World Bank also makes it a practice to use measures for the prevention of adverse environmental impacts which are produced in conjunction with development projects and, even if the amount of the initial invest-ment turns out to be higher than in normal projects, to accept the proposed projects as eligible loan recipients. In situations where projects give rise to an unavoidable and irrevocable deterioration of the environ-ment, it also makes it a practice not to advance loans for that reason.
  In situations where attempts are to be made for protection of the long-term benefits produced by the environment, it is indispensable to give special consideration to the environment, instead of using the normal cost and benefit analysis.
  The assessment of development projects in environmental terms is made in light of predetermined criteria but not according to a cost and benefit analysis. The World Bank makes it a practice not to advance loans for development projects in areas designated for environ-mental reasons, such as nature protection areas, unless special consider-ation is given. The environmental quality standards in Japan have been instrumental in rectifying and preventing pollution. In such a way, there is a method to set a future targets beforehand and assess individual development projects in light of these targets.

  (3) Principle for Rights and Obligations beyond National Borders and Future Generations

  As regards the desirable environmental levels which should be handed over to future generations, there are some factors which do not fit in with economic judgments, and it is important to elevate them after serious studies by society as a whole to the levels which will be willingly respected by the present generation and not detested.
  As one of those efforts, the turnover in a long-term perspective to the future generation of the blessings brought about by the environment may presumably be considered as the rights and obligations of each generation or as "rights and obligations in a global dimension." In other words, each generation is the custodian of the global environment, the present generation is obligated to protect the benefits for the future generation, whereas the future generation is entitled at least to take over the infrastructure of more diversified natural and cultural resources than the present generation, use the environment and equally enjoy its blessings. In actuality,our generation has lived after taking over the mountains, forests, paddy and upland fields, rivers and seas our ancestors took care of. We should do the same thing for the future generation.
  Such a concept may be cited from international documents--for example, the United Nations Charter, the International Convention on Citizens and Political Rights and many other international documents on human rights. In those documents, the basic conviction is the respect of all members of mankind's society beyond time and space and the equality of their rights, and it would run counter to those basic princi-ples for the present generation to unreasonably enjoy benefits at the sacrifice of future generations.
  This notion clearly came out in the United Nations Human Environment Declaration in 1972, which declared: "Man has the basic right to enjoy freedom, quality and adequate living standards in an environment where respect and welfare may be retained and is solemnly obligated to protect and improve the environment for the present and future generations," adding that "air, water, land and fauna and flora and particularly natural resources on the earth including representative ecosystems in nature must be appropriately protected with careful programs and controls for the present and future generations. "More-over, the concept of the natural and cultural environments for the future generation is incorporated in the London Dumping Convention adopted in 1972, the Convention on Conservation of Global Cultural Legacies and Natural Legacies and in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention) concluded in 1973.
  Naturally, such a concept on global rights and obligations does not go beyond the declaration of principles and is not established as rights and obligations in terms of international law and domestic laws. But those were conceived in the formulation of concrete conventions (such as the three aforementioned conventions) or as principles in the process which would contribute to the creation of international prac-tices and regulations, and the concrete contents of those rights and obligations presumably will be developed and will take root.

4-2-3 Coexistence and Co-prosperity in Global Ecosystems

  (1) Significance and Challenges in Harmonization with Nature

  Man is an organism. Many of the genes he has are the same as those of other organisms. Man continues his existence while sharing the history of the earth with other organisms as part of the ecosystem. As the saying goes, "today birds, tomorrow men." If some of the eco-systems are no longer sound, man will be affected. For example, the extinction of Japanese crested ibises was caused by the spraying of organic mercury as a pesticide over paddy fields where they fed. When they began to disappear, the Minamata Disease to which man would fall victim was detected. Those phenomena are closely tied in with functions in ecosystems, such as the food chain and biological concentration. Over many decades, smoke came out from high smokestacks and was thinly and widely dispersed in the environment. As damage was caused by acid rain, man came to realize that the atmosphere over the earth is not a dump yard with an infinite capacity. There is no need to say that the physical circulation of air and water had something to do with the appearance of damage in those cases, and it has become evident that soil and fungi which inhabit it also have something to do with that circula-tion.
  Moreover, plankton is a key to future projections of global warming in that it absorbs carbon dioxide in the oceans. The ozone layer about whose depletion there is concern occurred as a result of the chemical reaction by solar energy of the oxygen produced by the working of microorganisms. Petroleum and coal led to the origin of organisms, and mineral deposits were generated as a result of the activities of microorganisms in the Archean Era. Even in sectors where he does not seem at a glance to owe to the activities of organisms, man receives blessings from organisms which constitute the ecosystems of the earth and their products.
 Used by man, those products of the activities of organisms are ultimately produced by solar energy (Fig. 4-2.2). The more diversified the species are in the ecosystems, the higher their stability. As we have already seen in Section 1, Chapter 3, the sustainability of agriculture in which the working of organisms is replaced by fertilizer and agricul-tural chemicals is called to account.
  Thus, the existence of mankind depends on the affluence of the biota which consists of a wide variety of species.
  While coexisting with a broad variety of wild organisms, man-kind has used them as subjects of science, education and recreation, to say nothing of their use as food and material. The development of genetic engineering has made it possible to realize that organisms are of value as gene resources. For mankind's existence in the future--or, in other words, for the assured sustainability of mankind's society--there is the need to coexist with those various organisms in all the more appropriate manner. Nonetheless, those wild organisms are disappear-ing for reasons ascribable to mankind, and the present situation is that the affluence of biota is on the decrease. Their protection is now an urgent task for the building of a sustainable economic society. For this, there is no need to say that it is necessary to contain the collection of things producible from nature within the appropriate framework and also to contain within the appropriate framework the wastes produced by human activities and put and discharged into nature. As things now stand, however, both collection and discharge are rising in Japan, as we have seen in Section 1, Chapter 3. There is the need to grapple with the reductions both in the sectors of collection from and discharge into nature.

Fig. 4-2-2 Ratio of Human Activities in Activities of Life

Fig. 4-2-2 Ratio of Human Activities in Activities of Life

Note : From the "Caring for the Earth" (IUCN etc.) Data Source : Vitousek el

  The world of organisms is made up of a wide variety of compo-nent factors, and there is need for measures with consideration given to this point. The world of organisms can be viewed at various levels, such as ecosystems, biological communities, populations, individuals and genes. The diversity of organisms at each level may be termed an origin of nature, and the extinction of species, including those which are of no use at a glance must be avoided. Given those factors, it has become a practice both at home and abroad to take measures for the protection of some endangered species, whether or not they be of economic value. But protection must not be confined only to that of species themselves. For organisms, their habitat is the place in which they have evolved and on which their life entirely depends, suggesting that habitat is something inseparable from the species. Today, therefore, the task is not only to protect species themselves but to protect the biota which consists of various organisms inherent to each area and their habitat itself.

  (2) Future Tasks to be Taken as Part of Ecosystems

  The question is, social sacrifices, efforts and costs are regarded as being incompatible on many occasions with receivable benefits in situations where certain restrictions are imposed on the use of organ-isms and situations where the whole of the biota, including ordinary species, which inhabits a given areas and their habitat itself, unlike situations where restrictions are put on various performances. For example, there is a rising mood in developed countries to protect tropical forests in developing countries and their rich biota, but objec-tions are raised in developing countries where those forests exist, arguing that it would amount to a deprivation of the right to develop themselves if they were forced to protect their tropical forests. Unless this confrontation is eliminated, it may be difficult to implement measures for the protection of ecosystems smoothly. It has been consid-ered less valuable for mankind to work as an integrated part of the ecosystem coexisting with organisms and other environments, than for attempts to prevent imminent pollution-induced health disorders. In some cases, precedence has been given to man's property and conve-nience over those efforts. There are various methods for people to have access to assets and the drop in convenience may be compensated. But if biological species cease to exist, there will be no way of assuring their resuscitation, and some changes in the ecosystems will be irreversible. In order to establish such relations between mankind and ecosystems which differ from what we see today, it is necessary to make clear how powerful the protection of ecosystems will be, what scope of ecosystems will be involved and what dimension of economic sacrifices will be made as well as clearly outlining the relationship between protection and costs, before selection is prudently made. Here, scientific findings must be used on the degrees of protection, so that their replenishment is desirable.
  Ecosystems on the earth may be thought about as units, depend-ing on the way nature is and of human activities. The ecosystems of the earth are an accumulation of regional ecosystems, and approaches at regional levels serve as the basis for approaches to the earth as whole. Therefore, it is reasonable to think about ecosystems with regional ecosystems as a unit.
  Because the nature in which regional ecosystems exist differs from the conditions of human activities, it is necessary to think about measures which ought to be performed for the coexistence and co-prosperity of ecosystems, while taking account of the conditions in which each region is placed. In the case of precious natural resources, such as the scientifically valuable ones, their assessment and protection have progressed to a certain extent, but the basic concept of how to respond to other aspects of nature is not necessarily clear. On this score, it is important that the natural environment which surrounds rural villages and nature in the cities, which should be appreciated, must be positively appreciated as part of the total natural environment for ecosystems.
  In recent years, it has become a practice to use the words "eco-system" and "eco" in everyday life, but it cannot be said that there is an adequate and accurate knowledge or recognition of the ecosystems. For this reason, it is necessary to encourage people to correctly recognize man's position in the ecosystems. Here, it is important to understand and use the cleverness and exquisiteness organisms have in themselves, and there will be calls for the shift from the "engineering concept" to the "biological concept."
  In substance, the following is conceivable.
  In order to replenish findings on regional ecosystems, there is the need to redevelop an information gathering system, including researchers and volunteers, using institutions to serve as the core of this system in addition to the securing of a budget for surveys and research. For this reason, there are calls for a system in which basic findings and information may be gathered while cooperating not only with various countries but with international society and NGOs, such as the imple-mentation of basic surveys on the biota in various countries, as is the case with Japan's National Green Census, and the establishment of a monitoring system on the present situation of ecosystems and their changes by making effective use of biosphere reserves under the Man and Biosphere Program (MAB) of the U. N. Educational, Scientific, Social and Cultural Organization (UNESCO). Also important are such approaches as the revelation at the grass-roots level of the roles in which the traditional methods in each region to control and use resources lead to the maintenance of biodiversity, and of cases in which the sustainable use of ecosystems is made.
  It is necessary that while collecting and monitoring such basic data, the protection of nature should continue so as not to give rise to the extinction of biological species, and that of unusual species. Even in areas where normal human activities occur, a social system should be built so that human activities, may not produce burdens which go beyond the tolerance of ecosystems. For example, in areas such as rural villages and cities, where normal activities are unfolded, approaches in harmony with those activities are required on the premise of such activities as human life and production. There is the need to assure the stability of regional ecosystems by maintaining the diversity of organ-isms.
  Here, it is important, first, to grope for the possibility of coexis-tence with organisms other than crops with consideration given to the environment in agriculture and forestry which may exist by taking advantage of the productivity nature has in itself. Second, it is conceiv-able that places where many more organisms may inhabit may be secured and the environment improved in rural villages and cities. In such space for the existence of organisms, moreover, it is necessary to come out with networks in various phases, forms and methods in a perspective of guaranteeing the movement of animals.
  As a typical example of such approaches, attempts are being made to secure small biological spaces for the habitation of animals, as is the case with biotope. For example, space may be set aside in some corner of the farm plot for animals, gardens for individual homes, and the rooftops of buildings in cities for the propagation of wild birds, and biotopes may be positively created by using space in the green belts. In Germany, the creation and conservation of biotopes and their planning and construction are proceeding rapidly.
  In the implementation of various public works, project, it is necessary to give consideration in this perspective. In the greening of road slopes and the restoration of rivers, for example, construction methods with consideration given to the habitation of animals and fish are adopted with the introduction of natural vegetation, use of natural stones and repair of curve lines, and positive approaches are expected in the future as investment in social overhead capital for environment conservation.
  For realization of those approaches, public understanding and cooperation are indispensable, and for this, environmental education must be renewed. In this case, it is a fact that mankind is part of the ecosystem and has to depend on the activities of other organisms, so that it is necessary to call for a broad range of understanding to include man's position in regional ecosystems.
  There may be calls for the protection of nature at various levels, ranging from prominent nature, such as national and other parks, where man may be able to experience nature on a grand scale, and small nature available at nearby places, and for the building of a social system in which the understanding may be broadened with the use of various arenas, such as those for school education and social education.

4-2-4 Qualitative Economic Development

  (1) Problems on Relations Between Economy and Environment

  In general, the expansion of the economy and environment protec-tion are considered to be mutually incompatible. Certainly, over the short term during which there is no change in the patterns of production technology, production and consumption, economic performance will be affected if attempts are made to work for further protection of the environment. Such restrictions are inevitable for protection of the environment, and they are a necessary expenditure. In the long-term, economic development does not necessarily conflict with environment conservation.
  As we have seen in Section 2, Chapter 3, for example, it has become difficult for developing countries to give consideration to the environment because of poverty and environment disruption there, Environment disruption means a loss of daily food, thereby worsening their poverty further, suggesting a vicious cycle of poverty and environ-mental disruption. As referred to in Chapter 2, Japan also had a similar experience. Many cases of pollution occurred under a weakantipollution policy in the initial phase when harmony between the environment and sound development of the economy had to be taken into account. In the case of Minamata Disease,horrible damage was caused with too much emphasis put on immediate economic profits. The business which was held responsible for the outbreak of this pollution and the area in which it was located could not develop in a smooth manner. The corporation could neither indemnify damages to the suffers nor restore the environ-ment with its own scarce funds. Given special considerations, it used funds borrowed from outside.
  On the other hand, Japan's experience shows that it is possible to enhance economic affluence as a result of strenuous efforts made both by the government and private quarters even under an antipollution policy so strict that it would not allow for a misunderstanding that priority was given to economics. In the process of economic growth, funds for antipollution measures appeared and the shift to an industrial structure which featured less pollution progressed in a smooth manner. Moreover, the implementation of measures against pollution gave momentum to the development of more sound technology, thereby contributing to technical development. As we have seen in Chapter 3, the economy produces impacts on the environment of foreign countries, as raw materials and products are imported, and has many environmental problems. This means that a sustainable economic society is realized but as is discernible from its experience in antipollution measures, there are aspects in which there is interdependence between environment conservation and economic development in a long-term perspective. Thus, the relations between the environment and the economy are complex, and there is the need for a considerable degree of ingenuity to put economic performance in a more appropriate direction in an envi-ronmental perspective. It might be said that the future task is to constantly look into the quality of the economy, or economic contribu-tions for an enhancement of man's welfare and to search for ways of development without being particular only about the magnitude of pecuniary gains.

  (2) Environment-Minded Economic Policy Targets

  There is the need, first, to adopt methodologies which reflect the importance of the environment in assessing economic achievements. At the end of the 1980s, the importance was internationally recognized of indices which would make it possible to weigh the econ-omy and the environment so that decisions could be made with consider-ation given to the environment in the sector of economic policy.
  The gross national product is a typical economic indicator. Though it is a convenient index to assess the dimensions of the national economy and business trends, GNP represents the annual flow of property and service output with market prices and therefore does not grasp environmental pollution, for which prices are not actually paid. Rather, the payments made by the public as measures against environ-mental pollution, such as fees for medical care and payments for the purchase of antipollution equipment, function to raise GNP. For this reason, growth of the economy in pecuniary terms is apt to give an illusion that the economic society develops without problems. Japan once found itself exactly in this situation. For formation of a sustainable society, there is a need to maintain the stocks of environmental resources at levels where future generations will not be endangered in addition to environmental pollution as such a flow. In developing coun-tries, for example, tropical forests are excessively felled just for short-term profits, but those attempts will not immediately drop GNP.
  Therefore, with consideration given to environmental pollution and the deterioration of natural resources, there have appeared calls for the establishment of a system of parameters with which to grope for the direction in which development ought to go in the long-term, or an "account of environmental resources." Various account systems have been under study by the U. N. Statistical Office (UNSO), the Organiza-tion for Economic Cooperation and Development (OECD), the World Bank and the World Resources Institute (WRI). In order that those studies may be stepped up and the findings may be put to practical use, the UNSO has been studying frameworks and methodologies for the correction of the system of national accounts (SNA). As a revision of SNA scheduled for 1993 a handbook for "System of integrated Environ-mental and Economic Accounts" (SEEA) which is one of the "satellite accounts" annexed to SNA is under preparation. A series of workshops involving government delegates and experts formed by the OECD is studying this issue. At the G7 summits held in 1989 and 1990 the OECD was asked to develop such parameters. The U. N. Environment Pro-gram also is accounting for environmental resources primarily for developing countries with the participation of experts in each sector associated with those studies. In Japan, net national welfare (NNW) was computed on a trial basis as a parameter which would take the place of GNP, and research institutes of the Environment Agency, the Economic Planning Agency and the Ministry of Agriculture, Forestry and Fish-eries have embarked upon new studies.
  For preparation of those accounts, it is necessary to collect detailed and accurate data on the environment and statistically process them. While stepping up the standardization of data processing, the OECD is preparing accounts on forests and marine resources on a trial basis, and Japan is anticipating in those studies.
  A number of attempts are being made for the improvement of parameters for the assessment of economic performance. The U. N. Statistical Office is studying the feasibility of accounts of environmen-tal resources for Papua New Guinea and Mexico. With funds from the USAID and other institutions, the WRI is making case studies on Costa Rica. In the latter studies, the depleted natural resources (with only forest, soil and marine resources included in the computation) was treated as negative investments which should be deducted from the gross national product (GDP). Their share in the GDP in 1989 corre-sponded to 8.9%. The average growth rate of the net domestic product (NDP) after subtracting those depleted natural resources came to 4.7%, 2 points lower than the 4.9% computed by the conventional concept (Fig. 4-2-3).
  It is important to develop such indices for the assessment of economic performance, but the more important thing is to incorporate the indices in the policy target and implement concrete measures for enhancement of the quality of the economy measured according to those indices. It might be said that the degree of importance attached to those parameters depends on our wisdom.

Fig. 4-2-3 GDP, NDP and Natural Resources Depreci-

Fig. 4-2-3 GDP, NDP and Natural Resources Depreci-

ation in Costa Rica
Source : Accounts Overdue : Natural Resource Depreciation in Costa Rica

4-2-5 Steady Actions of People in Different Positions and Mutual Cooperation Among Them

  (1) Why is Appropriate Sharing of Roles Needed ?

  In order to increase the sustainability of the economic society, it is said that there is the need for environmental consideration to perme-ate every aspect of the economic society.
  Many reasons are conceivable for this. It may be pointed out that it is inefficient to try to protect the environment, for example, only at the chimney or faucet. A case in point is carbon dioxide, a greenhouse gas. The technology of removing carbon dioxide from exhaust is under development, but it would be difficult to put it to practice in the near term. As stated in the Global Warming Prevention Action Program, it is necessary to take measures for reductions in the emissions of carbon dioxide by changing economic performance--with measures ranging from energy saving, more efficient utilization of energy and diversifica-tion of energy sources, to improvements in urban structure, transporta-tion systems, and changes in life style.
  Whether it is the collection of natural resources or the abandon-ment of things no longer necessary, people who use the environment, directly or indirectly, are called on to fulfill their responsibilities for environment conservation in conjunction with their acts.
  Second, there are cases in which efforts on the part of society as a whole may be saved if a diversified range of people cooperate. Measures to protect the environment are broad in range and implement-ed by different entities, but their effects as a whole differ significantly, depending on how they are shared. In measures for reductions in the emissions of sulfur dioxide, as we have seen Section 2, Chapter 2, changes in the industrial structure and energy saving are beneficial. They were implemented with a wide variety of measures, such as reductions in the content of sulfur in crude oil, a shift from coal and oil to natural gas, the desulfurization of heavy oil, the installation of flue gas desulfurization devices and the installation of higher smokestacks. Those measures are implemented by different entities, and the neces-sary costs and the maintenance also vary. If reductions in the emissions of sulfur dioxide had been made only by the users of oil and only flue gas desulfurization devices were used, the burden of the costs by society as a whole would have presumably become enormous. In actuality, as those measures were implemented under the government's plan and guidance, adjusted through the price mechanism in the private sector, it has been possible to rectify pollution at relatively low costs for society as a whole. In the cases of recycling we have seen in Section 1, Chapter 3, it is expected that recycling will make progress in a more efficient manner than at present, only when there is a broad range of social approaches extending from the development of the rag-and-bone business and the measures taken by consumer groups and the government for collection and the positive purchase of recycled products by consumers.
  Third, the ethical and moral aspects may be cited as a reason for the necessity of sharing responsibility for environment conservation. As the division is well developed in today's society, there is a broad range of differences in people's association with the environment. Nonetheless, they are an outcome of the division of labor. This does not mean that the degree of mankind's reliance on the environment has dropped. For example, merchandise is fabricated and distributed in a complex mesh of economics. As a result, the dishes served at the dining tables of families are those which are brought in from various places of the world. It is important for consumers and manufacturers to undertake responsibility for environment conservation, depending on their respec-tive roles.
  Moreover, in today's society where man's activities are broadened and the earth has become relatively narrow, the sharing of roles between countries is at issue. The results may greatly differ, depending on whether the sharing is properly done.

  (2) How to Identify and Allocate Responsibilities

  Sharing of responsibility can hardly be determined if it is left to the discretion of the parties involved. As we have already mentioned, the environment takes on a public character, and if the environment is improved as a result of other people's efforts, the benefits will reach third parties other than the people who have made the efforts. For this reason, there is no evident guarantee that each person will willingly make efforts and, consequently, that society as a whole will take adequate measures. Having said that, the government's role in seeing to it that the efforts made by a wide variety of entities for environment conservation will become optimum as a whole has become all the more necessary.
  On this score, the sorting and clarification of responsibility are conceivable. In Japan, legal principles exist for sharing by polluters applied to end-of-pipe antipollution measures (P. P. P.), the responsibil-ity for the payment of damages to people whose health is affected by pollution and the responsibility of persons who cause pollution in public-works projects which are conducted as measures against soil pollution. The responsibility for the payment of damages for no-fault liabilities is also legalized. In the United States, the case in which environmental pollution was caused by the illegal dumping of hazardous wastes uncovered in Love Canal in the State of New York in 1978 gave momentum and similar waste sites across the United States became a grave social issue. The Superfund Act was enacted in 1980. Under this act, the President of the United States is empowered to take appropri-ate clean up measures in situations where harmful wastes are discarded, causing environmental pollution, or where harmful pollutants are dis-charged in the environment. For this, a fund is established to cover necessary expenditures, and certain persons involved are obligated to implement measures or bear the costs. The fund is covered with such contributions as that from the revenue of taxes on oil and some chemi-cals, and the total amount was $1.5 billion in the first 5 years. The act was revised in 1986 and 1990 and became more powerful. The total amount of the fund by 1993 is $12 billion. As of 1991, 1,236 places were put on the national purification list (NPL). Thirty-three places for which permanent measures have been completed are excluded from the list.
  One feature of this act is that a fund is established using revenues of taxes on oil and some chemicals to cover the costs of clean up so that even in situations where people who should bear the cost cannot be readily identified, prompt measures may be taken. Another is that the parties involved will be held responsible in an extremely strict manner. In other words, the persons held responsible are the present owners of polluted facilities (present owners), the owners or custodians of facilities at a time when wastes were discharged (past owners), the persons who generated harmful waste (generators), or the persons who transported harmful matter to facilities (forwarding agents), and the responsibilities are retroactive. For this reason, the enforcement of this act is so strict that the present owners have to bear responsibility for the disposal of hazardous wastes discharged before its enactment. Thus, the Superfund Act was established based on the United State's reality that there have been many pollution incidents where clean up responsibility is hard to identify. It is characteristic that the Superfund Act is designed to realize measures for effective clean up of pollution, departing from end-of-pipe antipollution measures according to the conventional principles of burdening polluters.
  The role of government in assessing the results of efforts entrust-ed to individuals and adjusting excesses or shortages, if necessary, has become important. Moreover, it is necessary to develop facilities and replenish services for environment conservation in public-works pro-jects done by the government itself and continue to reinforce environ-ment conservation measures for the implementation of public-works projects done for purposes other than environment conservation. Research and studies on the environment itself and on relations between man and the environment, the development of pre-emptive technology for the protection of the environment from disruption and surveillance of environmental conditions and activities which produce impacts on the environment are also roles where the government ought to take the lead. The offer of public information to people and entrepreneurs and, propagation, enhancement and environmental education are also tasks that ought to be assigned to the government. Hopes are pinned on those roles of government toward the new task of building a sustainable society, and there is a need for constant efforts so that the roles may be played in a smoother and more efficient manner.

  (3) How to Improve and Utilize the Economic Mechanism

  As we have just seen, the expectations on the government are becoming all the greater, but it is necessary to note that forceful measures cannot be described as the only available means in the govern-ment's approach to various human activities. Environmental issues are taken up as distortions and faults in socioeconomic activities. We have seen in Section 2, chapter 2 the notion that a rectification of those distortions per se will help efficiently solve problems in a manner to take advantage of the vitality of the market mechanism. In situations where there exists a broad range of measures for that realization, as is the case with an enhancement of sustainability, there are circumstances in which the restrictions in which an across-the-board ban or special measures alone are forced are not necessarily likely to be complied with.
  Having said that, there is an interest in the utilization of eco-nomic policy measures which will lead to greater attention to environ-ment conservation while assuring the freedom of responses by the public and entrepreneurs. We have some examples to utilize economic instru-ments to environment protection. Among these examples, there are some in which the cost of waste treatment service are shifted to users of this service, and are reflected to decision making, so that the volume of waste treatment is reduced. In this connection, people's consciousness on environmental protection is being enhanced as we can see from Fig. 4-1-1.
  The OECD Recommendation on the Use of Economic Instrument in Environmental Policy in 1991 says: "Member countries make a greater and more consistent use of economic instruments as a comple-ment or a substitute to other policy instruments such as regulations, taking into account national socio-economic conditions." In the recom-mendation, (a) charges and taxes, (b) the selling and buying of rights to emission, (c) deposit system and (d) fund assistance (subsidies, etc.) are cited as economic means. In particular, as the merit of the economic instruments lies in the fact that environmental pollution may be more cost-effectively prevented than controlled with regulatory means and that technical innovations for improvements in the environment may be encouraged in a long-term perspective.

  (a) Charges and Taxes

  Of the aforementioned economic instruments, the charges and taxes are theoretically the means with which the burdening of fees for the use of the environment, which have not been paid up to now, is shared in an attempt to incorporate in economic performance the social cost of which has not burdened users of the environment before. With the imposition of taxes, depending on the amount of pollutants emitted and the frequency of using environmental resources, the idea is to encourage the efficient utilization and distribution of natural resources in the environment, thereby working for improvements in the environ-ment (Fig. 4-2-4).

Fig. 4-2-1 : Environmental Charge and tax

Fig. 4-2-1 : Environmental Charge and tax

  In foreign countries, for example, tax systems of the kind designed primarily to curb the emissions of carbon dioxide were introduced first by Finland and the Netherlands in 1990 and by Sweden and Norway in 1991. In the case of Sweden where the tax rates are higher, the tax rate is about 20,000 for 1 ton of carbon (about 1,900 m3 in terms of carbon dioxide) from coal, oil, natural gas and gasoline. The rate is 10 yen or so for 1 liter of gasoline. In the inroduction of the carbon tax, the related tax systems were significantly amended, such as reductions in the energy tax and raises in the value-added tax, and as a whole, the taxes on fuels containing much carbon are higher than before. The tax revenue, incorporated in the general financial sources, is projected at about 310 billion yen (the collection of the carbon tax accounts for about 3% of Sweden's tax revenue with its GNP standing at about one-fifteenth of Japan's). It is estimated that the emissions of carbon dioxide will drop to 8-16% of the present emissions by the end of this century. In addition, the tax system has been used against domestic air and water pollution. Table 4-2-1 shows how the environment tax is introduced. On the use of the environment tax and other matters, studies are under way by a joint working group of the OECD Environment Committee and Committee on Fiscal Affairs, and Japan is also making serious studies while taking part in those international studies.

Table 4-2-1 Environmental Charge and tax

Table 4-2-1 Environmental Charge and tax

  (b) Emission Trading

  In addition to the aforementioned charges, etc., other policy measures are also under study. Of those means, the trading on the market of the right to emit is a system in which the tolerable emissions of pollutants are predetermined and the plants whose emissions exceeds that value purchase the right to emit from plants where there is latitude in order to work for an efficient reduction in the emission as a whole. Like the problem of how to determine the rate of charges, how to distribute the initial framework of rights to emit is yet another difficult issue. On this, studies are under way both at home and abroad. The United States introduced a system of trading in the 1980s, which is implemented in the field for reductions in the emissions of sulfur dioxide as a measure against acid rain.

  (c) Deposit System

  In the deposit system, deposits are levied on products which require recycling which are repaid when unrequired products are turned in after the use of the merchandise. In Sweden, a system of deposits is successfully in force for specified kinds of drink containers. The outline of this system is illustrated in Fig. 4-2-5, and the system is placed under the management of the Deposit Fund with capital laid out by the industry. As of 1991, the aluminum can recovery rate exceeded 82%.
  Also in Sweden, a system of deposits on automobiles was institut-ed in 1976. In the initial phase a deposit of 250 Krona was levied on a domestic or imported automobile (weighting less than 1,800 kg). This deposit is refunded with a scrap premium of 300 Krona when the owner takes it to an authorized scrap agent. In 1988, the deposit was raised to 300 Krona and the premium to 500 Krona, and in January 1992, the deposit was raised again to 850 Krona and the premium to 1,500 Krona. The deposit collected when an automobile is sold is put into the Automobile Scrap Fund established for this system, and this fund is used for the allocation of subsidies to local authorities, which advance loans for the payment of scrap premiums and the recycling of abandoned automobiles.

Fig. 4-2-5 Container deposit sistem in Sweden

Fig. 4-2-5 Container deposit sistem in Sweden

Souce : Symposis of the Swedish and Norwegian Industry-erganized Deposit and Recycling Concept (RETURPACK)

Table 4-2-2 Recovery of Discarded Packages and Conditions for Exemption of Obligations for Repayment of Deposits in Germany

Table 4-2-2 Recovery of Discarded Packages and Conditions for Exemption of Obligations for Repayment of Deposits in Germany

  In Germany, a system of deposits was introduced under an administrative ordinance, dated February 20, 1988, on plastic packing containers, and its application began also to other plastics on January 1, 1992. Under this system, 0.5 DM is added to the selling price for a container with a capacity of more than 0.2 liter for drinks, detergents, purifying agents, spray-type paints, etc., 0.5 DM for a container with a capacity of more than 1.5 liters and 2 DM for a paint container with the weight of more than 2 kg. The containers include those made of aluminum, plastic, iron and all other sorts of materials. In situations where manufacturers and distributors manage a legitimate packing container recovery system in specified areas authorized by competent authorities, the obligation of recovery by individual dealers and the repayment of deposits were exempted. This system in which the exemp-tion is authorized makes sure the periodic recovery of used packing containers from households in the jurisdiction and makes it possible to achieve the recovery and sorting rates shown in Table 4-2-2. It is stipulated that the system must be compatible with the recovery, recy-cling and reuse systems of the authorities which conventionally take charge of the disposal of wastes. In German industry, Dual System, a limited responsibility company, is established as the firm which takes specialized charge of this recovery system. With a membership of about 500 corporations at present, the company recovers packing material. Similar systems of recovery are also under study for electric appliances, electronics, automobiles, etc.
  In the United States, nine states have a deposit system on drink containers. In the State of California, a recovery system of its own is in force (Table 4-2-3).
  In Japan, too, localized deposit systems on drink containers are enforced in a number of districts under the guidance of local govern-ments. According to the Fact-Finding Survey on Measures to Prevent the Dispersion of Empty Cans carried out in 1990 by the Environment Agency, 40 municipalities in Tokyo and 14 prefectures had local deposit systems. They are enforced in Kamiizumi Village and Nagatoro Village in Saitama Prefecture and Himejima Village in Oita Prefecture or their nearby areas. They are also carried out in some areas of municipalities, such as parks, gymnasiums, parking lots and plazas in front of railway stations. The systems include a deposit system in which 10 yen or so is added to selling prices, a system of pecuniary incentives in which money is given in return for cans, a system in which medals are given and a coupon system in which shopping subsidies are handed over, among others. Of all the systems,the deposit system accounts for 48%, the pecuniary incentive system 16%, the medal system 5% and the coupon system 27%. According to a survey in Saitama Prefecture in 1990, deposit systems are enforced in 12 dstricts of the prefecture, and the recovery rate reached 70.9%.
  In the Second Recommendation on Administrative Reform Re-

StateE Beverage Container Deposit Laws(USA) Provisions Of The Law And Documented Date

StateE Beverage Container Deposit Laws(USA) Provisions Of The Law And Documented Date

The following documented information on provisions and effects of deposit legisla-tion in the nine states with beverage container deposit laws was comoiled by the National Container Recycling Coalition (August, 1990).

sponding to Internationalization and Giving Priority to National Life made by the Extraordinary Administration Reform Promotion Council in December 1989, it was proposed to "study measures for the develop-ment and promotion of conditions to introduce deposit systems."

  (d) Subsidies, etc.

  Subsides, etc., make it possible to reduce environmental pollution and financially support and encourage activities for the recovery of forests, etc. They have been provided within a certain framework in Japan, eventually bearing fruit. In economic terms, their efficiency is as high as charges. In terms of the principles of burdening by polluters, however, there are cases in which it is not authorized to depend solely on those systems, so that they are given only for limited purposes, such as the smooth implementation of responses to increasingly strict con-trols on polluters. Besides, there are cases in foreign countries where their revenue is used, for example, for the granting of subsidies in combination with charges.

4-3 The Road Toward A Sustainable Earth

  A sustainable economic society can no longer be built only with the efforts of a single country. Even if pollution no longer occurred and environmental loads had been fully reduced, it might involve transfer of pollution to developing countries. Then there is the possibility that the primary products imported by developed countries might have been manufactured using unsustainable methods. If environmental disruption in developing countries is left as it is, the damage will extend all over the earth. Against the backdrop of the international economies in which there is growing interdependence in a trans-boundary global environ-ment, there has arisen the need to discuss sustainability in a global dimension.
  The year 1991 marked the 20th year of environmental administra-tion since the founding of the Environment Agency. As we regard issues on the environment, the time has come when Japan's benefits may be realized only when greater benefits are realized for the entire earth. It is also recognized as a task to assure benefits for the future generation, but not just to assure benefits for the people who are living today. Given those factors, environmental administration is called to reform itself. As in the international society, it has become necessary to unfold a broad debate on future options desirable for the earth and Japan.

4-3-1 UNCED and Future Direction of World Environmental Policy

  In order to cope with a deterioration of the environment, a wide variety of international arrangements are made. As indicated in the table (Table 4-3-1), important international conferences were held in 1991 to reach international accords on grappling with environmental problems and to step up global cooperation.
  In the midst of that trend, Japan is also striving to make positive contributions to environmental problems. For example, the Eighth Conference of Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention: CITES) was held in Kyoto in March 1992 with the participation of more than 1,200 persons, including the delegates of the signatories and observers from nongovernmental and other organizations (excluding media reporters), the greatest number of participants ever. During the two-week conference, various discussions were held on a revision of the Annexes and the appropriate observance of the convention.
  At the conference, 39 species or families such as the crab-eating fox and Rufous-necked Hornbill, were added to the Annexes, and 18 species or families such as Geoffroy's cat, Goffin's Cockatoo and Muhlenberg's turtle, were upgraded from Annex II, a list of fauna and flora which may be traded, to Annex I, a list of fauna and flora whose trading is prohibited in principle, whereas 18 species were deleted from Annex II and 7 species were downgraded from Annex I to Annex II. It is worthy of special note that some countries where wildlife flourish strongly argued that there were cases in which dealings in wildlife could be of help in their protection, benefits from its legitimate dealings should be recognized, and that this argument was accepted. It is also worthy of special note that the necessity was recognized of coming out with new criteria for listing in the annexes, more objective and scientific than the existing criteria (commonly known as the Bern Criteria).
  Those moves represent a change from past conferences where it was considered that action would lead directly to the protection of wildlife by including the annexes and strengthen the regulatory mea-sures, such as a ban on international trade. It is conceivable that the Kyoto conference was an important turning point in enabling the con-vention to function in a more substantial way for the realization of the ultimate objective--that is, harmony between protection and use of wildlife species.

Table 4-3-1 Major International Conferences Held in 1991

Table 4-3-1 Major International Conferences Held in 1991

  The Fifth Conference of Parties to the Convention on Wetlands of International Importance, Especially as Waterfowl Habitat (Ramsar Convention) in Kushiro City, Hokkaido, in June 1993, for the first time in Asia.
  The U. N. Conference on Environment and Development (Earth Summit) will be held in Brazil in June 1992 with a view to reaching international agreement on substantial measures for realization of a sustainable society. According to a resolution of the U.N. General Assembly, the head of state or leader of each member country is asked to take part in the conference, and it is expected that it will turn out to be a conference in which the greatest number of national leaders participate in the history of mankind. At the plenary session, plans are afoot for the conclusion of two conventions and the preparation of a document concerning an agreement on forests, and it is also scheduled to adopt a charter which stipulates the basic ideas and action principles on the realization of sustainable development, formulate action pro-grams for air, forest and other sectors and study funding measures and the development of organizations for the implementation of the action programs. In the following section, let us take a bird's-eye view of cross-sectional matters to be taken up at the Earth Summit.

  (1) Adoption of a Charter on the Principle How People and Government Should Act to Keep the Earth Sound for Our Common Future

  International discussions are under way to define the basic obliga-tions of the present and future generations, the principles of decision-making on the environment, and the principles on general rights and obligations concerning the environment and development, including the principles of multilateral relations.
  An elaborate check of the items which are under study shows that all individuals, organizations and states, share responsibilities for sus-tainable development. It is necessary to recognize the fact that the present and future generations rely on the ecosystems and resources of the earth. Also proposed and studied are the revelation that poverty and unsustainable life styles run counter to the long-term existence of ecosystems on a fragile earth, and the need for the international society to shift to forms of production and consumption that will pave the way for coexistence with the environment on the basis of a new code of ethics.
  The feasibility is under study of the integration of the environ-ment with development, obligations on the global environment, the protection of the interests of the present and future generations, the necessity of predictive and preventive approaches, cooperation between states and individuals and between states, the education and develop-ment, the principles of burdening by polluters, obligation and compensa-tion, citizens' involvement and the release of information, the conquer-ing of poverty, the offer of funds and technology transfers.
  This document will not be immediately legally binding on states and individuals, but it is expected that they will become a premise for individual approaches and a guideline for international approaches. When it is internationally studied and approved, it is necessary that Japan will also respect this document and give life to its spirit in actual administrative measures.

  (2) 'Agenda 21'--Concrete Action Program To Be Carried Out Toward 21st Century

  Agenda 21 is a program for actions in which the ideals of the Earth Charter are embodied. The contents are prepared from the four standpoints of the basis for actions, purposes, actions (measures) and means of implementation. At present, discussions are under way on the draft of Agenda 21 on actions in 39 sectors presented by the Earth Summit Secretariat. On the nature of Agenda 21, Maurice Strong, secretary-general of the Earth Summit, states that the purpose of the agenda, is to offer a framework which will enable the government of each member country, international institutions, NGOs and various organizations and citizens in each region to cooperate with one another and take positive actions, and that he expects each member country will take voluntary actions and further expand actions, as occasion demands, in line with Agenda 21. The main subjects in representative sectors which are now under study in regard to Agenda 21 are given below. Incidentally, they include some which are being already carried out by Japan and some the implementation of which is not necessary. It is expected that further in-depth studies will be made in the future to reach international agreement on the contents as reasonable ones.

  A. Conservation of the Atmosphere

  Regarding conservation of the atmosphere, discussions are under way in three sectors of trans-boundary air pollution, including climate change, such as global warming, depletion of the ozone layer and acid rain. On climate change and the depletion of the ozone layer, individual measures are under discussion at separate talks on the conventions, so that discussions on these two issues will not carried out. As measures in the atmosphere conservation sector, the following 8 items are under study.
 a. Promotion of a shift from energy supply and consumption of a polluting type and wasteful use to an environmental sound approach
 b. Cooperation in enhancing the energy efficiency and in solidifying the technical basis of developing countries
 c. Promotion of the use of recyclable energy by establishing eco-nomic and other policies
 d. Promotion of an environmentally sound transportation system to curb the emission of harmful air pollutants from the transportation sector
 e. Industrial development which dose not produce adverse impacts on the atmosphere
 f. Agricultural development which dose not produce adverse impacts on the atmosphere
 g. Promotion of sustainable consumption patterns and life styles
 h. Cooperation in research for an enhancement of the understanding of impacts on the global atmosphere and responses to uncertainties caused by them

  B. Forest Conservation

  According to the concept of sustainable development, the follow-ing 4 areas are under study for the conservation and reasonable use of all forests, including those in the tropical, temperate and arctic zones.
 a. Sustaining the multiple roles and functions of all types of forests, forest land, and woodlands
 b. Enhancement of the protection, sustainable management and conservation of all forests, and the greening of degraded areas through forest rehabilitation, afforestation, reforestation and other re-habilitative means,
 c. Promoting efficient utilization to recover the full valuation of the goods and services provided by forests, forest lands and woodland;
 d. Establishment and/or strengthen capacities for the planning, assessment and periodical evaluations of forest-related programs prog-ress, activities, including commercial trade and processes

  C. Protection of Freshwater Quality and Supply

  In this sector, studies are under way on the assessment of pay and costs, scientific and technical means, manpower development, and the enhancement of developing countries' capability of response, among others. The following 6 items are being studied as measures.
 a. Promotion of integrated control of water sources
 b. Assessment of water sources for accurate projection of their quality and quantity
 c. Protection of water quality and aquatic ecosystems
 d. Drinking water supply and enhancement of hygiene
 e. Development of water sources and sustainable urban develop-ment
 f. Water sources for sustainable food production
  In addition, the drafts of substantial action programs were proposed for a total of 39 sectors, including (4) desertification and droughts, (5) biodiversity, (6) biotechnology, (7) marineconservation, (8) harmful chemicals, (9) Hazardous wastes, (10) solid wastes and sewer system-related issues, and serious studies are under way on their con-tents with the participation of the governments of Japan and other countries and private organizations. After the programs are finalized, it is necessary for Japan to seriously work for the realization of their contents both at home and abroad.

  (3) International Cooperation on Securing Financial Resources for Global Environment Conservation

  The very necessity of realizing sustainable development with consideration given to the environment has been commonly recognized both by the developed and the developing countries. For the achieve-ment of action programs incorporated in Agenda 21, it is indispensable to strengthen the ability of developing countries to carry out environ-mental measures, secure ample funds in developing countries and enable developing countries to conserve the environment at their own responsi-bility. As we have already seen in section 2, charter 3, however, there is a serious shortage of funds in developing countries. For this reason, it is conceivable that there is the need to transfer additional funds in addi-tion to those to developing countries in the conventional form of ODA (Fig. 4-3-1). The U. N. General Assembly asked the Secretariat of the Earth Summit to estimate the required total fund. The Secretariat of the Earth Summit estimated it at $125 billion, (the sum developing countries themselves must bear is about 4 times this), but the bases of this estimate are not necessarily clear.

Fig. 4-3-1 Main Flow of Funds from Developed Countries to Developing

Fig. 4-3-1 Main Flow of Funds from Developed Countries to Developing

Countries in Agenda 21-Related Sector (Social Development+
Environment Conservation) (1989)
Notes :
1. Prepared by the Environment Agency on the basis of the "World Bank and Develop-ment" (1991) and "OECD/DAC Report" (1990). But the figure does not comprehen-sively cover the present fund flow in the environment and other sectors.
2. By "Agenda 21-related sector," it means the inclusion of such Agenda 21 items as come in the level of middle items according to the ODA classification. There is the possibility that the sector is somewhat wider than Agenda 21.
3. The amounts of money in liability swaps represent those of liability purchases, the bilateral amounts are on a commitment basis, and the amounts of money offered by international institutions are on an authorized commitment basis.
4. The "major donor countries" as referrde to in this figure represent the United States, Japan, Germany, Britain and Canada.

  Nonetheless, the transfer of funds on such a large scale is signifi-cantly different from the prevailing flow of funds between developed countries and developing countries, which is estimated at only $120 billion both in the government and nongovernmental sectors, and its realization would entail significant difficulties. Moreover, developing countries consider it natural to secure those funds and asserted in regard to the nature of the funds that the responsibility for the poverty and other issues posed to developing countries, including environmental issues, rests with developed countries, pointing out that the necessary funds ought to be procured in the form of "compensation." They also argue that the international fund transfer framework should be "newand additional" to conventional frameworks.
  On the other hand, developed countries assert that each country has common but different responsibilities. In other words, developed countries consider that both of developing countries and developed countries have responsibilities, but they have differences according to the those of contribution to problems or ability to cope with it, and that, while they willingly grapple with measures, developing countries should also hold themselves responsible for making certain efforts. Developed countries recognize the need for additional funds, but they consider that attempts should be made to strengthen assistance mechanisms with actual achievements before, such as GEF, regional development bank and UNDP and then to work for their further efficient use (for example, the strengthening the linkage of the Framework Convention on Climate Change to GEF) and also for the efficient use of nature protection and liability swaps and nongovernmental funds.
  In order to conserve the global environment, despite the existence of such differences in opinion, there is no need to point out that the international sharing of funds is required. One reason is that as long as other countries not implementing environmental measures will also be benefitted when one country carries them out, it is reasonable for the benefitted countries to partly share the cost required for the measures, and if the cost is not shared, any country might not be motivated to take full environmental measures. For example, if developing countries did not take full environmental measures, the damage would reach devel-oped countries. In order to avoid such damage, it will be of benefit to developed countries, too, for them to partly bear the cost for the measures taken by developing countries.
  The degree of easiness with which environmental measures may be implemented differs, depending on the country (Fig.4-3-2). This does not serve as a justification for certain countries' exemption from the implementation of measures for conservation of the global environment, but the implementation of many measures by countries which do not have so much difficulty in doing so, while funds are internationally passed around, will make it possible to save the cost needed for environ-ment measures by the whole world. The way support ought to be to measures for the global environment in developing countries is at issue, but it is conceivable from the fact that support to many of the measures implemented by developing countries at present is highly significant merely from the stand point of saving the cost for environment mea-sures by the entire world. It is indispensable for improvements in the environment of the whole world that developed countries make interna-tional contributions in the fund sector in addition to the measures taken at home.

Fig.4-3-2 Comparison of Cost Needed for CO2 Emission Reduction between Developed Countries and Developing Countries

Fig.4-3-2 Comparison of Cost Needed for CO<SUB>2</SUB> Emission Reduction between Developed Countries and Developing Countries

  Note : Estimated by National Institute for Environment Stuides. The vertical line represents Decrease of GNP caused by CO2 Reduction divided CO2 Reduction. This Figure shows relation between reduction rate and these cost at 2000 and 2020. In this figure, "developed coun-tries" means OECD countries, other countries are regarded as "developing countries".

  The international accommodation of funds should be made in steps, to be sure, but with the Earth Summit just around the corner, the world is asked to draw on its resources about the way the framework for internationally securing funds for the global environment should be, the way the international framework for the management of colossal funds and sure methods for the use of transferred finds in developing coun tries. Against the back ground of such circumstances, the Eminent Persons' Meeting on Financing Environment and Development will be held in April 1992 under the sponsorship of the Secretariat of the Earth Summit with former Prime Minister Noboru Takeshita as caretaker, and Japan, including its private sector, is expected to display its wisdom about contributions to the world.

  (4) Promotion of Technology Transfers

  In order for developing countries to implement environment conservation measures, it is necessary to enhance their ability to deal with environmental issues. For this, the task is to establish a system in which sound technology for environment conservation will be transfer-red from developed countries to developing countries. There is a com-mon international understanding, to say the least of Japan, about the importance of technology transfers, but there is a conflict of views on the principles between developed countries and developing countries as is the case with the question of funds. In other words, developing countries are calling for "preferential and noncommercial technology transfers" from developed countries in the same manner as they are thinking about the way the sharing of funds ought to be. In light of the present situation that many technologies are developed by private businesses but not by governments, developed countries assert that technology transfers should be done in an "impartial and reasonable method" on the premise of the protection of the rights to intellectual property as a protective measure for the development of technologies.
  Nonetheless, technology transfers for conservation of the global environment are just as important as fund transfers. In attempts to respond to those expectations, the Japan International Cooperation Agency (JICA) and related ministries and agencies are stepping up many programs for cooperation in environmental technology. Besides, the Central Council for Environment Pollution, the Natural Environment Conservation Council, the Industrial Structure Council and other forums are studying the future direction of approaches. On the basis of those studies, it is necessary for Japan to make further efforts for the forma-tion of agreement.

  (5) Strengthening of International Organizations for Environment Conservation

  From the standpoint of internationally coping with the conserva-tion of the global environment, discussions are under way roughly on three points--the reform of organizations on the environment and development in the United Nations, the establishment of a framework for follow-ups on the achievements of the Earth Summit, including Agenda 21, and the promotion of cooperation between the United Nations and other institutions in the second of the environment and development. On those points, a,broad range of support is extended for a strengthening of the U. N. Environment Programme (UNEP) and for a comprehensive coordination with international institutions. As for follow-ups on the Earth Summit, it is proposed that a summit be held every five years. It is important to reach international agreements at the Earthy Summit, but the most essential thing is to translate them into action. For this, the establishment of appropriate international frame-works is desirable.

4-3-2 Initiatives in Domestic Approaches

  As we have seen in regard to studies on main themes at the Earth Summit, there is a conflict of views on the principles between developed countries and developing countries over where the responsibilities for issues on the global environment lie, so that there is no predicting whether many substantial international agreements may be reached at the Earth Summit. Nonetheless, as there is the need for prompt responses to problems on the global environment, the span of time in which discussions may be made is limited. The Earth Summit marks the 20th year from the U. N. Conference on the Human and the Environ-ment held in Stockholm in 1972. At this conference, actions for conser-vation of the global environment were discussed under the motto of the "irreplaceable earth," such as the adoption of the Human Environment Declaration, but its achievements were not necessarily tied in with substantial measures fully implemented. It is to be noted that there is no longer any room in terms of time for a repetition of those misfortunes. The Stockholm conference 20 years ago did not necessarily pave the way for an implementation of its adopted measures, partly because the interest in environmental issues rapidly dropped as the world economy came to a standstill due to two subsequent oil crises and because the achievements of the conference were confined in the framework of a recommendation and did not take on concrete form.
  Though it is expected that there will appear a broader range of substantial international accords at the forthcoming Earth Summit, but the more important thing is to pave the way for the translation of its achievements into action. For this, the participation and cooperation of various sectors, such as the working of the check mechanism, such as by related international institutions, the people of each country and NGOs whose members evolve their activities as trans-boundary global citizens, will be required, to say the least of the efforts made by the government organizations of each country.
  International, Japan has repeatedly expressed that it will play a positive role in the conservation of the global environment, and the Secretariat of the Earth Summit and many countries pin high hopes on Japan's positive role in bringing the Earth Summit to success and implementing its achievements.
  It might be said that Japan, massively consuming environmental resources and producing significant loads on the global environment, is obligated to respond to those expectations. It is indispensable for Japan to resolutely build a sustainable economic society at home and become an example for the world in order that it may promote the establish-ment of international accords and establish itself as a good member of the world's ecosystems. In Japan, measures for the prevention of pollution and for the protection of nature have been replenished and strengthened. As we have seen in this chapter, approaches to an enhan-cement of sustainability are begun or studied. In the sector for conserva-tion of the environment of the whole earth, many measures, such as those for the prevention of marine pollution, the protection of wildlife and the protection of the ozone layer, are begun as we will see in Chapter 8, Part 2. (Part 2 of this report is omitted in this version) Particularly, global warming is the most important of all issues on the global environment, and the Action Program to Arrest Global Warming was approved at the Conference of Ministers Related to Conservation of the Global Environment in October 1990. This program makes clear the whole images of the government's immediate policy for the systematic and comprehensive implementation of measures against global warming and the practical measures that ought, to be taken in the future to secure the people's understanding and cooperation and to clarify Japan's basic posture to contribute to the establishment of an international frame-work. On the basis of this program, Japan made clear at the Second World Climate Conference in November 1990 a policy of taking the lead with EC and EFTA countries (see Table 4-3-2) in dealing with measures against global warming, when a global framework for those measures has yet to be established. Related ministries and agencies have since been steadily working out measures in line with the program.

Table 4-3-2 Status of Targets for Limiting Greenhouse Gases (as of 6 Dec. 1991)

Table 4-3-2 Status of Targets for Limiting Greenhouse Gases (as of 6 Dec. 1991)

  In the private sector, the Japan Committee on the Global Environ-ment was established in May 1991 to take the lead in developing a system in which various circles would cope with problems on the global environment. In July 1991, the Japan Fund for the Global Environment was established to collect donations from various circles. The mood for environment conservation is on the rise, such with cooperation in the "Eminent Persons' Conference on Global Environment" held in April 1992.
  While environmental issues are addressed by government and private sectors integrated, new measures are sought for applying the achievements of the Earth Summit effectively at home.

4-3-3 Improving and Strengthening International Cooperation for Environmental Conservation

  In the area of international cooperation, too, after agreements are reached at the Earth Summit, we will need to strengthen Japan's international cooperation. Japan will need to play an active role in international partnership from the following kind of perspective.

  (1) Sustainable development and ODA

  Environmental problems faced by developing countries are often connected with poverty and/or inadequate economic conditions. In order for us to help them in their efforts to achieve "sustainable development" in which they will maintain the environment into the future and sustain development, it is not enough for us to cooperate with their efforts to protect the environment in a direct way. While remem-bering the effects such development has on the environment, we have to carry out a broad range of assistance with ODA and other forms, of cooperation.
  The total sum of Japan's ODA is $9,220 million in 1990 (net payment base), and Japan is contending for first place with the United States in terms of the absolute amount of ODA. The rate of ODA to GNP stands at only 0.31%. In FY 1990, the amount of environmental ODA which aims to assist developing countries effort of environment conservation, is $165 billion and account for 12.4% of the total amount of Japan's ODA.
  Japan expressed a policy that "Japan would increase and strengthen the amount of bilateral and multilateral aid in the environ-ment sector up to about 300 billion yen in 3 years". Since then Japan has positively made environmental ODA by FY 1990, total sum of environ-mental ODA reached about 2,980 yen virtually achieved the target. Protection of global environment is a suitable field where Japan can and should make a positive contribution to the international community. It is necessary to strengthen and improve environmental ODA for environ-mental problems of developing countries and for global environmental issues under international cooperation.

  (2) Financial Assistance in International Cooperation for Environment

  In developing countries, large amounts of financial resources are needed for environment conservation, to develop administrative struc-tures and systems for environmental protection, to recover the resources base that has been undermined or even lost. However, devel-oping countries are compelled at this stage to devote large amounts of financial resources for developing social capital and for economic development. Then, too, there are many necessary projects in this field of environmental protection which do not bring about direct economic benefits. For this reason, in providing financial assistance, we should work for organic connections between various forms of cooperation, and between different programs for technical cooperation and provide funds in ways that are easy for these countries to use premised upon self-help efforts on the part of these countries.

  (3) Technology Useful for Environment Protection in Developing Countries

  When we look back on the history of environment protection in Japan, we realize that the role of technology with which serious environ-mental pollution was dealt with is significant. In developing countries, too, it is important to acquire technology with which they can deal with environmental problems.
  In regard to a role developed countries may play in the acquisi-tion of such technology by developing countries, the expression "technol-ogy transfer" is often used. Between developed countries and developing countries, nonetheless, because there are significant differences in the levels of technical education which sustains technology, in management costs for technology-related facilities and in costs for the installation of facilities themselves, and because each developing country has its inher-ent history, social conditions, locally traditional technology and decision-making systems, technologies in developed countries may not be of use if they are "transferred" to developing countries as they are. Rather, it is necessary to take up the issue of technology transfers as that of "technical cooperation" in which appropriate technologies suit-able for the actual situation and needs of recipient countries will be chosen, improved and developed jointly with them. For this, developed countries should strengthen their cooperation in enhancing developing countries' ability to develop technology and attach importance to joint studies and joint development.
  Before that, there also are problems, such as a failure on the part of developing countries to come to accurate grips with their own tech-nology in relation to substantial technology and know-how suitable for them or a failure on the part of developed countries to systematically sort out information about them, so that there is the need to overcome those problems, for example, by the preparation of data bases and the formation of systems for the multilateral exchange of technical infor-mation. On this score, Japan is cooperating in the establishment of environmental research and training centers in Thailand, China, In-donesia and other countries in the forms of grant aid cooperation and project-type technical cooperation. By hosting the UNEP International Environmental Technology Center, Japan also strives to work for the preparation of a network with the research institutions and technical information centers of each country.
  Incidentally, even in situations where the experience of developed countries is of use to developing countries, it is necessary to note that the experience of small and medium businesses is important in the offer of Japan's experience, as the industry of developing countries is made up of many small and medium businesses. As regards sectors, there is also the need to note that waste water from tanning, gilding, textile, dyeing, food and other factories pose serious issues in developing countries.

  (4) International Environment Cooperation and Political Dialogue

  There are not only big differences between developing countries and developed countries in the natural, social, and economic conditions that they are placed in, but there are also significant differences among developing countries themselves. With regard to environmental prob-lems, too, countries vary with regard to the actual situation, the natural, economic and social conditions that exist in the background. In order that the environmental assistance projects may be effectively and efficiently implemented, it is necessary to strengthen policy dialogue and to formulate and implement proper aid projects, while avoiding forcing specific assistance projects on developing countries.

  (5) Effective Implementation of Environmental ODA

  With a view to implementing environmental projects effectively, it is necessary to strengthen liaison and coordination among related organizations in Japan and abroad, at the all phases of development aid namely, project finding, project proposal from recipient countries, project implementation, follow up evaluation of projects. In particular, for environmental assistance, functional and effective combination of various types of assistance and strengthening of cooperation and liaison with international aid agencies like the World Bank and UNDP, and with environmental assistance activities of other countries. From the standpoint of expanding and replenishing environmental ODA, it is an urgent task to secure and bring up human resources engaged in the environmental assistance.

  (6) Environmental considerations

  In implementing developmental assistance, it is imperative to pay sufficient amount of attention to the environment, The agencies in the Japanese government that provide environment related assistance have developed, or are developing, guidelines for paying attention to the environmental protection, and internal procedures for ensuring that; in the coming period, we need to continue that effort to ensure that full consideration is given in the actual spot where assistance is being provided, and to strengthen the system for implementing environmental impact assessment. Likewise, with those types of assistance projects that require environmental assessment, a comprehensive evaluation from economic, social, and cultural perspectives should be made as to whether or not a given project will bring about sustainable development. And such an assessment should include an examination of alternative approaches as well.

  (7) NGOs' Participation and Cooperation and Strengthening of Support to Private Sector's Environmental Cooperation

  If we are to implement the kinds of assistance which are really needed by the recipient country, which will achieve the results in full accord with the set goals, and which will be fully welcomed by the people of that country, the participation of the NGOs of both the donor country and recipient country who have a wealth of knowledge and experience about development, and the participation and cooperation of the area residents who will be affected by the project, are indispensable --this is the growing awareness in our country as well. Based upon this growing understanding, a number of support and assistance systems are being developed: the small scale grants-in-aid cooperation, and subsidies for NGO programs by the Ministry of Foreign Affairs, NGO agriculture and forestry cooperation assistance by the Ministry of Agriculture, Forestry, and Fisheries, and the International Volunteer Savings pro-gram by the Ministry of Posts and Telecommunications. It is necessary to continue to make such efforts to support NGOs that are involved in international environment cooperation, while paying close attention so as not to undermine the independence and distinctiveness of NGOs.
  Then, too, with regard to equipment and facilities for pollution prevention and control, and related technology and knowhow, these are most often in the possession of private business enterprises, and so, in many cases, the most effective method is to transfer such technology and knowhow through direct investment and technical tie-ups. How-ever, considering the economic situation that many developing countries are situated in, it is difficult for these projects to be put on a regular commercial basis, and there are definite limits to voluntary and self-initiated promotion of technical cooperation by the private sector, and so, we need to consider how can be created the kinds of environment which is preferable for technology transfer in the private sector.

  (8) Multilateral Cooperation

  Each of the government and public agencies has its own role to fulfill, and so, liaison and coordination among them, and making use of appropriate agency for the work at hand, is important. Within this context, with regard to multilateral development assistance organiza-tion, there is a need to strengthen assistance provided through existing frameworks of the World Bank, UNDP, ITTO, etc., and to improve and makes effective use of the Global Environment Facility (GEF) which was established on an experimental basis jointly by the World Bank, UNDP, and UNEP as a nucleus arrangement for multilateral coopera-tion, in order to assist developing countries' effort to global scale environmental problems which are not effectively coped with through existing assistance scheme. Also, given that there are countries that assert that involvement of foreign countries in the management of natural resources of a given country is an infringement of that country' s sovereignty, and given that some problems have become serious on a truly global scale which require drawing up of common guidelines, it is often far more effective to implement assistance through an interna-tional organization (that is, on a multilateral basis).

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