A 3E Vision for a Sustainable
Global Society in the 21stCentury
TAKAAKI FURUYA* 1
YOSHINORI OKI* 1

In seeking a basic solution to global environmental problems, efforts to reduce greenhouse gas emissions must occur inconjunction with an expansion of the "3 Es": energy security, environmental protection, and economic efficiency and sustainable economic growth. A steady supply of energy and the maintenance of the environment must be combined to form two sidesof the same coin. Achieving such a balance is the key to realizing sustainable economic growth on both a domestic and a global
scale. Japan's high-end energy-saving and environmentally friendly technologies could contribute much toward solving these
problems throughout Asia, where energy consumption is increasing. In fact, regional revitalization is currently underway inJapan, which has effectively begun to construct a recycling-oriented society that thrives on natural energy. Mitsubishi Heavy
Industries, Ltd. (MHI) is actively engaged in developing technologies that transform and use energy in harmony with theenvironment and that facilitate environmental conservation, restoration, and creation through an expansion of the 3E approach for creating a sustainable global society.

of these gases. In consequence, reaching a global accord
for the second-term commitment, which is scheduled to
begin in 2013, is expected to be extremely difficult. Having already realized the highest level of energy-savings in
the world, Japan is required to reduce its greenhouse gas
emission by about 6% of its level in 1990. Achieving such a
reduction should likewise prove difficult.
The Kyoto mechanism for transacting emission rights
is promoted through the effective use of market mechanisms. However, the clean development mechanism (CDM),
which promises to be the most effective of the transaction
mechanisms, is an institutional morass whose energy-saving effects and economic performance do not contribute toemission rights approval. In 2010, CO2 emissions in India
and China are expected to reach 29 times the annual reduction of 0.11 billion t-C required of Japan. Such anincrease would make it difficult to attain the worldwide
reduction target, if only Japan makes efforts to reduce
emission levels.
2.2 High petroleum prices result from a strainedenergy supply
The 21st century has brought sharply rising oil prices,primarily because of an increased demand for liquid fuels.
This increase in demand has followed from the improved
access to transportation brought about by higher living
standards in countries with large populations, such as
China. The topic of "energy security" thus arises also as a
global social issue.
Energy security calls first for an effective use of petroleum and for a shift to high-performance natural gas,followed by energy diversification through the effective useof large coal reserves, the development of unconventional
petroleum resources, and the promotion of nuclear power
and renewable energy sources. Since oil prices can only be
expected to rise, fuel competition is expected to be high,particularly for hydrocarbon fuels during the shift from
Fig. 1petroleum to other fuels (Fig.
1).

1. Introduction
Behind the global society of the 21st century lies a multipolar world economy whose energy consumption is expected
to increase rapidly. In particular, the growing economies ofBrazil, Russia, India, and China, as well as of other developing countries in Asia, create a major problem forsustainable development. These economies demand restricted energy resources, such as petroleum and water, inlarge quantities, and they may resist conventional environmental restrictions that could otherwise prevent further
global warming. To solve these problems, a social infrastructure must be built that simultaneously realizes thecomponents of the 3E vision: energy security, environmental protection, and economic efficiency and sustainableeconomic growth. In addition, this infrastructure must expand the 3E program through the diffusion of energyefficient and environmentally friendly technologies.
This paper discusses the potential for a partnership
between Japan and China, which is expected to become
the center of economic growth. In so doing, it clarifies how
3E expansion could be achieved for the purpose of regional
revitalization through the construction of a recycling-oriented society in Japan and through the promotion of thetechnologies and product groups through which MHI currently contributes to the realization of a sustainable society.

2. Realizing the 3E concept: A major 21st century
challenge
2.1 The status of measures that combat global warming
When the Russian Federation ratified the Kyoto Protocol in February 2005, international efforts began in earnest
to reduce greenhouse gas emission so that the level specified for 2008 might be reached. The United States, whichis the world's largest energy consumer, and countries like
China and India, in which energy consumption is expected
to increase sharply, are exempt from reducing their output

Mitsubishi Heavy Industries, Ltd.
Technical Review Vol. 42 No. 4 (Nov. 2005)*1 Technology Planning Department, Technical Headquarters12.3 The need for a 3E expansion
As the global market economy advances into the 21st
century, regional disparities can be expected to grow inadvanced and developing nations. Therefore, a discussionof the effects and limitations of market mechanisms is increasingly important.
Unilateral attempts to solve problems related to theenvironment, energy, and the economy cannot be expected
to succeed. Rather, the relationship between the health ofthe environment and energy use must be clearly viewed as
Fig. 2
two sides of a single coin (Fig.
2), which involves both theefficient use of diversified energy resources and the containment of the environmental load. Energy security,environmental protection, and sustainable economic growthmust be achieved in a balanced way through an expansion
Fig. 3of the 3E concept (Fig.
3).
Carbonrich fuel2.4 Two 3E expansion models
Potential expansion via the 3Es can be broadly divided
into two classes. On the one hand, 3E expansion could occur in advanced and developing countries in which energy
consumption and the environmental load are expected toincrease. On the other hand, interregional 3E expansion
could occur among countries like Japan that have aging
populations, mature societies, and a declining birthrate,and in which energy consumption remains fairly constant.
These latter countries require a steady energy supply, environmental protection, stable employment, and improved
economic efficiency. From the perspective of Japan, theformer type of 3E expansion would involve the developing
countries in Asia, and especially China, whereas the latter
type would involve both urban and rural areas in Japan.
These scenarios are discussed below.

Social economic activities

Petroleum rollover point (fiscal 2015)

Improved convenience andsustainable development ofsafe society

Coal
Tar
Stable-supply
Petroleum and stableprice zone

Supply-down andprice-up zone

Reuse

2020

2030 (Year)

Hydrogenrich fuel

EnergyFossil fuelNuclear power
Renewable energy

Fig. 1 Supply-demand balance of diversified hydrocarbon fuels
A steep price increase occurs as the supply-demand balance of fuel islost at the rollover point, where fuel meets the line in the figure; at thisjuncture, hydrocarbon fuel is replaced by other fuels promoting higher
economic performance.

Waste
Recycling

SteadyenergysupplyNaturalgas
2010

Reduced energy
consumption
and waste(Reduce)Natural resourcesand energy

Associated gas

2000

Product

Reduced energy
consumption
and waste(Reduce)

Biomass

Environmental
protection
Environment
Atmosphere, water,and soil
Ocean and forest

Fig. 2 Environment and energy: two sides of the same coinsupporting social economic activity.

Energy resources ensuring steady energy supply
Coal

UraniumNatural gas

Minable duration (years)

Petroleum

Natural energy

Coal

UraniumNatural gas

Petroleum

231

73

61.6

43.0

In the predictable future, energy resources will be used effectively with fossil fuels
still playing the main role in balanced, simultaneous 3 E implementation.
Energy security:

Environment Protection

Reduced dependence on Middle East oil
Spread of substitute fuel for petroleum
Diversification of energy resource(use of coal)

Reduction of environmental load and greenhouse gas emissions
Environmental restoration and creation
Promotion of clean-coal and nuclear power technologies
Promotion of renewable energy and energy saving
Reduce, Recycle, and Reuse (3 R) society

Economic efficiency and sustainable economic growth
Effectiveness and limitations of market mechanism
Elimination of economic disparity
Fig. 3 Simultaneous realization of the 3Es: an important goal for 21st Century global society

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nation, and waste produced by the delay of environmental
protection measures and the advent of rapid urbanization.
These problems, in turn, have created serious and widereaching environmental problems, such as a dramaticincrease in greenhouse gas emissions, acid rain, deforestation, desertification, water shortages, and marine pollution.
The expanding economic disparity between urban (coastal)and rural (inland) areas is a growing social problem.
3.3 A 3E cycle between Japan and China
The 3E problems faced by Japan and China could be
effectively and mutually solved through the introduction
Fig. 4).
4 Such a 3E cycle would consist of theof a 3E cycle (Fig.
following three points:(1) Joint Japanese-Chinese ventures would manufacture
liquid fuels and chemical products from coal in China,
and these manufactured products would be used domestically in China and would be imported to Japan.
(2) Joint ventures would be set up in China to promote
the dissemination and effective use of Japanese technologies designed for high-level energy use andenvironmental protection.
(3) Imports and exports related to joint-venture businesswould be facilitated through a partnership between thetwo countries.
The benefits that could be expected from the implementation of such a 3E cycle are as follows:(1) Benefits in energy security
The use of liquid fuels manufactured from coal in
China would ease world supply constraints by reducing
the demand for petroleum. China could make effective
use of its own natural resource (coal), the dependenceof both Japan and China on Middle Eastern oil would
decline, and energy security in North Asia would increase as a result of the economic interdependence ofthe two countries.

3. 3E expansion through partnerships in Asia
3.1 The status of 3E expansion and related problems
in Japan
In Japan, the dependence on petroleum dropped from
77% to 55% after the "oil shocks" that occurred during thelatter part of the 20th century. However, the dependenceof Japan on the Middle East for the oil that it continues to
consume rose from 71% in 1980 to 88% in 2003. The combined oil dependence of Japan, China, and South Korea on
the Middle East is expected to rise steeply, from 58% in2003 to 71% in 2020, as a consequence of rapid increases
in the oil imports of China. As a nation with an aging
population, a mature society, and a declining birthrate,
Japan faces the possibility of stagnant economic growth,which may cause a decrease in environment-related investment. If Japan is to become the world's most energy-efficientsociety while also reducing greenhouse gas emissions, thebenefits from such action must outweigh the costs.
3.2 The status of 3E expansion and related problems
in China
China has maintained a high annual economic growthrate of 9.7% since 1980, and it is strongly expected to maintain economic growth at an annual rate of 7%. To maintainsuch growth, it must solve the 3E problem common to allsocieties that have high economic growth. A variety of energy issues, including power shortages caused by improved
living standards, liquid fuel shortages resulting from the
now widespread use of automobiles, coal-based energy production, low energy efficiency, and other uncontrolled
conditions, make the problem particularly serious in China.
The key for China lies in securing liquid fuels and using
coal with maximum efficiency. Related environmental andeconomic issues include regional environmental problems,such as air pollution, water contamination, soil contami-

Despite huge coal reserves, China is expected to experience liquid fuel shortages,
which likely will strain the global oil supply,
increasing the dependence of northeast
Asia on oil from the Middle East.

Manufacture ofchemical products
from liquid fuelsJapan

Improvements in the energy-consumption
efficiency and energy security of China
and the introduction of Japan-China joint
measures for reducing CO2 emissions arenecessary.
The high-level joint use of Chinese coal byboth Japan and China, in combination withJapanese support for energy efficient andenvironmentally friendly technologies andbusinesses, will contribute to the simultaneous realization in both Japan and China of
3E projects (i.e., the expansion of 3E in Asia).
Benefits for both countries
Safe supply of liquid fuelProtection of global environment
Sustainable economic growth

Export to Japan
Gasification

Coal
China

Domestic
use in China

Environmental measures
Technical assistance and participation inprojects (business) by Japan

Recyclable energy, fossilfuel-fired high-efficiency
power generation

Development ofadvanced technology
in Japan
Nuclear power plant

Benefits for China
Steady supply of electricity
Development of inland areas such as coal mining
Use and spread of high-level technology
Fig. 4 The Japan-China 3 E cycle concept

Benefits for Japan
Effectively reduced CO2
Industry will be revitalized through thedissemination and advanced development of high-level technologies.

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Technical Review Vol. 42 No. 4 (Nov. 2005)3

Introducing and disseminating Japanese clean-coaland nuclear power technologies would ease the discrepancy between power supply and demand, ensuring
diversification and clean, high-efficiency energy use. The
dissemination of Japan's cutting-edge, energy-saving
technology would reduce energy consumption.
(2) Benefits in environmental protection
In China, where CO2 emissions are increasing several times faster than in Japan, introducing anddispersing Japanese nuclear power and clean-coal technologies, environmentally friendly renewable energy
technologies, water and air pollution-prevention technologies, and waste-disposal technologies for the
disposal of municipal and industrial wastes and hazardous substances would make environmental
preservation and protection measures more effective.
Promoting the manufacture of liquid fuels from coalwould increase the use of liquid fuels containing lesssulfur oxide and soot, thus reducing air pollution.
(3) Benefits in economic efficiency and sustainable economic
growthA stable energy supply would enable China to enjoysustainable economic growth. Since coal-mining areas in
China are located mostly inland, where economic growthlags, promoting high-level coal use could reduce economic disparities. Since foreign currency otherwise used
to import oil from the Middle East would be diverted inpart for the purpose of importing liquid fuels from China,
Japanese energy and environmental technologies could
advance, and Japanese energy and environmental industries could be revitalized. Such progress would
ensure the maintenance and growth of domestic industrial competitiveness and technical prowess.
3.4 An estimation of the effects of a Japan-China 3E cycle
Working with the Institute of Energy Economics (IEE)
in Japan, MHI predicted 3E activity in China for 2020 byusing a macroeconomic dynamic measurement model toestimate Japan-China 3E cycle effects. The scenario was
simple. The annual average growth rate in the gross domestic product (GDP) of China through 2020 was assumed
to be 7.2%. It was also estimated that newly added coalfired thermal power accounted for 78% of electric power
for each ministry. This new coal-fired thermal power was
assumed to have an efficiency of 39%, the highest level
achieved in China. New power plants built after 2010 would
be replaced by nuclear power plants, integrated coal gasification combined cycle plants, and similar plants, withsupport from Japan. As a result, the output of liquid fuels
manufactured from coal equivalent to the additional investment that would be needed for building the new plants
was calculated to be equivalent to the imports for Japan.
These calculations were used to evaluate the effects ofreduced coal consumption, CO2 emission, and SO2 emission in China, as well as the extent of the decline in theFig. 5dependence of Japan on the Middle East for oil (Fig.
5).

As indicated, introducing a Japan-China 3E cycle would
reduce coal consumption, CO2 emission, and SO2 emission
by 2020 in China by 87 million tons (converted to petroleum), 94 million tons (converted to coal), and 7.44 million
tons compared to the base scenario. In Japanese terms,
the figures for 2000 are equivalent to 2.1 times coal consumption, 0.3 times CO 2 emission, and 8.7 times SO 2
emission. The dependence of Japan on sources of oil in the
Middle East would drop from 88% in 2003 to 71.1% by 2020.

4. 3E expansion for regional revitalization through arecycling-oriented society
In the European Union (EU), Austria and Germany promote the use of renewable energy resources by enforcing
preferential measures that ensure energy security throughimprovements in energy self-sufficiency and the reductionof greenhouse gas emission. Biomass resources also provide energy and can be used to support agriculture andforestry management, as well as dairy farming, throughthe creation of jobs. Adoption of such resources can lead toforest protection, as well as to growth and regional development. In the US and Brazil, ethanol from agricultural
crops is used to fuel automobiles, this process promotes
agricultural and regional development.
Current marketing principles alone cannot ensure theprotection and growth of domestic forests or cause primaryindustries to recycle biomass. Thus, 3E expansion is being
seriously considered. Moreover, cities that consume a lotof energy and emit large amounts of greenhouse gases andwaste are expected to bear the cost of creating a recyclingoriented society that combines forest protection with growth
involving public functions, such as environmental protection, improvements in energy self-sufficiency, and the use
Figof biomass resources and renewable energy (Fig
Fig.. 6).

Coal consumedin China

CO2 emissionin China

SO2 emissionin China

2000 (actual) 275 million TOE

297 million t-c

8.99 million t

2020: before 622 million TOE
3 E cycle
introduction

671 million t-c

20.10 million t

2020: when
3 E cycle isintroduced

535 million TOE

577 million t-c

12.66 million t

Reduction
as a resultof 3 E cycle
introduction

Equivalent to
2.1 times theconsumption
in Japan in 2000

Equivalent to
0.3 times theemission in
Japan in 2000

Equivalent to
8.6 times theemission in
Japan in 2000

Fig. 5 The effects of a Japan-China 3E cycle according to themacroeconomic dynamic measurement model

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Energy security
Improvements in self-sufficiency
through the use of domestic resources
Reduced dependence on fossil fuels

Environmental protection
Supply of water resources
Protection of biodiversity
Prevention of disasters, etc.

Reduced greenhouse gas emissions
Promotion of energy-saving
Renewable energy
Absorption of CO2 by forests

Roles of urban areas
Fund
Leadig role in
Leading role cultural field
in industry
and economy
Energy exhaustright, etc.
Internationalbase function

Role of agricultural mountain andvillage, and agriculture and forestry

Cost-bearing
Carbon fund
Fund
Carbon tax,
environmentaltax
Food, wood, etc.
Expense (cost)

Use of renewableenergy, biomass,etc.
Protection offorests andResources and farmland
food production

Fig. 6 3E social system concepts for the joint prosperity of urban and rural areas
Conversion to and use ofenvironmentally friendly energy

Environmental protection,
restoration, and creation

Energy-saving and high-efficiency
technology use by consumers;
resource-saving, and waste
reduction; restraint of correlation
between convenience andsecondary energy

Aircraft, ships, LRV/APM, forklifts,
chemical plants, air-conditioners,
paper-making equipment, printing
equipment, machine tools

Prevention of air pollution(desulfurization, denitration,
dust collection, and eliminationof dioxins)

Improved conversion efficiency;
restraint of correlation between
secondary and primary energy
consumption

GTCC, coal-fired thermal power,
IGCC, diesel, gas engines, turbos,
freezers, cogenerators, compressors, pumps, waterwheels, fuelcells, secondary cells

Waste disposal, sludge treatment, soil purification and PCBtreatment

Use of energy without fossil fuel(use of nuclear power and naturalenergy); restraint of demand forfossil energy as primary energy

Natural energy (solar, wind power,
biomass, geothermal energy,
hydraulic power), Nuclear power

Waste incineration power
generation (plant),
cogeneration, recycling

Chain of 3 E problems
Increase inconvenience,safety, and relief

Increase inenvironmentalload and requiredenergy level

Increase inenvironmental loadand primary energy
consumption

Increase infossil energy
consumption

Increase in CO2emission

Increase in cost

Water contamination prevention
measures (VOC and EDCs,
treatment of industrial waste
water and sewage)

Unconventional liquid fuels(tar, DME, GTL)

CO2 recovery and use; environmental creation; restraint of correlation between use of fossil energy
and CO2 emission; environmental
improvement

Recovery and use of CO2(EOR, chemical plant)
Tree-planting in deserts

These technologies and products will help ensure simultaneous realizing 3 E.

(Refer to "Extra-long term vision of energy and technical strategy," Resource and Energy Agency of Japan)

Fig. 7 MHI technologies and products applicable to the simultaneous realization of the 3Es

MHI began working on 3E expansion in April 2004 by
setting up the Biomass Power Shizukuishi joint investment
program with the town of Shizukuishi, Koiwai Farm Ltd.,
Tohoku Electric Power Engineering & Construction Co.,
Inc., and Tokyo Sangyo Ltd.

VOC: Volatile organic compounds
EDCs: Endocrine Distributor Chemicals
GTCC: Gas Turbine Combined Cycle
IGCC: Integrated Gasification
Combined Cycle
DME: Di-methyl Ether
GTL: Gas To Liquid
EOR: Enhanced Oil Recovery

ments. MHI provides a wide range of products designed toprevent these problems, and it continues to develop new
Fig. 7technologies for this purpose (Fig.
7).

6. Conclusions
In response to high economic growth in Asia and thegrowing needs of Japan's aging, mature society, which faces
a decreasing birthrate, MHI is providing products and services to expand 3E development and to promote asustainable global society while pursuing innovations intechnology and business.

5. MHI environmental and energy technologies are applicable to simultaneous 3E expansion.
The simultaneous implementation of 3E concepts requires a conversion to, and the use of, environmentallyfriendly energy sources, as well as environmental protection and environmental restoration and creation. Social
demands for greater convenience, security, and relief generate correlated increases in energy resource requirements,
energy consumption, the environmental load and waste,
fossil fuel consumption, and CO2 emission. Technologies
are required for the prevention of such correlated move-

Takaaki Furuya

Yoshinori Oki

Mitsubishi Heavy Industries, Ltd.
Technical Review Vol. 42 No. 4 (Nov. 2005)

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