Brunei. At the Ninth ASEAN Plus Three Environment Ministers Meeting, countries reported the cooperation of ASEAN and Japan, China, and South Korea. Countries also conducted exchanges of opinions about the ASEAN Plus Three Youth Environment Forum, the results of projects for environmentally sustainable urbanization in ASEAN countries, and plans for the future. At the Second East Asia Summit (EAS) Environment Ministers Meeting, Japan released the outcomes of the First High Level Seminar on Environmentally Sustainable Cities (ESC) that was held in March 2010 in Indonesia on Japan's initiative, and proposed the plan of the Second Seminar in Kita Kyushu City, which drew the interest of many countries. Japan also proposed a new partnership to promote environmentally sustainable cities, in which countries and international organizations would participate, and a number of countries agreed to that proposal. Japan

Photograph 4-3-2 Fifth Regional EST Forum in Asia

Source : Ministry of the Environment

also introduced its efforts for environmental cooperation with each of the EAS countries for promoting EST and the co-benefit approach, for which the countries expressed their appreciation.

### 2. Japan’s Domestic and International Efforts towards a Low-Carbon Society

## (1) Various Policies Initiated by the National Government

As discussed above, the mitigation of and adaptation to climate change are the issues that all humankind faces in common, and it is critical to address climate change under a fair and effective international framework in which all major economies participate, including the United States and China. In order to bring about a society that emits $ CO_{2} $ as little as possible, it is necessary to proceed with global warming countermeasures while securing economic growth, stable employment, and a stable supply of energy. For this purpose, Japan's government submitted a Bill of the Basic Act on Global Warming Countermeasures to the Diet.

The Global Warming Countermeasures include: 1) Taxation system for Global Warming Countermeasures aimed at the Greening of the tax system, imposing an additional tax rate on the current Petroleum and Coal Tax (the tax on whole fossil fuels) based on $ CO_{2} $ emissions, 2) a feed-in tariff system, which obligates electricity companies to purchase electricity derived from renewable energy at a certain price for a certain period under certain conditions, and 3) the domestic emissions trading system that sets limits of emission for a certain period and allows trading of $ CO_{2} $ emissions with other emitters in order to comply with the limits (hereinafter referred to as the “3 main policies against global warming”). In December 2010, the Ministerial Committee on Climate Change stipulated government directions for future development of the 3 main policies. Also, other actions have already been started for the promotion of energy saving in our daily lives, creation of regional communities aimed at a low-carbon society, and the development of innovative technologies.

Here we will introduce the systems that are already in operation or are currently underway for implementation, such as the greening of the tax system and the eco-point systems for home appliances.

### A. Greening of the Tax System

Building a low-carbon society in order to reduce the emissions of greenhouse gases has become a worldwide trend. Starting from the 1990s onward, countries, particularly in Europe, have been reviewing and strengthening their environment-related tax systems (Table 4-3-1). Early introduction of taxation to counter global warming is necessary not only to alleviate the burden on future generations, but also to lead the world in establishing a low carbon society and to facilitate the development of environment-related industries by promoting Green Innovation. This type of development will contribute to Japan's growth and position as "a leading country in the field of environment and energy" in the long run.

Japan has been studying environment tax systems since 2004, and the FY 2010 Tax Reform Outline (Cabinet Decision of December 2009) recommended that further reviews should be carried out to work out a definite plan for implementation in FY 2011. After further discussion in the Tax Commission, the FY 2011 Tax Reform Outline (Cabinet Decision of December 2010) recommended the introduction of the "Carbon Dioxide Tax of Global Warming Countermeasure" in FY 2011 in order to strengthen global warming measures through tax incentives and also to enhance various measures to reduce $ CO_{2} $ emissions from energy use (Figure 4-3-2). Specifically, it is to introduce the "Special Provision on Taxation for Global Warming Countermeasures," that is to impose additional tax rates on the current Petroleum and Coal Tax (of which the tax base is whole fossil fuels) based on the $ CO_{2} $ emission volume of each fossil fuel categories (Figure 4-3-3). The Tax Reform Bill submitted to the Diet stipulated that this special provision should be implemented as of October 1, 2011, with an interim tax rate set for a period of three-and-a-half years (Table 4-3-2) and tax exemptions/tax refunds in some fields if necessary. It also stipulated that various measures to facilitate its introduction should be carried out.

The “Carbon Dioxide Tax of Global Warming Counter-measure” is to impose a tax to all fossil fuels based on $ CO_{2} $ emissions upstream, and then to reflect that additional taxation on prices at the downstream. In this way, the cost of environmental load can be reflected in the prices of various goods and services. It is anticipated