At the same time, in order to reduce emissions of greenhouse gases in the mid- and long-term, it is necessary to make large-scale investments aimed at reducing carbon in industrial, household/commercial, transport, and other sectors. Taxes for global warming measures would affect a wide range of economic activities through the price effects mentioned above, and tax revenue secured through taxation can be utilized for various global warming measures effectively, making it possible to expect double effects for controlling $ CO_{2} $ emissions.

In addition, the introduction of taxes to counter global warming can make individual citizens understand the necessity of global warming measures and the direction of the tax burden; and as a result, such heightened awareness can further advance global warming measures by the society as a whole. Taxation policy with this kind of forward-looking influence can be said to be an epochal policy that goes much further than its direct effects in Japan's global warming measures.

Also, we should think beyond the three main policies to solve the problem of global warming, i.e., taxation of global warming measures, a feed-in tariff system for renewable energy, and global warming measures in a domestic emissions trading system. It is necessary to organically connect various types of policies and implement them for global warming measures.

The FY 2011 Tax Reform Outline also includes the following tax system measures as well: the extension of special measures for energy-saving home renovations and fuel-supply facilities for low emission vehicles, and the establishment of a tax system to promote environment-related investment (green investment tax cuts). This tax system enables a special write-off of 30% (small-and mid-size companies can choose either this or 7% tax deduction) for businesses that purchase facilities (that contribute greatly to $ CO_{2} $ emissions reduction from energy use and expand the introduction of renewable energies) and use the facilities within one year for their domestic business activities. These measures will further encourage industrial, household/commercial, and transport sectors to reduce $ CO_{2} $ emissions. In addition, Japan's government will continue their review this year of international collaborative taxes to counter globally important issues, such as poverty and environmental problems, using a "List of Points of Contention on International Taxation" drawn up in November 2010 an expert panel of the government's Tax Commission.

### B. Eco-Point Systems for Home Appliances and Residences

The eco-point system for home appliances is a system by which people can obtain eco-points that are exchangeable for goods, by purchasing energy-saving, green home appliances (Figure 4-3-4). The purposes of the system are to implement a global warming countermeasure, stimulate the economy, and promote the use of televisions that are compatible with terrestrial digital broadcasts, and it was applied to the products purchased between May 15, 2009 and March 31, 2011. Because home appliances such as refrigerators and televisions would emit more $ CO_{2} $ when they are used than when they are manufactured, introducing this type of system and promoting highly energy-saving products can lead to the establishment of a low-carbon society.

It is clear that the implementation of the eco-point system for home appliances steadily encouraged consumers to purchase energy-saving products. From September 2009 onward, the program has accepted more than 1 million applications for eco-points for home appliances.

Figure 4-3-4 Eco-Point System for Home Appliance

Source: Ministry of the Environment