# Chapter 4 Japan’s Contribution towards Establishment of a Sustainable Society

As discussed in Chapters 2 and 3, in order to realize a rich and sustainable society, it is important to utilize sustainably ecosystem services supported by the stock of biodiversity, and at the same time proceed with technological innovations in the field of environmental and work to bring about a new economic and social system that would generate a positive cycle between the environment and the economy. Japan has accumulated outstanding technologies and systems in the field of environment, and can contribute to improvement of global sustainability and the realization of better life in both Japan and the rest of the world, by further developing those technologies and systems and expanding them.

## Section 1 The Road to a Sustainable Society

In this section, first, we will look at the efforts that are being promoted by the world's major international organizations towards establishment of a sustainable society. We will then review Japan's efforts towards a sustainable society through green innovation and give an analysis of the environmental policies required in such worldwide.

In Chapter 4, we will first look at the international trends in relation to realization of a sustainable society, and then review the efforts in Japan for the growth through green innovation, including the basic aspects of funds/financing and education that would become the foundations for such growth. We will also give a more specific introduction of efforts towards a material-cycle society and low-carbon society, which are particularly important to the realization of a sustainable society, focusing on innovation of technologies and systems and their international expansion.

activities. Also, we will also look at the government's efforts towards the requirements for the promotion of green innovation, such as financing for research and development, environment finance, and development of human resources.

### 1. Actions for Establishment of a Sustainable Society: Global Trends in Green Growth

International efforts for a sustainable society are being actively made. The Meeting of the Council at the Ministerial Level of the Organization for Economic Co-operation and Development (hereinafter in this chapter referred to as the "OECD") adopted the "Declaration on Green Growth," agreed to develop a "Green Growth Strategy," and strengthen the efforts towards the development of the Strategy. The "Interim Report of the Green Growth Strategy: Implementing our commitment for a sustainable future" (OECD, May 2010; hereinafter in this section referred to as the "Interim Report"), which was released based on the Declaration on Green Growth, stated that "growing concerns about the environmental unsustainability of past economic growth patterns and increased awareness of a potential future climate crisis have made it clear that the environment and the economy can no longer be considered separately." The Report presents tentative conclusions for a number of key issues that policymakers are currently facing in transitioning to greener growth. Under such circumstances, the OECD has been making organization-wide efforts aimed at green growth (Figure 4-1-1).

The Interim Report says that, from the viewpoint of how production and consumption should be changed in order to realize greener growth, green growth strategies will require a mix of policy instruments, including market-based approaches, regulations and standards, tax benefits given to R&D, and information-based instruments to facilitate consumer choices. The Report also says that a central element of the policy mix is to develop ways of creating economic payoffs through taxation for pollution and use of scarce resources, so as to emit clear market signals. However, the Report also says that market-based instruments alone will not be enough to bring about a shift to greener consumption and production patterns, and that regulations will be required in case the market fails and as a result price signals are weak. The Report also says that there are other approaches, such as voluntary measures and information-based measures including energy-saving ratings and well-designed eco-labeling that can play an important role in raising the awareness of consumers and producers on the environmental impact of specific activities as well as of the availability of clean alternatives. Also, regarding the role of innovation, the