# Section 4 Challenge 25 - A Promise to the Future Generation

As discussed in Section 3, persistent discussions are going on globally on how to proceed with measures to cope with global warming. In parallel with that, the major agenda is how Japan should implement measures to cope with global warming domestically and how Japan should perform the role imposed upon it by the international community.

## 1 Nationwide System to Realize Challenge 25

As IPCC has concluded that “global warming is beyond doubt,” the global warming problem has now come to the situation that allows no further delay or wait and Japan, too, needs to steadily take measures to cope with global warming. Under the Copenhagen Accord, Japan has submitted the target of 25% reduction in 2020 to the UNFCCC Secretariat. In order to achieve the 25% reduction target over the coming 10 years, it is necessary to mobilize all possible policy tools.

To that end, it is essential for all Japanese citizens to join hands and work together, not to mention industries. The Japanese government named actions to preserve the “environment of the earth and Japan” and carry it over to the future generation the “Challenge 25” and has been undertaking active efforts to mobilize the forces of all entities for the campaign.

On the other hand, efforts to get out of the worldwide recession are just entering crucial stages. To that end, it is required to secure new and sustainable demand and employment. In response, the “New Growth Strategy (Basic Policies), adopted by the Cabinet decision in December 2009, has placed the strategy for becoming the world's top environment and energy power through “green innovation” at the top of areas of growth driven by Japan's strengths. Environment-related business can be described as an area of sustainable growth with potential demand, both short-term and long-term, at home as well as overseas. Also, the “Stern Review” released in Britain in October 2006 projected massive social costs in the future unless environment-related projects are addressed now.

Given these circumstances, now is the time to take drastic policy measures, including environment-related investments, to power economic growth and create employment. Furthermore, through these policy measures, we must transform the overall shape of our society into a sustainable one with a view to the future.

## New Growth Strategy (Basic Policies)

At present, Japan may be in the long tunnel of decline. Major challenges are looming before us, including the scars from the Lehman Shock, public finances that have deteriorated to the state right after the end of the last war 65 years ago, and the fast plunge into the aging society with fewer children. However, opportunities for growth still abound if we address the current difficulties by looking at the Asian region as the frontier of growth and by taking advantage of Japan's original strengths as an environmental power and a major power in science and technology as well as huge personal financial assets (of approximately ¥1,400 trillion) and real assets like housing and land (¥1,000 trillion). The "New Growth Strategy (Basic Policies)," put together from such standpoint, lists the strategy for becoming an environment and energy power through "green innovation," or economic growth led by green innovation, at the top.

More specifically, as growth from green innovation, the New Growth Strategy states that “Japan will be transformed into a low-carbon economy and society through measures to support the spread and expansion of renewable energies (solar, wind, small-scale hydroelectric, biomass, geothermal, etc.) by expanding the electric power feed-in tariff system, promoting low-carbon investment and financing (Figure2-4-1), and expanding the use of information and communications technologies.” Japan will be also “steadily pursue the use of nuclear power, while gaining the understanding and trust of the Japanese people, with safety as the top priority,” it says.

The New Growth Strategy further states: "We will speed the development of innovative technologies including storage batteries, next-generation vehicles, improved thermal power plant efficiency, and information and communications systems with lower electric power consumption. Moreover, we will realize comprehensive greenhouse gas emissions reductions in the transportation and household sectors by promoting modal shifts, encouraging the use of energy-conserving consumer electronics and the like."

Japan will also achieve efficient electric power supply and demand through a Japanese-version smart grid linking electric power suppliers and electricity users via information systems, and spark new demand through related equipment in households, promoting this as a growth area. Further, Japan will also support the acquisition of shares in related growth markets overseas.

Lifestyle reforms through improving the comfort and quality of life are also an important challenge in trying to shift to a low-carbon society and realizing economic growth. The New Growth Strategy says that Japan will “promote zero-emission homes, offices, and other facilities through the spread of eco-housing, the expanded use of renewable energies, the spread and expansion of heat pumps, and the 100% adoption of light-emitting diodes (LEDs), organic electroluminescent lighting, and other forms of next-generation lighting,” and states that this will also be directly linked to improving the comfort of living spaces and the quality of life and can be expected to “constitute the start of a major voluntary shift toward low-carbon lifestyles.” In order to promote the realization of zero emissions in the household sector,