trillion in new environment-related markets and 1.4 million new environment sector jobs by 2020. We describe this in greater detail in Section 4 of this Chapter.

Amid the global recession following the Lehman Shock, various companies, in search of new business, are trying to find opportunities in new fields. In particular, environmental businesses may be described as already expanding with further prospects for growth.

Utilization of natural energy is one area that is likely to increasingly grow in importance globally going forward. Demand for photovoltaic power generation, the typical use of natural energy, according to the International Energy Agency's (IEA) PV Roadmap 2009, is expected to expand about five times the present level by 2020 in terms of electricity generated. For Japan, which has sophisticated technology in photovoltaic power generation, this is the industry sector with growth potential going forward. As Japan plans to introduce measures to support the spread and expansion of renewable energies (solar light, wind, hydroelectric, geothermal, solar thermal, biomass, etc.), such as the creation of the electric power feed-in tariff system, promotion of installation of facilities using renewable energy, promotion of electric power system facilities, and adequate review of regulations, etc., the volume efficiency associated with the spread and expansion at home is expected to help lower manufacturing costs and boost international price competitiveness.

Furthermore, efforts are under way, notably in Europe and the United States, to introduce the “Smart Grid” designed to realize the efficient utilization of renewable energy. Japanese companies are also engaged in active business operations on the strength of their battery technologies, including solar cells and rechargeable batteries.

The Ministry of Economy, Trade and Industry, regarding the Smart Grid business as the next-generation business and in order to support Japanese companies with excellent products and services in going into overseas markets with their systems, established the "Study Group on the International Standardization Concerning Next-Generation Energy Systems" in August 2009 to proactively and strategically contribute to the international standardization of the Smart Grid. In January 2010, the Study Group came up with the "International Standardization Roadmap for Smart Grid," which sorted out and listed 26 important technological elements to be standardized.

In the future, it is also conceivable to develop new services by adding functions to operate security systems and home electric appliances to the Smart Grid.

Other than the Smart Grid, lithium ion and other rechargeable batteries that are a technology essential for electric vehicles, etc. are an area which Japan excels in. The Ministry of the Environment has supported research and development of high-capacity laminate lithium ion batteries, while the Ministry of Economy, Trade and Industry has also been promoting high-performance, low-price innovative storage batteries. Since FY2009, actually, electric vehicles and plug-in hybrid vehicles have been put on the market on a full scale, and going

Figure2-2-1 Concerning Acceleration of the Spread of Household Solar Heat Utilization Systems

Source: Ministry of the Environment