Figure5-1-1 Global Environmental Market by Region

## (2) The current state and outlook of Japan’s environmental industry

The Ministry of the Environment has been conducting surveys on the market size and employment size of Japan's environmental industry, based on the environmental classification of the OECD. According to these surveys, the market size and employment size of Japan's environmental industry have been continuously expanding since FY 2000 (Figure 5-1-2). For FY 2008, the market size and employment size of the environmental industry, including construction reform related to buildings other than private housing and water supply as well as businesses where demand is induced by consumer behaviors, conscious of environmental conservation such as low-emission, fuel-efficient vehicles and energy-saving consumer electronics, are estimated at ¥7.5 trillion and at 1.76 million people.

According to the results of “Survey on Environmentally-friendly Corporate Behaviors” (hereinafter referred to as “Survey on Corporate Behaviors”) carried out by the Ministry of the Environment in FY 2009 on exchange-listed companies and unlisted companies with a workforce of 500 or more, over 40% of the surveyed companies have already engaged in environmental businesses, and when companies planning to make entries are included, over 60% of the polled companies are found to have positive attitudes toward the environmental industry. Thus, companies are placing high expectations on the environmental industry as the growth sector. In the “New Growth Strategy (Basic Policies) – Toward a Radiant Japan” (adopted by Cabinet decision in December 2009, hereinafter referred to as “New Growth Strategy (Basic Policies)”), the government said it “will aim by 2020 to create over ¥50 trillion in new environment-related markets and 1.4 million new environment sector jobs” by comprehensively mobilizing all measures available.

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## Job Creation Effect of Renewable Energy Introduction

As shown by various countries' moves to introduce the "Green New Deal policy" centering on the active introduction of renewable energy in response to the latest global economic crisis, the introduction of renewable energy not only reduces carbon dioxide emissions but also brings a significant increase in new employment.

“Green Jobs and the Clean Energy Economy” (co-authored by Mr. Ditlev Engel, Chief Executive Officer of Vestas Wind Systems A/S of Denmark, and Mr. Daniel M. Kammen, Professor and Co-Director of the Berkeley Institute of the Environment) points out that the introduction of renewable energy creates more direct employments (per unit of electric power production) in the relevant industries than the use of fossil fuel energy. This presumably stems from the fact that there is a very broad base for many forms of renewable energy because they are small-scale and distributed forms of energy and that many labor-intensive industries are involved in renewable energy fields. Take photovoltaic power generation, for example. In each stage of equipment manufacturing, installation and maintenance and management, etc., a variety of business entities are involved, ranging from solar cell manufacturers and peripheral equipment makers as well as housing makers, building materials

Job Creation by Energy Type

Energy	Job-Year per GWh
Photovoltaic power generation	0.91
Solar heat	0.27
Geothermal heat	0.25
Biomass	0.22
Wind power	0.17
Nuclear power	0.15
Coal	0.11
Natural gas	0.11

Note: 1 Job-Year means that one person is hired as an employee for a period of one year.

Source: Prepared by Ministry of the Environment based on "Green Jobs and the Clean Energy Economy" (co-authored by Ditlev Engel and Daniel M. Kammen)

producers, general contractors and building contractors, thus directly creating the largest number of jobs in related industries.

Since forests, water and other natural resources that generate renewable energy exist more abundantly in rural areas than in big cities, the introduction of renewable energy not only creates many jobs but also generates employment in areas other than big cities, and thus can be expected to contribute to the correction of regional disparities in employment.