2. “Environmental Businesses” and “Environment-induced Businesses”

In recent years, environment-related businesses have been on the rise. Among them, there are businesses in which environmentally conscious consumer behavior brings about the demand and market for environment-friendly equipment and services. The Ministry of the Environment named these businesses “environment-induced businesses” and predicted their market size and employment potential. They cover a greater range of businesses, including the “environmental businesses” classified by the Organisation for Economic Co-operation and Development (OECD).

According to the OECD classification, environmental businesses include waste treatment, development of equipment for preventing air pollution, and provision of education, training, and information services.

The Ministry estimated the potential market of the “environment-induced businesses,” that is the market for equipment and services arising from consumers’ environmentally conscious behavior. The forecast show that the

Conceptual Diagram of Environment-induced Businesses

Estimates of the Current and Future Market Sizes and Employment Potential of Environment-induced Businesses

Market size (trillion yen)	Workforce (10,000 persons)
2000	2025	2000	2025
Environment-induced businesses	41	103	106	222

Source: Ministry of the Environment

market size would increase from approximately 41 trillion yen in 2000 to 103 trillion yen in 2025 and the size of employment would increase from approximately 1.06 million people in 2000 to 2.22 million people in 2025. For instance, the development and sales of energy-saving home electrical appliances is a prime example of how the inclination for environmental conservation expands the need and market, with the purchase of energy-saving products superseded that of conventional home electrical appliances. As these markets expand with the support of consumers, businesses will increase their investment in promising environment-related businesses. It is hoped that this will stimulate development of environment-related businesses and further help improve the environment.

### 3. Reviewing the Relationship between the Environment and Economy

In April 2004, the “Expert Committee for a Virtuous Circle for Environment and Economy” under the General Policy Committee of the Central Environment Council put together a report entitled “Vision for a Virtuous Circle for Environment and Economy in Japan.” It proposed designating 2025 as one of the landmark years for gauging Japan’s progress in becoming a “Healthy, Rich and Beautiful Environmentally-Advanced Country.” In view of the importance of engaging businesses in actively undertaking voluntary environmental measures, the “Subcommittee for the Promotion of Environmentally Aware Business Activities” of the Central Environment Council compiled a report on “Measures for the Promotion of Environmentally Aware Business Activities.”

At the Ministry of Economy, Trade and Industry, the Industry and Environment Subcommittee under the Environment Division of the Industrial Structure Council is conducting in-depth discussions on how to achieve “a balance between the environment and economy” by reviewing the necessary policies and measures for promoting environmentally conscious business management through voluntary measures taken by private businesses.