change, the area of the world’s forests has been decreasing, and carbon stored in forests has been released into the atmosphere with the decrease. Illegal logging has been pointed out as a major obstructive

Figure3-2-4 World Bioethanol Productions

Source: Compiled by the Ministry of the Environment from the data of F.O.Licht's World Ethanol and Biofuels Report, Vol.7, No.4 October 23, 2008 p.75.

factor for forest conservation. Illegal logging includes various types, such as logging without property or logging rights, logging without observing the permitted volume or species and logging in problematic ways from the viewpoint of the traditional rights of indigenous peoples and others or for the safety of logging labor. Illegal logging is causing huge negative impacts on the world's forests, due to forest depletion and destruction in wood producing countries and disruption of import countries' sustainable forest management due to distribution of low price illegally logged timber.

on the international market. Survey results show that about 50% of logging in Indonesia, from where Japan imports large volumes of timber, and about 20% of that in Russia comes from illegal logging.

Japan has been providing technical cooperation and funding by utilizing ODA on the world’s forest depletion and destruction and illegal logging issues. Within Japan, the Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Act No.100 of 2000) stipulates that lumber and wood products with “legality” certificates should be purchased from 2006 as a measure against illegal logging, also stipulating that “sustainability” to be considered. The three following methods are used in accordance with the Forestry Agency’s guideline to verify “legality.”

1. Method by utilizing forest certification systems

2. Verification method by companies under the authorization of industry groups

3. Verification method by original approaches of each company

Forest certification systems, mentioned in the above methods, are also used for the sustainable use of forests. These are private sector-oriented system that offer options to consumers with purchasing timber, through the process of certification of each forest by third party organizations for appropriate forest management and segment managing and labeling of the lumber produced by the forest. Organizations that conduct forest certification systems include the Programme for the Endorsement of Forest Certification Schemes (PEFC), the Forest Stewardship Council (FSC) and the Sustainable Green Ecosystem Council (SGEC). Although forest certification systems are not yet well recognized in Japan, the area of the certified forests is increasing worldwide, and approaches towards forest certification in wood producing countries are progressing steadily (Figure3-2-7). For example, timber production in Malaysia is mainly concentrated in two areas, the Malay Peninsula and northern Borneo. About 97% of the forests of the Malay Peninsula - exported mainly to Europe (permanent forests posted in the management plan as forests) have been certified, while only 0.9% of the forests in northern Borneo - exported mainly to Japan—have been certified on the other hand. Japan, as one of the world's leading timber importer, is required to contribute to the producing countries biodiversity conservation and sustainable use of wood by utilizing legality certificated timber selectively and proactively.

(4) Cooperation towards advancing environmental measures in developing countries to overcome environmental pollution, while advancing measures against global warming at the same time (Co-benefit approaches)

Environmental issues, such as air pollution and water

Table3-2-4 World Biofuels Production in 2007

(Unit: 10,000 k $ \ell $ )

the United States	Brazil	France	Germany	Japan
Bioethanol	2,601	2,255	115	70	0.003

the United States	Brazil	EU	Japan
Biodiesel	170	40	649	1

Source: Compiled by the Ministry of the Environment from the data of F.O.Licht's World Ethanol and Biofuels Report, Vol.7, No.4 October 23, 2008 p.75.