injected over the next 5 years to implement the Technology Road Map and other measures indicated in the “Environmental Energy Technology Innovation Plan.” As part of the investment, development will be carried out with securing the necessary budget, focusing on energy innovation technologies including innovative solar power generation, hybrid and electric vehicles, innovative iron making process, advanced nuclear power generation technology, fuel cell technology and super high efficiency heat pump. The plan also incorporates sophisticated use of coal, eventually aimed at zero emissions coal-fired generation by combining carbon capture and storage (CCS). Global demands on these technologies are all expected to be huge in the future, and are expected to be Japan’s international strategic products and technologies, if successful in the development of these technologies.

## (5) Technologies that contribute the improving resource productivity

Cyclical use of resources, where economic development and environmental conservation can coexist, is in the global limelight as economic development by utilizing abundant natural resources has now become problematic. The process of global economic growth on a base without excessive dependency on resources can be regarded as an opportunity for disseminating Japan's advanced technologies and systems for improving resource productivity. Technologies and systems such as the Table3-2-3 (Typical 3R technologies in Japan) can contribute to global sustainable development by being utilized for the development of the sound material-cycle society in developing countries including Asia.

Figure3-2-2 Energy Efficiency Upgrading of Air Conditioning

Note 1: Data for 1997 is the average value of the top 11 air conditioning models with COP (Coefficient of Performance)

2: Data for 2008 is the average value of the top 15 air conditioning and heating models with COP (Coefficient of Performance) Source: Compiled by the Ministry of the Environment from The Energy Conservation Center, Japan, Energy Saving Performance Catalogue (1997& Winter 2008)

## (6) Maintenance conditions for private investment promotion in the environment field

In order to disseminate such environmental technologies, it is important to maintain conditions where institutional and private investors can proactively get involved in loans and investments in the environmental field, and to facilitate fund-raising for Socially Responsible Investment (SRI) and community funds.

SRI is defined as an investment considering social business approaches, including environmental approaches, compliance (legal compliance) and taking care of staff, besides economic aspects such as financial indicators.

SRI in western countries started from the concept of emphasizing moral values, derived from philosophies such as religious and ethical views, and western institutional investors—including pension funds have been proactively investing compared to those of Japan. On the other hand, SRI in Japan started in 1999, as an eco-fund was set up as a mutual fund product—due to emerging concern on environmental issues. New stance overall investment in Japan is lower than those of other countries since majority of them is targeted at individual investors. According to the European SRI Study 2008, the total assets in SRI managed funds in Japan, the United States and the European nations as of the end of September 2007 was about 840 billion, 292.82 trillion and 407.8 trillion yen respectively.

In order to expand loans and investments in the environment in Japan, such as SRI, strategies that contribute to institutional investor's investment decisions through examination of the dissemination of proper and adequate information on SRI in western countries, establishment of an information disclosure system that matches the actual condition and structures to secure accuracy are necessary.

Approaches to community funds are growing, due to the emerging concern of the citizens on the environmental conservation. These approaches include investments in businesses—installing wind power and photovoltaic generation through funds raised by citizens—and loans and investments in profitable social businesses (Community Businesses), such as the operation of recycled goods shops. The Japanese government also needs to examine structures to promote these approaches.

Figure3-2-3 Changes in Cumulative Installed PV Capacity

Source: Compiled by the Ministry of the Environment from the data of IEA, TRENDS IN PHOTOVOLTAIC APPLICATIONS Survey report of selected IEA counties between 1992 and 2007 (2008)