power and energy saving, the first nation to popularize eco-friendly cars, low-carbon transport and urban revolution and for Japan to become a major power in renewable resources and their use.

## (3) Local Economies Revitalized by Environmental Measures

## A Economic and employment effects that environmental measures bring on local economies

The Ministry of the Environment calculated the ripple effect on local economies if measures such as dissemination of solar power generation and promotion of public transportation usage were implemented, under the assumption that the GHG emissions will reduce by about 30% by 2020, with Kochi prefecture as an example. The trial calculation showed that the economic effects were much higher than the investment amount (Figure3-2-1).

Chiyoda Ward in Tokyo makes to support rural large-scale wind turbine projects invested by citizens to combine low-carbon urban centers with local activation in the Environmental Model City Action Plans. Such approaches have been implemented by the Chiyoda Ward since the Tokyo metropolitan government introduced an Emissions Trading System on large-scale establishments, and permitted the utilization of green energy as an implementation measure for reducing obligation. Measures to prevent global warming will advance in this way, with cities and local areas collaborating, and is thought to encourage wealth transfer from cities to local areas.

## B Estimates of the ripple effect on the economy by measures on energy demand sectors

CO $ _{2} $ emissions in commercial and other sectors and the residential sector have been growing significantly in recent years, and energy saving measures from the energy demand side is strongly demanded to achieve the reduction target of the first commitment period. As a specific example of such measures, if we look at the case of introducing high efficiency air conditioning units, which is an energy saving household electrical appliance; equipment of 2008 can reduce 260kg of CO $ _{2} $ annually from those of 1997, also saving electricity expense of 19,080 yen (Figure3-2-2). If we simply average the emissions of the residential sector of 180 million tons (FY2007) per household, the emission volume would be 3.4t annually, and the 260kg is equivalent to 7.6% of this volume.

Photovoltaic power generation is expected to have the same kind of effect. Japan's accumulated volume of photovoltaic power generation installation was 1,919MW as of 2007. Germany possesses 3,862MW, and Japan has been left behind since Germany overtook Japan in 2005 (Figure3-2-3). The Action Plan for Achieving a Low-carbon Society also aims to increase photovoltaic power generation by 10 times by 2020 and 40 times by 2030 as a dissemination of existing advanced technologies. In order to achieve these targets, Japan has to produce approximately 12,100MW of photovoltaic power generation in about 10 years. If approximately 12,100MW of solar battery panels were to be installed, an annual power generation volume of 12.1 billion kWh would be obtained, calculated from the average availability factor. This volume is equivalent to the annual electric power consumption of approximately 3.4 million households and would reduce by about 4% of the total $ CO_{2} $ emissions in the residential sector of 180 million tons (FY2007). (※ Electricity emissions intensity was calculated at 0.453kg- $ CO_{2} $ /kWh).

The future development strategy, based on Prime Minister Aso’s speech in April 2009 entitled “Japan’s Future Development Strategy and Growth Initiative towards Doubling the Size of Asia’s Economy,” aimed to expand the photovoltaic power generation scale by about 20 times from the current level by around 2020. Japan will introduce photovoltaic power generation in the public sector in order to realize this target, while introducing a new system for electric power companies to purchase photovoltaic power.

## C Expectation on local governments tackling global environmental issues

The Act on Promotion of Global Warming Countermeasures states that accessible local governments (mandatory for about 100 local governments positioned as a specially designated city or higher) should formulate Local Governmental Action Plans in order to curb GHG emissions in their areas. Each local government will promote its own GHG emissions reduction based on the plans.

Let’s look at an example, where these measures are producing positive effects on job creation and the local economy. Shibecha Town in Hokkaido produced a concept called “Regional Zero Emission” in which the citizens and the town office officials established a new industry in the local area, using waste as resources, while obtaining knowledge of the local universities. They have advanced development and production of wood composites made of thinned wood and waste plastic, and established and operated a limited company since 2002. The company is still continuing operation in resource recycling in the local area and is maintaining the employment of 15 people in the town whose population is 8,500.

## (4) Technology that contributes to developing a low-carbon society

Substantial reduction of GHG emissions can not be achieved only by dissemination of existing technologies or the extension of those technologies; innovative technological development is necessary. The Action Plan for Achieving a Low-carbon Society incorporated the development of innovative technologies, as indicated in the “Environmental Energy Technology Innovation Plan.” Furthermore, the Council for Science and Technology Policy stated the necessity of advancing innovation policies with long-term perspectives on the global financial crisis and global warming issues, while compiling the “Important Issues for Science and Technology Policy in 2009” in February 2009. The policy states that about 30 billion dollars will be