the world on this sectoral approach. In concrete terms, we should persuade other nations to analyse the actual extent of their reduction in potential by applying a sectoral approach like Japan's and to report on the results at the Fourteenth Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP14) due to be held in December this year.

As for the base year, there is debate on the wisdom of maintaining the year 1990 which is two decades ago. Given this and other points of discussion, a common methodology should be established, bearing in mind other countries' assessments of the sectoral approach. Japan, for its part, intends to announce its quantified national target at an appropriate time next year.

In any event, in order to achieve the goal of having total world emissions to peak out in the near future, it is essential to have a “total participation” framework that includes all the major economies, not just the EU and Japan.

Japan will negotiate tenaciously in order to build international agreement on “fair and equitable rules” which are approved by all. The premise of such rules will be greater contributions by developed countries compared with developing countries.

# Concrete policies

We must squarely face the current state of the global environment and, instead of repeating empty calls, step up real action that will actually reduce greenhouse gas emissions. This is my sincere belief.

What then can we do to accomplish this? The concrete policies I have formulated consist of four main pillars.

First, developing innovative technologies while disseminating existing advanced technologies;

Second, framework-building to move the entire country to lower carbon emissions;

Third, active roles to be played by local regions; and Fourth, having each citizen as protagonist in reducing emissions.

# 1. Developing innovative technologies while disseminating existing advanced technologies

## I nnovative technologies

The first pillar is the importance of technology. We shall not be able to halve emissions by 2050, let alone reduce them by 80% no matter how extensively we disseminate existing technologies on energy conservation and other relevant areas. The challenge we face cannot be overcome without technological breakthroughs.

The key lies in whether we succeed in developing innovative, carbon-free technologies that do not presently exist. Such developments will require a tremendous amount of effort and a certain number of years.

Yet despite the announcement of bold targets to achieve 50% or 60-80% reductions by 2050, we hear very little about concrete measures for developing innovative technologies. Rather, the funding allocated worldwide to this purpose has now fallen to half its peak level at the time of the second oil crisis.

The situation in Japan, however, is different. Comparing research and development investments in the energy sector in 2005 by national governments around the world, one finds that Japan has spent much more than the United States or European countries. In other words, more than any other nation in the world, Japan is seriously expending effort to develop innovative technologies that will be the key to saving the future of our planet.

At the Davos Conference in January, I announced a “Low-carbon Technology Plan” through which Japan will invest 30 billion dollars over the next five years, as well as the establishment of a financial mechanism called the “Cool Earth Partnership” through which Japan will provide 10 billion dollars in order to assist measures to be taken in developing countries.

Towards the future, as an advanced nation in terms of the environment, Japan intends to provide generously world-leading energy-saving technologies and knowledge to developing countries and major economies such as China and India. However, Japan's efforts alone will not be sufficient to resolve the issue of global warming. The entire international community must be involved.

As a means to assist developing countries to address the