# Chapter 4 To Achieve a Green Growth Nation to Lead the World

As described in Chapter 1, one of the themes of Rio+20 is the green economy in the context of sustainable development and poverty eradication. In 2011, the United Nations Environment Programme (UNEP) published Towards a Green Economy, while the Organisation for Economic Co-operation and Development (OECD) published its Towards Green Growth. Furthermore, articles on the green economy and green growth are described in the G20 Seoul Summit Document, the APEC Leaders' Growth Strategy (2010), and

Section 1 Green Economy and Green Innovation

## 1 What is Green Innovation?

Environment and economy are closely related. It is vital to recognize this relationship as being one that produces a sustainable and positive cycle, rather than trade-offs. As described in Chapter 1, the great driving force for achieving these social systems is green innovation: in other words, innovation in the energy and environmental sectors.

At present, individual countries define their mid- to long-term ideals and goals for the environment, economy, and society as state strategies, while promoting policies for achieving green innovation (Table 4-1-1). For example, Germany has set forth guidelines under the Energy Concept (2010) for reducing their "Green House Gas" emissions by 80-95% (compared with 1990) by 2050. At the same time, Germany has set a goal of meeting 60% of its final energy consumption needs with renewable energy by 2050. China has set a goal of a 17% reduction in 2010 carbon dioxide emissions per GDP by 2015 under its Twelfth Five-Year Plan (2011). From 2011-2015, China plans to invest about 468 billion dollars in environmental industries. Korea the G8 Deauville summit declaration (2011), indicating that efforts to achieve a green economy and green growth have now become a global trend.

Based on this international movement, Section 1 of Chapter 4 provides an overview of the current status of green innovation around the world and in Japan, while the remaining sections look at Japan's initiatives towards creating a low-carbon society, sound material-cycle society, and symbiotic society.

has released a vision for low-carbon green growth, setting goals in three directions and ten detailed sectors. Korea has defined a vision that creates 141-160 billion dollars in spillover effects for production and 1.56-1.81 million jobs in green industries.

Japan has defined three goals to be achieved by 2020 under its New Growth Strategy (approved by the cabinet in June 2010) by promoting green innovation and a comprehensive policy package: creating over 50 trillion yen in a new environmental market; creating 1.4 million new jobs in the environmental sector; and reducing global GHG emissions by 1.3 billion tons or more using Japan's technological strengths in the private sector (equivalent to Japan's total emissions per year). At the same time, three projects have been designated as key national strategy projects for promoting these efforts: renewable energy and its rapid dissemination, by introducing a “Feed-in Tariff System;” “Future City” initiative; and “Forest and Forestry Revitalization Plan.”

Table 4-1-1 Green innovation initiatives by country

United Kingdom
Low Carbon Industry Strategy (2009)	·Offering action plans to strengthen the UK's industrial competitiveness in a variety of sectors, including renewable energy (e.g. offshore wind and tidal power generation), low-carbon vehicles, and promotion of the low-carbon chemical industry. ·Creating 400,000 jobs by 2015.
Germany
Energy Concept (2010)	·Formulating guidelines for reducing GHG emissions by 80-95% by 2050. ·Goal to meet 60% of final energy consumption needs with renewable energy by 2050.
United States
American Recovery and Reinvestment Act of 2009 (ARRA)	·Economic stimulus package adopted in February 2009. Appropriates 94 billion dollars out of a total 787 billion dollars of investment to environmental sectors (e.g., energy saving, renewable energy, water, waste, and mass transportation). ·Estimated to create about 720,000 jobs in 2012 in energy saving and renewable energy.
China
Twelfth Five-Year Plan (2011)	·State Five-Year Plan between 2011 and 2015. ·Goal of reducing 2010 carbon dioxide emissions per GDP by 17% by 2015. ·Plans for about 468 billion dollars invested in the environmental industry between 2011 and 2015. Industry scale is expected to reach about 743 billion dollars by 2015. ·To achieve the reduction target, the central government approved an action plan in November 2011 for reducing carbon dioxide.
Korea
Green Growth Korea (2008)	·Announced a vision for low-carbon green growth. ·Goals set in three directions and ten detailed sectors to be executed over the five-year period between 2009 and 2013. ·Expected to create a ripple effect of 141-160 billion dollars. Also expected to create 1.56-1.81 million jobs in the green industry.

Reference: Ministry of the Environment

## 2 Measures to Achieve Green Innovation

## (1) Green Innovation and Environmental Technology

## a) Direction to be Pursued by Environmental Research and Technology Development

Technology development is a critical part of innovation. Japan has a history of developing world-leading environmental technology despite keen global competition, environmental pollution, and oil crises. Making an active contribution to solving global and domestic environmental issues while further developing technology is essential.

Getting effective results from technological development requires intensive research and development as well as established goals. In June 2010, the Ministry of the Environment formulated the “Promotional strategy of environmental research and environmental technology development” with the goal of promoting priority issues and effective policies for environmental research and technology development to be pursued in the coming five-year period. The strategy defines mid- to long-term (2020 and 2050) modalities, and outlines four goals for achieving a sustainable society: (1) Low-carbon Society; (2) Sound Material-Cycle Society; (3) Society in Harmony with Nature; and (4) Safe and Secure Society. In addition to these, the strategy also outlined research and technology development goals in individual fields, comprehensive research (common to all fields) in relation to the ideal mid- to long-term society, cross-sectorial research, system configurations for incorporating technology, and promotion of research in community-building scenarios (Table 4-1-2). The first follow-up session was held in July 2011 to establish shared recognition of the following issues common to all fields: ensuring safe, secure, and strategic use of resources; clarifying the correlation between climate change, countermeasures, and sustainability; and motivating a shift to an ideal society and strengthening a cross-disciplinary approach, including identifying optimal processes.

## (2) Green Innovation and Environmental Financing

Japan has over 1,400 trillion yen in personal financial assets. To promote green innovation, it is vital to secure an effective and sufficient money supply that includes these personal assets as well as other funds within Japan, and to fund worldwide business activities that contribute to environment conservation.

Environmental financing has two primary roles. The first is loans and investments to be directly used for projects that reduce environment impact. Specific uses for these funds vary; for example, an estimate suggests that additional