Silviase/jgov_v1.4_full_ann huggingface dataset:
## b) Carbon Offset

“Carbon Offset” is a series of actions composed of the recognition of the volume of greenhouse gas emissions, the efforts to reduce the emissions, and the purchase of carbon credits (or investment in emission reduction projects) to offset the rest of the emissions. Typical example includes the “carbon offsetting New Year greeting card.” For each card sold for 55 yen, five yen is donated to CDM projects, thereby offsetting part of purchasers’ greenhouse gas emissions from everyday lives.

The Government launched the “Japanese Verified Emissions Reduction Certification Scheme (Offsetting Credit ((J-VER) Scheme)” which certifies emission reductions or removals from domestic projects to ensure the credibility of emission reductions/removals and to avoid double counting.

The “Offsetting Credit (J-VER) Certification and Steering Committee” develops “positive lists” which identify eligible project types and their criteria to satisfy. As of March 2009, there are three positive lists including “Boiler Fuel Conversion from Fossil Fuel to Unused Forest Residues,” “Forest Management to Increase CO $ _{2} $ Removal” and “Afforestation to Increase CO $ _{2} $ Removal.”

Offsetting Credits (J-VER) are issued if $ CO_{2} $ emission reductions or removals is achieved through the projects which satisfy the positive lists and is certified by the Committee.

##

In FY 2007, Kochi Prefecture started a project to utilize unused forest residue as fuel for boiler in thermal power plants and generate carbon credits. The prefecture applied for the registration of this project in December 2008. Offsetting Credits (J-VER) were issued in March 2009. This was the first application and issuance under the J-VER Scheme. The prefecture plans to sell the Offsetting Credits (J-VER) to eco-conscious companies and build a system to put the revenue into forest and its management.
c) Support for Credit Generation

Since the carbon credits generated by each project of woody biomass utilization or forest management activities are relatively small, and project owners may not have sufficient knowledge on necessary procedures, there may be difficulties for individual project owners to apply to these schemes.

The “Center for Mountainous Area Revitalization,” established in May 2009, will support the generation of the Domestic Credits and the Offsetting Credits (J-VER) through project finding, offering advice and instruction for project owners, and arranging sales contracts of these credits.

d) “Visualization” and Carbon Footprint

“Visualization” of greenhouse gas emissions is a range of activities to show the quantity of greenhouse gas emissions associated with goods and services. The “visualization” may induce producers to reduce their greenhouse gas emissions and consumers to select goods and services with less greenhouse gas emissions.

Wood products have special characteristics such as carbon storage and emission reduction through their use. Therefore, the “visualization” of wood use may require specific evaluation methodologies.

A consultation committee within the Forestry Agency concluded that environment benefit of wood use should be evaluated from the view of energy efficiency, carbon storage, and contribution to forest management. The committee is going to develop manuals and guidelines for “visualization” of wood use.
(4) Toward the Low-Carbon Society

Forest has important roles in realizing the low-carbon society in that forest sequesters carbon from the atmosphere and produces wood: one of typical renewable resources which stores sequestered carbon.

Therefore, forest needs to be continuously and properly managed and the use of wood, particularly domestic one, should be promoted.

Forestry in Japan, which is necessary for forest management as well as wood production, faces many difficulties; shrinking domestic wood demand, declining wood prices and deteriorating profitability. If the situation remains unchanged, the population in mountainous areas is expected to decrease and become older, resulting in lack of proper forest management.

Revenues increase from the sales of value-added wood products or the Domestic Credits and the Offsetting Credits (J-VER), as well as cost reduction at each stage from wood production to processing, might improve the profitability of forestry, revitalizing forestry industry and communities in mountainous areas.

Proper care of forests in mountainous areas and effective wood use while revitalizing forestry industry and communities in mountainous areas are the keys to the realization of the low-carbon society.
## Chapter II Forest Management

### 1. Promoting the Health and Diversity of Forests

## (1) Forest Resources

Public demands for forests, which range from conventional wood production to emerging carbon sequestration and biodiversity, are becoming diversified and sophisticated.

Planted forests, most of which were planted in 1950's-1960's, have been reaching their maturing ages for the use as resources. At the same time, forests may also be diversified through converting planted forests to mixed broadleaf forests in response to the public demands.

Considering these changing conditions surrounding forests in Japan, the 15-year “Nationwide Forest Plan,” updated in October 2008, set the quantitative targets including thinning volume to be increased by 36% and areas of uneven-aged forests to be expanded by 67%.

## (2) Forest Carbon Sink

To meet the removal target of 13Mt-C/year from forest carbon sinks, thinning must be conducted in 3.3 million hectares of forests during 2007-2012. For the achievement of this target, assistance for

Source: Cabinet Office “Public Opinion Poll on Forests and Lifestyles” (2007)

forest landowners and local governments must be required through raising productivity of thinning practices and applying special treatments under the “Act on Special Measures for the Promotion of Forest Thinning.” The Government continues to stimulate the “National Campaign for Beautiful Forest” for the promotion of forest thinning and development of diverse forests.

## (3) Forest Biodiversity

The Ministry of Agriculture, Forestry and Fisheries developed its own “Biodiversity Strategy” in July 2007, and the “Basic Act on Biological Diversity” came into effect in June 2008. The Forestry Agency, with due consideration for the integration of biodiversity conservation in forest management, launched a study group to further enhance the sound management of forest ecosystem.
## (4) Japanese Cedar Pollinosis

In Japan, the “Japanese cedar pollinosis” has been increasingly acknowledged as a nationwide problem. Japanese Ministries and Agencies concerned have been cooperating to promote comprehensive measures against the problem. The Forestry Agency has started programs to promote the conversion of Japanese cedar forests to those with less pollen and to substantially increase the sapling supply of Japanese cedar varieties with less pollen.

## (5) Forest Volunteers and CSR Activities

A survey conducted by the Forestry Agency revealed that the number of “forest volunteer” (people willing to participate in forestry activities voluntarily) groups reached as many as 2,224 in FY 2007. There are also many potential “volunteers” who have the willingness to participate in the care of forests. Many private companies are also interested in forest management and conservation as part of their corporate social responsibility (CSR) activities. The Forestry Agency supports these activities through the promotional campaigns and arrangement between volunteers/companies and forest owners.

Prefectural governments have introduced local taxation schemes exclusively used for the finance of forest management and conservation activities. As of FY 2008, 29 prefectures out of 47 have already introduced such tax imposition system while another one is considering the introduction.

Prefectural Local Taxation for Forest Management
2003.4	Kochi
2004.4	Okayama
2005.4	Tottori	Shimane	Yamaguchi	Ehime
Kumamoto	Kagoshima
2006.4	Iwate	Fukushima	Shizuoka	Shiga
Hyogo	Nara	Oita	Miyazaki
2007.4	Yamagata	Kanagawa	Toyama	Ishikawa
Wakayama	Hiroshima	Nagasaki
2008.4	Akita	Ibaraki	Tochigi	Nagano
Fukuoka	Saga
2009.4*	Aichi
*scheduled
### 2. Forest Conservation and Disaster Control

## (1) Protection Forest

Under the “Forest Act,” the “protection forest” is designated for the forests that are particularly important for providing public benefits, such as securing water resource and preventing disasters. The total area of the protection forests increased from 2.5 million hectares in FY 1955 to 11.9 million hectares in FY 2007: more than 50% of total forest area or one third of total land area in Japan.

## (2) Disaster Control

Recently, large-scale natural disasters in mountainous areas are becoming common due to frequent heavy rain or earthquakes like the “Iwate-Miyagi Nairiku Earthquake.” For the implementation of land-slide protection works or damage mitigation programs including the development of evacuation programs, cooperation between national and local governments is important. In case of large-scale natural disasters, national government has to support local ones through field investigation or restoration works in devastated areas.

## (3) Pest and Disease Control

Damages of pine forests caused by pine wood nematode (Bursaphelenchus xylophilus) are still spreading to the areas where the disease was not observed before. Preventive control is particularly important in these areas for the minimization of further expansion of the disease.

Massive death of deciduous oak trees (Quercus crispula) by oak platypodid beetle (Platypus quercivorus) is spreading in the mainland along the Sea of Japan. The damaged area was about 1,200ha in FY 2007. Effective control measures for this disease are under development.

## (4) Wildlife and Forests

Forest damages by wildlife are deteriorating as causative wildlife population increases and the conflicts between human and animal becomes intense. Almost 60% of forest damages by wildlife are caused by deer. The Forestry Agency is cooperating with other governmental and local agencies for the implementation of comprehensive measures, including installation of wildlife fences and tree tubes, controlling of wildlife population, and training of technical experts. Thinning of forests and conversion of coniferous planted forests to broadleaf natural forests may be effective for the conservation and enhancement of wildlife habitat in the long term.
### 3. International Engagement

## (1) World’s Forest and Japan’s Initiatives

In the world, forests continue to decline and degrade, particularly in Africa and South America. Large-scale deforestation and forest degradation would adversely affect the environment and economic activities of each country, as well as worsen the global environmental problems such as climate change, loss of biodiversity and desertification.

The Japanese government is committed to assist the conservation and proper management of forests in developing countries through bilateral and multilateral schemes such as technical cooperation and financial assistance. Japan is also leading the initiative to combat illegal logging in the international communities.

## (2) Criteria and Indicators

There are several initiatives to develop and apply “criteria and indicators” for forest conservation and sustainable forest management. The Forestry Agency is a member of the “Montreal Process” which deals with temperate and boreal forests other than in Europe. Japan has been the secretariat of the Process since 2007. In 2008, the Montreal Process revised its set of criteria and indicators. The former seven criteria and 67 associated indicators were simplified into seven criteria and 54 indicators with a view to making them measurable and more concrete.

The Montreal Process “Criteria and Indicators”
Criterion 1: Conservation of biological diversity
Area of forest by forest ecosystem type, number of native forest associated species, etc.
Criterion 2: Maintenance of productive capacity of forest ecosystems
Area of forest land available for wood production, total growing stock, etc.
Criterion 3: Maintenance of forest ecosystem health and vitality
Area of forest affected by biotic processes and agents beyond reference conditions, etc.
Criterion 4: Conservation and maintenance of soil and water resources
Area of forest whose designation or land management focus is the protection of soil or water resources, etc.
Criterion 5: Maintenance of forest contribution to global carbon cycles
Total forest ecosystem carbon pools and fluxes, etc.
Criterion 6: Maintenance and enhancement of long-term multiple socio-economic benefits to meet the needs of societies
Recovery or recycling of forest products, investment in the forest sector, etc.
Criterion 7: Legal, institutional and policy framework for forest conservation and sustainable management
Legal framework (laws, regulations, guidelines), capacity to measure and monitor changes in the
conservation and sustainable management of forests, etc.
## Chapter III Forestry and Mountainous Areas

### 1. Forestry

## (1) Forestry Economy

In 2007, gross forestry output was 441.4 billion yen. Among the gross output, output derived from wood production was 225.6 billion yen, 3.9% increase from the previous year. Average forestry income of forest owners decreased from 478 thousand yen in 2006 to 291 thousand yen in 2007.

Forest owners’ willingness toward forestry practices is declining. Forestry production activity remains inactive due to the low profitability of forestry caused by stagnant wood prices. The efficiency of forestry practices needs to be improved to increase the profitability.

## (2) Forestry Contractors

The Forest Owners’ Cooperatives are Japan’s major forestry contractors, conducting more than 60% of forestry practices in Japan. As many forest owners move to urban areas and become older, they are no longer able to manage their forests by themselves. Under such conditions, there are growing demands on Forest Owners’ Cooperatives to play an active role in forest management activities in each region.

Almost 60% of harvesting and log production activities are conducted by private forestry contractors. Most of them are relatively small corporations with annual log production volume of less than $ 5,000 \, m^{3} $ .
## (3) Forestry Worker

Due to the declining profitability of forestry industry, the number of forestry workers fell to 47,000 in 2005. The age of forestry workers is also becoming older: the aging rats (the share of those aged 65 or older) is 26%.

The number of new entrants in the forestry industry increased to 3,200 in recent years, thanks to the vocational training project named as “Green Employment,” where new entrants learn basic skills and knowledge of forestry.

New Entrants and “Green Employment”

## (4) Coordination and consolidation of forestry practices

For the revitalization of forestry production activity, profitability of forestry needs to be improved. However, forest ownership in Japan is small, fragmented and scattered (e.g. 57% of owners own less than 3 ha of forests). In order to overcome these structural disadvantages, the Forestry Agency promotes the coordination and consolidation of forest owner's practices to achieve economies of scale and to reduce forestry production costs.

When forest owners entrust their forestry practices to forestry contractors, it may be important that these entrusted contractors have enough information on forests in the local communities. In this regard, the Forest Owners’ Cooperatives’ could efficiently coordinate and consolidate forestry practices, with their deep relationship with communities in mountainous areas.
## (5) Proposal-based Coordination and consolidation

In order to motivate forest owners who lost their incentive toward forestry practices, the “proposal-based coordination and consolidation of forestry practice” system may be effective under which forestry contractors encourage forest owners in forestry practices.

In FY 2007, the Forest Owners’ Cooperatives started training programs for their staff members. With these programs, the Cooperatives’ staff members are expected to acquire various skills to become a “Forestry Practice Planner” who can compile a “forestry practice proposal” containing information on forest condition, management policy, road network plan, ways of thinning, revenue of wood sales and its associated cost and other relevant data. With this proposal, planners will urge forest owners to entrust their forestry practices to forestry contractors. By FY 2008, 440 staffs from 300 Forest Owners’ Cooperatives participated in the training programs and started the proposal-based coordination and consolidation of forestry practices in each region.

Training Courses for “Forestry Practice Planners”
Training Courses	Major Contents
1st year	Startup Course	Basic course	Learn basic ideas on “forestry practice proposal” at Hiyoshi Forest Owners' Cooperatives which has been successful in proposal-based coordination and consolidation of forestry practices.
Special course	Learn recent examples of proposed-based coordination and consolidation of forestry practices and low-cost forestry practice.
Regional Field Course	Learn actual method of compiling “forestry practice proposals” and presentation skills with the guidance and help of leading Cooperatives in proposed-based coordination and consolidation.
2nd year	Advanced Course	Refining the skills necessary for “Forestry Practice Planners” and learn the importance in working with other staffs, e.g. planners, managers, accountant staffs and field workers.

Excursion to Log Production Site

Man-to-Man Consultation

Lecture on Process Control
### 2. Mountainous Areas

## (1) Current Situation

In mountainous areas, many people are engaged in forestry. Therefore, those areas play an important role for the provision of public benefits through proper forestry activities.

These mountainous areas, which cover 60% of total forest in Japan, are depopulating and aging due to the decline of agriculture and forestry. If such trend continues, public benefits of forests might be adversely affected due to the lack of proper forest management. Therefore, mountainous areas need to be maintained so that forestry activities could sustain for a long period of time.

## (2) Revitalizing Mountainous Areas

The Forestry Agency is committed to the promotion of settlement in mountainous areas through the improvement of living conditions, invitation of tourists and visitors from urban cities, increase of employment in forestry sector, and creation of business opportunities utilizing indigenous resources including nature, culture and tradition.

In June 2008, an ad hoc study group in the Forestry Agency developed an interim report, suggesting the following points;

- Mountainous areas have potential to maintain the economy and society in the 21 $ ^{st} $ century through the supply of forest-based energy and materials and the provision of opportunities for outdoor education and health tourism

- In order to fulfill this potential, communities in mountainous areas need to be revitalized

In response to the report, the “Center for Mountainous Area Revitalization” was established in May 2009, with the aims to realize the “low-carbon society” through the revitalization of communities in mountainous areas and the proper use of forest resources.
## Chapter IV Wood Supply/Demand and Wood Industry

### 1. World Wood Trade

According to FAO statistics, world wood demand has been growing over the long term. In 2007, the volume of world industrial roundwood consumption has reached 1,772 million m $ ^{3} $ , 11% increase over the past decade. The volumes of roundwood import and export also increased by 46% and 55% respectively over the same period. Russia with 37% of the world industrial roundwood export and China with 29% of import are gaining their presence in world wood trade.

The Russian government began to gradually raise its export tax on logs since July 2007. The increased tax may adversely affect the global supply and demand of wood.

The utilization of legality-verified wood and acquisition of forest certification has become popular for the promotion of the fairly produced wood, which contributes to sustainable use of forest resources.

Source: FAOSTAT (as of 31 March 2009)

Source: Ministry of Finance “Trade Statistics of Japan”
### 2. Supply/Demand of Forest Products in Japan

## (1) Supply/Demand of Wood

Industrial wood demand fell to 82million m $ ^{3} $ in 2007, 5.5% decrease compared to the previous year, due to the decline of sawnwood and plywood demand caused by sluggish new housing starts. In 2008, wood demand is expected to be further exacerbated by the continuing economic recession.

Domestic wood supply, particularly for lumber and plywood use, increased while imported wood decreased considerably. As a result, the self-sufficiency rate of wood reached as high as 22.6% in 2007, an increase for the third consecutive year.

## (2) Wood Exports

Wood and wood products exports have increased over the past few years, and were valued at 12 billion yen in 2008. China is the largest export partner followed by Philippines, United States and South Korea.

## (3) Non-wood Forest Products

The production of non-wood forest products including mushrooms, wild vegetables, edible nuts and charcoals were valued at 290 billion yen in 2007, eighty percent of which accounts for mushrooms. Non-wood forest products are important for the revitalization of communities in mountainous areas and the proper management of Satoyama forest – the forest used for producing fuels, foods, fertilizer, and other living needs for local residents.
## (1) Wood Industry

The numbers of new housing starts fell to 1.06 million units in 2007, 18% decrease from the previous year, due to the adverse effects of the revised “Building Standards Act.” In 2008, the number of new housing starts remained at 1.09 million units due to the economic recession beginning in autumn.

Demand for laminated wood, structural plywood and kiln-dried wood is growing, due to the popularization of pre-cut lumber in house building sites and the consumer’s needs for wood products with high quality and performance. In plywood mills, the share of domestic wood in material input reached as high as 31% in 2007.

While the number of small-scale sawmills has been largely decreasing, large-scale sawmills, which account for only 6% of total number of mills, use more than half of the total material input. The number of plywood mills and laminated wood factories has been decreasing recently. These mills and factories were forced to adjust their production volume in response to the recession since autumn 2008.

Source: MAFF “Wood Demand and Supply Report,” “Timber Statistics”

Source: MLIT “Statistics of Housing Starts”

Number of Sawmills by Scale and their Log Consumption

Source: MAFF “Wood Demand and Supply Report,” “Timber Statistics”
(2) Domestic Wood Use
Sawmills and plywood mills are converting their input materials from imported wood to domestic one in response to the unclear situation of future wood imports and the improvement of log processing technologies; situation surrounding domestic wood is largely changing.
Given such situation, wood industry has to make efforts to ensure the reliable supply of domestic wood products that meet consumer needs for quality and performances, in cooperation with forestry industry.