be made immediately and in a coordinated manner by the international community to deal with these global issues and that "Japan will address these issues through ODA." Below is an explanation of measures taken by Japan through ODA to address global issues.

## (1) Environmental Protection

Global warming and other environmental problems have been discussed in the international community since the 1970s. The significance of these problems has been reaffirmed through discussions during the ten-year period from the 1992 U.N. Conference on Environment and Development (the Earth Summit), to the 2002 World Summit on Sustainable Development (WSSD). Japan has positioned the environmental problems as issues faced by the entire human race and has been focusing on these issues. Japan formulated the "Environmental Conservation Initiative for Sustainable Development (EcoISD)," tailored to the 2002 WSSD, and has provided support for measures to combat environmental pollution resulting from economic development, to tackle poverty, which is the root cause of environmental problems, and measures to respond to global environmental issues. For the Global Environment Facility (GEF) as an international financing mechanism to deal with global environmental problems, Japan has been the second largest donor, supporting projects to cope with biodiversity losses, climate changes and other environmental problems.

In the environmental area in fiscal year 2003, Japan provided approximately 19,620 million yen in grant aid, approximately 340,570 million yen in Yen loans and approximately 11,160 million yen in contributions to international organizations. As cooperation utilizing Grant Aid for the Global Environment, which was established in fiscal year 2001, in fiscal year 2003, Japan carried out six projects and disbursements for these projects amounted to approximately 4.5 billion yen (E/N basis). These projects included Senegal's "Project for reforestation of the coastal zone" and China's "Project for improvement of Solid Waste Management in Xian City."

## (a) Efforts to Address Global Warming

Japan is transferring and disseminating technologies to address global warming to developing countries and enhancing their capacity to address this issue from scientific, social and institutional aspects. ODA in this field is implemented based on the "Kyoto Initiative." $ ^{*1} $

Subsequently the detailed rules on the implementation of the Kyoto Protocol were stipulated at the Seventh Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP7) held in November 2001 and the Ninth Session (COP9) held in December 2003. The Clean Development Mechanism (CDM) $ ^{*2} $ contributes to reducing greenhouse gases and promotes sustainable development in developing countries. It is an important mechanism for the achievement of Japan's reduction target for emissions. In fiscal year 2003, Japan positively participated in discussions at the OECD-DAC on ODA eligibility issues for expenditures under the CDM. DAC members' views were divided over this point. Finally, the DAC High Level Meeting in April 2004 produced a basic agreement that the value of any carbon credits received in connection with an ODA-financed CDM project should lead to a deduction of the equivalent value from ODA. The DAC members will continue discussing how to treat such funds as ODA. Japan intends to comply with international rules and implement CDM projects utilizing ODA, on the premise of the agreement of recipient countries.

## (b) Pollution Control

Support for measures to control pollution and improve the

## $ ^{*} $ I: The Kyoto Initiative

The Kyoto Initiative was announced by Japan in 1997 as a policy to further strengthen assistance for the efforts of developing countries to address global warming mainly through ODA. Specifically, its content includes (1) cooperation in capacity development; (2) Yen loans with concessional terms; and (3) effective use and transfer of Japanese technology and know-how.

## $ ^{*} $ 2: The Clean Development Mechanism (CDM)

The CDM is one of the Kyoto Mechanisms stipulated in the Kyoto Protocol. It is a system under which projects leading to emission reduction or absorption of greenhouse gas in a developing country (the host country) are carried out with the financial and technical assistance, etc. of a developed country (the investing country) and if there is an additional emission reduction or absorption compared to the case in which the project was not implemented, credits can be issued through a specified procedure and used toward the achievement of the reduction target of the developed country.