Japan to focus on green technology

By Mure Dickie in Tokyo
Published: January 31 2010 22:43
Japan should focus its climate change efforts on developing new environmental technology rather than rushing to introduce mandatory emissions trading or other measures to meet ambitious targets for 2020, according to Tokyo’s industry and trade minister.
The Democratic Party of Japan pledged in its successful election campaign last year to cut carbon emissions by 25 per cent from 1990 levels by 2020. But Masayuki Naoshima, head of the powerful Ministry for Economy, Trade and Industry, told the Financial Times the target was based on achieving of a global climate pact.
Mr Naoshima’s measured approach will cheer Japanese businesses concerned about the cost of strict carbon curbs on the world’s second largest economy.
“Major emitting countries such as China and the US need to properly participate in setting fair targets,” Mr Naoshima said. “There must be a framework for international co-operation, since it would be difficult for Japan to cut emissions on its own.”
The Democrats’ 25 per cent cut target won praise from climate campaigners around the world and has been formally registered with the United Nations under the non-binding Copenhagen accord.
Some of Mr Naoshima’s cabinet colleagues want to introduce a fuel tax directly linked to the environment to pave the way for a broader carbon reduction regime.
But he insisted that steps such as introducing a carbon tax or compulsory emissions trading should not be rushed, saying “one or two years” of debate might be needed to decide the main policy tools and to win public acceptance of higher energy prices.
“We need to have a good back-and-forth discussion with all levels of society and with the business world. It won’t work to just tell people we are imposing a new regime,” Mr Naoshima said, adding that in the meantime, Japan should emphasise innovation.
“In terms of sequence, I believe we need to first speed up technology development,” he said. “Since becoming minister last year, I have pushed people to accelerate such technology development, and for example to bring projects planned for two years ahead into the budget for next fiscal year instead.”
While Japan is widely seen as a vital source of the advanced technology needed to cut global emissions, climate activists have argued strongly that innovation alone will be far from enough to reduce the carbon footprint of the country’s highly energy efficient domestic economy.
Campaigners eager for quick action will be dismayed by Mr Naoshima playing down the importance of the 2020 target. The minister sees that year as just one “transit point” on the way to the more substantial global emissions cuts needed by 2050.
The Democrats’ 25 per cent reduction goal was much more aggressive than the interim target of an 8 per cent reduction announced last June by Taro Aso, then prime minister. However, unlike Mr Aso’s target, the Democrats’ goal includes possible “offsets” achieved by reducing emissions overseas, or through creation of “carbon sinks” such as new forests.
Copyright The Financial Times Limited 2010