Summary



Green Technology, also referred to as environment-related business,
is viewed by many in Japan as the most promising sector for future
growth during the current economic downturn. On April 20, 2009, the
Japan Ministry of Environment (MOE) announced a new policy called
“Green Economy and Societal Transformation.” When all measures
under this policy are implemented, the market for
environment-related business is expected to grow from $700 billion
in 2006 to US$1.2 trillion in 2020. Employment in this sector is
also expected to rise from 1.4 million jobs in 2006 to 2.8 million
in 2020.

Green Technology is not simply designed to reduce “burdens” on
the environment, as was the case in the 1960’s when pollution was a
major social issue. Now this technology is perceived by many as the
best way to revitalize both the Japanese and world economies. In
Hokkaido, potential in the Green Technology market is somewhat
different from other regions given Hokkaido’s more rural
orientation and colder climate.

Rather than focusing on popular renewable energy technologies
like photovoltaic solar panels, Hokkaido is focusing its attention
on producing bio-fuel and bio-plastics made from biomass**
products. This is because (1) solar energy may not be as cost
effective due to Hokkaido’s relatively cold and snowy climate and
(2) biomass products are readily available in Hokkaido as it is the
agricultural heartland of the country. In Hokkaido’s efforts to
also make its agriculture sector more environment-friendly, various
Green Technologies are also expected to play a key role in creating
a sustainable agricultural system.

Market Demand

The Japan Ministry of Environment (MOE) announced a new policy
called “Green Economy and Societal Transformation” on April 20,
2009. When all measures are implemented, the environment-related
business market is expected to grow from $700 billion in 2006 to
$1.2 trillion in 2020. Employment in this sector is also expected
to rise from 1.4 million jobs in 2006 to 2.8 million jobs in 2020.
This policy is in line with the Japan Green New Deal, which aims at
boosting the economy using environment and energy-related
technologies, and incorporates a medium-term policy to realize a
low-carbon social system designed to make society more compatible
with the environment.



All developed countries realize the need to shift from a
petroleum-dependent social system to a system more sustainable with
less burdens on the environment, and Japan is no exception. This
transformation is not only about conserving resources but also
about renewing infrastructure and altering personal behavior as
well. It is interesting, though, to note that this policy is not
simply designed to reduce pollution, as was the case in the 1960’s,
but is designed to revitalize the economy. During the current
economic downturn, environment-related business is seen by some
experts as a ray of light for the future.

The Japan Ministry of Economy, Trade, and Industry (METI) has
released figures similar to MOE regarding the potential market in
this sector. According to METI, the market for environment-related
business in Japan totaled US$590 billion in 2005 and is expected to
grow to $830 billion by 2015. METI divides this market into three
main segments: (1) Global Warming Prevention; (2) The 3Rs (reduce,
reuse, and recycle); and (3) Symbiosis with Nature. For example, in
the global warming prevention area, a few IT companies are jointly
constructing an underground data center in a location which used to
be a coal mine. The groundwater there is used to cool the servers,
resulting in a 50% decrease in electricity consumption. The data
center is scheduled to begin operation in April 2010.

Another example in this segment concerns plans to generate
electricity using solar panels installed on roofs of temples in
local neighborhoods, where people in the community purchase
electricity and sell excess electricity to the local power company.
In the 3Rs area, there are ongoing efforts to apply pre-existing
mining technology for soil decontamination and to use current
smelting technology for waste treatment and for recycling metals in
household electronic appliances such as mobile phones (referred to
as “Urban Mining”) 

Market Data



As mentioned above, METI expects the Green Technology
market, often referred to as the  environment-related business
in Japan, to reach US$830 billion by 2015. The breakdown by market
category is as follows: the “Global Warming Countermeasures” market
is expected to increase from $320 billion to $490 billion; “The 3Rs
(reduce, reuse, recycle)” market is expected to increase from $250
billion to $300 billion; and the “Natural Symbiosis and Pollution”
market is expected to increase from $29 billion to $48 billion.
These market segments are expected to each increase by between 20
to 64% respectively by 2015.

In addition to bio-fuels and biomass-derived plastics mentioned
earlier, Green Technology in Hokkaido also refers to technologies
to help achieve a sustainable agricultural system that connects
production with consumption and waste treatment back to production
in a comprehensive cycle, as illustrated below in Table 2. There is
a common recognition in Hokkaido that the shift to a more
sustainable society and economy begins with restoring the
agriculture sector’s sustainability, and innovative Green
Technologies are needed in fundamental aspects of this sector.

Excerpts from Green Technology in Northern Japan, US
Commercial Service