Initiatives for Sustainable Development Toward the 21st Century

The Kyoto Initiative

Assistance to Developing Countries for Combating Global Warming

I. Background

Announcement by Prime Minister Ryutaro Hashimoto at the Special Session of the United Nations General Assembly on Environment and Development;
At the United Nations Conference on Environment and Development (UNCED), Japan announced the ambitious target of substantially increasing its environmental ODA to 0.9- 1 trillion yen in five years, beginning in FY 1992, a goal that it overachieved in this interval, reaching 1.44 trillion yen (about 13.3 billion dollars), more than 40 percent higher than the initial target. This led to the announcement by Prime Minister Hashimoto, at the June 1997 Special Session of the United Nations General Assembly on Environment and Development, of Japan's comprehensive medium- and long-term plan for environmental cooperation, called the "Initiatives for Sustainable Development Toward the 21st Century" (ISD), a plan of actions which include Japan's global-warming-related support. "Green Initiative" was also proposed by Japan to promote coordinated efforts among developed countries for technological development for energy- saving and other global-warming-retardant purposes and their assemination to developing countries.

As the host of the 3rd Conference of Parties to the United Nations Framework Convention on Climate Change in Kyoto in December 1997, Japan hereby presents "the Kyoto Initiative," in the policy framework of the ISD, an initiative to further strengthen support for developing countries combating global warming through ODA . The Government received strong support from experts in the process of formulating this initiative.

II. The Initiative

1. Philosophy

The philosophy of the Kyoto Initiative regarding environmental cooperation through Japanese ODA is already clear in the ISD; its philosophy regarding assistance in combating global warming is based on the following principles.

(1) Global Human Security

Environmental problems, especially global warming, whose impact on the entire planet has provoked serious concern, pose a threat to the survival of humanity and grave dangers to our security in a broader sense.

(2) Ownership and Partnership

It is, of course, important for the industrialized countries to tackle the global warming problem, but according to the IPCC, emissions of greenhouse gases from the developing countries are predicted to exceed emissions from the industrialized countries around the year 2010 and onwards, making it increasingly important also to take steps in developing countries to slow or halt global warming. Global warming is a problem rooted in national industrial structures and lifestyles. Specific independent national commitments are very important, but from a global viewpoint, it is also necessary for industrialized countries to provide a strong support.

To strengthen the developing countries efforts in this direction, industrialized countries need to give assist their capacity building, for instance in the field of training, to tackle the problem.

(3) Sustainable Development

The task of achieving sustainable development while conserving the global environment (including combating global warming) is on the world's agenda and has been shared by all nations. For this reason, with the aim of achieving both economic development and environmental protection, industrialized countries need to offer financial cooperation and transfer appropriate technology contributing both to economic development and to combating global warming, taking into account individual developing countries' economic and social situations. In countries where poverty is a factor for environmental degradation, it is important to support programs designed to enable people to escape from the grip of poverty and to pursue economic development while conserving the environment.

2. Basic Approach

(1) Differences between global warming and regional pollution

In recent years, Japan has actively and successfully carried out ODA in the field of pollution control; the global warming measures, however, requires a commitment on a much vaster scale. The following differences distinguish antipollution from anti-global-warming measures, and should be borne in mind when implementing future cooperation projects to combat global warming.

(a) Greenhouse gases do not have any direct effects on the health of human beings, but their accumulation in the atmosphere leading to global warming does induce major changes in the planetary environment that will affect future generations. These effects on the entire globe are, furthermore, thought to be irreversible, and once they have occurred, it will be too late to take action. Hence it is imperative to take action before the problem becomes a serious crisis.

(b) Greenhouse gases are not emitted by a definable number of specific industries or human activities but as a result of virtually all of our daily activities, meaning that steps to reduce emissions must be taken on a vast scale, encompassing entire industrial structures and people's lifestyles. Because the problem is of this nature and amplitude, responses relying solely on regulations focused on relatively limited emission sources in specific categories - the approach adopted by Japan's antipollution measures in the past - will almost certainly be ineffective. It is hard also to take effective action against a problem of such vast amplitude solely through ODA cooperation, whose funds are limited, and private sector in abroad scale need to be involved in the combating process.

(c) It must not be forgotten, on the other hand, that just as Japan's efforts to fight pollution and energy-saving also had positive effects on economic development, steps taken to combat global warming may be equally beneficial to the economy.

Efforts to protect the environment are expected to promote investments in the short term and to encourage technological innovation in the long term, contributing to the more efficient use of energy and resources, leading to the fundamental element to strengthen the economies. This process will also foster a new industry, the environment industry.

(2) Combating global warming cooperation trends, present and future

Cooperation to address global warming through Japan's ODA has already begun, through training programs in Japan and other courses. Japan intends to commit itself strongly to cooperation with developing countries in addressing global warming programs while developing a policy dialog with them. While acknowledging energy and pollution problems are relatively high priority issues facing developing countries, Japan will continue to carry out projects in thess fields making the anti-global-warming viewpoint an integral part of ongoing efforts at the same time.

3. The Three Pillars of the Kyoto Initiative

Based on the approach described above, Japan will cooperate with developing countries to combat global warming, and will place emphasis on the three pillars as described in the following:
(See appendix for a wider cooperation menu including these pillars.)

(1) Cooperation in capacity building

In order to strengthen developing countries' self-help efforts regarding ODA projects in the global-warming-related fields, Japan will, over the five-year period beginning from the FY 1998, give training to 3000 persons in developing countries in the following fields:

(a) Air pollution (plus projects that relate directly to anti-global warming)
(b) Waste disposal
(c) Energy-saving technologies
(d) Forest conservation and forestation

Japan International Cooperation Agency (JICA) is the main entity responsible for implementing training programs in Japan and sending specialists overseas to develop human resources in developing countries. Such efforts will take into account the ultimate aim of raising the consciousness of leaders in businesses and government sectors of developing countries.

(2) ODA loans with the most concessional terms (0.75 percent as an annual interest rate, 40 year as a repayment period)

To help developing countries achieve sustainable development while addressing the problem of global warming, Japan will grant ODA loans with the most concessional terms available internationally (0.75 percent annual interest rate, 40 year repayment period) to fund projects designed to combat global warming.

The following fields are among the main target areas to which these concessional loans are applicable:

(a) Energy saving technologies
(b) New and renewable energy sources
(c) Forest conservation and forestation

(3) Effective use and transfer of Japanese technology and know-how

Though Japan must make yet greater efforts in the future to combat global-warming, thus far it has reduced its greenhouse gas emissions in the process of addressing the problems of air pollution and energy conservation and converted to relatively efficient systems compared with other advanced industrial societies. The production efficiency of Japan's steel industry, for example, is about 10 percent higher than that of other major industrialized countries. Utilizing such Japanese technology and know-how, Japan will develop and transfer technology appropriate to the stage of development, send specialist missions, and hold workshops to transmit Japan's expertise to developing countries.

(a) Sending missions to study antipollution and anti-global-warming measures at manufacturing plants

Japan will send missions of specialists to developing countries to study manufacturing facilities and give operators specific technical advice on how to improve productivity while carrying out antipollution and anti-global-warming measures. The mission will also study the feasibility of financial cooperation to facilitate these facility improvements.

(b) Setting up a global warming technology information network

Japan will assist in setting up a global-warming technology network based on existing information systems to provide developing countries with information on applicable technologies in their global warming abatement efforts.

Using its outstanding environmental and energy technology, Japan will seek to develop and disseminate among the developing countries simple and low-cost environment protection and energy technologies which are appropriate to developing countries' industrial and social situations.

(d)Workshops

Japan will hold workshops on global warming issues and abatement programs (based on energy saving and energy efficiency enhancement, for example) to heighten environmental awareness among government and business leaders as well as the general public.

Appendix:
The Menu of Options for ODA Assistance to Developing Countries for Combating Global Warming

Listed below are examples which indicate a wide range of options for cooperation (utilizing such assistance schemes as grant aid, technical cooperation,and loan aid) that Japan is able to provide henceforth in fields relevant to global warming abatement. The list indirectly includes the three pillars of the Kyoto Initiative described in Section II.3 above.

(1) Capacity building and policy support

(a) Support for inventory preparation (cataloging of emission sources) and national planning (training and sending of specialists)

Inventory preparation (Reviewing and coordinating efforts with existing inventories)
Pilot project for inventories, national plans, and etc.
Training of global warming overview in Japan

(b) Reinforcement of government departments in charge of environment protection Support based on "Environment Centers"

Transfer of pollution prevention, forest conservation and forestation technology Training of government officials and third-country training (e.g. in neighboring countries)
Establishment of annual antipollution and energy-saving plans

Note:The menu of options does not show the scope of ODA loans for environment with the most concessional terms (as described in II.3(2)).

(c) Raising environmental awareness

Support for workshops and school education for environment conservation (e.g.: workshops offering information (on anti-global warming measures, case studies on energy-saving, productivity-raising, etc.) for government, business, and the press in developing countries)

(d) Improvement of research capabilities and scientific knowledge

Training workshops for researchers and environmental monitoring specialists
Support for global warming research and monitoring programs
Invitation of researchers to Japanese research institutes
Joint research with research institutes in developing countries

(2) Areas of financial assistance and technology transfer related to global warming

(a) Energy conservation and energy efficiency improvement

Energy conservation center (energy-saving technology transfer)
Energy conservation training
Construction and installation of energy saving facilities and equipment
Establishment of research and training centers to restore or raise power generation efficiency at power plants (donation of equipment, training of operating and maintenance staff)
Replacement of worn-out parts in power generation and transmission facilities
Installation of energy-saving units in power generation and transmission facilities
Study of the performance and to improve the efficiency of state-owned power plants and factories and related technical and financial cooperation
Financial and technical assistance to private plants for improving the efficiency of small privately owned boilers or combustion control technology.

(b) Use of new and renewable energy sources

Use of solar pumps to pump up ground water
Small-scale hydroelectric power generation
Construction of wind electric power plants
Construction of geothermal electric power plants
Photovoltaic power generation (supplying electricity to health centers and other public facilities on remote islands and other isolated locations where access to commercial power is unfeasible.
Solar thermal power generation (solar-heat-powered water heaters, etc.)
Use of biomass energy

(c) Forest conservation, forestation, and sustainable agriculture

Region-wide participatory forestation
Tropical and other forest conservation and forestation cooperation
Promoting sustainable agriculture
Promoting semi-arid agro-forestry
Soil conservation in bare and grassland by vegetation
Regional master planning for forest conservation , forestation and agriculture
Expansion of reserved areas for biodiversity conservation purposes and strengthening the management capability
Support for NGOs carrying out forestation activities

(d) Urban services and waste treatment

District heating
Conversion to natural gas as an air-pollution-prevention and anti-global-warming measure
Co-generation
Construction of solid-waste-treatment facilities
Recycling contributing to energy conservation

(e) Public transportation systems

Setting up of public transportation networks for lower environmental load (railway, subway etc.)

Metropolitan traffic improvement master plan (studies)

(f) Adaptation to global warming

Construction of shoreline revetments and other protective measures for coastal management where climate change related anomalies (more violent-scale and or more frequent-occurred typhoons due to global warming climate) are likely to cause severe damage, i.e. to islands or lowlands.

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