Ladies and Gentlemen,
It is a great pleasure for me to speak to you this evening at this significant event organized by the Japan Business Council in Europe. I would like to take this opportunity to thank the JBCE and its President, Mr. Tokumasu, for inviting me to this symposium.
This symposium highlights the environmental contribution of Japanese business in EU society. I understand that Japanese industries are doing their business whilst always taking into account environmental concerns. I sincerely hope that in trying to address the question "Making the EU Economy More Environment Friendly - What are the contributions of Japanese business in EU Society ?," some guidance will be provided for further discussions on how Japanese companies can provide technological innovative strategies which can result in better solutions to current environmental problems.
In advance of a number of presentations by Japanese companies about their own initiatives and suggestions, let me briefly explain the most recent initiative taken by the Japanese government on climate change and innovation related to it. On the 26 of January this year, in Davos, Prime Minister Yasuo Fukuda presented the "Cool Earth Promotion Programme" at the World Economic Forum (WEF). This Programme comprises of three pillars, namely, post-Kyoto Framework, International Environment Cooperation, and Innovation.
As the chair of G8 Summit, he stressed his willingness towards the establishment of a post-Kyoto Framework for the period after 2012, in which all major greenhouse gas emitters participate as well as the setting of fair and equitable emission target. This target could be based on a bottom-up approach by compiling on sectoral basis energy efficiency. We are very interested in the 'Climate Action and Renewable Energy Package' recently proposed by the European Commission, and especially in the fact that the proposal of the EU-ETS Directive mentions 'sectoral agreements' in addressing the competitiveness issue.
As the IPCC warned, global greenhouse gas emissions need to peak out in the next 10 to 20 years and be reduced by at least half by 2050. Technological innovation is crucial to confront this challenging task. As our Prime Minister explained in his speech on the "Cool Earth Promotion Programme", Japan will be investing, under the third pillar of Innovation, approximately 30 billion US dollars in research and development in the fields of the environment and energy over the next five years. Japan will be accelerating the development of zero CO2 emission coal-fired power plant technology, low-cost, high-efficiency solar power generation technology, and Green IT, which develops innovative energy-saving technologies, among others.
Global public investment in energy-related research and development has been stagnating after a steep reduction since its peak in 1980. However, for example, the world's top country in public investment in R&D in the energy sector in 2005 was Japan, which invested over 3.9 billion US dollars according to the statistics of the International Energy Agency and the European Commission. It is more than three times the European Commission financial resources (1.25 billion US$) for that purpose and more than that of the European Commission and EU member states combined. Japanese industries have also been contributing to Japan's top performance in energy efficiency since the 1970's. I believe their business in Europe has significantly contributed to the EU's emissions reduction through their high energy efficiency products.
In order to find ways of bringing the EU towards a more environmentally friendly and sustainable society, this symposium may provide a good opportunity for possible further cooperation between the Japanese industries based in Europe and the EU society. It is my hope that lively and substantive discussions in this forum will provide useful inputs for a more enhanced relationship.
Thank you very much for your attention.
