|
July
2008
Trading Houses Seek To Cash
In On European Solar Park Projects
Huge sites covered with photovoltaic panels known as solar parks and the
government subsidies increasingly being used to entice big companies to
build them, at least in Europe, have attracted the interest of Japan's
trading houses. In early May, Sumitomo Corp. announced it was taking on a
solar power generation project in Spain that will make it the first
Japanese independent power producer in the country. The news shocked rival
trading firms that had been seeking the same honor. Sumitomo plans to
spend 8.5 billion yen to build a massive solar park on Tenerife, the
largest of the Canary Islands. The park will have a 9,000kw capacity.
Sharp Corp. will supply all of the solar panels, and the facility is
scheduled to go onstream in the fall. The solar park will generate enough
electricity, which will be sold to a local utility, to power 3,500
households. Facilities for an additional capacity of 10,000kw are planned
to be constructed in several years. Later in May, Itochu Corp. said it was
joining hands with Scatec AS of Norway to build large solar parks in
Europe. The facilities will eventually be sold to investment funds or
other parties, Itochu said. The Norwegian firm has already built five
small solar parks in Germany. The partnership, however, will allow the duo
to take on large-scale projects, according to an official in Itochu's
solar energy section. The Japanese trading house will play several roles;
it will procure the vast amount of solar panels needed, obtain bridge
loans to finance construction and find buyers for the finished parks. The
tandem will build two or three solar parks in the Czech Republic by the
end of this year. The combined generating capacity will be 10,000kw. A
solar park to be built in Bulgaria by 2010, meanwhile, will have a
100,000kw capacity, one of the largest in the world. Other major trading
companies are also eager to invest in solar parks. Marubeni Corp. (8002)
hopes to begin a project in a Western country by the end of the year, a
company executive said. Mitsui & Co. has established a renewable
energy division that is now looking for solar park opportunities. There
are two reasons why the trading houses are jumping into this emerging
market. One is an incentive known as a feed-in tariff, in which
electricity generated from solar energy can be sold to utilities or other
entities at high mark-ups. An increasing number of countries, mostly in
Europe, are adopting feed-in tariffs. Rules differ from nation to nation,
but, in general, a large, independent producer of solar power can sell
electricity at prices 200-500% higher than what a thermal power plant can
charge. "In the current conditions, you can spend big money (on a
solar park) and recoup the investment in six to seven years," an
industry insider said. "That is half the time necessary for (a
thermal power plant). "In other words, solar parks, which often
generate annual yields of 20% or more, offer predictable returns with
little investment risk. The second reason is that solar park construction
and operating projects match the strengths of large trading companies.
Since the 1960s, Japan's traders have been taking on engineering,
procurement and construction (EPC) contracts for power plant operators in
foreign countries, building up a well of expertise in finding promising
deals, winning contracts, lining up engineering and construction
subcontractors, and managing the whole process. While the traders have put
the whole package together, the country's solar cell makers, like Sharp
and Kyocera Corp., merely seek to sell their products. Challenges,
however, do lie ahead. Rates offered under feed-in tariff systems are at
their highest when the scheme is first introduced, but gradually fall. In
addition, if too many players enter the business, winning bids will
necessarily fall, leading to smaller profits. (The Nikkei Business Daily;
Thursday, July 10, 2008)
Bioventure Develops
Biomass-Based Styrene Foam
Hiroshima-based biotechnology venture Juon has developed styrene foam made
from lignin, a byproduct of bioethanol production. The company reduced the
amount of petroleum-based raw materials used by making a powder out of
lignin. A blend consisting of up to 25% lignin is created by mixing this
powder with a polypropylene or other conventional petroleum-based
materials. A bioethanol plant to be constructed in Shobara, Hiroshima
Prefecture, by next spring will produce 3,000 tons of lignin each year.
Sales are expected to exceed 600 million yen. Some 500kg of lignin can be
harvested per ton of thinned trees. Juon hopes to have a plant able to
produce the styrene foam raw materials in service this fiscal year and
will supply major electronic equipment and copier manufacturers from
fiscal 2009. The resulting styrene foam can reportedly be sold for 200,000
yen per 500kg, the same as conventional petroleum-based styrene foam. (The
Nikkei; Wednesday, July 9, 2008)
Fujitsu Unit Eyes Greenhouse
Gas Analysis Using Satellite Data
Fujitsu FIP Corp. has begun developing the computer system that will
analyze the data collected by the Greenhouse Gases Observing Satellite,
which Japan will launch later this fiscal year. The Japan Aerospace
Exploration Agency, the National Institute for Environmental Studies, and
the Environment Ministry will use GOSAT to determine the global
distribution of carbon dioxide and other greenhouse gases. The satellite
will carry high-precision sensors to collect data from more than 50,000
locations worldwide, sending the information down to a center operated by
the NIES. The Fujitsu Ltd. subsidiary will build for this center a
computer system able to analyze the GOSAT data and generate a 3-D
distribution map showing greenhouse gas concentrations around the world on
a grid of 64 sectors. GOSAT will be transmitting only around 50 gigabytes
a day, but creating the distribution map will require so many computations
that Fujitsu FIP will need to build a system with a number-crunching
capability of several teraflops. The system will be built from several
general-purpose servers linked externally to a supercomputer. (The Nikkei
Business Daily; Monday, July 7, 2008)
G-8 Likely To Set Up Global
Warming Fund At Summit
France, Germany and other members of the Group of Eight industrialized
countries are expected to endorse a plan proposed by Japan, the U.S. and
the U.K. to establish a fund of around 6 billion dollars to help
developing countries fight global warming, at the three-day summit to be
hosted by Japan starting Monday, it was learned Saturday. The G-8 leaders
will also call on China and India to contribute to the fund, aiming to
eventually expand it to around 10 billion dollars. One of the top items on
the agenda at the summit is to build a consensus on the post-Kyoto
framework for reducing greenhouse gas emissions that will come into effect
in 2013. The focus is on how much common ground can be found on setting
both medium- and long-term reduction goals for the G-8 countries. Japan
will seek to convince other G-8 countries to halve their emissions from
current levels by 2050, but the U.S. wants an agreement that also involves
major emitters like China and India. On Sunday, the day before the summit
gets underway, Prime Minister Yasuo Fukuda will meet with U.S. President
George W. Bush in Hokkaido. The two leaders are expected to stress the
need to bolster the dollar's value and work together to resolve the issue
of North Korea's abduction of Japanese nationals in the late 1970s and
early 1980s. Bush recently said that a strong dollar is in the U.S.
national interest, and he is expected to reiterate this view at the
meeting with Fukuda. The Japanese prime minister will likely agree and
pledge to join forces with the U.S. to stabilize the financial markets and
lift the global economy. (The Nikkei; Sunday, July 6, 2008)
Top CO2 Emitters To Create
Forum To Discuss Climate Change
The 16 major greenhouse gas emitters are expected to agree to a Japanese
proposal to establish a discussion forum that would accelerate efforts to
hammer out a new global treaty on climate change, The Nikkei learned
Tuesday. Japan will table the motion at the Major Economies Meeting on
Energy Security and Climate Change next Wednesday, which will be held on
the sidelines of the Group of Eight nations summit in Hokkaido. Initiated
by U.S. President George W. Bush last year, the Major Economies meeting
has brought together the top 16 polluting nations, including G-8 countries
and emerging economies such as India and China, to discuss emissions cuts.
Next Wednesday's meeting is seen as the group's last, but participants are
likely to agree on the need to continue talks. The 16 nations are
responsible for 80% of the world's global warming gas emissions. The name
of the new forum and where and when it will meet have yet to be
determined. But like the Major Economies talks, it will complement United
Nations negotiations on a successor to the Kyoto Protocol, which expires
in 2012. Achieving a consensus on the follow-up pact among the 192
participant nations by the end of 2009 -- the deadline for the talks --
will be an uphill battle. Negotiators from the 16 nations believe that an
agreement among the top polluters would bring negotiations much closer to
fruition. (The Nikkei; Wednesday, July 2, 2008)
Tepco, Nippon Oil, Others Set
Up Carbon Storage Venture
Tokyo Electric Power Co., Nippon Oil Corp. and 22 other firms have formed
a new company to capture and store carbon dioxide, they announced Monday,
aiming to race to the forefront of the emerging field. The venture, which
has starting capital of 36 million yen, will collect carbon dioxide from
power plants and other industrial facilities and trap it more than 1,000
meters underground. Besides benefiting the environment, the process could
also be used to boost the output of aging oil fields by injecting them
with the greenhouse gas. Trials could begin as early as next year. Group
of Eight nation leaders are expected to identify carbon sequestration as a
key tool for combating global warming when they meet in Hokkaido next
week. Japan aims to use underground storage to cut carbon dioxide
emissions by 100 million tons a year starting in 2020. The new venture
will aim to account for about half that amount, according to company
President Shoichi Ishii, who hails from Japan Petroleum Exploration Co.
Other stakeholders include 11 electric utilities, five oil wholesalers, as
well as JGC Corp. and Sumitomo Metal Industries Ltd. (The Nikkei; Tuesday,
July 1, 2008)
June
2008
Fukuda Calls For Major
Emitters To Join Climate Change Framework
Prime Minister Yasuo Fukuda on Saturday reiterated the need to ensure the
participation of all major greenhouse gas emitters to tackle climate
change, as he addressed legislators from the Group of Eight nations and
emerging economies ahead of the G-8 summit Japan will host in early July.
The forum was also attended by former Japanese Prime Minister Shinzo Abe
and former British Prime Minister Tony Blair, who both expressed hope for
the G-8 leaders to agree on a proposal to halve global greenhouse gas
emissions by 2050. At stake in the upcoming summit is whether leaders of
Britain, Canada, France, Germany, Italy, Japan, Russia and the United
States will agree to the mid-century target to show their resolve to fight
global warming. At last year's summit in Heiligendamm, Germany, the G-8
agreed to seriously consider the target. ''In the Hokkaido Toyako
Summit...I would like to deepen common recognition (with participants)
over the (climate change) issue and send a powerful message that we will
work together,'' Fukuda said in a keynote speech at the climate change
forum of legislators, including those from countries such as China, India
and Brazil. Abe, who made the proposal of halving global emissions by 2050
when he was prime minister last year, said, ''I strongly hope this will be
agreed on and shared at the summit as a common goal of humankind.''
Similarly, Blair said, ''I think and hope we will this year get agreement
on an essential shared vision around 2050....It wasn't entirely clear at
Heiligendamm that everyone was signed up for it. I think it's got to be
clear this year that they are.'' While noting that it is only the U.N.
forum that will determine the global deal on climate change in the end,
Blair called for the need for an informal mechanism for the G-8 and other
major emerging economies to discuss climate change issues. ''We've got to
be realistic about this. It's not 190 countries or however many sitting
around the table that's going to decide this. If you can't get agreement
amongst the major countries you're not going to get an agreement,'' he
said. He also said that such countries like China and India ''are part of
the international deal,'' but that they have the ''right to grow in the
way that we grew.'' Some 190 countries have agreed to reach a conclusion
at a key U.N. climate change meeting in Copenhagen in 2009 over a climate
change framework that will succeed the Kyoto Protocol, which expires in
2012. In the July 7-9 summit, Japan has also invited countries such as
China, Brazil and India to a resort area near Lake Toya in Hokkaido to
discuss climate change issues with the G-8 leaders. （Kyodo News;
June 27, 2008）
Tokyo To Mandate CO2
Emissions Cuts Among Large Business Entities
The Tokyo metropolitan assembly enacted Wednesday an amendment to an
ordinance to oblige large office buildings, shops, hotels, universities
and factories to reduce carbon dioxide emissions, marking the first such
regulation in Japan. The revised ordinance aims to reduce emissions at
some 1,300 establishments that consume energy equivalent to 1,500
kiloliters of crude oil per year by 15 to 20 percent by fiscal 2020 from
the average levels of the past three years. In fiscal 2005, Tokyo --
comprising 23 central wards and 39 cities, towns and villages -- accounted
for around 4.5 percent of Japan's CO2 emissions. Businesses and industries
were responsible for more than 40 percent of the emissions in Tokyo. ''I
want Tokyo to take the lead in efforts against global warming in Japan,''
said Tokyo Gov. Shintaro Ishihara. The Tokyo government aims to have the
regulation take effect in fiscal 2010. Each establishment will be required
to present a five-year plan that includes energy conservation measures and
an emissions cut target, subject to annual reviews. The amendment also
introduces an emissions trading system, under which entities can purchase
emissions quotas from others to meet their obligation to meet CO2 cuts.
The introduction of an emissions trading system in Tokyo, where many
Japanese businesses are headquartered, is expected to have an influence on
global warming prevention efforts by the central government as well as
other local municipalities. (Kyodo News; Wednesday, June 25, 2008)
Casio Finds Substitute For
Greenhouse Gas Sulfur Hexafluoride
Casio Computer Co. has developed a way to substitute fluorine gas for the
sulfur hexafluoride now used in the processing of silicon thin films for
LCD panels. As a greenhouse gas, sulfur hexafluoride is 20,000 times worse
for the environment than carbon dioxide. By eliminating the use of this
chemical, Casio calculates it could reduce the overall greenhouse gas
emissions of its device business by around 20%. Fluorine gas is difficult
to handle because it is highly reactive and potentially explosive. Casio
Computer has solved this issue through careful management of hydrochloric
acid and sulfuric acid levels. For the processing of silicon thin films,
the company determined it could achieve the same quality as with sulfur
hexafluoride by optimizing the volume of fluorine gas used and adjusting
the voltage and other parameters. Casio still needs to evaluate the use of
fluorine gas from the perspective of cost and mass production, but it
expects to make a final decision in 2008 with an eye on introducing the
technology to Kochi Casio Co., its production subsidiary that makes TFT
(thin-film transistor) LCD panels for phones and digital cameras. (The
Nikkei; Tuesday, June 24, 2008)
Japan, Britain, U.S. Seek
Donors For Climate Funds
Japan, Britain and the United States called on potential donor countries
Friday to join their initiative to launch multilateral funds aimed at
helping developing countries fight global warming, prior to the opening of
the Group of Eight finance ministers' meeting in Osaka. Japanese Finance
Minister Fukushiro Nukaga, British Chancellor of the Exchequer Alistair
Darling and U.S. Treasury Secretary Henry Paulson urged their G-8 partner
countries and other developed nations in a joint press conference to
support the Climate Investment Funds, which will be administered by the
World Bank. The three countries originally proposed the initiative. At the
G-8 meeting, the three finance chiefs and their counterparts from Canada,
France, Germany, Italy and Russia are set to endorse two multilateral
funds, designed to assist developing countries curb greenhouse gas
emissions and cope with natural disasters induced by global warming.
Nukaga told the news conference, ''Climate change is the most urgent task
for the world to tackle...We'd like to solicit as much contribution as
possible through this finance ministers' meeting and the G-8 summit'' on
July 7-9 in Hokkaido. Darling said, ''I believe that this time especially,
every single country in the world should come together, not just to pledge
support for these funds, but also importantly continue to make the
argument.'' The British financial chief expressed hope that in a couple of
weeks, further progress will be made on these funds with commitments from
other countries. Paulson told the press conference, ''Our goal is to see a
large fund up to $10 billion. The U.S. is willing to host a pledging event
prior to the first meeting of the trust fund committee later this year.''
The committee meeting will be held to discuss how to operate the funding
mechanism. The U.S. Treasury secretary said he is optimistic that both the
three nations' G-8 colleagues and other developed countries beyond the G-8
framework will broadly support the climate funds. World Bank President
Robert Zoellick, who met the press along with the three financial chiefs,
said developing economies such as Brazil, China, India and Mexico that are
major emitters of greenhouse gases have already been taking actions to
tackle climate change through their own sustainable development
strategies. ''With the Climate Investment Funds, the World Bank and other
development banks, together with developing country and donor country
partners, can start making progress today by supporting innovative and
pioneering initiatives,'' Zoellick said. ''We hope to bring that towards a
further point by the time of the G-8 summit and I think developing
countries are now recognizing that this is a very positive step on the
part of these developed countries,'' the World Bank chief said. Japan,
Britain and the United States have each pledged financial contributions to
the funds, which are expected to become operational by the end of the
year. The two funds expected to be launched are the Clean Technology Fund
and the Strategic Climate Fund. The technology fund will target major
greenhouse gas emitters among developing countries, such as China and
India. The money will be used to promote energy efficiency in areas,
including power generation and transportation. The strategic fund will
cater to the needs of African countries and island nations, which are
vulnerable to the effects of climate change. The United States has pledged
to provide $2 billion for the technology fund over the next three years,
while Britain has vowed to offer 800 million pounds ($1.56 billion) for
the initiative. Japanese Prime Minister Yasuo Fukuda announced earlier
this week that Tokyo will contribute up to $1.2 billion for the climate
funds. (Kyodo; Friday, June 13, 2008)
ANALYSIS: Japan's New Green
Policies Look To Post-Kyoto World
Prime Minister Yasuo Fukuda unveiled Monday a series of environmental
measures to bolster his green credentials in the lead-up to next month's
Group of Eight summit in Japan. Fukuda announced that Japan will target a
60-80% reduction in emissions of greenhouse gases by 2050. But he shied
away from declaring its medium-term target through 2020, saying it will be
revealed sometime next year. Many believe that he did not announce a
concrete medium-term target out of consideration for the reluctance of the
U.S. government and Japanese industry. But some believe that the
medium-term target was left unannounced because withholding it makes it a
useful bargaining chip in international negotiations on a global warming
framework to succeed the Kyoto Protocol. In setting emissions reduction
targets, which year to use as the base year is a big issue for Japan.
Under the Kyoto Protocol, the base year is 1990. But the government sees
this as unfair because Japan had already made considerable progress in
energy conservation by then and thus has little room for more, while the
European Union has much room to improve thanks to its expansion to include
East European countries. The Japanese government used 2005 as the base
year for its long-term target. But that year has yet to win wide
acceptance. Another major point in Fukuda's announcement was the plan to
begin a trial of carbon credit trading this autumn. The government is
eager to launch a trading scheme for carbon dioxide emissions rights
because it wants to actively take part in global efforts to draw up rules
for the carbon trading market, which have been led by the EU. That Fukuda
did not announce the date for the full launch after the trial is seen as
an indication of resistance from the industrial sector. Although details
have yet to be worked out, the trial is expected to refrain from using the
cap-and-trade system, heeding the concerns of such major emitters as
steelmakers and power companies. The government is believed to be
considering combining two or more systems to create an integrated domestic
market. One of these may be a system allowing large companies to count as
carbon credits the money and technologies they provide to small and
midsize businesses for emissions-cutting efforts. Also likely to be chosen
is the existing voluntary emissions rights trading system led by the
Environment Ministry. But if the resulting trading system is too different
from systems used elsewhere, Japan may end up isolated from the rest of
the world. And in some quarters of the government, there are concerns that
a trading system without emissions capping may not be recognized by the
International Carbon Action Partnership, which is leading efforts to draw
up international rules on carbon credit trading. Fukuda also unveiled
plans to use taxation to drive reductions in global warming gas emissions.
The government is to embark on a comprehensive review of taxation this
fall. "By reviewing the overall tax system, including the handling of
an environmental tax, we aim to make taxation greener," Fukuda said.
Preferential taxation for energy-efficient vehicles and appliances will
likely be one of the areas considered. As for the environmental tax, the
Environment Ministry has been calling for a tax on fossil fuels,
variations of which are already in place in such countries as the U.K. and
Germany. (The Nikkei; Tuesday, June 10, 2008)
Nukaga: Want G8 To Debate
Countering Oil, Other Problems
Japanese Finance Minister Fukushiro Nukaga said Tuesday he wants serious
debate by Group of Eight finance ministers on what they can do both
individually and collectively to counter expensive oil and other problems
facing the global economy. "I want serious discussion on global
economic development, environmental changes, African development, crude
oil problems and rising food and commodities prices," Nukaga said at
a news conference. (Dow Jones; June 10, 2008)
Inosyo To Promote Solar
Lighting System Nationwide
Inosyo, a marketer of consumer electronics, plans to ratchet up marketing
efforts to promote its proprietary illumination system using sunlight as a
power source in response to growing calls for energy conservation. Based
in Otsu, Shiga Prefecture, the company intends to build a nationwide sales
network for the lighting system, aiming to roughly double to 300 the
number of subcontractors engaged in installing the equipment. By promoting
the energy-saving nature of sunlight-based illumination technology, the
company hopes to double system sales to 100 million yen in two years. The
Skylight Tube system provides as much illumination as fluorescent lights
without using electricity. The system is designed to bring sunlight into a
building from a domed glass module fitted to the roof. The glass module,
which features excellent heat insulation, is equipped with a mirrored
plate that reflects the light down into the rooms below. The mirrored
plate is said to reflect more than 95% of sunlight into the building,
brightly illuminating rooms through the use of a dispersion cover. The
intensity of the lighting changes little even on rainy days, according to
the firm. Inosyo plans to promote sales to homebuilders in various parts
of central Japan and the Chugoku region -- the western part of the main
island of Honshu -- while aiming to make arrangements with 20
subcontractors in each area. It is also looking to expand a similar
marketing approach to cover Tokyo and other regions. The Skylight Tube
system, which is capable of illuminating a room about eight tatami mats in
size, or about 12.24 sq. meters, is priced at 250,000 yen to 500,000 yen,
including installation costs. The system is able to meet the demands of
consumers who want to turn off electricity in the daytime for energy
conservation but also seek a certain degree of illumination, the company
said. (The Nikkei; Thursday, June 5, 2008)
M'bishi Chem Preps
Eco-Friendly Light System For Veggie Growers
Mitsubishi Chemical Corp. is developing a green, low-cost lighting system
for vegetable growing facilities using a combination of solar cells and
LEDs. Because the system taps sunlight as the energy source, it can help
vegetable cultivators reduce their lighting expenses by 30% while emitting
no carbon dioxide. Mitsubishi Chemical recently invested 250 million yen
to acquire a 16% stake in Fairy Angle Inc., a vegetable growing venture.
This firm is building a vegetable facility, a portion of which will be
used by Mitsubishi Chemical to install and test-operate a lighting system
consisting of roughly 1,000 to 2,000 LEDs and solar cells. This array is
expected to generate enough energy to supply 20kw an hour. Mitsubishi
Chemical plans to spend one to two years optimizing the methods for using
this lighting system to cultivate vegetables, then launch the business in
2009. The Mitsubishi Chemical Holdings Corp. group company is also
developing a kind of organic thin-film solar cell and aims to begin mass
production in 2015. Until then, it will build the lighting systems using
its own LEDs along with silicon solar cells procured elsewhere. But it
will establish sales routes and nurture markets to lay the groundwork for
when the new solar cells are ready to be commercialized. It is targeting
sales of around 10 billion yen in 2015. (The Nikkei; Thursday, June 5,
2008)
Govt To Eye Emissions Trading
As Opponents Back Down
The government's plan for reducing emissions of global warming gases will
include a cap-and-trade system now that opponents in the private sector
have indicated they will support such an approach under certain
conditions, The Nikkei learned Tuesday. The government is assembling this
month its strategy for creating a framework to reduce global warming gases
after the Kyoto Protocol expires in 2012. Steelmakers and electric power
companies had been viewed as the harshest critics of cap-and-trade. The
steel industry, which accounts for 10% of Japanese carbon dioxide
emissions, argued that the system could force production overseas, eroding
the global competitiveness of Japan's steel industry and destroying jobs.
Power companies argued that the system would make investment difficult
from a long-term perspective. Both industries urged that Japan instead
push for cuts by industrial sector on a global basis. The Environment
Ministry has been an advocate for a cap-and-trade system, but the Ministry
of Economy, Trade and Industry and the Japan Business Federation were more
reluctant. This year, however, they changed tack, raising the likelihood
that such a system will be introduced. The Japan Iron and Steel Federation
and Federation of Electric Power Companies of Japan have now agreed to
enter into full-fledged talks with the government about how a
cap-and-trade system will be designed and when it would be introduced.
Because both industries are strongly against having the government set
mandatory emissions caps, they are asking for more flexible targets that
take into account efforts by individual companies to cut emissions. (The
Nikkei; Wednesday, June 4, 2008)
Govt Must Do More To Promote
Eco-Tech Innovation
In the international battle against global warming, technological
innovation holds the key to creating a low-carbon society. But despite its
high profile in this area, Japan appears to be losing its leading position
in cutting-edge environmental technology. Some observers say government
policy is to blame. Bio Ethanol Japan recently started commercial
production of biofuels from cellulose-based sources at a factory in Sakai,
Osaka Prefecture. It obtains sugar by chemically treating cellulose in
waste lumber, and the sugar is then fermented to produce ethanol. A
genetically modified germ that is used for fermentation was developed by a
research team at the University of Florida. If an enzyme is found that can
process cellulose into sugar, production efficiency will likely be boosted
significantly. "The U.S. leads Japan in this research area as
well," said Seiji Kaneko, president of the firm. Research papers on
biofuel-related topics started to increase rapidly in number in the U.S.
and EU around 1990, reaching nearly five times the level in Japan in some
areas, according to the National Institute of Science and Technology
Policy. Although Japan's R&D budget for science and technology is
growing, a large portion of it is allocated for basic research, with only
a small fraction used to develop environmental technologies. In some
cases, promising research results have not resulted in successful
commercial production. Engineers in the U.S. and Europe concede Japan's
superiority in nanotechnology, which is essential to developing
next-generation solar cells. But Sharp Corp. was replaced by German firm
Q-Cells AG as the world's largest producer of solar cells in terms of
volume last year because of slow growth in the Japanese market in recent
years. The German government aims to meet 45% of the nation's energy needs
using such natural and renewable sources as wind and solar power by 2030.
But Japan's energy ratio from these sources is forecast to reach a mere
1.63% in 2014. "Japan's basic policy stance on renewable energy is
ambiguous," said Koichi Kitazawa, president of the Japan Science and
Technology Agency. Others have also criticized the Japanese government for
impeding the growth of the domestic market for solar cells and other green
products by scrapping measures to promote the technology and imposing
rigid regulations. Japan overcame a number of challenges, such as
environmental pollution and two oil crises in the 1970s, by developing
highly efficient combustion systems, desulphurization equipment and
fuel-efficient small cars, among others. This also helped it boost its
competitiveness in the global market. Hilary Benn, U.K. secretary of state
for environment, food and rural affairs, said at the meeting of G-8
environment ministers in late May that global warming not only poses a
threat, but also provides new opportunities for achieving technological
innovation. Such advances will stimulate economic activity by creating new
markets, and this will help reduce greenhouse gas emissions by boosting
R&D-related investment further. If major industrialized countries can
map out such a strategy, developing countries will be persuaded to commit
themselves to cutting their emissions. A government panel on science and
technology has envisioned a low-carbon society fifty years from now in
which electric cars run along roads lit by streetlights powered by
high-performance solar cells. Jet aircraft propelled by hydrogen fuels
will fly overhead, and electric power generated from a range of sources
will be supplied via superconductive transmission lines on an ongoing
basis. Will such societies eventually be created across the world? The
first major step could be taken at the G-8 summit that Japan will host in
Toyako, Hokkaido in July. (The Nikkei; Tuesday, June 3, 2008)
|
