Annual Report 2001

1. Research Committees
 

(1)

Research Committee for Global Governance  A research committee to study "the issues involved in poverty alleviation and the role of global governance" In fiscal year 2000, the Research Committee focused on the actual situation of poverty and the case studies of poverty alleviation. As actual poverty situation, the committee looked into the cases of Africa, South Asia, and China. The study illuminated the fact that the causes of poverty problems vary widely by regions. As for the case studies of poverty alleviation, the Committee identified the importance of NGO's role and the effectiveness of micro finance system, while recognizing the need to properly grasp the actual poverty situation and to introduce specific measures conforming to actual situation.

(2)

Research Committee for "the ASEAN integration and the ASEAN divide"  ASEAN contains wide political, economic and social differences between founding member countries and four new members of Cambodia, Vietnam, Myanmar, and Laos (collectively called CVML), which may obstruct or delay regional integration and affect ASEAN-Japan relationship. In order to improve the situation, ASEAN needs various forms of support and cooperation. To explore appropriate measures of cooperation and to develop long-term and strategic support scheme for CVML, the Committee added to its work the analysis and study of the latest political, social, and economic trends in these four countries and their relationship with other ASEAN members and non-member countries in East Asia. The Committee especially identified that the major issues of new member countries would be to accelerate their political and economic reform. For more effective support to this region, the Government of Japan should:    i) 　 Encourage Thailand, as a regional leader, to make more efforts to support new member countries ii) 　 Reorganize Japan's support of Great Mekong River Development (GMRD) project, which used to be offered randomly and incrementally. iii) 　 Consider and assess China's huge influence over CVML, which may cancel Japanese Government's supportive efforts in this region.

(3)

Research Committee for "Comprehensive Outlook of Asia"  Continuing from fiscal year 1999, the Committee boldly and comprehensively developed the prospects of Asia in around 2025, and examined the strategy Japan should adopt. In fiscal year 2000, the Committee studied subjects such as: the national political regime of Asian countries and the movement toward democratization; WTO entry issue for China and Taiwan; future direction of Korean Peninsula situation; and the current progress of IT revolution in each country. In studying these subjects, the Committee focused on three key items of: (i) how much and to what extent political and economic multi-polarization will advance; (ii) how far the mutual dependence will grow; and (iii) will major contentious issues in the region disturb the basic structure of Asia as a whole?

(4)

Research Committee for "The Way to Educate and Nurture Human Resources in the Age of Global Market Competition"  Today, Japanese educational system has seen a lot of problem, especially the decreasing of students' learning abilities in a way describable as "college students without ability to calculate even a simple fraction."  Unless such learning abilities are to be recovered, Japan will soon lose its international competitiveness in industry and economy as a whole. For this reason, the Committee reviewed, in this fiscal year, the current situation of decreasing learning abilities and their causes. The result of this Committee's study contributed to the main part of "Urgent Proposal for Educational Policies to Prevent Further Erosion of Learning Abilities," published in October 2000 by the Committee of Global Industrial and Social Progress. It was also introduced as the contents of the "11th GISPRI Symposium : Contemplate on a Right Way of Educational System in Japan - In the Viewpoint of Improving Learning Ability" held in March 2001.

(5)

Research Committee for "Economic Development and International Consensus Building on Global Warming"  The Committee studied the way to build international consensus on global warming, as it considers essential to have, in some form, developing countries' participation in greenhouse gas emission reduction regime, since these countries would emit CO2 more than developed countries do in near future.  The Committee study contents for fiscal year 2000 involves: dynamic analysis of international environmental aids - CDM's effectiveness; agenda at COP6; CDM's problems and potential as seen in the basic study of promoting joint implementation etc.; use of land as CO2 sink and the structural problem of sink; addressing sink in the Kyoto Protocol - science and international negotiation; the problem of China's participation in the framework of climate change; and the problem of developing country participation, etc.

(6)

Research Committee for "Accounting and Verification of GHG Emission Permits"  In Europe and USA, GHG emission permits trading is in implementation stage, though voluntary, and emission permits are fast becoming monetary commodities. Such trend is expected to expand further, and how to handle emission permits in corporate accounting system may greatly influence corporate financial indices. The Committee reviewed a way to process such emission permits within a corporate accounting system.

2. Research and Study Consignment
 

(1)

Proposal for Japan as a Nation of Garden Cities  This study aims to explore a way to realize a vision of every Japanese engaged in "creating a garden" and "living in a garden," while reflecting on Japanese history, grasping the changes in today's social scenes, benefiting from rich natural environment, and trying to harmonize nature and humans in an elevated level. The work included the discussion on the realization of multi-polar society, establishment of identities, information network infrastructure in cities and international competitiveness, local cities and a garden city nation, Japanese economy and globalization, etc. The discussion led to the "concept of Japan as a garden city nation" through the building of compact cities and green networks.

(2)

Climate change policies to meet the Kyoto targets in French and other European industries  International negotiation to define the operational rules of Kyoto Protocol is at the last stage of conclusion, and the discussion becomes more specialized, complicated, and diverse. Especially, the talks on domestic measures are increasingly complicated. To benefit as a reference in review processes during future international negotiation and domestic measures, we consigned a study to Jean-Marie Bourdaire, who has extensive knowledge and experiences in energy policies and has a career including IEA Economic Director, and a member of French Energy Committee. The study was to focus on the following subjects concerning France and European countries:  (1) 　 Stance of industries toward environmental tax, Joint Implementation, Clean Development Mechanism, and emission trading. (2) 　 How media reports on items related to the Kyoto Protocol (3) 　 Others including govern-mental actions The result showed that French industries inclined more for emission trading, which would allow more equal distribution for the burden of marginal reduction costs, while avoiding distortion in competition, but perceived CDM as a rather long-term methodology because of various problems involved. At the same time, nobody found any real prospects for achieving drastic GHG reduction at low cost.

3. Study consigned by other organizations
 

(1)

Review of survey on global environmental effects and their responsive measures (Review and survey on global warming response measures)  This study was to grasp the trends of international negotiation up to the halt at COP6 in November, which was considered as a critical point of international negotiation for climate changes, in view of determining operational rules to elucidate the future of the Kyoto Protocol scheme. Next, the study was conducted on the registry under the Kyoto Protocol scheme. In the international negotiation on the Kyoto Mechanisms, the registry was taken as an essential in demonstrating the compliance. As there were fewer practical studies on what kind of problems might rise when implementing the registry, what should be determined before the implementation. Therefore, the study was conducted by inviting experts, thought to have knowledge and experience benefiting to the review in such field and holding a meeting to discuss and obtain advice. The study also involved information gathering on hearings and literature from time to time. The study summarized the information and direction to make a foundation on the review of such problems in the future.

(2)

Project to promote international cooperation for global environmental issues / project to assess the impacts of climate change  As a part of international cooperation on global warming issue, this project is to join efforts with the Working Group 3 of IPCC, which is to address energy policies and technology development, for the assessment of climate change mitigation measures in scientific, technological, environmental, and socio-economic aspects. Project included the study and review of following subjects with an aim to benefit for the preparation of the Third Assessment Report. (1) To review assessment methodologies for cost analysis in evaluation of various responses technologies addressing global warming issue. (2) To analyze and study problems and solutions involved in the promotion of technology transfers worldwide. (3) To review actual policy options as policies and measures for the prevention of global warming.

(3)

Study of Activities Implemented Jointly in China and the enhancement of transition to CDM  Japan intends to achieve its CO2 reduction target imposed by the Kyoto Protocol through active utilization of the Kyoto Mechanisms (emission trading, Clean Development Mechanism (CDM), and Joint Implementation) stipulated as flexible mecha-nisms in the Kyoto Protocol. China, on the other hand, finds itself on the verge of drastic increase in energy consumption as its economy grows. Therefore, it is important and effective not only for both countries of Japan and China, but also for the international community, to promote existing Activities Implemented Jointly as well as to encourage CDM. In addition, gathering attention is how China will define its mid to long term measures for climate change in the 10th Five-Year Plan starting from 2001. Based on such situation, the project conducted "the survey on the progress of Activities Implemented Jointly, and transition to CDM" through the exchanges with Chinese environmental policy-makers and academic researchers, and the program of information exchange and site survey.

(4)

To assess and analyze the efficiencies of emission trading system using experimental methodologies and quantitative models  The study discussed how the national system of greenhouse gas emission reduction should be designed with a focus on the research of emission trading systems. At the same time, the study reviewed an emission trading market using experimental methods, and tried to verify the efficiency of emission trading systems using quantitative models. The report con-tents were as follows: Chapter 1 "Global Warming Measures and the Kyoto Mechanism" summarized the international efforts for global warming mitigation and the outline of the Kyoto mechanisms. Chapter 2 "The Assessment Standards for Designing National Systems" established assessment standards to assess the national systems of global warming measures. Chapter 3 "Various Options for National Systems" examined regulatory measures, carbon tax, emission trading, voluntary measures and others for global warming. Chapter 4 "Options of Domestic Emission Trading Systems" reviewed the details of emission trading systems from an institutional aspect. Chapter 5 "Study of Market System Design" contemplated on a preferable way of emission trading market.

(5)

Review of System Designs for International Emission Trading Market  Research on the system design of emission trading market entered its second year. This year, the study started the analysis fully utilizing experimental economics, which were the main approach selected for this study. This year, the study focused on the development of experimental software, in case of computer usage for emission trading simulation. As a result, the study reconfirmed the execution of simulation experiments with focuses on "trading methods", "responsibility" and "information disclosure." At the same time, the study prepared the specification for a prototype of computer simulation, while incorporating the question on the roles of "investment" and "future trade." By performing computer simulations and based on the result earned from emission trading simulation, the study reviewed the systems of emission trading. Also, the study organized a small group committee to discuss the issue of how the emission permit as a commodity should be in terms of ensuring the liquidity in the market.

(6)

Dialogue on the Sustainable Mobility  As a part of a WBCSD (World Business Council for Sustainable Development) research on sustainable mobility, the Dialogue on the Sustainable Mobility was held in Tokyo for two and a half days. The Dialogue reviewed the current problems and future responses with special focuses on the roles of industries and mainly targeting Asian region. Invitees to the dialogue were experts from various fields, including providers, users, researchers, policy-makers of mobility. The Dialogue exchanged opinions on the subjects such as the major problems of today's transport, what measures to introduce now for the mitigation of such problems, what should be done further, and especially what the industries should do.

(7)

Research Project on Regional Economic Integration: "Research and Study for the Regional Economic Cooperation in Asia"  In this project, the following three points were discussed:  (1) 　 Economics of regionalism based on the theoretical analysis of FTA and regional integration  (2) 　 What was learned from Asia's Monetary Crisis? (3) 　 Current movement and future direction of regional economic cooperation among Asian countries The discussion clarified the issues pertaining to regional cooperation in Asia, including: the need to harmonize regional FTA and multilateral trade scheme to complement, rather than conflict, each other; effective application of the spatial economics for analyzing the characteristics of current flying geese type Asian development mode, in which the shift of industrial aggregation is not bound by borders; problems in reforming regional financial and business sector architectures and structures; future course of regional financial cooperation and merits and demerits of unitary currency in Asia; and feasibility of transferring ASEAN manufacturing sites in order to realize AFTA under the emergence of China's giant economy.

(8)

Research and survey on how IT revolution affects global warming issue  Chaired by Dr. Yoichi Kaya, Honorable Professor, the University of Tokyo  This research was to determine whether the diffusion of IT could lead to a favorable result in "global warming issue," and, if so, what would be the measures for it. In USA, late 1990's found economic growth promoted without much increase in energy consumption, demonstrating the departure from the past trend in a relationship between energy consumption and economic growths. As reported by U.S. Department of Commerce, the reason might be the effect of IT revolution. If such trend is established, then it will certainly provide a favorable result for "global warming issue." The research made the conclusion that, although IT's diffusion would increase energy consumption consumed in telecommunication, but due to the diffusion of e-commerce for business to consumer and business to business transaction, there would be the reduction in energy consumption greater than the increase in telecommunication.

4. Other projects
 

(1)

Responses for inter-governmental meetings of global environmental issues  GISPRI is proceeding with research and survey of global environmental issues in association with the Government of Japan. In relation to such activities, GISPRI dispatched, in fiscal 2000, its staff as an advisor or an observer for government delegates, or as a staff of NGO, to various meetings including those of the Conference of Parties (COP) for U.N. Framework Convention on Climate Change, and of Inter-governmental Panel on Climate Change.

(2)

39th Dialogue on Global Environmental Issues  Date held:July 19, 2000 Theme: Seminar for IPCC Special Reports and UNFCCC subsidiary bodies Presentation Titles and Lecturers:  Current situation and future prospect of IPCC activities Tomihiro Taniguchi, Professor, University of Tokyo, and IPCC Vice-Chair IPCC Special Report on LULUCF (Land Use, Land Use Change, and Forestry)  Masahiro Amano, Director of Resource Planning Department, Research Institute on Forestry  Yoshiki Yamagata, Research and Management Staff, National Environmental Research Institute IPCC Special Report on Emission Scenarios Tsuneyuki Morita, Director-General of Social and Environmental System Division, National Environmental Research Institute Shunsuke Mori, Professor at the Science University of Tokyo Summary of 12th UNFCCC Subsidiary Bodies' meetings - Part1  Tsuyoshi Sekiya, Assistant Director, Global Environment Division, Environment Agency (now Ministry of the Environment) Report on GHGs Emission Inventory Kiyoto Tanabe, Senior Researcher, Institute for Global Environmental Strategies (IGES), Technical Support Unit for IPCC's National Greenhouse Gas Inventory Program Summary of 12th UNFCCC Subsidiary Bodies' meetings - Part 2      - Based on questions from the floor - Yukio Ishiumi, GISPRI Senior Advisor  Naoki Matsuo, Senior Researcher, IGES and GISPRI Tsuyoshi Sekiya, as shown above

(3)

Seminar co-hosted by GISPRI and the Institute of Energy Economics, Japan:  "How to assess environmental tax"           - as the 40th Global Environmental Issue Discussion Group - Date held:September 27, 2000, Wednesday Lecturers: Prof. Takamitsu Sawa of Economic Research in Kyoto University Prof. Tatsuyoshi Saijo of Institute of Social and Economic Research in Osaka University Ass. Prof. Toru Morotomi of Economic Faculty at the National University of Yokohama Mr. Hiroki Kudo, Environmental Group Manager of the Institute of Energy Economics, Japan Mr. Akinobu Yasumoto, Executive Director of GISPRI Contents: Mr. Kudo of IEEJ gave the keynote address reporting the current situation, and future prospects of a review on global warming measures in Japan. Then four panelers (Prof. Sawa, Prof. Saijo, Ass. Prof. Morotomi, and Mr. Yasumoto) made brief comments on the theme before the discussion chaired by Mr. Kudo.  Prof. Sawa and Ass. Prof. Morotomi stressed the benefits of environmental tax, while Prof. Saijo and Mr. Yasumoto emphasized the advantages of emission trading.  At the discussion, the debated subjects included not only the environmental tax, but also the points to cover in regulation and the ways of allocation, which were the major points of discussion in designing the emission trading systems.

II. Joint Research and Cooperation

China Council for International Cooperation on Environment and Development (CCICED)

This Council is a high-level non-governmental international advisory organization established in 1992 for the purpose of supporting China in the fields of environment and development through international cooperation. 
Currently, China Council is in its second phase (from 1997 to 2001) and eight Working Groups and one Task Force are undertaking the activities under the main conference of the China Council. GISPRI supports their activities by dispatching experts to the Council's main conference and the Cleaner Production Working Group.
The plenary session of the Council, held under the main theme of "environmental problems related to the Great West Development," reviewed and adopted the recommendation for the Chinese Governments in addition to the report by each Working Group on its activity status. 
 
 
 
 
 

III. Seminar and Symposium

(1) Post-COP6 Seminar

Co-hosted with: IGES

Lecturers:
Mr. Shigemoto Kajihara, Director, Office of International Strategy on Climate Change, Global Environment Dept., Environment Agency (Now the Ministry of the Environment)
Ms. Midori Tani, Director of Global Environmental Affairs Office, Ministry of International Trade and Industry
(MITI now METI: Ministry of Economics, Trade and Industry)
Dr. Naoki Matsuo, Senior Researcher at IGES and GISPRI.

Contents: 
Messrs. Kajiwara and Tani, both government negotiators, reported on the important points of negotiation at COP6 in Hague, and explained how the negotiation suspended. Next, Dr. Matsuo made a presentation on how to grasp the global problems from a viewpoint of a business opportunity. Finally, government negotiators commented on many questions gathered from the floor.

(2) 11th GISPRI Symposium 
       "Contemplate on a Right Way of Educational System in Japan, In the Viewpoint of Improving Learning Ability"

Co-hosted with: Ministry of International Trade and Industry

Lecturers: 
Kazuo Nishimura, Ph.D., Professor of Institute of Economic Research, Kyoto University
Tsuneharu Okabe, Ph.D., Professor of Faculty of Economics, Saitama University
Nobuyuki Tose, Ph.D., Professor of Faculty of Economics, Keio University
Masuo Koyasu, Ph.D., Professor of Graduate School of Education, Kyoto University
Kenji Ueno, Ph.D., Professor of Graduate School of Mathematics, Kyoto University

Contents: 
At the symposium, there were three sessions by report presentation focusing on each theme including "the problem of decreasing learning ability," and then a panel discussion was held. Audiences were mainly from the fields of education, businesses and mass media. 
 

11th GISPRI Symposium

IV. Policy Proposal

GISPRI submitted to the Cabinet and policymakers (of the Ministry of Education, Science and Culture, and the Ministry of International Trade and Industry), the policy proposal report on education comprised of six items, including "a suggestion to cancel the implementation of 'new government guidelines for teaching' scheduled to start from the fiscal year 2002." At the same time, the report was released to the press.