Investing in Japan - Attractive Sectors
Environment
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(1.0MB) January 2007
Executive Summary
The Ecobusiness Boom
Japan's economic development has so far been supported by a society based on mass production, mass consumption, and mass disposal. Currently, approximately 450 million tons of waste is generated every year, putting waste treatment facilities under unrelenting strain. As global environmental problems grow more acute, a concerted effort towards a recycling-based society has begun, and Japan's ecobusiness market is rapidly expanding in both size and range.
A Growing Market
According to a survey conducted in 2003 by the Ministry of the Environment, the ecobusiness market is projected to grow from 28.9 trillion yen in 2000 to 47.2 trillion yen in 2010. Ecobusinesses that provide technology, products, or services that contribute to the protection of the environment play a vital role in the creation of a sustainable socioeconomic system with a low environmental impact, and the government will continue to actively promote and foster these businesses in the future.
A High Standard of Environmental Technology
The large number of environment-related patents in Japan attests to the strength of its environmental technology. In addition, the enactment of environment-related legislation has further stimulated investment in environmental technology development. Japan's world-class environmental technology is certain to spearhead the development of new ecobusiness.
Nationwide Business Opportunities
In Japan, Eco-town Projects are being implemented that aim to build a resource recycling-based economic society by limiting waste production and promoting recycling. Led by local authorities, in cooperation with local industry and the public, Eco-town Projects strive to realize the development of an alternative, advanced and environmentally conscious community. Eco-town projects are emerging across the country, and are expected to provide new business opportunities.
Widening perspectives in ecobusiness
In the 20th century, quality of life greatly improved due to mass production and mass consumption. On the other hand, the burden on the environment also vastly increased. Faced with this situation, ecobusiness has been developing since the late 1990's, to not only correct and alter the established system, but also to build a new system based on recycling. Because environmental strain occurs in every facet of our everyday and business lives, the ecobusiness field covers our entire socioeconomic system and is involved in every industry.
Policies are now being developed around the world to deal with environmental problems. A prime example is the Kyoto Protocol, which came into effect in February 2005 and stipulates that all developed countries must reduce greenhouse gas emissions. Policies such as this help ensure that ecobusiness will continue to be a vital industry in the future, with great potential to grow.
