Niche Markets for Economic Revitalisation of Satoyama Forest ...

Table 3: Trends in Emissions and Removals of GHGs from Land–Use Change and Forestry (LUCF) Sector
Category 1990 1991 1992 1993 1994 1995
Removals by Forestry -146.056.09 -142,032.48 -142,061.31 -142,090.14 -142,118.97 -142,147.79
Removals by Parks -90.65 -94.28 -103.41 -106.82 -111.55 -114.49
Emissions Harvested
from Wood
Forestry and Grassland
Conversion
61,664.52 57,352.68 55,680.02 51,193.14 47,758.15 44,614.75
637.61 999.46 1007.09 1014.72 1022.35 1037.61
Total -83,844.62 -83,774.63 -85,477.60 -89,989.10 -93,450.01 -96,609.92
Source: Government of Japan, 2006
The target of the Government of Japan is to ensure removal
of the 13 million ton in carpon (tC) (47.67 million ton in CO 2
,
approximately 3.9 per cent compared to the total emissions of
the base year). 46 According to Japan’s Fourth Communication
to the UNFCCC, the 2001 Forests and Forestry Basic Plan under
the Forests and Forestry Basic Law provides the framework in
which Japan plans to achieve this target. Specific measures
include:
• Developing sound forests through: the promotion
of efficient and effective thinning of forests by
strengthening collective thinning operations and
promoting greater use of thinned wood; engineering
a shift toward forests with longer cutting cycles and
multistoried forests; developing countermeasures to
eliminate the land allowed to be left denuded; and
promoting programs to secure and foster essential
personnel responsible for forest development.
• Promoting appropriate management and conservation of
protected forests through: appropriate operation of
land use conversion regulations and logging regulation;
planned designation of protected forests; promotion of
appropriate forest conservation management; planned
promotion of forest conservation projects in mountain
regions with a high disaster risk and denuded forests in
the hinterland; promotion of countermeasures to prevent
and control damage caused by pine weevils and other
forest pests and wild birds and animals; countermeasures
to prevent forest fires; and expansion and enhancement
of natural parks and nature conservation areas.
• Promoting the participation of citizen groups and a
wider range of actors by: improving the skills of forest
volunteers and and safety systems; promoting forest
environmental education; and promoting a green worker
program in national parks that aims to protect flora and
fauna, including forests.
• Promoting of the use of timber and wood biomass by:
promoting the utilisation of locally supplied timber
in houses and public facilities; promoting consumer–
focused programs to expand the user base for locally
supplied timber; developing production, distribution
and processing systems; and promoting the utilisation
of low–grade timber and wood biomass for energy and
products.
The total value of the budget related to the Outline for
Promotion of Efforts to Prevent Global Warming for FY
2005 is 1.1428 trillion yen. In that year 408,063 million yen
were budgeted to the Ministry of Agriculture, Forestry and
Fisheries. Sectorally, 356,673 million yen was budgeted
for the promotion of forestry, with a relatively significant
allocation if considered next to nuclear power allocations,
for example, which received 206,644 million yen in the same
year (Government of Japan, 2006).
Carbon Emissions Trading in Japan:
As mentioned above to date, Japan has not developed
a national carbon emissions trading scheme or related
forestry–based project system in its effort to meet its Kyoto
targets. A number of Japanese industries are participating
in a voluntary scheme—the Voluntary Emissions Trading
Scheme—launched in May 2005 by the Japanese Ministry
of the Environment and several private companies.
Thirty–four companies are participating in a trial scheme,
covering trading of 27 MtCO 2
. At this stage the Japanese
CO 2
emissions trading programme is small and excludes key
actors like power utilities. Under the current 2007 review of
the 2005 Kyoto Target Achievement Plan, the government
is investigating the development of a mandatory scheme
to meet its Kyoto targets, although the proposal remains
contentious at the time of writing of 2007, particularly as an
issue between the Ministry of Environment and METI (Point
Carbon, 9 July 2007).
3.8 General Discussion on Policy
As graphically illustrated below, the price per cubic meter
of locally produced cedar wood in Japan was lower relative
to the price of imported larch during the 1995–2000
timeframe. However, the price of imported larch continued
to decrease, while that of domestic cedar increased during
next five–year period (2000–2005). This trend suggests that
although the argument that cheaper prices of wood imports
is one of the key factors affecting the economic uncertainty
in satoyama forest products in Japan, the price of domestic
wood substitute (cedar) has, in fact been competitive until
after the year 2000. Assuming parity in the quality of these
two products thereby making them close substitutes, and
given the fact that Japan’s forest build–up increased by 450
million cubic meters of wood, domestic market has been
advantageously positioned to perform better than the
import market. In this context, the regional trade regimes
and other trade agreements within which wood is imported
into Japan, may explain why the domestic wood market
has not out–performed its import counterpart. A targeted
review of the trade pacts might reveal the policy responses
to be effected from the point of view of Japan in addressing
this issue.
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