1.Basic Principles

• Balance between the Environment and the Economy
  We will prepare and establish mechanisms that contribute to the balance between the environment and the economy by fostering technological innovation and creative initiatives in business circles, in order to link the efforts to prevent global warming to economic revitalization and employment creation.
  

• Step-by-Step Approach
  We will undertake assessment and review of the progress of measures being taken at regular intervals (in 2004, 2007), and take necessary measures step by step.
  

• Promotion of Combined Effort by All Sectors of Society
  It will by no means be easy to achieve the targets of the Kyoto Protocol, thus it is essential that all entities, from national government to local governments, businesses to the people, join forces with all their might and in their respective roles to achieve the goals. From this viewpoint, we will continue to promote voluntary initiatives of businesses and at the same time strongly advance the measures particularly in the residential and commercial sector and transportation sector.
  

• Ensuring International Cooperation for Measures to Prevent Global Warming
  We will continue to make the utmost effort to establish a common regime in which all countries including the United States and developing countries will participate.

2. Important Points of the New Guideline

• We will present an overall picture of the sound and concrete measures to be taken to fulfill Japan's commitment under the Kyoto Protocol (a 6% reduction below 1990 levels). The Guideline includes a package compiled by the entire government and made up of over 100 individual policies and measures. The Plan to Achieve the Targets of the Kyoto Protocol stipulated in the Bill for amendments to the Law Concerning the Promotion of the Measures to Cope with Global Warming (due to be submitted to the current session of the Diet) will be drawn up based on the new Guideline.
  

• The commitment to achieve a 6% reduction will be fulfilled, for the time being, by means of goals 3.(1)-(5) below. In so doing, in the case where the achievement of goals 3.(1)-(5) can be fully anticipated in the first commitment period, rather than settling for such a forecast, we will make further efforts to reduce emissions on top of steadily advancing existing measures. In addition, based on the obligation of Japan to fulfill its commitments under the Kyoto Protocol and the principle that the Kyoto Mechanism is supplementary to domestic action, we will examine ways to utilize the Kyoto Mechanism while taking international trends into account.
  

• The Global Warming Prevention Headquarters will carry out assessment and review of the content of the Guideline in 2004 and 2007. At that time, the various economic frames on which the Guideline depend will also be assessed and reviewed comprehensively if necessary, and policies and measures will be flexibly revised on that basis.
  

• The Guideline has been completed based on hearing of opinions with the Joint Conference of Relevant Advisory Councils, while taking account public comments and the result of discussions so far in the Relevant Advisory Councils. In formulating the plan to achieve the targets of the Kyoto Protocol, we will further widen our hearing of the opinions of Japanese people from all sectors of society, based on the Guideline.

3. Measures for Each Type of Greenhouse Gas and Other Categories (Examples)

(1) CO2 emissions from energy sources (plusminus0.0%)

* Goal of reducing emissions to FY1990 levels

	[Industrial Sector]	[Residential and Commercial Sector]	[Transportation Sector]
Energy Conservation: Additional measures for reduction of 22 million tons of CO2	* Steady implementation of voluntary action plans and their follow-up. (The Keidanren Voluntary Action Plan on the Environment aims at a reduction to below plusminus 0%) * Technological development and diffusion of high-performance boilers and lasers * Promotion of the introduction of high-performance industrial furnaces	* Introduction of energy management systems for large office buildings in line with those in place in large factories through revision of the Law Concerning the Rational Use of Energy * Application of Top Runner Approach to gas equipment, which hitherto have not been subject to the standard, to further expand their use * Promotion of the diffusion of high-efficiency water heating appliances * Promotion of the diffusion of energy management systems for households and businesses	* Accelerated introduction of vehicles conforming to the Top Runner Approach, accelerated development and diffusion of low-emission vehicles including clean energy vehicles * Traffic flow measures such as promotion of Intelligent Transport Systems (ITS) * Improvement of efficiency in freight services through means such as a modal shift to marine transport * Promotion of the use of public transportation
New Energy: Additional measures for reduction of 34 million tons of CO2	* Inclusion of biomass and snow/ice in the Law Concerning Promotion of the Use of New EnergyEProposal for enactment of Law Concerning Promotion of the Use of New Energy by Electrical Utilities * Promotion of assistance for the introduction of solar energy generation, solar thermal utilization, wind power generation, waste power generation and biomass energy * Strengthening of technological development and practical testing of fuel cells, solar energy generation and biomass energy
Fuel Conversion: Additional measures for reduction of 18 million tons of CO2	* Support for conversion of aging coal-fired power generation to natural gas power generation * Support for fuel conversion in industrial boilers *Development of safety standards for natural gas pipelines
Promotion of Nuclear Power	* Promotion of nuclear power generation with the major premise of ensuring safety * Promotion of measures for development in regions of electric power generation in relation to the location of nuclear fuel cycle facilities
	Approximately 462 million tons of CO2 (+7%)	Approximately 260 million tons of CO2 (+2%)	Approximately 250 million tons of CO2 (+17%)

(Note)

* The figures in parentheses are the percentage of reduction in emissions from FY1990 levels in each sector.

* Emission reduction targets for each sector are set as estimated targets that can be achieved on the basis of various premises and conditions.

* The assessment of measures should be carried out with a certain degree of flexibility and a perspective of the entire energy supply and demand structure.

* As the use of the Kyoto Mechanism by businesses is approved, it is expected that they will use the Mechanism to achieve their reduction in a more cost-effective way.

(2) CO2 emissions from non-energy sources, methane, dinitrogen monoxide (+0.5%)

*A goal of achieving a reduction of 0.5%

CO2 from non-energy sources	Waste reduction through the Waste Disposal Law and recycling-related laws, expansion of the use of timber and wood materials, cultivation of green manure on farmland, promotion of recycling through composting
Methane	Reduction by half in direct landfilling of wastes through application of the Food Recycling Law Improvement of farmland management Development of emissions-reducing technology for the agricultural sector
Dinitrogen monoxide	Upgrading of the combustion of wastewater sludge through sewerage facility planning, etc.

(3) Innovative technological development and further promotion of activities to prevent global warming undertaken by Japanese people from all sectors of society (+2.0%)

*A goal of achieving a reduction of 2.0%

Innovative technological development	Implementation of research and development for new energy-efficient steel production processes, new energy-efficient chemical processes, development of materials for lighter vehicles, electronic equipment with low power consumption, and a power transmission and distribution system with low power loss, etc.
Promotion of further global warming-prevention activities to be undertaken by people from all sectors of society	Change incandescent lighting to fluorescent lighting, cut down on upward light flux from outdoor nighttime lighting, use refrigerators more efficiently, introduce water-saving showerheads, turn off office lights during lunch and other breaks, reduce unnecessary copying, etc.

(4) Three Gases including Alternatives for Fluorocarbon (HFC, PFC, SF6) (+2.0%)

* Goal of arresting the influence of plusminus 5% in natural state to the order of +2%

* Follow up of action plans in the industrial sector * Development of new alternative substances * Development of low-cost and compact technology for fluorocarbon recycling and decomposition * Appropriate application of the Home Appliance Recycling Law and Fluorocarbon Recovery and Destruction Law

(5) Securing absorption (+3.9%)

* Goal of securing about +3.9% absorption, as agreed at the COP7

Development of healthy forests through planting, weeding and thinning, promotion of the use of wood and wood biomass, promotion of urban greening, etc.