lobally,
economic growth has been achieved at the expense of the environment.
Countries are grappling with issues of resource crunch and waste
generation. This trend is also reflected in Asia including Japan. To
address these issues, policymakers are targeting the transition towards
a Junkan-gata-shakai or Sound Material-Cycle (SMC)
Society. A SMC society is characterised by minimal consumption of
natural resources, prevention of waste generation, recycling of products
and appropriate final disposal of waste. In order to establish a SMC
society, Japan has been involved in developing and implementing waste
minimisation and recycling policies since 1990. Some of these laws
include Law for Promotion of Sorted Collection and Recycling of
Containers and Packaging (1995), Law for the Recycling of Construction
Materials (2000), Law for the Recycling of End-of-Life Vehicles (2002)
etc.
The year 2000 stands out as a landm
ark year when the
focus of the Japanese government shifted from waste management to
resource utilisation and eco-efficiency. The Fundamental Law for
Establishing a Sound Material Cycle Society was formulated in 2000.
It is based on the 3R principles of reduce, reuse and recycle. The
Fundamental Plan for Establishing a Sound Material-Cycle Society was
launched in 2003 and revised in 2008 and 2013. It aims to reduce the
total material input and resource use, minimise waste generation and
promote reuse and recycling of products and resources. It establishes
numerical targets and defines the expected roles of several stakeholders
including government, civil society, businesses and citizens to achieve
this transition to a SMC society.
Monitoring Progress of Resource Efficiency Policies
Material flow accounting has been central to
monitoring the progress of implementation of the fundamental plan.
Indicators and policy targets have been formulated for 2015. Two types
of quantitative indicators were developed:
• Material Flow Indicators: They aim at reducing per
unit resource inputs, reducing final disposal of wastes and promoting
cyclical use of materials.
• Targets Concerning Waste Management Effort Indices:
They were formulated with the intention of tracking progress of efforts
undertaken by various entities and different laws towards a SMC Society.
Targets have also been specified for recycling of
construction wastes like concrete blocks, wood and sludge etc. Looking
at the progress against these targets, resource productivity amounted to
374,000 yen/tonne, cyclical use rate improved to 15.3%, and final
disposal amount declined to 19 million tonnes. The increase of resource
productivity excluding earth and rocks has been steady with a 10%
increase from 2000 to 2010. However, it is still a long way to meet the
target.
Funding for Resource Efficiency
The Development Bank of Japan (DBJ) has been actively
involved in promoting the SMC society by funding progressive companies
striving to achieve resource efficiency. Under the scheme of Promotion
of Environmentally Conscious Management (2004), DBJ developed the
world’s first system of financing based on environmentally responsible
ratings. Preferential interest rates for direct loan repayment are
provided to the companies based on their rating. These ratings are
decided after a qualitative and quantitative assessment of a company’s
environmental performance in three areas, namely:
• efforts in reducing greenhouse gas emissions and
waste generation
• overall management, assessing compliance and
information disclosure
• evaluation of the entire supply chain from
procurement and manufacturing to supply and sales.
120 questions were developed based on the exchange of
information with the United Nations Environment Programme Finance
Initiative and Japan’s Ministry of the Environment to aid this
assessment.
Under this scheme, finance totalling to approximately
85 billion yen was extended to 64 companies in 2005 alone. 60% of the
companies were majorly from the manufacturing sector. More than 100
ratings have been conducted since the introduction of this scheme