Japan is said to become the largest customer of CDM projects, since using Kyoto mechanism is expected to reduce 1.6% of the total

GHG emission, which is equivalent to 20 million ton-CO2. Large trading houses, banks, electric companies and petroleum have been active players. Mitsubishi Corporation has a plan to form $200 million fund with a U.S. investment bank for emission credits.

Japan Bank of International Cooperation and Development Bank of Japan also raised $33 million and $25 million respectively for the same purpose.

Two petroleum companies, one investment bank and one electric company will totally invest $10 million in the Community Development Carbon Fund launched by World Bank.

The Ministry of Environment will put that proposal made by the committee subject to public opinions. It is highly possible that carbon tax will be put into force, since there is no other effective option, and in addition, Japanese seem to be starting feeling that they have to bear some cost to mitigate the global warming as an individual.

Japan has been far behind Europe and the U.S. in utilizing biomass. However, for example, the forest covers 64% of the land.

Last year Japanese government set forth "National Biomass Strategy"

This national strategy sparked a new movement for biomass in both the public and private sectors. Dozens of prefectures are initiating biomass related projects using locally available biomass, while hundreds of private firms are embarking on developing products and services using biomass.