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    FY 2014 PROGRAM TO REDUCE GLOBAL WARMING

    EMISSIONS FROM NON-ENERGY RELATED ACTIVITY

    OVERSEAS Visualizing the Contributions of Japanese Firms to

    Adaptation Measures in Developing Countries

    (Summary Report)

    March 2015

    Nomura Research Institute, Ltd.

  • 2

    FY 2014 PROGRAM TO REDUCE GLOBAL WARMING EMISSIONS FROM

    NON-ENERGY RELATED ACTIVITY OVERSEAS

    Visualizing the Contributions of Japanese Firms to Adaptation Measures

    in Developing Countries

    (Summary Report)

    Contents

    1. Surveying Japanese firms potential contribution to adaptation measures in developing countries ........ 3

    1-1. Call for tenders for feasibility studies and results ................................................................................... 3

    1-2. Summaries of studies of projects selected ............................................................................................... 3

    1) Kaiho Recycled Farm Equipment Rental Business (Kaiho Sangyo Co., Ltd.) .................................. 4

    2) Disaster Prevention and Mitigation to Counter Increase in Landslide Disasters due to Climate

    Change in Thailand, and Application to Countries in the Greater Mekong Subregion

    (Kawasaki Geological Engineering Co., Ltd.) ................................................................................... 6

    3) Organic Waste Composting in the Maldives (PEAR Carbon Offset Initiative, Ltd.)......................... 8

    4) The Forest Wisdom Project (from far east inc.) ............................................................................... 11

    5) Feasibility Study of High-Quality Mung Bean Cultivation in High-Salinity Areas of

    Bangladesh (euglena Co., Ltd.)........................................................................................................ 13

    2. Identification and consideration of policy concerns .............................................................................. 15

    2-1. Consideration by Adaptation Advisory Panel of feasibility study performance .................................... 15

    2-2. Identification of policy concerns ........................................................................................................... 15

    1) Policy concerns regarding action by Japanese firms in the field of adaptation ............................... 15

    2) Global developments and Japanese government policy regarding adaptation ................................. 17

    3. Raising the international and domestic profile of Japanese initiatives .................................................. 20

    3-1. 21st National Convention of the Japanese Academy of International Business Studies ....................... 20

    3-2. METI symposium on The Contribution of Japanese Technologies to Adaptation to Climate

    Change in Asia, Africa, and Island States: Responding to Developing Countrys Needs and the

    Evolution of Global Business ................................................................................................................ 20

    4. Roundup of results ................................................................................................................................ 22

    4-1. Ongoing sharing of information on results to date ................................................................................ 22

    4-2. Where next for adaptation policy? ........................................................................................................ 23

  • 3

    1. Surveying Japanese firms potential contribution to adaptation measures in

    developing countries

    1-1. Call for tenders for feasibility studies and results

    For this program, feasibility studies (adaptation FSs) were made of the potential for outstanding

    Japanese technologies and other resources to be used in adaptation activities to help manage the effects of

    climate change in countries that are particularly vulnerable to climate change.

    Tenders to perform these adaptation FSs were invited between July 18 and August 15, 2014, and

    proposals were received from organizations and consortiums located all over Japan. The proposals were

    carefully considered by a panel of outside experts, as a result of which five were selected (Figure 1).

    Figure 1 Projects selected for adaptation FSs

    Business name (lead enterprise) Project title

    Kaiho Sangyo Co., Ltd. Kaiho Recycled Farm Equipment Rental Business

    Kawasaki Geological Engineering

    Co., Ltd.

    Disaster Prevention and Mitigation to Counter Increase in Landslide

    Disasters due to Climate Change in Thailand, and Application to

    Countries in the Greater Mekong Subregion

    PEAR Carbon Offset Initiative,

    Ltd.

    Organic Waste Composting in the Maldives

    from far east Inc. The Forest Wisdom Project

    euglena Co., Ltd. Feasibility Study of High-Quality Mung Bean Cultivation in

    High-Salinity Areas of Bangladesh

    1-2. Summaries of studies of projects selected

    Taking each participant (lead enterprise) in turn, the projects selected are profiled below from the

    following seven angles: (1) purpose of study, (2) threats faced by host country due to climate change, (3)

    proposed solution to threats, (4) elements of study, (5) expected policy effects, (6) methodological approach

    to project appraisal, and (7) outline of technologies/products used or proposers strengths. To ensure that

    the participants followed a common framework of metrics for their projects, they were required to provide

    metrics tailored to their respective projects for each of the following three stages: inputs, outputs, and

    outcomes. Unlike mitigation action, adaptation action is particular and localized in its policy effects,

    and so cannot be measured employing a uniform framework. To provide a common framework for the

    adaptation FSs, therefore, projects were assessed by measuring how implementation of each adaptation

    measure affected the target population (outputs), and how these outputs contributed to attaining the goals

    laid down by overarching development strategies, such as developing countries own National Adaptation

    Programmes of Action (NAPAs) and the Millennium Development Goals (MDGs).1

    1 The Millennium Development Goals (MDGs) were established following the Millennium Summit of the United Nations

    held in New York in September 2000, and were adopted by the 189 member states of the UN as goals to be met by the

    international community in the 21st century. Eight goals are set for attainment by 2015 in a number of areas, including

    peace and security, development and poverty, the environment, and human rights and good governance.

  • 4

    1) Kaiho Recycled Farm Equipment Rental Business (Kaiho Sangyo Co., Ltd.)

    (1) Purpose of study

    This study aims to reduce food shortages and decline in economic strength in Ghana caused by climate

    change through the renting out of agricultural machinery to increase food self-sufficiency.

    (2) Threats faced by host country (Ghana) due to climate change

    Ghana is vulnerable to four main threats: (a) temperature rise, (b) decrease and variation in rainfall

    patterns, (c) sea level rise, and (d) abnormal weather and natural disasters.

    Ghanas economy is dependent on agriculture, water, natural resources, and energy, which are

    vulnerable to climate change. The effect on agriculture is of particular concern because it accounts

    for 30% of total GDP in Ghana.

    (3) Proposed solution to threats

    MOFA-led agricultural automation has been pursued in Ghana, but progress has been

    unsatisfactory.

    The program has revealed a critical local need in the agricultural sector to secure water resources

    due to the effects of climate change.

    Providing mobile pump cars based on used Japanese Kei truck mini trucks is proposed as a

    solution to the above threats.

    (4) Elements of study

    Market research, provision of agricultural know-how and used agricultural machinery and spare

    parts

    Provision of Thai-made used agricultural machinery and spare parts

    Import of used agricultural machinery and spare parts, installation of equipment onsite,

    development of connections with MOFA

    Investigation of current market situation for custom work

    (5) Expected policy effects

    Improvement of living standard and resolution of food problem faced by agricultural workers as a

    result of solving vulnerability to drought

    Expansion of available agricultural land

    Growth in volume of crop production

    Lengthening of harvest period

    Improvement of income level

    (6) Methodological approach to project appraisal

    The following method is used to evaluate this project (Figure 2).

  • 5

    Figure 2 Methodology for project appraisal (Kaiho Sangyo)

    Input Output Outcome

    Performance

    index

    1: Introduction of

    mobile pump car

    2: Training for

    agricultural

    employees.

    1: Growth in volume of crop production Improvement of living

    standard and resolution of

    food problem faced by

    agricultural workers as a

    result of solving

    vulnerability to drought

    2: Expansion of available agricultural land

    3: Lengthening of harvest period

    4: Improvement of income level

    (7) Outline of technologies/products used or proposers strengths

    The mob

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