 I was listening to the discussion before lunch of the smart grid and the difficulty of different power sources and how the smart grid has to deal with increasingly complex and shifting renewable sources of power and so forth. And I had to think of Ambassador Fujisaki who is kind of a smart grid himself because he had to deal with a changing power source in Washington when he first arrived and now he has to deal with a new power source in Tokyo and the surge of power is unpredictable and he's in the middle like the smart grid dealing with all of this hopefully not blowing up. Ambassador Fujisaki is a friend of many years. He's had a very distinguished career in the farm ministry. He served in Washington before as political minister in the mid-1990s. In London, in Jakarta, in Paris, has served as Director General of North American Affairs where I had the opportunity to work with him when I was in the NSC in the Bush Administration at that time and as ambassador to the international organizations in Geneva and in his current post as Japan's ambassador to the United States. We've had a very interesting discussion, Ambassador, about the different pathways to low-carbon society and the ample opportunities for technological engineering and business cooperation. Some of the political challenges that both U.S. and Japanese governments face moving forward on climate change and we're hoping now that you'll tie it all together for us and help us end the conference with some good thoughts on how we can enhance our collaboration. My sense is there are many, many areas, many of which the two governments have already started on and we look forward to hearing your views on those. Thank you. Thank you very much. It was not an easy day not only for me but all of you. So very much impressed that so many people there, I thought maybe 10 or 12 people sitting around the table. I had to come because I owe a lot to CSIS. One day John Hammeray said, you're spending so much time here in CSIS, you may be uncomfortable in your office. The reality, he didn't say that. He said, shall I offer you a desk in my CSIS? And my wife was listening next to me and she said, yes, please. And also the reason I came was that one day I was at CSIS and Michael Green was there at the entrance. He said, hey, remember Ambassador Fujisaki, you have a speaking engagement with us. Sorry, it's not going to be your favorite subject of Temma but you have to talk on something you don't know at all. Energy, environment. So I said, I have to challenge it. So I'm here. Now, first I have to say that Mr. Fukuyama, an architect of Japanese environment policy, regrets that he can't be here himself here because of diet and engagement. And he sends his best regard to his old friend John Hammeray and Michael Green. If I may say, talk about a bit of Japanese policy, I think I'll focus on that. Lightning has struck Japan on September the 7th. That was when Prime Minister Tobe, Mr. Hatoyama said that our midterm goal for 2020 would be a 25% cut from 1990 level. It should not have been a news, however it was. It should not have been news because it was already clearly stated in index 2009, which is a campaign document of the Democratic Party of Japan, DPJ. So everyone knew it. But still people thought, is this serious? Because of two reasons. One, because three months before that in June 2009, then Prime Minister Mr. Asso stated that our midterm goal will be a 15% cut from 2005 level. And people thought that was such an ambitious goal. But in 1990 level, as you know, that's an 8% cut. By the way, US Congress 17% cut proposal from 2005 level is, I understand, 4% cut from 1990 level. So what Japan was proposing was already ambitious and this was already several times ambitious. That's the first reason. Second was that Japan had been a number one energy efficient country for a long time, more than two decades. In order to produce a dollar of GDP, if Japan needed one unit of energy, US EU needed twice, Russia 17 times, China 9 times, India 7 times. So it was almost like asking Kate Moss to go on a diet. I hope you know who is Kate Moss. And some Japanese top businessmen rumbled that if we had to do this and if others are not doing that, then a lot of Japanese business have to leave the country to invest abroad. However, Japanese leaders maintained the position. And on late September in New York, the occasion of major economies forum, Prime Minister Hatoyama made his statement and said midterm goal of Japan would be 25% cut from 1990 level. But he also said Japan can not only do, be ambitious. All major countries have to do that as well. We have to construct fair and effective international forum. And Japan's commitment is on the premise that all the major countries would do its share. And this was a very bold initiative and I think it surprised some leaders. However, it was well received too. Why then the Japanese leader took this position? Two reasons. One, sense of urgency. I think in short the thinking was it's not too late but no time to waste. So Japan wanted to take lead in the road to Copenhagen and in the Copenhagen as well. That was exactly what we did. Second reason. Japan thought that that would try to help the economy. New introduction of new technology and also creating green jobs. So Japan maintained the position and this was with the experience that we had. In 1970s we had two oil shocks and it was a very difficult experience. However, we all in hindsight know that it created the Japan today. So that conviction I think was the background of this maintaining the position. Now Copenhagen, we can't call it a great success of course. However, it was a certain success in view of the circumstance given. It really made a result. That result was that it prepared a ground for the framework, international framework. Now let's talk about future. Mexico, COP 16 is away. We have to prepare that. And this is one of the priority agenda, top priority agenda for Japan. For Copenhagen, we aim at creating fair and effective international framework. And in that framework I think we can say that there may be four components. ABCD towards Mexico, maybe you can call it. A is ambition have to be maintained. Japan has already A for ambition. Ambition, Japan's goal as I said was the mid-term level was 25% cut from 1990. And we have already registered that to the Secretary of Copenhagen. Now what's important to us is to put into concrete policies. Japanese leaders have said that we'll try to engage all policy tools for that. And this is prescribed in new growth strategy which was issued December last year only two months ago. It includes electric power, feeding tariffs, smart grids, next generation automobiles, other all tools that we can think of. And something has to be added on as well. With that we expect we'll have a new market, energy-related market of $500 trillion, which is equivalent to more than $50 billion, domestic market. And it would create 4 million new jobs. With that strategy we also expect that greenhouse gases would be reduced by 1.3 billion tons CO2 equivalent. That's the A. Now B is a broad participation. Kyoto was a historic milestone. It was a success, certain success. However, we all know that only 30% of world emitters are now member of Kyoto, bound by Kyoto. China, India, Brazil, South Africa, all those basics are not bound. And United States is not a member as well. Although it was important, if we didn't have all that member we can't say that's effective tool. We cannot repeat that. And for that we are very much encouraged by State of Union in which President Obama said that he will try to put forth a climate bill and also he's pressed on with a climate bill and also he stated positively towards nuclear power as well. C is comparability or transparency. Ambition is important. However, we have to know that that's a verifiable figure. We have to know scientifically as well. And through those targets that we can put trust on there will be a confidence building. This is such an important target for all the countries. We have to have confidence towards each other, which we don't have now. And we hope that tool to replace post-Kyoto will be such as well. Lastly, D, that's as you can imagine, is a development assistance. In 2005, 50% of emissions are done by developing countries. We have to have them. But at the same time we have to remember three things. One, it is true that the present situation of global warming was mainly brought about by developed countries. Developed countries must have special responsibilities. Two, it's also true that most of the developed countries have more technology and funds than developing countries. Three, some of the minor smaller countries are more vulnerable to climate change than others. And they need some special attention. They are weaker and see some of the deserts widening in the country. Some of the flood are hitting, many of the floods hitting, and they deserve assistance from developed countries. So Japan is committed to help developing countries in this path towards post-Kyoto. In Copenhagen, Mr. Hatoyama announced a new initiative. We call it Hatoyama Initiative of assisting developing countries, which would amount to $15 billion. And 12 out of 15 is public finance. This 15 billion is from 2010 to 2012, three years. Altogether developed countries have committed $30 billion public finance towards developed countries from 2010 to 2012, the same year. So you can see how big the share of Japan is in the development assistance. And that is because of the reasons that I have given you. Lastly, United States and Japan. We have cooperated very well in Copenhagen. One figure always lingering on my mind is that according to IEA, International Energy Agency affiliated to OECD, 72% of world public investment in research and development in the energy sector is done by only two countries. 31% by United States, 41% by Japan. This shows that two countries have special responsibilities. When President Obama visited Tokyo in November last year, we issued a joint fact sheet. And in which we expressed the areas of cooperation. This fact sheet was mainly on clean energy program, technology program, and we expressed the intention on smart grid, carbon capture, sequestration, CCS, and we will continue on with that. But also we hope that we can cooperate on high-speed railway as well. Because this, only two weeks ago, Secretary LaHood announced several areas where he would put federal money into helping the high-speed railway in this country, which is, I shouldn't say, maybe we are a bit ahead of United States in that account and we would like to be of help as well. And now, Mexico, COP16 is ahead of us. We have to jointly outreach to the basic countries, the Brazil, South Africa, India, China, and those countries as well. We have had ten days ago President Calderon of Mexico's visit to Japan and we said we will cooperate wholeheartedly to the success of Mexico meeting. And we can also coordinate our policies on financing of developing countries as well in this area. I've been talking to some experts and maybe we share a hunch in the United States as well as in Japan. A hunch that we are now entering a total new area, new era. Like automobile has changed the world. Like computer has changed the world. This energy efficiency may really change our life and industry totally. United States is very good at making challenges. We all know that in the, you're going to, across the country and explore the West, you have learned that those who first will get more, a golden share. And maybe that applies here as well. So we will try to do as much as possible and we think United States will do that and we jointly can work together in that field. In short, we should not miss the bus. The bus name is post Kyoto and the next stop or maybe the last stop will be Mexico. I thank you very much. He wants me to take questions on Ftema. As long as it's not on domestic politics or whatever, I'm ready to answer any questions. Yes, thank you. And also my colleagues, I think there are some from embassy who are eager to take floor, would like to answer questions. Oh, that's Mr. Nishinaga. I happen to find him. Thank you, Ambassador. Ian Talley, Dow Jones News Wires. Why don't you come up, Nishinaga-san? Maybe you can really, if it's a technical issue. Thank you, Ambassador. No, no, no, no. You said we should not miss the bus. You talked about the necessity to move ahead. The timing, the successes and, say, shortcomings of Copenhagen. Is there a role or should there be a higher emphasis on the roles of other forums for negotiating an international agreement, particularly since you mentioned the responsibility of the larger emitters, such as the one that Todd Stern proposed before he became climate envoy, such as the E8? Thank you very much. Yes, I have emphasized that we have to really have a sense of urgency. And I think Copenhagen was a certain success because, as I said, it prepared the ground for negotiation, for the agreement. Some skeptics would say if the leaders were not able to come to agreement, how can officials do that later? We don't take that view. We think they really prepare the ground. And now we don't have to take a pessimistic view that could be interpreted into self-fulfilling prophecy. Now, what's important now is try to discuss, but not that we have to, maybe in some cases we meet in three or four or whatever in some smaller configuration, but what is needed is not to create a fora, but we try to maintain what we have and try to spend not too much on the fora issue, but really continue to negotiate and discuss. I don't know if I'm answering clearly, but spend time on substance rather than formalities. I think our position. Thank you. Thank you, Mr. Ambassador. My name is Dan Goldstein. I'm with Clean Sky's TV News. My question is, does the Japanese government still have confidence in the IPCC's climate reports and their assessment? And does the IPCC need to have new leadership at the top before the next meeting in Mexico? I'm sorry, I have not really gone into this issue, but I know that there are reports about some problems with some parts of the report. However, all in all, I think what the message coming from the report or the committee was important, but I don't think we lose all the confidence in it. Thank you very much. Thank you, Jose Nepe News of International Petroleum Enterprise. You mentioned the oil crises of the 1970s. And I remember reading that Japan's trade with the Arab states after the Arab War in Margo went up by tenfold. That's an order of magnitude. I was wondering if the new ideas that you mentioned and the view of Japan, if you have an estimate of the positive impact on Japan's trade with the outside world, because of this new policy or proposed policy that you talked about? Thank you very much. Yes, I think, as I said, those who would try to put more effort into this very promising area may have some advantage in the first place on exporting those technologies or goods as well. All in all, this is for coping with a climate change which everyone has to cope with. So these technology has to be shared as well. And I don't think it's thinking that we monopolize something. It has to be shared. And that's exactly the reason we would like to share the technology with developing countries as well and try to use that fund that I was saying to try to pass these technologies, transmit them to developing countries. So in meanwhile, of course, like any other inventions, innovations, those who go ahead may get some advantage. And I think we would look at that. We would be hoping to do that as well, as I said, creating jobs and things like that. However, in the long run, everyone has to be taking advantage from this innovation. Thank you very much. Mr. Ambassador, this is Mark Horino from Virginia Tech. I have a question. Out of industrial economics, in the 80s, the United States suffered from the competitiveness in the economic and industrial area. The Japanese government, in the high-speed train, and also productivity in the quality control area, actively used the Japanese government, also industry, to get leadership to help the United States at the time. But in this time, a little bit different kind of situation. But in Japan, do you think you're really able to persuade and take leadership to really get, the United States, to really get involved in this so-called green revolution? Sir, your question was if Japan can really persuade the United States to take, to change the position and try to be energy, more energy interested? Exercise. Yes. I think, as I said, this goal of 25 percent cut from a 1990 level is already a very ambitious goal that Japan has been taking. And I think, for example, we have some technology that other countries still don't have. For example, if you take nuclear power plant, United States has not been making nuclear power plants after three miles. Japan, France has been doing this. Japan has been building almost 30 in the last 30 years. Of course, the U.S. has the biggest number of nuclear power plants, more than 100, where we only have a little bit more than 50. But still, I think the technology we can share and cooperate as well. High-speed railways, as I said, the U.S. is now starting to build high-speed railway. And here, the countries who have experiences are France, Germany, Spain, Japan, and only few. And Japan is the country who has started in 1964, the earliest, and no model accident. And we also have, maybe rather unfortunate, but a lot of experience on earthquake as well. So earthquake proof. And these can be, experiences can be shared as well. So I think, sir, Japan can take leadership and will be trying to exert that. And I hope that other countries, including United States, would try to take lead as well, because this is such an important field. Thank you very much.