This study considers to international cooperation, which is especially Japan's ODA with Loan, for sustainable development in East Asia. Japan's ODA is interested in international environmental cooperation because of Kyoto Mechanism. According to Kyoto Mechanism, it should be reduced that the environmental problem with greenhouse gasses especially CO2 emission. This paper proposes a hypothesis that CO2 emission due to energy consumption is influenced by the market structure and intervention by the government. Therefore, it focuses to Governance parameter, GDP growth ratio and CO2 exhaust ratio.

The model of economic growth in East Asia after 1945 is called "Flying-geese pattern theory of development" (Shinohara 1957). Each country growths were supported by distinction and specialization of manufacturing sector. Japan was frontier country of "Flying-geese pattern theory of development", and other countries savored "latecomer's advantage". In particularly, Republic of Indonesia, Philippines, Singapore and Malaysia were rapid economic growth by manufacturing sector with "latecomer's advantage".

East Asian countries' economy has growth until 1997 when the Asian Financial Crisis. After the Crisis, some East Asian countries then got recovery. However they should change regime, for example from command-control to democratically-control. Those discussion points are denoted by Governance parameters (WB 2002).

This study approaches to relationship between sustainable development and Governance parameters. Therefore it proposes necessity of focusing environmental management and governance for effective international cooperation.