International Cooperation for Building Low-Carbon and Water-Saving Society : Case Study of Japan and China <Report>

The Yellow River basin, located in arid and semi-arid area in China, is confronted serious water shortage problems. In this context, central government is promoting development and utilization of vast natural resources in the Yellow River basin, such as coal and natural gases, for national and regional economic growth. The water rights transfer, implemented in Inner Mongolia, is one of the effective policy tools for regional industrial development under severe water deficit conditions. However, as a result of the policy, CO2 emissions have increased in this region due to expanding of coal-fired electric power capacity.

Realizing "saving water" and "low-carbon" society in the same time is absolutely necessary in the Yellow River basin. Therefore, it is important to develop an effective cooperation system for technology transfer between Japan and China. In this study, a new cooperation framework, for promoting water rights transfer and utilization of renewable energy in the basin is designed based on existing policies such as CDM, ODA, micro finance, and so on. It is considered that the framework will contribute to sustainable growth of both countries. In addition, some policies for improvement of water environment and ensuring food security in the basin are also discussed.