Eco-Industrial Developments in Japan

By Mari Morikawa, industrial ecology graduate student at Yale University who served as intern to Indigo
Development, RPP International during the Spring and Summer of 2000
Reference: Morikawa, Mari. 2000. Eco-Industrial Developments in Japan. Indigo Development Working
Paper # 11. RPP International, Indigo Development Center, Emeryville, CA

1. Eco-Industrial Development: Realizing Sustainable Society

Since the breakdown of the Bubble Economy, which had prospered on the basis of mass production and
mass consumption, Japan has been struggling to find an alternate vision for development. Facing a negative
heritage of unsustainable economic activities in recent decades, which caused environmental degradation
and resource exhaustion, Japanese industry and society have been forced to go through changes in their
mode of production. Recognizing an eco-industrial approach as a way to realize sustainable development,
Japanese leaders have launched various types of eco-industrial projects around the country. Since the term
“eco-industrial park/estate” is not commonly used in Japan, the exact number of projects are unknown, but
one estimate indicates that there are currently about 60 eco-industrial projects operating or under
development, including those that are still in the planning and consideration phases. 1
The following analysis of the driving factors behind the emergence of Japanese eco-industrial projects aims
to provide a base of knowledge and insight for better understanding the framework of, and for promoting the
future development of, eco-industrial projects. In the second part of this study, we analyze projects that could
potentially be defined as eco-industrial parks or that possess many of the qualities typically associated with
industrial symbiosis. These projects are grouped into the following categories:
 Eco-industrial parks
 Eco-Town Projects
 Industrial cluster and zero emissions efforts
For each project category, we describe the types of energy and material linkages that are typically present
and appeared most attractive to industry. We examine the relationship between the factors that encouraged
their development and their organizational structure and also evaluate the degree of success attained. We
seek to provide insights that will support the development of more effective public policy for encouraging
future eco-industrial projects. It should be noted that these categories are aimed at grouping similar types of
projects emerging in Japan to characterize them for this study. This typology is not meant to serve for
categorization of eco-industrial projects in general.

1
Molloy, L. (2000) Eco-Industrial Development Roundtable Proceedings
(www.cje.cornell.edu/wei/EIDP/Feb00minutes,htm)

1
2. Promoting Factors and Frameworks for the Emergence of Eco-
industrial Projects in Japan
The primary factors fall into 4 categories; environmental, political, economic, and geographic/social factors.

2.1. Environmental Factors

Waste Problems
Japan produces a total of 450 million tons of waste per year. This is mostly industrial waste (400 million tons)
from the processing of natural resources into industrial products, and the rest is municipal waste. Over 60%
of this waste is either incinerated or dumped in landfills.2 Being a mostly mountainous country with a high
population density, Japan faces a serious shortage of landfills. Current estimates predict that remaining
landfill capacity will be exhausted in the next 6-7 years on average3. Furthermore, in the case of hazardous
waste landfills, current estimates predict that existing capacity will be exhausted in less than 3 years on
average and in about 1 year in the Tokyo metropolitan area.4
On average, a new landfill development would cost around 500 million US dollars and take more than 10
years to build.5 High costs, combined with stricter dioxin emission standards enacted in 1998 in response to
growing public concern, have placed municipalities and industry in a difficult position, challenging them to
find waste management practices alternative to incineration. Waste reduction and minimization efforts are
well underway in Japan and there has been only a slight increase in the amount of waste generated in the
past ten years. However, the country still produces the second largest amount of waste among the
developed countries,6 and the problem clearly calls for going a step further by initiating an industrial ecology
approach.

Limited Natural Resources

Japan currently consumes 1,950 million tons of natural resources every year and imports 700 million tons or
35% from overseas.7 Japan has managed to achieve remarkable rates of economic growth over the last fifty
years by maximizing the efficiency with which it uses its limited space and resources. Energy usage per
household in Japan (10,724 Mcal) is about half that in Germany and one third of US consumption. Especially
since the escalation of oil prices beginning in 1973, Japanese industry has been making significant efforts to
develop energy efficient production technologies. There is a growing concern, however, that as resources
and space for landfill become more scarce and waste disposal costs increase, further economic growth may
be hampered by growing resource inefficiencies.

Air Pollution and CO2 Emissions

While ambient air quality has improved since the enactment of the Air Pollution Prevention Law and its
required application of end-of-pipe technologies, Japan still faces severe problems, especially with dioxin

2
Ministry of Health and Welfare (1999) Nihon-no Haikibutsu Shori (Waste Management in Japan)
3
Japan Environmental Agency (2000) Kankyo Hakusho (Environmental White Paper)

4
Japan Environmental Agency (1999) Kankyo Hakusho (Environmental White Paper)
5
Taniguchi, T. (1999) “Achieving Zero Emission” Proceedings of eco1999 Paris, France
6
OECD (1999) OECD Environmental Data 1999
7
Japan Environmental Agency (1998) Ippan Haikibutsu no Life Cycle to Mondaiten (Life Cycle and Problem
of Waste)

2
and CO2 emissions. Strong public protest of dioxin emissions from waste incinerators forced the
government to develop stricter standards for dioxin emissions in 1998 and a Dioxin Law was enacted in
1999. Since 76.9% of municipal waste in Japan is incinerated and 90% of dioxin emissions are from waste
incineration, incinerators are the main target of the regulation. Old and small incineration facilities are going
to be shut down gradually, which will accelerate the landfill problem mentioned above. The Japanese
government has set a target to reduce its waste by half by 2010 in order to deal with this problem. This goal
calls for an eco-industrial approach, which not only tackles the source of the problem but reduces the
amount of waste.
According to the Kyoto Mandate, Japan must reduce its CO2 emissions by 6% from 1990 levels by 2012. As
the largest source of CO2 emissions in Japan (40.1%), industry must play a significant role in CO2
reduction. The central government had introduced a loan program to encourage the use of green energy,
cascading of thermal energy, and materials recycling. The government is promoting eco-industrial projects
as a means of integrating such innovations.

2.2. Political Factors

Government as a Major Promoter and Stakeholder
Central and local governments throughout Japan have begun to embrace the industrial ecology approach as
the key to sustainable development of the country. There is a growing consensus among policy makers that
environmentally friendlier and more sustainable production practices need to be found if the economy is to
keep growing in a way that improves the quality of life for society. The central government provides
promotion and funding programs, including the Eco-Town project program (Ministry of International Trade
and Industry) and research funding programs for environmental technology and engineering (Ministry of
Health and Welfare). Local governments encourage eco-industrial development by financing environmental
ventures or providing infrastructure for recycling businesses.

Waste Management Legislation

The passage of tighter government regulations concerning waste disposal and recycling practices has been
an important driving factor encouraging business and industry to find innovative “waste” management
practices. With the enactment of the Disposal and Public Cleansing Law in 1970, Japan’s legal framework
for waste management began to take shape. For about fifteen years under this law, waste treatment was
based on “end of pipe” models, which resulted in expansion of incineration and other intermediate
processing facilities and disposal sites. 8
Since 1985 local governments have begun to follow more “up-stream” policies, focusing on the reduction of
the volume of waste generated. In 1991, the Waste Treatment Law Amendment and the Law for Promotion
of Utilization of Recyclable Resources were enacted. In 1995, the Law Concerning Promotion of Separate
Collection and Recycling of Containers and Packaging was enacted to encourage a recycling system for
container and packaging waste, which accounts for more than 25% of general waste.11 In 1997, recycling of
PET bottles became obligatory. Recycling of paper containers and packaging and plastic containers and
packaging will be obligatory in 2000. In addition to these laws, the Specified Appliance Recycling Bill was
presented in 1997 and will be enforced beginning in 2001. This law promotes the product take-back system
through promotion of the extended producer responsibility concept, particularly with respect to electronic
appliances such as televisions, refrigerators, washing machines and air conditioners.

8
Nakajo, H. (1998) “Recycling Society” Look Japan (http://www.lookjapan.com)
1

3
Finally, the Realization of Recycling Society Bill is going to be presented in the 2000 Diet.9 The legal
framework has been one of the factors promoting the eco-industrial effort in Japan and it is clear that more
recycling and waste management related laws are going to be enacted.

Eco-Town Projects
Eco-town projects are among the most successful policy programs for the promotion of eco-industrial
development in Japan. The central government provides both technical and financial support to local
governments to establish an area (eco-towns) where zero-waste is promoted regionally through various
recycling and industrial symbiosis efforts. Once a development plan is approved by the Ministry of
International Trade and Industry, local governments are eligible for financing to promote and encourage
ecologically sound industrial activity. Details of this project type are discussed in case studies below.

Zero Emission Research Initiative

The United Nations University's Zero Emissions Research Initiative (ZERI) is an example of non-
governmental participation in efforts to research and foster eco-industrial development initiatives in Japan.
ZERI serves as a public think-tank providing technical and scientific information for the advancement of
these projects. This initiative began in 1994 in Japan, where United Nations University (UNU) and ZERI
headquarters are located. The first Zero Emission World Conference was held in Tokyo in 1995 and many
from both public and private sectors participated in the meeting and introduced the idea to their communities.
Since then, “zero emissions ” has become a buzz word in Japan. Although there are currently only 2
projects with which UNU is directly involved, the zero emissions concept is widely accepted in both public
and private sectors. At least 15 private companies have achieved or are planning to achieve zero waste
production.10 Both local and central government programs, such as eco-town projects, hold up a zero
emissions society as their goal. However, “zero emissions” has focused primarily on “zero solid waste” and
tends to neglect the other types of emissions. So public and private organizations who adopt the motto of
zero emissions promote recycling and waste reduction efforts but do not seek to really achieve the overall
goal this implies.

2.3. Economic Factors

Economic Incentives and Competitiveness
In Japan there is a growing perception that improving resource efficiency and reducing waste and emissions
can have tangible economic benefits for business and the economy.11 Japan's lack of landfill space and its
increased waste disposal costs, as well as its limited natural resources, are driving recognition of this fact.
Consequently, by-product exchange and zero emissions efforts are now perceived as a potential source of
economic value, rather than a burden on businesses needing to comply with stricter regulations. While the
conventional end-of-pipe measures were perceived as a cost by business, industrial ecology approaches
could reduce costs and increase competitiveness.
In addition, an economic emphasis on environmental technology and environmental business is now
perceived as offering a new opportunity for economic growth in Japan. According to JEMU (Joint
Environmental Market Unit) Japanese eco-business is a $44 million market in 2000, having grown about
50% since 1993, and is anticipated to develop into a $72 million market within 10 years.12 After having
achieved a certain level of pollution control and energy efficiency through end-of-pipe technology and

9
Asahi Shimbun April 8. 2000
10
Nihon Keizai Shimbun “Zero Emissions is becoming policy” January 17,1999
11
Japan Environmental Agency (2000) Kankyo Hakusho(Environmental White Paper)
12
JEMU(1997)

4
individual control, Japan began to seek a more holistic alternative approach13. The Japan Environmental
Agency sees the emergence of eco-industrial park projects and new environmental technologies as a
breakthrough for the stagnating Japanese economy. While creating new markets and employment
opportunities, this business breakthrough could improve the competitiveness of the Japanese economy in
global markets.

Image Improvement and Public Relations

It appears that many of the current zero-emissions efforts, and other emerging material exchanges are the
result of a desire to improve public relations and create advertising advantages. Although this motivation is
not the same as the direct economic incentive, it points out the importance of public and consumer education
and demand for these projects.

2.4. Geographic/Demographic and Social Factors

Close Mental and Physical Proximity
Japan’s dense population and close geographic proximity of commercial and industrial activity potentially
present great opportunities for different types of material exchanges and eco-industrial park initiatives. The
highly developed transportation infrastructure makes regional and inter-regional by-product exchange
physically feasible and economically attractive.
Since Japan is a very homogeneous society, with a highly developed sense of community, participants in
eco-industrial projects are likely to develop close mental proximity, which is one of the important factors in
successful projects14. Also, keiretsu,, the cross-ownership structure of Japanese industry, demonstrates an
elaborate form of integration. In the same keiretsu, the transaction costs and risk could be spread among
potential participants in an exchange of by-products.15 This unique social structure could provide an excellent
foundation for the development of eco-industrial parks and by-product exchange projects.

Rising Awareness
Much of Japan's newfound enthusiasm for zero-emissions projects and other types of material exchanges
can be explained by increased concern over the country's environmental problems. International
conferences, such as those held in Rio in 1992 and in Kyoto in 1997, triggered a new awareness in
Japanese society. Both the general public and policymakers have become convinced that environmental
problems can no longer be ignored when it comes to economic growth. There is a growing realization that
the mass-production and mass-consumption model of society is unsustainable and inadequate to solve all of
society’s needs.16 Since successful eco-industrial developments require deeper understanding and
involvement of local communities, this rising awareness is a very important element.

3. Case Studies
In this section we will look at several examples of projects and different types of linkages currently existing in
Japan. We will analyze how these projects have responded to the factors discussed above. Cases are

13
Japan Environmental Agency (2000) Kankyo Hakusho(Environmental White Paper)
14
Hollander, J. (2000)”Analyzing the Effectiveness of the Eco-Industrial Park to Promote Sustainability”
Master’s thesis at University of Massachusetts Amherst
15
Ehrenfeld, J. et al. (1997) “Industrial Ecology in Practice The Evolution of Interdependence at Kalundborg”
Journal of Industrial Ecology, Cambridge, MIT Press
16

5
grouped into 3 categories: Eco-industrial parks, Eco-Town Projects, and Industrial Clusters and Zero
Emissions Efforts.

3.1 Eco-industrial parks

As discussed in Chapter 1 of the EIP Handbook, the term “eco-industrial park” refers to a single piece of
property housing tenants that share a common identity and management system. Although the term is not
yet prevalent in Japan, there are several, more traditional, industrial parks converting into eco-industrial
parks at this time.

EBARA Corporation - Fujisawa Eco-industrial Park

Fujisawa City

Project Background/Site Characteristics

The EBARA Corporation of Japan, founded in 1912, is a manufacturer of high-tech industrial machinery,
precision electronic devices, and environmental equipment. Its products range from precision pumps,
turbines, vacuums, refrigeration, and air-conditioning equipment, to sewage and solid waste treatment
systems and scrubber systems.
Reacting to the need for environmental engineering companies to shift from end-of-pipe technologies to
waste reduction and dematerialization, EBARA decided to make zero emissions one of its primary goals17.
As one of its zero emissions initiatives, the company has begun to implement a plan to convert its 35 hectare
Fujisawa operation into a complete eco-industrial park that will become a model demonstrating the feasibility
of applying the zero emission concept to its products and technologies.

Main Concept
This project is financed entirely by the EBARA Corporation in a conscious effort to improve its environmental
performance while improving its competitive position. The park site integrates 700 households, commercial
facilities, and an industrial manufacturing operation into a zero-emissions, self-sustained eco-industrial park.
It will incorporate all of the main spheres of sustainable urban living, including housing, industry, retail,
agriculture, public services and infrastructure, research and development, sports and recreation, and natural
areas.
The zero-emissions objective of the park will highlight a variety of new technologies in waste conversion
developed by EBARA Corporation. The facility's operations structure will ensure that all of the factories,
houses, retail stores, and agricultural areas fully recycle waste, creating a closed materials loop based on
internal waste recycling and reuse. At the center of this process will be water purification plants, sewage
treatment plants, and electric power generation.

Technologies/Infrastructure
Listed below are the main technologies incorporated in the park and their function within the system:
 A fluidized-bed gasification combustion and ash-melting system converts industrial and municipal
waste, agricultural waste, sewage, and plastic into commercially viable outputs of ammonia,
methane and hydrogen from combustion gases. The combustion provides heat for power
generation.
 A flue gas treatment system treats the gases to remove nitrogen and sulfur oxides, that are then
used as agricultural fertilizers.

17
Ebara Corporation (1999) Annual Report 1999

6
  Solar photovoltaic cell systems and wind turbine generators are used on rooftops for electric power
generation and heating water.
 Solids are removed from waste water and sent through the sludge treatment process, while the
remaining gray water is used to flush toilets and water lawns, gardens, and landscaping. Sludge is
treated for composting to be used for agriculture.
 A sewage water heat exchange pump utilizes the storage capability of sewage water for cooling and
heating purposes.
 A new fuel cell technology converts methane or hydrogen gas generated by the waste gasification
and combustion system into electric power through chemical reactions.
 A direct water supply system consists of a series of rooftop water catchments and storage basins to
reduce energy costs associated with pumping of groundwater sources. Water will be stored in the
public natural areas.
 Houses will be designed with high efficiency, insulated building materials, and a vacuum sewage
system will be installed for housing units to reduce water consumption.
The technologies used in this project are estimated to achieve reductions in energy consumption by about
40%, water consumption by about 30%, waste discharge by about 95%, and carbon dioxide emissions by
about 30% when compared to traditional urban/industrial systems18.

Stakeholder/Driving Forces
This project is wholly funded and driven by EBARA Corporation. Although the project was developed in
collaboration with UN University and ZERI, who provided informational support, the project in Fujisawa is
managed and operated solely by EBARA. The project was initiated by top management, who recognized the
importance of the zero emissions concept.

Project Status
Presently, the fluidized-bed gasification combustion and ash-melting system is in operation at the park, while
full completion of the project was planned for the year 2010. However, in March 2000, the project
experienced a setback when the company found out that the Fujisawa plant accidentally spilled dioxin from
the system’s facilities. As a leading environmental engineering company with a mission of creating “zero
emissions”, the accident was detrimental to EBARA’s image and public relations, and forced management to
reconsider its plans for completion. Accordingly, the current priority of the company has shifted to the
management and analysis of the spill accident and resulting damages to the company. Hence, a delay in the
completion of the project is anticipated.

Key Insights
The Fujisawa Eco-industrial Park illustrates the important role technology can play in developing eco-
industrial projects. The project is the result of a conscientious effort by management to commit further to the
objective of zero-emissions, as well as to market its environmental technologies by demonstrating their
effectiveness. It remains uncertain, however, whether the project will provide a tangible positive return for
EBARA and thus provide a clear example for other industrial operations to follow.
It should be noted that the Fujisawa project is unique in that it is a site owned and operated by one company.
Thus, by-product exchanges will occur between facilities all owned by EBARA. For this reason, its
significance in terms of setting an example for future eco-industrial parks and linkages that seek industrial

Fujimura, H. (1999) “Zero-Emission Technologies and Eco-Cities” Mayors' Asia Pacific Environmental
18

Summit, Summit Proceedings

7
symbiosis is unclear. However, the project is notable in that it serves as a model for the possibilities of
incorporating housing units within a facility.
The EBARA project demonstrates how such initiatives can serve to promote profit-enhancing objectives,
while furthering sustainable environmental practices. The economic objective has been achieved indirectly,
with the project serving as a marketing device for EBARA technologies, as well as improving the company's
image. As such, this type of project is susceptible to changes in management or the economic environment.
Kokubo Eco-industrial Park
Yamanashi Prefecture

Project Background/Site Characteristics

The Kokubo industrial park is a 150-acre site housing 23 tenants and about 5,500 employees. Its tenants
consist mainly of electronic products and parts manufacturers, including Yokogawa Electronics, Panasonic,
Fujitsu and Pioneer. In Japan, industrial waste management falls under the jurisdiction of prefectural
government. Since this project is located in Yamanashi Prefecture, where there is no industrial waste
treatment facility, all park generated waste initially had to be transported and treated in another prefecture. It
is uncertain how long industries in Yamanashi will be able to export their wastes.
Since its creation in 1975 Kokubo has been gradually evolving into an eco-industrial park, in that it is
employing various waste recycling measures. The development of the Kokubo Park is unique in that the
project has evolved entirely from the initiative of the park's tenants, who form a cooperative. The cooperative
was originally created to deal with issues related to the park’s management and matters of common
relevance to the community of tenants. The Kokubo Park is a model of an eco-industrial park created by
industry participants seeking economic advantages by adopting waste reduction measures.

Evolution of the project

The concept started taking shape when a member of the cooperative brought the idea to incorporate
environmental elements into the Park’s objectives in 1994. Soon after, the cooperative formed a study group
to focus on industrial waste disposal. First they analyzed what kind of wastes tenants were producing and
then discussed potential opportunities for recycling and by-product utilization that could reduce their costs,
as well as deal with environmental concerns. Paper was found to be the largest waste product that all the
tenants had in common. As a first step, a waste paper collection and recycling system was created for the
entire Park. Centrally collected and sorted waste paper is recycled by a nearby company from which the
Park purchases recycled paper in bulk. They hoped that by becoming a source of large quantities of paper
they would generate enough demand for a nearby recycling plant to make the process cost effective for both
themselves and the recycling plant.
In 1996, they developed a plan to recycle wood chips and plastic to make RDF for power generation within
the park. The ash from the power generators was then sold to a nearby cement factory. The Park produced
4300 m3 of this “flammable” waste every year and used to spend more than $300,000 on treatment of this
kind of waste annually19. The cost for the RDF facility was $1.5 million and was expected to be paid off in a
couple of years. The facility could also receive funding from the prefectural government.

Project Status
In addition to the projects above, the park recently implemented a food-composting program utilizing the by-
products of their 2,500 person per day cafeteria. Compost is produced and sold to nearby farmers from
whom they buy their food. The Park is currently seeking a use for their used oil, acid and sludge. The goal
of the park's management is to become a zero-emissions park, encompassing all of the components in an
industrial symbiosis.

19
Mihashi, N. (1998) Zero Emissions and Japanese Economy, Iwanami-Shinsho, Tokyo, Japan

8
The Government-Industry-Academia Chip Consortium for Promoting Zero Emissions was formed by a group
of local companies from the Kokubo industrial estate, Yamanashi University, and Yamanashi Prefecture to
address further steps20. The Study Group has expanded and two more industrial parks are participating
now.

Key Insights
The Kokubo project is unique in that it is entirely self-evolving and self-managed. The government has
played no direct role in the development of this park. It has resulted from the initiative of a group of industrial
tenants driven by their desire to reduce costs and improve environmental performance.
Several key insights emerge from this experience. First, the Kokubo project demonstrates that the rising
waste disposal and energy costs in Japan are encouraging the development of such initiatives, which offer a
clear economic advantage. Second, the project highlights the important role cooperatives can play. Having
one representative organization that can express the interests of the whole tenant community makes the
park-wide initiative easier, not only from a democratic point of view, but also for practical reasons, such as
applying for government funding or contracting with a recycling company. The cooperative has an
independent department and full-time director responsible for the eco-industrial activities in the park, which is
one of the keys of its successful organization21 Another important factor is that they have found real
opportunities for cost savings. Even if the savings represent only a small portion of their operating cost, the
tangible benefit is clear for every tenant.
It should also be noted that most of the tenants in the Kokubo Park consist of companies engaged in light
industry, such as electronic appliance manufacturers. There is no single large tenant, such as a power plant
or oil refinery. Kokubo shows that, even in the absence of the anchor tenants typical in other eco-industrial
arrangements, industrial parks can develop eco-industrial projects. The Park is not yet involved in internal
exchanges and all of their activities consist of linkages with outside firms, to whom the collective provides,
and from whom they purchase, materials. In this sense, Kokubo doesn’t strictly fall into the category of an
eco-industrial park. However, given the close working relationship they share and their desire to continue
developing an eco-industrial park, we should expect that as opportunities arise, they will pursue them.
The Kokubo Eco-industrial Park again highlights the interaction that environmental, economic, and policy
considerations play in driving the development of such initiatives. The project is clearly the result of
management's program to obtain economic advantage while putting into action their concern for the
environment. Furthermore, the cost advantages are largely a result of increased stress on resources and
the environment in the region, as well as tightened environmental regulations.

3.2 Eco-Town Projects

In Japan, eco-town projects can be promoted and funded by a government program started by the Ministry
of International Trade and Industry (MITI) in 1997. The main objective of the program is to encourage
community development throughout the environmental industry and development of environmentally sound
community systems involving industrial and public sectors22. The program was initiated as the result of a
waste management crisis. As discussed above, Japan has been facing a serious problem with its waste
management. Waste treatment facilities and landfills are almost exhausted. Yet environmental and recycling
industries are considered “venous industry” (receptive, secondary) and have yet to develop a market. By
promoting the environmental industry, the program attempts to involve both community and industry in waste
management, which, in turn, promotes local economy and community. The central government provides both

20
Yokogawa Electronics Corporation (2000) Environmental Report 2000
(http://www.yokogawa.co.jp/Environment/community_e.htm)
21

22
MITI (2000) Eco-Town project for the promotion of zero emissions concept

9
technical and financial support to local governments that wish to establish eco-towns as areas where
regional zero emissions are promoted through various recycling and industrial symbiosis efforts. Once a
development plan is submitted by a local government and approved by MITI, they are eligible for federal
financing to promote and encourage ecologically sound industrial activity.
Local governments can use MITI funds to develop and implement comprehensive plans for the area, attract
companies that will actively facilitate recycling and waste and energy use reduction programs. The area may
also serve to attract businesses developing environmental technology, and may contain research and
development facilities. The most unique feature of this program is that funds are made available to private
businesses and projects located in the region that develop new environmental technologies to promote
regional zero emissions. This public-private partnership is noted as an important factor in the success of this
program as it can facilitate local economic development. Up to 50% of the project cost, both for managerial
activities, such as planning or promotion, and for technical costs, such as recycling facilities or new
environmental technologies, can be financed by the funds.
Under this arrangement, local governments and communities benefit by having an opportunity to reduce and
repair environmental degradation and improve human health and safety. In addition, local governments are
given a way to promote economic development by attracting new business. Many businesses also perceive
improved public relations benefits from being members of an eco-town. The central government benefits by
promoting environmentally friendly business and development, and easing the burdens associated with
waste disposal, scarcity of virgin resources, and environmental damage in Japan. Moreover, these projects
promote the development of high-tech environmental products that can benefit Japan's economy and trade.
There are 10 projects currently approved as Eco-Town Projects in Japan.
 Sapporo City (Recycling industrial park)
 Hokkaido Prefecture (Recycling industry and by-product exchange promotion)
 Chiba Prefecture (Eco-cement plant, environmental engineering complex)
 Iida City (RDF energy center, zero emission industrial park)
 Gifu Prefecture (Recycling industry complex, environmental research and education facility)
 Omuta City (RDF power plant and RDF collection network, recycling industrial park)
 Akita Prefecture (Electronic recycling facility and promotion of sustainable energy)
 Uguiszawa City (Recycling mining park, environmental information and education center)
 Kitakyushu City ( eco-industrial complex, recycling park, research center)
 Kawasaki City (refer to case study below)
As shown above, each project takes a different form in carrying out eco-town plans. Some involve eco-
industrial parks or regional by-product exchange, while others focus on recycling technologies. The bottom
line is that each area develops its plan in the context of region specific characteristics and advantages. For
instance, Omuta, Akita, and Uguisuzawa will develop the area abandoned after the closing of mines and
utilize the technologies in pollution prevention and resource extraction for the development of eco-industrial
projects and the encouragement of local economy. The flexibility of the eco-town projects allows local
government to develop their plan in accordance with their specific characteristics and situations.

Kawasaki Eco-Town Project

Kawasaki City

Project overview/Main Concept

10
Kawasaki City is home of one of Japan's oldest and largest industrial parks. Established in 1902, Kawasaki
Coastal Industrial Area houses over 50 heavy industrial enterprises in a 250-acre area. Its largest tenants
consist of oil refineries, steel manufacturers, power generators, and chemical manufacturers. The City of
Kawasaki is located adjacent to Metropolitan Tokyo and has a population of 1.2 million.
By the 1970's the city and the industrial park were considered one of Japan's most contaminated areas.
Residents suffering from asthma and other respiratory diseases filed a lawsuit against the central
government and industrial park tenants in 1982. Serious environmental problems, along with the
restructuring and nationalization of certain industries, resulted in the closing of several plants and stagnation
of the local economy. To resolve the situation, Kawasaki decided to redevelop the city by promoting its
Project for Making Kawasaki City Environmentally Harmonious. This project is based on the concept of
converting the city into a place where all actions, from people's everyday activities to industrial operations,
are conducted in harmony with the environment and an eco-town project is one of its main components. The
city government and local businesses have taken numerous steps to develop the area into an
environmentally friendly production zone. Steps include establishment of recycling and material reuse
programs between facilities, restrictions on emissions, and higher pollution abatement standards, as well as
provision and promotion of logistical support and coordination of material exchange, research and
development and public education23.
The strength of Kawasaki City is that it has a well-established transportation infrastructure that includes
ports, railroads, canals, and energy facilities, which are indispensable to resource-related companies. In
addition, this area has a high concentration of Japan's leading large industrial firms, and also a large number
of medium- and small-size enterprises in the field of resource recycling, and various environment-related
facilities. Through the close integration of existing infrastructure and industrial elements, Kawasaki found an
amazing opportunity to create an operationally competitive resource-recycling system.

Overview of the Project

The concrete operation plans are shown below. 24

1. Promote industrial firms’ efforts to make their operations and systems environmentally friendly and
ecologically sound.
 Establish a model zero-emission plant, and achieve zero emissions of effluent water and zero
production of waste from the manufacturing facilities. Actualize an environmentally sound transportation
system.
 Construct and demonstrate the operation of a model plant.

2. Promote a program for creating a zero emission, environmentally friendly, and ecologically sound
community.
 Establish environmental targets.
 Plan and develop a zero-emission industrial park.
 Create green-belt networks and promote the renovation of manufacturing facilities into community
amenities.
 Introduce environmentally friendly vehicles.
 Implement recycling as a community activity by promoting joint activities for collecting and recycling of
paper, glass bottles, cans, and PET bottles, and use of recycled goods.

23
Kawasaki City Homepage (http://www.city.kawasaki.jp/ecotown/ecoen.htm)
24
Kawasaki Eco-town Homepage.(http://www.kawasaki-net.ne.jp/eco/Ecoen.htm)

11
3. Implement R&D programs to promote sustainable development.
 Develop co-generation systems for utilization of waste heat from plants and factories.
 Conduct studies to develop and commercialize recycling systems.
 Promote joint research and development of environmentally-related technologies.
4. Establish an Information System.
 Create a widely accessible database for information on environmentally-related technologies.
 Assess the region's achievement in terms of environmental protection.
 Accumulate in-house information concerning the environmental aspects of the Kawasaki Eco-Town.
 Disseminate the information to the communities outside the Eco-Town.
 Create an Eco-Town center as a place for environmentally-related human interactions and training, as
well as for the gathering and dissemination of environmentally-related information.
The entire plan is to be completed by 2010.

Project Status
Some of the processes and technologies currently in place include ecologically sound cement production,
which uses fly ash and bottom ash from incinerator plants as inputs. Waste oil is used for energy to heat the
kilns for production. Electronic appliance recycling provides input for steel manufacturing. A new type of
blast furnace utilizing municipal plastic waste as a reducing agent in place of coal was finished by NKK, one
of Japan’s leading steel makers. This system received funding from MITI as a part of the Eco-Town project
and is in operation with the capacity of recycling 40,000 tons of waste plastic every year.
Zero Emission Industrial Park’s infrastructure was located in an abandoned site of a steel manufacturing
plant, in cooperation with Japan Environmental Corporation (JEC), and 7 tenants have already moved in.
The Park serves as the hub of a resource-recycling society. The individual industrial firms within the
industrial park not only will reduce their own emissions but also will effectively utilize or recycle into usable
resources the emissions from other facilities located there. The tenants also will collectively integrate their
energy use to improve overall energy efficiency.

Key Insights
The Kawasaki Eco-Town is a joint effort between government and local business. While still in the early
stages of development, it represents a promising example of the industrial area redevelopment model,
focusing on environmental technologies and by-product utilization efforts. The City will benefit from the
reduced burden of municipal waste treatment by having an advanced recycling facility on site, and private
business can achieve cost savings by utilizing recycled materials, which in turn will result in revitalization of
the local economy.
The greatest challenge centers on the coordination of activities necessary to achieve effective by-product
and energy exchanges. Bilateral exchanges among the old tenants have always taken place as an
efficiency improvement effort in the area. The City then analyzed material flows throughout the area to
recruit new tenants that would function to close the material cycle and help achieve the optimal by-product
exchange model. This attempt to facilitate new links, however, turned out to be a difficult task. Under the
long lasting recession, most small and medium sized enterprises are reluctant to venture into a new
investment, and some of the candidates for the Zero Emission Industrial Park decided not to move into the
Park25. The plan to cascade the heat energy from a tenant next to the Zero Emission Industrial Park is also
facing problems, because this tenant couldn’t find any short-term economic benefit from this arrangement.

25
Miyauchi, T.(2000) Director, Industrial Development Division, Kawasaki City. Personal Communication

12
These examples point out the potential difficulties in a third party facilitating new arrangements. The current
economic circumstances in Japan encourage industries to increase energy efficiency and recycling efforts
using an industrial ecology approach, but discourage them from taking risks by making new investments or
new arrangements which don’t give them immediate tangible economic return. Even though firms are
recognizing environmentally-related business opportunities, their financial bottom line continues to be their
first priority. Further assistance, such as business incentives or subsidies and education and information
sessions conducted by local and central government will be needed to overcome this dilemma.

3.3 Industrial Clusters and Zero Emissions Effort

The term “industrial cluster” refers to more generalized, geographically neutral efforts that seek to develop
the “industrial symbiosis” concept. Industrial clustering involves physical exchange of materials, energy,
water and by-products26. Clustering or symbiosis can take place “within a facility or firm, among firms co-
located in a defined eco-industrial park, among local firms that are not co-located, or among firms organized
“virtually” across a broader region”27.
The ZERI foundation provides the following definition of zero emissions : “Zero Emissions envisages all
industrial inputs being used in the final products or converted into value-added inputs for other industries or
processes. In this way, industries will reorganize into "clusters" such that each industry's waste by-products
are fully matched with others' input requirements, and the integrated whole produces no waste of any kind”.28
In Japan, this concept has often been used analogously with the widely accepted concept of Zero Defects
(Total Quality Management) and Zero Inventory (Just in Time Production), which helps explain its popularity
and prevalence as a concept.
Although zero emissions is sometimes perceived as a special arrangement in Japan, it is a conceptual tool
for the development of industrial symbiosis that can take place within a firm (reuse and recycle) or as a
regional and inter-regional by-product exchange arrangement. Most of the zero emissions efforts in Japan
are no different from the attempt to promote symbiotic linkage with the ultimate goal of zero waste. Often,
zero emissions can be found in an industrial cluster with an anchor industry such as a beer brewery or
electronics appliance plant. Yet, it is still worthwhile to examine these projects, considering their popularity
and increasing number. 38 plants belonging to five beer and alcoholic beverage companies achieved zero
waste by 1999, and 10 companies are on their way to accomplish zero waste in the near future29.
Two cases are examined, in the cement and beer brewing industry, that have played pioneer roles in
industrial clustering and zero waste production.

Industrial Cluster with Cement Industry, Taiheiyo Cement

Background of Cement Industry

The Japanese cement industry offers great potential in serving as an anchor for linkages with numerous
other industries, including paper mills, wallboard production, chemicals, automobile manufacturing, steel
mills, non-ferrous metal refineries, and oil refineries. For instance, thermal power generation has become
completely dependent on the calcium carbonate supplied by the cement industry for cleaning of the plant's

Chertow, M. (2000) “Industrial Symbiosis: A Review” to be published. Annual Review of Energy and the
26

Environment
27
Chertow, M.(1999) “Industrial Symbiosis: A Multi-Firm Approach to Sustainability” The Eighth International
Conference of the Greening of Industry Network
http://www.zeri.org/theory.htm
28

29
Nihon Keizai Shimbun, January 17, 1999

13
exhaust gases. At the same time, the resulting spent calcium carbonate residue is gypsum, which can be
used in cement manufacturing. Also, 50% of the fly ash produced by the power plants is used as a raw
material in cement.30 Extensive transportation and other infrastructures are already in place to facilitate the
exchanges occurring between power plants and cement factories.
Since the manufacture of cement involves the burning of raw materials at temperatures reaching 1,450
centigrade, a very wide range of waste materials can be utilized in the process without detrimental effect to
the environment. The 25 cement manufacturing plants located throughout Japan currently consume 27
millions tons or 6% of the nation’s waste in the form of raw materials and fuel for energy. 31 As a result, the
Japanese cement industry boasts the smallest energy consumption per ton of cement produced among the
developed countries.

Taiheiyo Cement Corporation

The Taiheiyo Cement Corporation is one of the oldest and largest cement producers in the country. The
company has more than 100 types of industries clustered around it. Among the industries from which
Taiheiyo Cement receives waste for its inputs are power generation, chemical, steel production, non-ferrous
metals, paper, automobile manufacturing, municipal waste, and oil refineries.
The company has recently decided to construct two full-scale eco-cement plants in Tokyo and Chiba. Eco-
cement uses municipal waste incineration ashes and sewage sludge as primary raw materials. The Tokyo
plant will produce 160,000 tons of cement per year with the waste from 4.3 million people, while the Chiba
plant will produce 100,000 tons with the waste from 2.5 million people. Chiba Plant received funding from
MITI as a part of an Eco-Town project.
Taiheiyo Cement is actively pursuing its goal of using no virgin resources or virgin fuel and ultimately
becoming a zero-emissions operation. A new technology developed by the company converts plastic waste,
including PVC, and other industrial wastes into raw materials and fuel. Another technology decomposes
dioxin from fly ash through heating at high temperatures inside cement kilns. Heavy metals are extracted by
wet-type refining technology to be recycled for the non-ferrous metal industry.

Key Insights
While cement production appears to provide an ideal anchor for industrial symbiosis, it must be noted that it
doesn’t necessarily provide the most optimal way of closing the materials loop. Since it can utilize different
kinds of waste materials as raw material and as fuel for cement production, it could discourage closed loop
recycling (disposed products are recycled to make initial products). Nevertheless, the amount of non-
recyclable waste, such as incinerator ash, consumed by the industry is significant and its role will become
more important, considering the landfill situation in the country.
The cement industry is perhaps at the center of the most developed industrial cluster in Japan. There are
many opportunities and linkages yet to be developed, but the sheer size of the industry and its flexibility in
effectively using wastes from so many industries indicate that it possesses great potential for further
development.

Zero-Emissions Effort, Industrial Cluster with Breweries

Beer Industry as an Anchor

The brewery industry represents another case offering significant opportunities for clustering with other
industries. The beer brewing companies were the first to adopt the zero emissions concept in their
production and have implemented comprehensive programs to achieve this objective. Many breweries have
30
Kimura, M. (1999) “ Zero Emission, Clustering of Industries” Proceedings of eco1999, Paris France
31
Kimura, M. (1999) “ Zero Emission, Clustering of Industries” Proceedings of eco1999, Paris France

14
implemented bottle and container recycling, carbon dioxide emissions reductions, energy conservation and
improved resource efficiency. They have implemented the sorting of waste materials such as malt feed,
surplus yeast, sludge and screen sediment, and other by-products that can be reused by other industries.
Japan’s four major brewers converted all 37 of their domestic plants to zero-waste operations by 199832. The
brewery industry has been successful in clustering and recycling its waste, not only in Japan, but also in
Europe, the rest of Asia, and Africa. This pioneering in the beer industry is partly due to the success of a
model project by ZERI and also to the stiff market competition in this industry.
While many of these projects are clearly driven by increased public pressures to become environmentally
friendly, they appear to have promise in that the by-products from the brewery industry have a considerable
number of uses for other industries. Among the most significant are livestock feed, pharmaceutical and food
products, mixed fertilizers, and compost.

Spread of Zero Emissions Projects

Asahi Beer was the first in the industry to implement the zero emissions concept. In the early 90’s, Asahi’s
main brewery in Ibaraki Prefecture began efforts to thoroughly separate its waste. All nine of its breweries
became waste-free by 1998. A photocopy company was next, and the first in the manufacturing industry, to
achieve zero waste in its facility. Electronics and construction industries followed. What these projects have
in common is that they are all examples of industrial clusters and recycling and dematerialization efforts
through mostly bilateral arrangements. Their strategies consist of: material flow analysis and revision of
resource use and production processes. This is followed by the substitution of recyclable materials and
reduced waste processes, strict and thorough separation of waste, and introduction of new technologies to
process waste into feed stock for other industries.
As the zero emissions concept gained in popularity in business and industry, there arose other kinds of zero
emissions efforts, mainly in the public sector. Examples include: a Zero Emissions Port in Niigata Prefecture,
a Zero Emissions Road Project in Miyagi Prefecture, a Zero Emissions Community Development in Tokyo,
and many other municipal and government agency programs. Some of these are regional approaches to
achieving zero waste in an area, but most of them simply use zero emissions as a slogan to reduce waste
and increase recycling. Strict input-output analysis or industrial symbiosis arrangements are not necessarily
involved in this kind of project.

Key Insights
The practice of near zero-emissions production among Japanese breweries and manufacturing industries is
a step in the right direction. While this practice is, for now, clearly a result of business responding to
increased environmental concerns of consumers and the public and to the initiatives of their business
competitors, the amount of waste materials generated and the number of potential uses for them suggest
that there may be clear economic and cost advantages to be had as well. Tighter waste management
regulations and the increasing cost of waste disposal will promote this increasing tendency toward zero
emissions. Although gaseous emissions and energy comsumption are not really dealt with in these
operations, zero emissions efforts could trigger the introduction of environmentally sound operations and
management.
Many zero emissions efforts don’t necessarily follow the concept developed by ZERI. Nevertheless, as in
the case of industries, the public sector could use the popularity and prevalence of this word as a tool to
raise awareness among their communities and to promote environmentally sound activities.

32
“Zero-Waste Factories” (1998) “A Win-Win Situation for Manufacturers” Trends in Japan, March 31, 1999.
(http://jin.jcic.or.jp/trends/honbun/tj990330.html)

15
4. Conclusion
Promising Elements
This study shows that current material exchange or waste reuse linkages that could be characterized as
eco-industrial parks emerged in Japan from a complex interaction of social, economic, environmental, and
political factors. These forces prompted the public sector, as well as industry and business, to seek alternate
ways of operating to reduce their dependence on virgin resources and to lower their waste disposal
requirements and production costs. Eco-industrial projects, along with the development of new
environmental technologies for reducing emissions and converting waste into reusable products, are now
perceived as providing a source of competitive advantage for business and industry.
The government plays a very important role in raising the level of public environmental awareness and
promoting more sustainable economic development. Direct central government funding of eco-town projects
is one of the driving forces behind the development of eco-industrial development in Japan.33 There are also
similar grant programs funded by prefectural governments or municipalities. Since the successful
implementation of eco-industrial projects depends on economic feasibility, financial support from the public
sector is very critical.
Nation wide enthusiasm for “zero emissions” shows how a slogan can contribute to the promotion of
environmentally sound production and activity. Independent of whether the concept is well understood and
applied in every “zero emission” project, a goal of zero waste was simple enough to infiltrate both industry
and public awareness.

Future Development
Eco-industrial projects are still in their infancy in Japan. With a few exceptions, the focus of such projects
has been limited to reducing solid waste emissions and developing new technologies to achieve this goal.
Technological solutions focus mainly on hardware. Currently, Japan is spending $4 billion a year to broaden
its already existing edge in environmental technologies over the United States and Europe.34 The country
has yet to really become systems oriented and centered on seeking new linkages to create industrial
symbiosis. The success of eco-industrial projects in Japan depends on how the country can shift its
technocratic vision of environmental management towards a more holistic, industrial ecological view.
The outlook is positive for a further shift in this direction. The increasing number of ISO 14001 Certificates
issued in Japan is evidence of the growing interest among industries in adopting more process oriented
approaches. While many initiatives currently fulfill limited objectives such as improving the corporate image,
they also reflect a growing level of concern among the public and business. Industry and the public are
slowly realizing that such approaches may provide a real solution to the country's environmental problems,
while actually providing competitive advantage to business and the economy.

Applicability of the Japanese Experience to Other Asian Countries

An analysis of factors promoting eco-industrial development in Japan shows a similar context found in other
Asian countries with respect to the following elements.
 Geographical and demographic settings. Most Asian countries have high population densities and face
problems of limited natural resources and physical space. Waste management problems, such as
exhausting landfill capabilities, are already emerging in many countries.

33
Hirose, S. (2000) Researcher, United Nations University. Personal Communication
34
Shrivastava, P. (1996) Greening Business Thompson Executive Press Cincinnati

16
 Economic circumstances. Like Japan, other Asian countries have undergone an economic crisis and
are struggling to move forward economically. Eco-industrial projects could provide new opportunities for
economic development in such countries.
 Rising awareness. Rapid industrialization and consequent environmental deterioration and pollution are
a continuing problem throughout Asia. As environmental problems become severe, people’s awareness
of environmental issue increases and the public pressure can serve as the trigger for industry to initiate
eco-industrial projects.
This suggests there will be larger need and potential for the development of eco-industrial projects in Asian
countries. In fact, several eco-industrial projects, such as eco-industrial parks, are in the development stage
in Thailand, China, India, and Philippines.
At the same time, the economic circumstance in most of the developing countries, which requires short-term
profitability and tangible economic benefits, will be a critical issue. Thus, promotion programs and funding by
international organizations or government, such as Eco-town program, will be required to play a pivotal role
for the future development of eco-industrial projects. As shown above, more than 10 developments in Japan
were initiated through Eco-town program. This kind of program provides not only the direct economic
support, but also will help to spread the concept of eco-industrial parks and other eco-industrial
development.
Self-evolving type of development like Kokubo and Ebara case might have less potential in other Asian
countries, until the waste disposal costs and public’s demands for the better environmental performance
become high enough to bring tangible profit. The initiation and development of these cases is largely due to
individuals who were inspired by the idea of combining environmental and economic performance. This
synergy was gaining support and popularity through the “Zero Emissions” and enthusiasm for ISO14001
Certification. On the other hand, Kokubo’s example shows that light industrial parks could improve their
environmental performance without making large investment or construction.
Industrial clustering with cement or beer industries could be well applied in other Asian countries, provided
that infrastructures needed for the byproduct exchange can be developed. There are already several cases
with beer industry as a part of the program by ZERI in developing countries, such as in Fiji, Tanzania,
Namibia and China. Once these project can demonstrate both environmental and economic benefits, the
concept of industrial clustering and byproduct exchange will become more widespread. Yet, the voluntary
development of zero waste attempts seen in Japanese beer and electronic industries will again requires
higher waste disposal costs and public’s awareness in order to balance the costs for the project with the
benefit from the saving through waste reduction and from image improvement.

17