Sunday, July 6, 2008

Japan hosts a summit of the advanced industrialized nations' leaders for the fifth time from Monday to Wednesday. Leaders of the Group of Eight nations who gather in Toyako, Hokkaido, will discuss how to overcome major problems troubling the international community, such as global warming, steep rises in crude oil and food prices, and a slowdown in the world economy.

Clearly, such issues cannot be solved with one meeting. Nonetheless, Prime Minister Yasuo Fukuda, who is chairing the G8 summit, should strive to establish a path of cooperation that can help bring about the resolution of these pressing problems.

The summit will also discuss political and security issues including nonproliferation of nuclear weapons. Mr. Fukuda's ability to demonstrate leadership in the summit discussions is expected to weigh on the question of whether he will continue at the helm of the nation.

Problems on the agenda are interconnected. Climate change, such as drought, has led to lower harvests in key staple-producing countries. Skyrocketing energy prices have raised food production and transportation costs. Growing use of biofuels, itself a means for reducing reliance on oil, has created a new agricultural demand and is said to be causing high food prices. Rising use of oil by emerging economies has pushed up crude oil prices and will contribute to global warming.

Efforts to fight global warming, which will entail large-scale energy-saving efforts, will eventually help lower demand for crude oil, thus bringing down oil prices, and help create an environment conducive to food production.

At last year's G8 summit in Heiligendamm, Germany, the leaders discussed setting a global goal of greenhouse gas emissions to tackle climate change and agreed to "consider seriously . . . at least a halving of global emissions by 2050." This year they have the task of laying the foundation for a framework of global emissions reduction efforts from 2013, following the Kyoto Protocol's expiration in 2012, and need to make a stronger commitment on reduction goals.

Mr. Fukuda has announced that Japan will strive to cut its emissions by 60 percent to 80 percent from current levels by 2050. But as for a medium-term reduction goal, he said only that Japan would be able to cut its emissions by 14 percent from current levels by 2020, which only means a 4 percent reduction from 1990 levels. He will have to make strenuous efforts to set not only a long-term but also a medium-term emissions reduction goal. Setting a medium-term goal is important to ensure that reduction efforts are truly effective. It should be remembered that the Intergovernmental Panel on Climate Change calls on developed countries to reduce emissions by 25 percent to 40 percent from 1990 levels by 2020.

Efforts should be made to induce emerging economies like China and India to join global emissions reduction efforts. China is already on par with the United States in terms of emission volume. Without the participation of the emerging economies in global efforts, the U.S., which withdrew from the Kyoto Protocol, is unlikely to join such efforts.

Leaders of 16 nations including China, India and Brazil will also discuss global warming in Toyako. Japan, which is in a position of being able to transfer advanced energy-saving technologies and offer financial support, should persuade the emerging economies that efforts to reduce emissions does not necessarily hamper their economic growth.

Between 2005 and early 2008, world prices for wheat and corn more than doubled. Rice and soybean prices also soared. High food prices have triggered riots in more than 30 countries. Clearly long-term efforts to increase food production are necessary. Explanations for rising food prices are many. At least, G8 leaders should discuss how to deal with speculative funds suspected of flowing into food markets. Speculative funds are also suspected of having a role in rising oil prices. The U.S. and Brazil oppose the argument that the use of agricultural products for biofuel production is contributing to the rise in food prices. Still, the G8 leaders should agree to promote the use of nonfood materials for biofuel production.

Leaders from eight African countries will join the G8 leaders to discuss development in Africa. It is hoped that Mr. Fukuda, who chaired the fourth Tokyo International Conference on African Development in May, will lead the discussions on what Africa needs, including building of infrastructure, increased private-sector investment, improvement of public health and education, clean water and good governance.

The world economy is facing difficulties while under pressure from high oil prices and the effects of the subprime mortgage crisis in the U.S. The G8 leaders must reach agreement on effective measures to prevent the world economy from sliding into stagflation.

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