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HOME  > Past issues  > 2011 February 23 - March 1  > Japanese forests being bought out by foreign capital
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2011 February 23 - March 1 TOP3 [ENVIRONMENT]

Japanese forests being bought out by foreign capital

February 27, 2011
Akahata Sunday edition

Foreign companies have been buying up Japanese forests one after another, presumably to acquire water resources as the global demand for water is increasing.

Domestic forests, functioning to retain water and prevent landslides, are important natural assets. The government should take responsibility for conserving and protecting these functions.

The prefectural government of Hokkaido, holder of the largest forest areas in Japan, discovered in a recent survey that 33 forests in the prefecture comprising 820 hectares are owned by foreign-affiliated companies from Malaysia, China, Australia, and the United States as of November 2010.

Another survey conducted by the Forestry Agency reveals that two hectares in Hyogo Prefecture and ten in Yamagata are also in the hands of foreign corporations. However, the agency explains that it conducted the survey only for the narrowly-defined foreign enterprises and that the actual areas involved will be much larger.

Forests in Japan cover 67% of the total land area and this enables Japan to be rich in water sources. By law, Japan’s land ownership includes both the surface and underground areas and there is no restriction on development of forests, except for protected forests.

The timber value in Japan has become one third of what it was 30 years ago due to the massive importation of timber. Because the Japanese forestry industry has been in a depressed situation, many forest owners sell their forests if someone offers to buy the forest land. This is a major lure for foreign investors.

Some municipalities have begun taking measures to protect sources of water for their residents.

For example, Hokkaido’s Niseko Town government is negotiating with a Malaysian company to buy back a part of the company-owned land because it contains a water source. The town is planning to introduce two ordinances to preserve water sources and to regulate groundwater pumping. The Hokkaido prefectural government is considering creating and implementing a system that will require all entities to apply in advance to the authorities for land purchases of even less than one hectare.

Late last year, Japanese Communist Party member of the House of Councilors Kami Tomoko demanded that the central government adopt a system of prior notification regarding land purchases of even less than one hectare, implement an approval system for land ownership, immediately identify who owns what forests, and give financial support to municipalities to buy their water sources or water source forests.
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