[Title] PALM 5 ISLANDERS' HOKKAIDO DECLARATION ANNEX 1, "PACIFIC ENVIRONMENT COMMUNITY"

1. Principles

- Recalling the Statement on Environment in the Pacific issued at PALM 2, the Leaders of Japan and the PIF expressed their renewed commitment to pursue the shared vision of an eco-friendly Pacific. The Leaders of Japan and the PIF then highlighted the vital importance of working together to address and respond to environmental issues including climate change, to support the sustainable development of Pacific island countries and are committed to enhance and deepen cooperation in equal partnership in the form of the Pacific Environment Community (PEC).

- The Leaders of Japan and the PIF shared the view that climate change is a multi-faceted, cross-cutting issue that affects economic, social, cultural and environmental well-being and security of the whole world, in particular Pacific island countries, as Small Island Developing States (SIDS), and the understanding that resolute, concerted international efforts to address climate change are required.

- The Leaders of the PIF welcomed Japan's plan to provide 6.8 billion yen worth of contribution to the PIF as part of the Cool Earth Partnership to be utilized to address environmental issues including climate change, in support of national and regional priorities and frameworks and the programmes of Pacific regional organizations, including through appropriate Japanese environmental technologies. The Leaders of the PIF also welcomed Japan's plan to provide assistance for human resource development of 1,500 individuals to share Japan's knowledge in the area of environment including climate change over the next three years.

- The Leader of Japan welcomed the PIF Leaders' efforts in recent years to develop both national and regional policies on environmental issues including climate change such as the Pacific Islands Framework for Action on Climate Change 2006-15, the Pacific Disaster Risk Reduction and Disaster Management Framework for Action 2006-2015 and the Niue 2008 Forum Leaders Declaration on Climate Change, recognized the valuable role played by regional agencies in promoting dialogue between Pacific island countries and donors, and acknowledged the vital role that the Secretariat of the Pacific Regional Environment Programme (SPREP) plays in coordinating assistance from major donors to address environmental issues including climate change.

- The Leaders of Japan and the PIF, in consideration of the existing policies and the role of SPREP mentioned above, are committed to strengthened cooperation and a constructive partnership to address environmental issues including climate change under the PEC, with a view to supporting the sustainable development of Pacific island countries and to work to reduce further adverse impacts in Pacific island countries, particularly Smaller Island States.

- The Leaders of Japan and the PIF shared the view that cooperation under the PEC encompasses not only development cooperation, but also mutually supportive cooperation in international negotiations on environmental issues including climate change, noting that the United Nations Framework Convention on Climate Change (UNFCCC) is the primary forum to address international climate change action.

2. Scope of Cooperation

(1) Climate Change

- The Leaders of Japan and the PIF also highlighted the importance of cooperating in appropriate international fora, in particular the United Nations Framework Convention on Climate Change and its Kyoto Protocol, towards the establishment of a fair and effective framework beyond 2012 in which all major economies would participate in a responsible manner. Recognizing that deep cuts in global emissions will be required to achieve the ultimate objective of the Convention and emphasizing the urgency to address climate change, both sides underlined the need to achieve both emissions reductions and economic growth in accordance with the provisions and principles of the Convention, including the principle of common but differentiated responsibilities and respective capabilities, and taking into account social and economic conditions and other relevant factors.

- The Leaders of Japan and the PIF stressed that all countries should take mitigation actions under an enlightened sense of solidarity in accordance with their common but differentiated responsibilities and respective capabilities. The Leaders of Japan and the PIF emphasized that developed countries should lead global efforts in emissions reduction, while major developing countries should also take mitigation actions, including through economy-wide and sectoral targets. The Leaders of Japan and the PIF shared the view that negotiation processes under the UNFCCC should be advanced in a coherent and consistent manner toward adopting a comprehensive agreement at the fifteenth session of the Conference of the Parties (COP15) in Copenhagen.

- The PIF Leaders also reiterated their support for Japan's Cool Earth Promotion Programme and appreciated its financial and technical assistance as important contribution to practically support measures to address and respond to the impacts of climate change in Pacific island countries, particularly on the low-lying and Smaller Island States.

- The Leader of Japan committed to support and respond to adaptation and mitigation efforts by Pacific island countries in line with existing regional and national priorities and needs and to provide practical financial and technical assistance, including through such mechanisms as the Cool Earth Partnership.

(2) Water and Sanitation

- Conscious that water and sanitation is essential for life as well as for economic activities and conservation of ecological system, the PIF Leaders reiterated the importance of Japan's leadership in the initiative to address water and sanitation issue launched at the G8 Hokkaido-Toyako Summit.

- The Leader of Japan is committed to assisting Pacific island countries towards achieving water-related MDGs through cooperation in areas such as development and improvement of sanitation services, water quality and supply-related facilities and capacity building in maintenance and monitoring, acknowledging the existing regional Pacific Partnership Initiative on Sustainable Water Management.

(3) Waste Management & 3Rs

- The Leaders of Japan and the PIF recognize the importance of promoting efficient use of resources and materials and of minimizing environmental impacts along the entire product life cycle through the 3Rs (Reduce, Reuse, Recycle) and practical means and solutions for specific waste stream challenges that are beyond SIDS' existing capability to address, such as electronic and hazardous waste, with a view to establishing sustainable societies.

- The Leaders of Japan and the PIF are committed to pursuing collaborative efforts in accordance with the Regional Solid Waste Management Strategy for the Pacific Region and its Action Plan.

- The Leader of Japan announced Japan's intention, in close cooperation with SPREP, to hold a forum on waste management in the Pacific islands region following PALM 5.

(4) Biodiversity

- Highlighting the importance of conservation of biological diversity and sustainable use of its components, the Leaders of Japan and the PIF are committed to cooperation in the international arena such as the Convention on Biological Diversity, in particular towards the 10th Conference of the Parties (COP10) to be held in Japan.

- To maintain the region's precious biodiversity, the PIF Leaders remain strongly committed to strengthening conservation management efforts in the Pacific islands region, in line with the Pacific Islands Action Strategy for Nature Conservation which emphasizes the importance of local conservation to community and in collaboration with relevant technical organizations. In this regard, the Leaders of Japan and the PIF commended the recent conservation outcomes achieved through the Phoenix Islands Protected Area and Micronesian Challenge programs and Coral Triangle Initiative.

- The Leader of Japan is prepared to provide support, in close coordination with SPREP and SPC, for the conduct of capacity-building projects for Pacific island countries in the areas of biodiversity conservation, nature reserve management and coral reef monitoring.

(5) Environmental Education

- The Leaders of Japan and the PIF stressed the importance of environment education and training in expediting cooperation outlined in this Annex, noting that such education and training will contribute to raising awareness of the peoples of the Pacific towards environmental issues including climate change as well as to building of their capacity to better respond to these issues.

3. Cooperation with other stakeholders

- The Leaders of Japan and the PIF recognized the value of promoting collaboration in Corporate Social Responsibility (CSR) activities, acknowledging the importance of partnerships with the private sector in achieving effective and sustainable environmental gains.

- Noting the vital role that multilateral development banks and international organizations play in tackling the environmental issues including climate change, the Leaders of Japan and the PIF expressed their intention to further enhance collaboration with such institutions.

- The Leaders of Japan and the PIF are committed to promote research on environment and energy technologies including solar power and, as appropriate, will facilitate and expedite technology transfer where this contributes to better development and environmental outcomes for the Pacific islands region.

4. Follow-up mechanism of the PEC

The Leaders of Japan and the PIF decided to follow up on the progress of cooperation specified above in a high level interim meeting during 2010. In this regard, both sides also decided to hold a working-level preparatory meeting between Japan and the PIF at an appropriate timing after PALM 5 to review and discuss implementation of the above-mentioned cooperation including Japan's contribution to the PIF under the PEC. The outcome of this preparatory meeting will be reported to the high level meeting in 2010.