In 2008, Japan made a big progress in ODA by creating New JICA (Japan International Cooperation Agency), which covers financing, grant aid and technical assistance. It became an organization with huge budget next to the World Bank. JICA therefore needs a more elaborate safeguard policy. There is a new movement of ODA towards sustainability in Japan. Although Japan has moved relatively slowly in this direction, the situation has been gradually changing thanks to more effective EIA application and experience with SEA. This decade’s new challenge will be illustrated. Japanese EA has been changed greatly since the establishment of the national level EIA law in 1997. It also influenced the activities of international cooperation. The JBIC (Japan Bank for International Cooperation) started to create a guideline of Environment and Social Consideration in 2000 and put it in force in 2003. JICA followed this by revising the existing guideline from 2002 to 2004, and even the JETRO (Japan External Trade Organization) followed this from 2006 to 2008. This shows the change of Japanese policy towards the creation of a sustainable society. Currently new JICA is in the process of revising the guideline by help of experts and stakeholders.
