Climate change in Japan and Toyota hybrid electric vehicles were named to have the highest fuel efficiency and lowest emissions. The fuel economy and emissions decrease is due to the advanced technology in hybrid systems, biofuels, use of lighter weight material and better engineering. As a signatory of the Kyoto Protocol, and host of the 1997 conference which created it, Japan is under treaty obligations to reduce its carbon dioxide emissions and to take other steps related to curbing climate change. The Cool Biz campaign introduced under former Prime Minister Junichiro Koizumi was targeted at reducing energy use through the reduction of air conditioning
Capital flows in Japan tight controls over both inflow and outflow of capital. As part of these controls, for example, government severely restricted foreign direct investment in Japan, but it encouraged licensing agreements with foreign firms to obtain access to their technology. As Japan's current account position strengthened in the 1960s, however, the nation came under increasing pressure to liberalise its tight controls. When Japan became a member of the OECD in 1966, it agreed to liberalise its capital markets. This process began in 1967 and continues. Decontrol of international capital flows was aided in 1980, when the new Foreign Exchange and Foreign Control