In an effort to develop global environmental policies there is a clear division between developed and developing countries. Developing countries are faced with significant issues such as poverty reduction and economic growth stimulation. These countries may also harbour resentment toward the developed countries as the source of environmental damage. Additionally, environmental problems can impact countries differently. This paper, a cooperative effort by the World Bank Institute and the Development Bank of Japan, seeks to further discussion of the connection between environmental concerns and national development policies. By outlining three specific examples from the steel, power and forestry sectors, in Japan, it demonstrates how remarkable environmental improvements can occur while improving production efficiency.