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Further improvement in fuel consumption is needed for diesel engines to address regulatory requirement particularly for heavy duty diesel in Japan enforced in 2015, in addition to the compliance to the regulatory requirements for exhaust emission, which seems to be more stringent in future. The authors have participated in the project of “Comprehensive Technological Development of Innovative, Next-Generation, Low-Pollution Vehicles” organized by New Energy and Industrial Technology Development Organization (NEDO), and innovative devices such as multi stage boosting system, ultra high-pressure fuel injection system and variable valve actuation (camless) system had been developed in this project from a standpoint of simultaneous improvement of fuel consumption and exhaust emission. In camless system, intake and exhaust valves are driven by hydraulic pressure. So, fully flexible setting of opening and closure timings and lift of the intake and exhaust valves is possible.