Development Bank of Japan Grants New Type of Loan to Nippon Express for CO2 Reduction

The Development Bank of Japan (DBJ), a government-affiliated financial institution, decided on April 10, 2006 to make the first loan under a brand new lending program started in fiscal 2006 to Nippon Express Co. The aim of the program is to help achieve Japan's Kyoto Protocol commitment to reduce greenhouse gas emissions by 6 percent from 1990 levels.

To boost efforts to meet this target, the program provides loans for environmental projects in six categories, one of which is establishing distribution systems that emit less carbon dioxide (CO2). Successful applicants receive a loan at a favorable interest rate, with an even lower interest rate when projects are expected to exceed the Kyoto 6 percent target and reduce relevant CO2 emissions by 8 percent or more.

Nippon Express has been active in establishing a low-CO2 distribution system, and its modal shift project promises to be very effective in reducing CO2 emissions; thus the company has received this new type of loan from the DBJ. Typically, CO2 emissions from rail transport are eight times lower than transporting the same load by truck. The company's modal shift project is expected to cut CO2 emissions by as much as 72 percent compared to using trucks only.

The DBJ has also announced that it will finance Nippon Express under another loan program that aims to promote environmentally conscious management. In this program, the DBJ evaluates various aspects of applicants' environmental efforts and provides low-interest loans based on the rating. Nippon Express has also obtained this loan because its relevant activities, including the introduction of low-emission vehicles, recycling of packaging materials, and "eco-driving" training for drivers, were evaluated as "particularly impressive" and awarded the highest rank in the screening process.

http://www.dbj.jp/en/index.html

Posted: 2006/07/31 11:37:56 AM
Japanese version