Energy / Climate Change

March 26, 2007


Five Japanese Firms Join World Bank's Carbon Fund

Keywords: Climate Change Government Manufacturing industry Non-manufacturing industry 

On October 24, 2006, the Government of Japan granted five Japanese companies permission to receive emission credits. It was announced by the five companies on October 25. The credits, acquired from seven greenhouse gas emission reduction projects supported by the World Bank Community Development Carbon Fund (CDCF), will be allocated among the following companies: FUJIFILM Corporation, Daiwa Securities SMBC Principal Investments, Nippon Oil Corporation, Idemitsu Kosan Co., and Okinawa Electric Power Co.

The Clean Development Mechanism (CDM) allows industrialized nations that provide financial and technological support to developing countries to trade credits equivalent to reductions in greenhouse gas emissions in those developing countries. Starting in 2008, emission credits that have been approved under the CDM scheme will become available for trading on an international carbon market.

The CDM Executive Board of the United Nations Framework Convention on Climate Change verifies the volume of emission reductions achieved annually and issues emission credits to investors in CDM projects based on the amount of certified emission reductions resulting from the projects. Credits are allocated according to the amount of investments. The five companies have invested the following amounts in CDM projects: U.S. 9 million dollars from Fuji Photo Film Co., 7.5 million from Daiwa Securities SMBC Principal Investments Co., and 2.5 million each from Nippon Oil Corporation, Idemitsu Kosan Co., and Okinawa Electric Power Co.

The five companies have invested in seven CDM projects; the emissions credits they have bee awarded as of October 25, 2006 amounted to 412 tons, from an investment in the La Esperanza hydroelectric power project. Further credits will be awarded as the projects progress.
- Five Japanese Firms Earn Certified Emission Reduction Credits (Related JFS article)

Posted: 2007/03/26 09:45:52 AM
Japanese version