Policy / Systems / Technology

March 6, 2008


Ministry Starts Loan Program for Eco-Friendly Construction Machinery

Keywords: Climate Change Government Policy / Systems 

On November 2, 2007, Japan's Ministry of Land, Infrastructure, Transport and Tourism introduced a new loan program in which companies can receive low-interest loans when purchasing low-emission construction machines certified by the ministry. By implementing this program, the ministry aims to reduce carbon gases that are emitted through construction practices.

As for certification requirements, the ministry set the standards for certifying fuel-efficient construction machines that contribute to CO2 emission reductions and conducted approval based on these standards. In particular, the following requirements were applied: (1) product type: backhoe; (2) rated output: 37 kW or more to less than 75 kW; (3) compliant with the secondary standard of exhaust gas emissions; and (4) equipped with four or more energy-saving mechanisms, such as energy-saving mode, idling control and variable displacement hydraulic pump.

Loans are provided by Japan Finance Corporation for Small Business and National Life Finance Corporation, covering small and medium-sized companies with capital of 300 million yen or less or those that employ 300 workers or less (50 million yen or less or 100 workers or less for rental and leasing companies). The "special rate" for the special financing programs offered by each financial institution is adopted as the loan rate.


Posted: 2008/03/06 05:44:41 PM