Chiba Bank Launches Carbon-offset Time Deposit

The Chiba Bank Ltd., in Japan launched on July 1, 2008, a carbon-offset time deposit called Chikyu-Go (the Earth), as part of its environmental initiatives, which also include global warming countermeasures, it was announced in May 2008. The five-year time deposit is available for individuals and the interest rate is 0.1 percent higher than the current storefront display rates. The bank will offer the deposit until March 31, 2009, or until a sales target of 20 billion yen (about U.S.$203 million) is reached.

The bank will buy emission credits based on the total amount deposited, and transfer them to the Japanese government for free. With this system, the customers can offset carbon dioxide (CO2) emissions in their daily lives. If the amount deposited is one million yen (about U.S.$10,200), the depositor can offset 0.1 tons of CO2, which is equivalent to the amount emitted during a 680-kilometer journey in a gasoline car, or the amount absorbed by seven cedar trees.

Since the launch of this product, sales have been steadily increasing. The total deposits amounted to about 5.6 billion yen (about U.S.$57 million) as of October 31, 2008.

http://ir.chibabank.co.jp/english/

Posted: 2008/11/06 12:15:23 PM