Press Release Back Number(2006)

Chubu Electric to Purchase CO2 Credits, including Those from CDM Project in China

June 19, 2006
Chubu Electric Power Co., Inc.

Chubu Electric has decided to purchase CO2 credits (emission rights) from two sources, including a CDM project in China.

The CDM, or Clean Development Mechanism, is one of three Kyoto Mechanisms for reducing global CO2 emissions. Chubu Electric has made use of the Kyoto Mechanisms previously by investing in the World Bank Carbon Funds / Prototype Carbon Fund and the Japan GHG Reduction Fund (JGRF) and also playing a part in A.T. Biopower's Rice Husk Power Project in Thailand. The new purchases are also part of Chubu Electric's commitment to reducing CO2.

Chubu Electric will continue the fight against global warming by working with CO2 reduction projects and taking other measures.

1. HFC23 gas recovery and decomposition project in Zhejiang Province, People's Republic of China

Chubu Electric has contracted to purchase CO2 credits resulting from the recovery and decomposition of HFC23 (trifluoromethane) at a chemical manufacturing plant owned by Zhejiang Juhua Co., Ltd. in Quzhou City, Zhejiang Province, China. HFC23 has 11,700 times the global warming potential of CO2.

<Partner in agreement>

JMD Greenhouse Gases Reduction Co., Ltd.

*A company owned by JGC Corporation, Marubeni Corporation and Daioh Construction Co., Ltd.

<Amount of purchase planned>

About two million tons of CO2

<Timeframe of purchase>

2008 - 2012

2. Joint purchase with Japan Carbon Finance, Ltd. (JCF)

Chubu Electric has also signed a joint purchase agreement with transfer provisions for CO2 credits.

<Partner in agreement>

Japan Carbon Finance, Ltd.

*A company established primarily to purchase emission rights for the Japan GHG Reduction Fund (JGRF).

<Amount of purchase planned>

Up to about two million tons of CO2

<Timeframe of purchase>

2006 - 2012

(Reference) Clean Development Mechanism (CDM)

A system under which industrialized nations donate funds or technology to greenhouse gas reduction projects in industrializing nations and count part of the resulting reductions as their own.