From: Kyodo News International, Tokyo
Published December 1, 2004 12:00 AM

Japan Firms, Banks Create Greenhouse-Gas Reduction Fund for Kyoto Protocol

Dec. 1—TOKYO — Two governmental banks and 31 private companies founded a $141.5 million fund Wednesday to help achieve Japan's mandatory target for reduction of greenhouse gas emissions under the Kyoto Protocol.

The Japan Greenhouse Gas Reduction Fund will invest in overseas GHG reduction projects and exploit overseas GHG reductions for helping achieve the national target under the so-called Kyoto Mechanism, said the Japan Bank for International Cooperation and the Development Bank of Japan.

The Kyoto Protocol will take effect in February, requiring Japan and other industrialized countries to achieve their respective greenhouse gas reduction targets.

The JGRF will invest in 30 to 40 forestation and other projects in developing countries, and acquire GHG emission credits for sharing among the JGRF investors, the two governmental banks said.

The fund will also contribute to sustainable development of poor countries, they said.

The 31 firms include power and gas utilities, manufacturers and trading companies.

The two governmental banks and five firms, including Tokyo Electric Power Co. and Nippon Oil Corp., earlier formed Japan Carbon Finance Ltd. to operate the fund.

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© 2004, Kyodo News International, Tokyo. Distributed by Knight Ridder/Tribune Business News.

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