JBIC’s Engagement to Kyoto Mechanisms April 2004 Japan Bank for International Cooperation (JBIC) Representative Office in Paris

JAPAN BANK FOR INTERNATIONAL COOPERATION Agenda １． JBIC at a Glance ２． JBIC and GHG Pollution Prevention Projects ３． JBIC’s Engagement to Kyoto Mechanisms

JAPAN BANK FOR INTERNATIONAL COOPERATION (1) Organization Established in October 1999 by the merger of : Established in October 1999 by the merger of : The Export-Import Bank of Japan ( JEXIM : established in 1950 ) and The Export-Import Bank of Japan ( JEXIM : established in 1950 ) and Overseas Economic Cooperation Fund, Japan ( OECF : established in 1961 ) Overseas Economic Cooperation Fund, Japan ( OECF : established in 1961 ) (2) Purpose  Promotion of Japan’s international trade and other international economic activities  Stabilization of the international financial order  Economic and social development and/or stability of developing areas (3) Operations 1. JBIC at a Glance International Financial Operations (Quasi-commercial Financing)  Export Loan  Overseas Investment Loan  Untied Loan  Equity participation Overseas Economic Cooperation Operations (Official Development Assistance)  ODA Loan

JAPAN BANK FOR INTERNATIONAL COOPERATION (4) Outstanding Loans, etc JBIC Total $181.2 billion (5) Relationship with Morocco 160bil Yen of ODA Loan for 21 Development Projects (Billion US$) as of March ODA Loan Commitment (Million Yen) (as of March )

JAPAN BANK FOR INTERNATIONAL COOPERATION (6) Overseas Network (26 Representative Offices) [Asia] [Asia] Beijing, Hong Kong, Bangkok, Hanoi, Jakarta, Kuala Lumpur, Manila, Singapore, Colombo, Dhaka, Islamabad, New Delhi, Sydney (13) [Europe] [Europe] Moscow, Frankfurt, London, Paris (4) [Africa] [Africa] Cairo, Nairobi (2) [North America] [North America] New York, Washington (2) [South America] [South America] Bogota, Buenos Aires, Lima, Mexico City, Rio de Janeiro (5)

JAPAN BANK FOR INTERNATIONAL COOPERATION JBIC and GHG Pollution Prevention Projects JBIC is actively supporting projects to alleviate GHG effect through financing operations, for example (1) Renewable Energy  Northern Luzon Wind Power Project ( Philippines, ODA loan )  Upper Kotmale Hydropower Project ( Sri Lanka, ODA loan ) (2) Natural Gas  Natural Gas-Fired Combined Cycle Power Plant Project ( Mexico, Overseas investment loan )  Natural Gas-Fired Combined Cycle Power Plant Project ( Vietnam, Overseas investment loan )  Beijing Environment Improvement Project (China, ODA loan )  Severnaya Natural Gas-Fired Combined Cycle Power Plant Project Ⅱ ( Azerbaijan, ODA loan )

JAPAN BANK FOR INTERNATIONAL COOPERATION (3) Energy Saving/ Energy Efficiency  Rehabilitation of Coal-Fired Thermal Power (Co- generation) Plant Project ( Romania, Export loan )  LD Gas Recovery System Project ( Brazil, Export loan )  Shaanxi Province Xian Co-generation Project ( China, Export loan ) (4) Forest Conservation  Sustainable Environmental Management Project in Northern Palawan ( Philippines, ODA loan )  Punjab Afforestation Project ( Ⅱ ), Rajasthan Forestry and Biodiversity Project ( India, ODA loan )  Gansu /Inner Mongolia Afforestation and Vegetation Cover Project ( China, ODA loan )

JAPAN BANK FOR INTERNATIONAL COOPERATION (1) JBIC’s contribution to Prototype Carbon Fund (PCF)  Objective: Accumulation and dissemination of know-how for handling CDM/JI projects  Committed $10 million along with 8 Japanese companies (May 2000)  Only JBIC contributed to PCF from public sector in Japan  Engaging actively as a member of Participants’ Committee  Chile Chacabuquito (hydropower) Project achieved 112,000 tons of  Chile Chacabuquito (hydropower) Project achieved 112,000 tons of CO 2 VER in total after almost one year of operation (June 2003) 3. JBIC’s Engagement to Kyoto Mechanisms

JAPAN BANK FOR INTERNATIONAL COOPERATION (2) Financial Support for CDM/JI Projects: Advantages of JBIC’s financing for CDM/JI Projects Various financing tools for projects in developing countries Strong relationship with host country (government agencies and private sector) built through years of financing operations and our overseas networks of 26 representative offices Extensive knowledge and know-how in dealing with environmental projects in developing countries Accumulation of experience through investment in PCF

JAPAN BANK FOR INTERNATIONAL COOPERATION (2) Financial Support for CDM/JI Projects: Potential CDM project in North Africa Zafarana Wind Power Project ( Egypt, Dec.2003 ) Zafarana Wind Power Project ( Egypt, Dec.2003 ) Loan Agreement was concluded in Dec Loan Agreement was concluded in Dec The necessary procedures for the application The necessary procedures for the application of the CDM have already been started. of the CDM have already been started. Photovoltaic Power Generation Project ( Tunisia ) Projects are under preparation with Technical Assistance by JBIC.

JAPAN BANK FOR INTERNATIONAL COOPERATION (3) Establishment of Japan Carbon Fund (JCF)  Objective: Purchasing GHG emission reduction credits from projects abroad to contribute to meeting the Japanese target of GHG emission reduction under the Kyoto Protocol  Participants: Japanese corporations  Targeted amount: About 10 bill Japanese yen  Term: Until 2012 subject to consent of investors  Eligible project: CDM/JI projects (including the projects considered to be validated as CDM/JI projects with high probability).  Eligible project: CDM/JI projects (including the projects considered to be validated as CDM/JI projects with high probability).  Method for purchasing credits: Conclude E.R.P.A. (Emission Reduction Purchase Agreement) with project owners

JAPAN BANK FOR INTERNATIONAL COOPERATION Contribution through JCF/JBIC Japan Carbon Fund (JCF) Strong Relationship 26 JBIC Worldwide Representative Offices JBIC Commercial banks Financial Support CreditPayment CDM / JI Project Host Country Other Japanese Investors Investment

Thank you ! Contact Tokyo headquarter: Division 5 Corporate Finance Department Paris Office: Akika ICHIKAWA