JBIC’s Engagement to JBIC’s Engagement to Kyoto MechanismsKyoto Mechanisms

April 2004April 2004

Japan Bank for International Cooperation (JBIC)

Representative Office in Paris

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Agenda

１． JBIC at a Glance

２． JBIC and GHG Pollution Prevention

Projects

３． JBIC’s Engagement to Kyoto Mechan

isms

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(1) Organization EstablishedEstablished in October 1999 by the merger of :in October 1999 by the merger of :

The Export-Import Bank of Japan (The Export-Import Bank of Japan (JEXIMJEXIM: : established in 1950established in 1950) and ) and

Overseas Economic Cooperation Fund, Japan (Overseas Economic Cooperation Fund, Japan (OECFOECF: : established in 196established in 196

11))

(2) Purpose Promotion of Japan’s international trade and other international ecoPromotion of Japan’s international trade and other international eco

nomic activities nomic activities Stabilization of the international financial order Stabilization of the international financial order Economic and social development and/or stability of developing areEconomic and social development and/or stability of developing are

as as

(3) Operations

1. JBIC at a Glance1. 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

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ExportCredit

7%UntiedLoan15%

OverseasInvestment

Loan18%

ODA Loan52%

Others5%

Guarantee3%

(4) Outstanding Loans, etc JBIC TotalJBIC Total$181.2 billion$181.2 billion

(5) Relationship with Morocco160bil Yen of 160bil Yen of ODA Loan for ODA Loan for 21 Development 21 Development Projects Projects

ODA Loan 93.40Overseas Investment Loan 33.41Untied Loan 27.51Export Credit 12.34Guarantee 5.25Others 9.30

(Billion US$) as of March 31 2003

Transportation 53,366Sorcial Services 37,912Electric Power and Gas 16,707Others 51,867TOTAL 159,852

ODA Loan Commitment (Million Yen)

(as of March 31 2004)

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(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)

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22. JBIC and GHG Pollution Prevention Projects. JBIC and GHG Pollution Prevention Projects

JBIC is actively supporting projects to alleviate GHGJBIC is actively supporting projects to alleviate GHGeffect through financing operations, for exampleeffect through financing operations, for example

(1) Renewable Energy Northern Luzon Wind Power Project (Northern Luzon Wind Power Project (Philippines,Philippines, ODA loanODA loan)) Upper Kotmale Hydropower Project (Upper Kotmale Hydropower Project (Sri Lanka,Sri Lanka, ODA loanODA loan))

(2) Natural Gas Natural Gas-Fired Combined Cycle Power Plant Project (Natural Gas-Fired Combined Cycle Power Plant Project (MexicMexic

o,o, Overseas investment loanOverseas investment loan)) Natural Gas-Fired Combined Cycle Power Plant Project (Natural Gas-Fired Combined Cycle Power Plant Project (VietnaVietna

m,m, Overseas investment loanOverseas investment loan)) Beijing Environment Improvement Project (China, Beijing Environment Improvement Project (China, ODA loanODA loan)) Severnaya Natural Gas-Fired Combined Cycle Power Plant ProjSevernaya Natural Gas-Fired Combined Cycle Power Plant Proj

ect (Ⅱect (Ⅱ Azerbaijan,Azerbaijan, ODA loanODA loan))

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(3) Energy Saving/ Energy Efficiency Rehabilitation of Coal-Fired Thermal Power (Co-generatioRehabilitation of Coal-Fired Thermal Power (Co-generatio

n) Plant Project (n) Plant Project (Romania, Export loanRomania, Export loan))

LD Gas Recovery System Project (LD Gas Recovery System Project (Brazil, Export loanBrazil, Export loan))

Shaanxi Province Xian Co-generation Project (Shaanxi Province Xian Co-generation Project (China, Export China, Export

loanloan))

(4) Forest Conservation Sustainable Environmental Management Project in NortherSustainable Environmental Management Project in Norther

n Palawan (n Palawan (Philippines, ODA loanPhilippines, ODA loan)) Punjab Afforestation Project ( ), Rajasthan Forestry and BⅡPunjab Afforestation Project ( ), Rajasthan Forestry and BⅡ

iodiversity Project (iodiversity Project (India, ODA loanIndia, ODA loan)) Gansu /Inner Mongolia Afforestation and Vegetation Cover Gansu /Inner Mongolia Afforestation and Vegetation Cover

Project (Project (China, ODA loanChina, ODA loan))

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(1) JBIC’s contribution to Prototype Carbon Fund (PCF)

Objective: Objective: Accumulation and dissemination of know-how for handlinAccumulation and dissemination of know-how for handling CDM/JI projectsg CDM/JI projects

Committed $10 million along with 8 Japanese companies Committed $10 million along with 8 Japanese companies (May 2000)(May 2000)

Only JBIC contributed to PCF from public sector in JapanOnly JBIC contributed to PCF from public sector in Japan Engaging actively as a member of Participants’ CommitteEngaging actively as a member of Participants’ Committe

ee Chile Chacabuquito (hydropower) Project achieved 112,0Chile Chacabuquito (hydropower) Project achieved 112,0

00 tons of 00 tons of CO2 VER in total after almost one year of oper

ation (June 2003)

3. JBIC’s Engagement to Kyoto Mechanisms3. JBIC’s Engagement to Kyoto Mechanisms

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(2) Financial Support for CDM/JI Projects:

Advantages of JBIC’s financing for CDM/JI Projects Advantages of JBIC’s financing for CDM/JI Projects Various financing tools for projects in developing countrie

s

Strong relationship with host country (government agenci

es and private sector) built through years of financing ope

rations and our overseas networks of 26 representative of

fices

Extensive knowledge and know-how in dealing with envir

onmental projects in developing countries

Accumulation of experience through investment in PCF

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(2) Financial Support for CDM/JI Projects:

Potential CDM project in North Africa Potential CDM project in North Africa Zafarana Wind Power Project (Zafarana Wind Power Project (Egypt, Dec.2003Egypt, Dec.2003))

Loan Agreement was concluded in Dec. 2003.Loan Agreement was concluded in Dec. 2003.

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.

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(3) Establishment of Japan Carbon Fund (JCF) ObjectiveObjective: Purchasing GHG emission reduction credits fro: Purchasing GHG emission reduction credits fro

m projects abroad to contribute to meeting the Japanese tm projects abroad to contribute to meeting the Japanese target of GHG emission reduction under the Kyoto Protocolarget of GHG emission reduction under the Kyoto Protocol

ParticipantsParticipants: Japanese corporations: Japanese corporations Targeted amountTargeted amount: About 10 bill Japanese yen: About 10 bill Japanese yen TermTerm: Until 2012 subject to consent of investors : Until 2012 subject to consent of investors Eligible projectEligible project: CDM/JI projects (including the projects con: CDM/JI projects (including the projects con

sidered to be validated as CDM/JI projects with high probasidered to be validated as CDM/JI projects with high probability). bility). 　　

Method for purchasing creditsMethod for purchasing credits: Conclude E.R.P.A. (Emissio: Conclude E.R.P.A. (Emission Reduction Purchase Agreement) with project ownersn Reduction Purchase Agreement) with project owners

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Contribution through JCF/JBIC

Japan Carbon Fund(JCF)

Strong Relationship

26 　 JBIC Worldwide Representative Offices

JBIC

Commercial banks

Financial Support

Credit Payment

CDM / JI　Project

Host Country

Other Japanese Investors

Investment

Investment

Thank you !Contact Tokyo headquarter: Division 5 Corporate Finance Department jcf@jbic.go.jp

Paris Office: Akika ICHIKAWA a-ichikawa@jbic.go.jp