Domestic Emissions Credit System (Domestic Credit System) (CO2 reduction through energy conservation in the Chubu Region)

June 11, 2010

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) reached agreement with the Chubu Bureau of Economy, Trade, and Industry for “improvement projects on Domestic Emissions Reduction Credit System (to be collaborated closely with municipal governments, industry and academia in the Chubu Region)” at its Energy and Metals Department, Nagoya Branch. On March 30, 2010, it launched the projects as a one-year business so-called as a “soft support provider”, providing research and consulting advisory function on emission credit business in the Chubu Region.

The purpose of this project is to drive forward Domestic Credit Projects to industries such as manufacturing in the Chubu Region. This credit system is to be applied to the industry which has not been participating in voluntary action plans on emission credit system in the industrial sectors.

As the soft support provider, ITOCHU undertakes cost-free analysis of the optimal methods of energy conservation and CO2 reduction in the current facilities and corporate management system, and will provide various types of support for the most effective adoption and replacement of facilities in the business activities of the target companies. Through these services, we aim to contribute to energy cost reduction together with the reduction of CO2 emissions.

Exclusive staff, including few qualified person of energy management, is assigned and we have established a turn-key system to consistently support the entire process from energy-saving diagnosis, to subsidy application support, to facilities installation and construction, and assistance of the credit sales.

In addition, it is intended that this project be developed jointly with local governments of cities and prefectures, the financial sector, universities and research institutions, and relevant industries. Through these efforts, we target an arc light specifically on improved added value, in addition to the cost savings, We take into account both economics and environmental effects on the construction of new supply chains that will boost and lead to development in local towns and communities.

As the soft support provider, ITOCHU aims to ensure the profitability through constructions and equipment installation services. Moreover, we consider securing profits through research and consulting advisory support, including planning of business strategy and, implementation plan, and project management in operation.