CoalinQ Corporation, a wholly-owned subsidiary of Sojitz Corporation, and Smart Energy Co., Ltd., have reached agreement for the joint establishment of a private CO2 emission rights trading market in Japan. In April 2010, the two companies will launch Japan Climate Exchange Corporation (“JCX”) as the operating company that will be in charge of emission rights trading. This will be Japan’s first emission rights trading market to handle all types of emission rights.

The Tokyo Cap-and-Trade Program, JDCM and Tradable Green Certificates represent some of the domestic emission rights trading systems. However, due to the lack of a common trading market, difficulties have occurred in mutual utilization, comparisons, interchanges and so forth between the various schemes. The JCDM anticipates the cumulative reduction over the next decade to be about 8 million tons, while The Tokyo Cap-and-Trade Program expects a reduction of some 5 million tons in the first term (FY2010-14). Meanwhile, through its exclusive Website, JCX will provide a fair and transparent trading market for emission rights trading centered in domestic emission rights with the aim of activating emission rights trading.

The services to be provided by JCX will include trading market management and the provision of environmental information. In its trading market operations, it will provide an online venue for the domestic emission rights for Tokyo Credit, Tradable Green Certificates, JCDM, J-VER and others as well as emissions rights trading originating in the Kyoto Mechanism and will provide means for the seamless matching of buyers and sellers and completion of trade settlements. Furthermore, in the provision of environmental information, in addition of general environmental and market condition information, it will also provide trading information (trade volumes and prices) centered in domestic emission rights required for the formation of an equitable market.

Once JCX is established, the two companies intend to begin providing service starting May 1, 2010.

Reference Information

Summary of the new company (Japan Climate Exchange Corporation)

Company Name	Japan Climate Exchange Corporation
Address	6-1-20, Akasaka, Minato-ku, Tokyo
Purposes	① Emission rights trading market management ② Provision of environmental information ③ Advertising operations for environmental enterprises ④ All operations incidental or related to the above
Shareholders	CoalinQ Corporation (60%)　Smart Energy Co., Ltd. (40%)

Summary of shareholder companies

Company Name	CoalinQ Corporation
URL	http://www.coalinq.com/
Address	1-20, Akasaka 6-chome, Minato-ku, Tokyo 107-8655
TEL/FAX	03-3586-4122 / 03-3586-4125
Established	January 31, 2001
Management	Tetsuo Furuta President Masanori Eto Director Yutaka Takemura Director Yuji Ogino Auditor
Business activities	The following operations relating to coal, petroleum, liquefied natural gas (LNG) and other energy resources and related by-products:     －Wholesale and sales operations and agency and intermediary services     －Importation agency operations by commissioning     －Research/development and technology provision and consulting operations     －Environmental survey, measurement, analysis and related operations by commissioning Consulting operations spanning all areas of business management including market research, technology development and financial counseling Internet-based data collection, data processing and provision services Development, maintenance and operation of systems for　coal and emission rights trading utilizing the Internet and other networks Computer network based commercial trading and payment settlement operations by commissioning and the agency operations
Capital	299.85 million yen
Shareholder	Sojitz Corporation (100%)
Member companies	230 (as of February 28, 2010)
E-mail	contact@coalinq.com

Company Name	Smart Energy Co., Ltd.
URL	http://www.smart-energy.jp
Address	1-4-9, Nishi-Shinbashi, Minato-ku, Tokyo 105-0003
TEL/FAX	03-3581-9060 / 03-3581-9062
Established	April 24, 2007
Management	Takuya Ogushi CEO Ken’ichi Mukai Executive Managing Director Hirotaka Negishi Director Mayumi Yoshida Director
Business activities	Advisory operations relating to GHG management CDM project development Investment brokerage for environment-related projects Environmental funds, emission rights trading finance and accounting Support for the utilization of JCDM Carbon offset related operations Environment related enterprise M&A operations Consulting for overseas advances by environment related enterprises
Capital	84 million yen
E-mail	info@smart-energy.jp