The Juha CDM (Clean Development Mechanism) business of JMD Greenhouse Gas Reduction Co., Ltd. (JMD) has been sanctioned by the Chinese government, as the host country, on November 21, 2005 following its approval by the Japanese government, as the investor country.

The aim of the business is to acquire greenhouse gas credits equivalent to a total of 40 million tons of CO2 over seven years. This is China's first-large scale CDM business.

The CDM business operated by JMD was established by JGC Corporation, Marubeni Corporation and Daioh Construction, with JGC in a leadership role. JMD will be involved in the recovery and decomposition of the global-warming gas HFC23 emitted by Zhejiang Juha's HFC (hydro fluorocarbon) production plant in Chuchou, Zhejiang, China. Through this operation of CDM business, JMD will earn emission rights credits.

JMD and Zhejiang Juha signed an agreement on the CDM business on August 11, 2005 in Hangzhou, Zhejiang, China, and thereafter submitted applications to the Japanese and Chinese governments for approvals of the business.

The PDD (Project Design Document) together with the letters of approval issued by the two countries will be submitted to the United Nation's CDM executive board for approval and registration of the CDM business. Decomposition of HFC23 will be started in early 2007 and CERs (Certified Emission Reductions) will be issued for a seven-year credit period running from 2007 through 2013.

Through its business, JMD is contributing toward achieving Japan's greenhouse gas reduction commitment set forth in the Kyoto Protocol.