The Juhua CDM (Clean Development Mechanism) Business is operated by JMD Greenhouse Gas Reduction Co., Ltd. (JMD), which was established by JGC Corporation in a leadership role along with its partners Marubeni Corporation and Daioh Construction Co., Ltd. JMD received a one million ton CER (certified emission reduction) from the UN’s CDM Executive Board on November 22, 2006. This is the first CER issuance for the CDM business between Japan and China.

With the Juhua CDM business, JMD is involved in the recovery and decomposition of the global-warming gas HFC23 emitted by the hydro-fluorocarbon production plant of the Zhejiang Juhua Co., Ltd. in Quzhou city, Zhejiang, China. Through the operation, JMD will earn emission rights credits equivalent to a total of 40 million tons of CO2 over a seven year period.

When the CDM business was approved by and registered with the UN's CDM Executive Board on March 3, 2006, JMD began working to construct a HFC23 decomposing unit. In the short span of five months, construction was completed and the HFC23 decomposing operation began on August 1, 2006. A report detailing the volume of HFC23 decomposed by October 2, 2006 was submitted for validation examination by the UN's CDM Executive Board's designed operational entity (DOE). This was part of the process required by the UN's CDM Executive Board for issuance of the CER. Initially, we planned for the first CER to be issued in early 2007. However, due to shortened construction period, we realized our goal within 2006.

Through this business, JMD is contributing toward the achievement of Japan's greenhouse gas reduction commitment as set forth in the Kyoto Protocols.