August 22, 2012
Sumitomo Chemical Acquires World’s First Carbon Credits for Reforestation Project
Sumitomo Chemical has acquired carbon credits (*1) for a reforestation project supported by
the World Bank’s BioCarbon Fund, together with other participant companies. This is theworld's first issuance of carbon credits, called temporary Certified Emission Reductions(tCERs) (*2), for a forestry project under the Clean Development Mechanism (CDM) (*3) of theKyoto Mechanisms (*4). The amount of credits Sumitomo Chemical has earned from thereforestation project called Reforestation as Renewable Source of Wood Supplies for Industrial
Use in Brazil is equivalent of approximately 50,000 tons of CO2.
The BioCarbon Fund, founded by the World Bank in May 2004, is a mechanism under which
its participants obtain carbon credits in return for their investment in projects in such areas
as afforestation and forestry management. Utilizing CDM, one of the platforms available
under the Kyoto Mechanisms of the Kyoto Protocol, the Fund currently supports 14 projects in
12 countries.
Sumitomo Chemical has been a participant in the BioCarbon Fund since 2005, helping restore
ravaged land, protect water resources, preserve biodiversity, reduce greenhouse gas emissions
by financing afforestation and other projects in developing countries, poor countries, etc.
Sumitomo Chemical, as one of its management’s top priorities, places importance on
contributing to the sustainable development of society through bringing innovations inchemical technology and is constantly engaged in various initiatives and activities to improve
production efficiency or preserve the environment, among other things. In addition, Sumitomo
Chemical is also working to utilize the BioCarbon Fund as well as other available mechanisms
with the aim of further contributing to prevention of global warming and environmental
improvement in local communities in developing countries.
*1 Carbon credits
Carbon credits are awarded upon implementation of a project to reduce greenhouse gasemissions. The amount of emission reductions or absorption increments resulting from theproject is converted to credits.
*2 temporary Certified Emission Reductions (tCERs)
Temporary CERs (tCERs) are carbon credits awarded for afforestation and reforestation CDM(A/R CDM) projects. CO2 that has been sequestered in trees could be released back into theatmosphere in such instances as when forest fire breaks out or when trees wither or die owing
to damage from pests. Therefore, unlike ordinary CERs, tCERs granted under A/R CDM
expire on a specified date.
*3 Clean Development Mechanism (CDM)
The Clean Development Mechanism is one of the Kyoto Mechanisms under the Kyoto Protocol

whereby a developed country financially assists a developing country to implement projects onsuch areas as renewable energy and improvement in energy efficiency, aimed at reducing
greenhouse gas emissions. Carbon credits having accrued from the project, computed on thebasis of the resultant emission reductions or absorption increments, are allocated amongindividual participants in the project.
*4 Kyoto Mechanisms
Mechanisms enacted by the Kyoto Protocol that will permit flexible implementation of thereduction target achievement for greenhouse gases. A country makes investments to reduce
emissions in other countries and earns certain credits, as its own country’s credits, that arecomputed on the basis of achieved emission reductions in whole or in part.
[Reference]
Projects Funded by Sumitomo Chemical (The subject CDM project highlighted)
Country
Republic of Albania

Project title
Assisted Natural Regeneration of Degraded Landsin Albania

Federative Republic of Brazil

AES Tietê Afforestation/Reforestation Project in
the State of São Paulo, Brazil

Federative Republic of Brazil

Reforestation as Renewable Source of Wood
Supplies for Industrial Use in Brazil

People's Republic of China

Facilitating Reforestation for Guangxi Watershed
Management in Pearl River Basin

Republic of Colombia

San Nicolas Carbon Sink and Arboreal Species
Recovery Project*

Republic of Colombia

Caribbean Savannah Carbon Sink Project*

Republic of Costa Rica

Fonafifo Coopeagri Project*

Federal Democratic Republic of Ethiopia

Humbo Ethiopia Assisted Natural Regeneration
ProjectIndia

Improving Rural Livelihoods through Carbon
Sequestration by Adopting Environment Friendly
Technology Based Agroforestry Practices

Republic of Kenya

AberdareRange/Mt.Kenya

Small

Scale

Reforestation Initiative
Republica Moldova

Moldova Soil Conservation Project

Republic of Nicaragua

Southern Nicaragua CDM Reforestation Project

Republic of Niger

Acacia Senegal Plantation Project*

Republic of Uganda

Uganda Nile Basin Reforestation Project*Not registered with UN