Kawasaki Joins in Hyogo Prefecture Program to Curb CO₂

Tokyo, February 22, 2010 — Kawasaki Heavy Industries, Ltd. announced today that it will participate in Hyogo Prefecture’s partnership program aimed at reducing carbon dioxide (CO₂) emissions. The program takes advantage of Japan’s carbon credit system,* the carbon emissions trading initiative that the government has implemented on a trial basis.

Under Hyogo’s CO₂ reduction partnership program, large-scale businesses operating in the prefecture will provide small- and medium-sized businesses with technological or financial support in return for carbon credits. A joint CO₂ reduction initiative between Kawasaki and the Kobe Medical Cooperative Association (KMCA) will be the first project launched under this program. KMCA will replace the heavy oil-fired boiler currently in use at its Akashi plant with Kawasaki Thermal Engineering’s newer and greener natural gas-fired boiler. The switch will cut CO₂ emissions by approximately 2,600 tons by the end of March 31, 2013. Domestic carbon credits generated through this project will all be recorded in an official emissions reduction report. The report, required under Hyogo Prefecture law, notes the total reduction in CO₂ emissions at Kawasaki facilities located throughout Hyogo.

This project coupled with greener production activities is enabling Kawasaki to move ahead with a smaller carbon footprint that will help put an end to global warming.

*Under the domestic carbon credit system, as specified in the Kyoto Protocol Target Achievement Plan (approved by the Cabinet on March 28, 2008), large companies are awarded emission credits for providing smaller companies with technological or financial support in implementing initiatives for reducing CO₂ emissions. Large companies can use the credits for the purpose of achieving emission targets set in their voluntary action plans. The system is designed to promote emissions reduction initiatives by small- and medium-sized corporations.