GREEN FUND

JAPAN`S EXPERIENCES

Green Finance Organisation JAPAN CEO Takejiro Sueyoshi

13TH OCTOBER 2016

Green Bank Congress 2016

<A collaborative platform to share best practices in green financing> 2013: Edinburg (UK Green Investment Bank) 2014: New York (New York Green Bank) 2015: Kuala Lumpur (Green Tech Malaysia) 2016: Tokyo (Green finance Organization) <recent trends> ・renewable energy projects ・energy-saving of commercial buildings /residential houses ・recycling of natural resources ・mobilization of green capital from commercial banks, pension funds, insurance companies ・energy policy to social policy ・emerging new green banks

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Green Bank Congress 2016

< participants> + UK Green Investment Bank plc (UK) + Clean Energy Finance Corporation (Australia) + Connecticut Green Bank (USA) + Malaysian Green Technology Corporation (Malaysia) + Green Finance Organisation (Japan) + Energy Action Network, Vermont (USA) + Organisation for Economic Co-operation and Development(OECD) + The Coalition for Green Capital (USA) + The Natural Resources Defense Council (USA) + Korea Environmental Industry & Technology Institute (Korea) + Green Climate Fund + Bank of Japan (Japan) + Government Pension Investment Fund (Japan) + Climate Action Network International + Climate Works

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Big smiles!

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• Launched : May 2013 ・ Mission: To accelerate green finance towards a low carbon society in Japan by supporting renewable energy projects • Funding source: Climate Chang Mitigation Tax

• Fund Scale : 15.3b JPY (approx. 153 mil USD)

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Green Fund of Japan

Support projects which reduce CO2 emissions and revitalize local communities Create a new stream of private green capitals

create "success models"

Spread the models nationally

Equity Investment + with a part of ownership, we support projects as a whole

a low carbon society in Japan

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We aim to…..

Loan Debt

＜Financial Structure＞

Invest

Financial institutions

etc

Sponsor

Invest

Climate Change

Mitigation Tax

Green Fund

Equity

A funding structure

Equity

Low Carbon Project

* Our investment is limited to 1/2 of the total equity amount.

*

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（ Distributed Solar Project for snow region）

• Investment from the Green Fund to the Aidu area in Fukushima is going to support not only the promotion of renewable energy but also restoration from the disaster of the Great East Japan Earthquake in 2011.This project is a model of widely distributed smaller solar power generations designed for snow and ice regions.

Fukushima Solar Power Project

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Equity （About ＄0.5 millions）

Regional banks

Green Fund

Aidu Electric Power co.

Aidu Solar Citizen Fund Ai Power Asset Co.（SPC)

Project cost：About ＄4.2million Output： 1,450kW

Electric power company

Electric power

Loan

Equity

Equity

Electric works

PV panels and equipment

Landlords (ｌlocal residents）

Land lease Power Generation sites ■Iwatsuki site（300kw） ■ 50kw（20sites:total1,150kw）

Regional electric works company

Regional construction company

Construction

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United Renewable Energy

Company (SPC)

Power Output:20,000kW

Project Cost：About 12.5 Bil JPY

PPS and Tohoku Electric Power

Company

Regional forestry

Sales of electricity

Sumitomo Heavy Industries

Biomass Boiler and power generation

Fuel trading company

※1 Preferred stocks ※2 Common stocks

Financial institutions

Green Fund

Subsidy loan

United Corporation

Other investors

7,500 Mil JPY

3,100 Mil JPY

700 Mil JPY

500 Mil JPY

800 Mil JPY

Regional unused wood

Sub-fuel (PKS)

Debt

Equ i T y

※2

※1

Wood biomass power generation project in Akita

(100 JPY/US$)

Hokkaido Wind Power Generation

Atsuta Civil Wind Power Generation

(SPC)

Power Output：4,000kW Project cost: about 1,500 Mil JPY

Ishikari city

Hokkaido Electric Power Company

Sales of electricity

Donation

Debt 1,290

Mil JPY

Equity 210

Mil JPY

Hokuto Bank Hokkaido Bank

Civil Fund

Green Fund

Venti Japan

Civil Wind Power Company (main

sponsor)

Seikatsu Club （Co-op）

EPC

Contract for project development, maintenance Construction

Civil Wind Power Company (main sponsor)

Seikatsu Club （Co-op）

Atsuta regional areas

Donation

(100 JPY/US$) 11

Regional contributions

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Creation of New employment

Activating Forestry

Procurement Maintenance

Power plant Construction

Transportation

Wood Chip Factory

Creation of new demand

New factory, new employment Working opportunity for up to 300 and more workers

Utilization of regional companies

Utilization of unused woods left in the mountains

Different from other types of renewable energy projects, new employment is created (for wood chip factory and Transportation)

Wood biomass power generation project in Akita

Transactions

Total（amount of investment）

($1,000)

amout　ofinvestment

numberof cases

amout　ofinvestment

numberof cases

amout　ofinvestment

numberof cases

amout　ofinvestment

numberof cases

Solar 500 1 4,400 3 6,700 2 11,600 6Wind 6,000 2 0 0 13,900 2 19,900 4Hydro 0 0 6,350 2 0 0 6,350 2Biomass 2,000 2 15,000 3 0 0 17,000 5Binary 3,000 1 0 0 0 0 3,000 1Mixture 0 0 5,000 1 7,000 1 12,000 2Total 11,500 6 30,750 9 35,600 8 77,850 23

FY2013 FY2014 FY2015 Total

17%

29%

9%

24%

4% 17%

Solar Wind Hydro

Biomass Binary Mixture

30%

20%

10%

25%

5%10%

Solar Wind Hydro

Biomass Binary Mixture

Total（number of cases） (100 JPY/US$)

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Our Challenges • Introduction of new technologies not well experienced in Japan ➢ Small scale biomass power generation by wood gasification process ➢ Biomass power generation by methane gas process (wastes from home, food plants and agriculture) ➢ Off shore wind power generation ➢ Hydrothermal (including hot spring) power generation ➢ Small-medium scale hydropower generation

• Other Challenges ➢ Nationwide recognition of Green Fund ➢ Human resources development within Green fund ➢ Capacity building of regional banks 13