Daido Gas to Start Selling Gas w/ CO2 Emission Credits in Japan

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Apr 11, 2008 20:11 Chiho Matsuda, Nikkei Monozukuri

Japan's Takamatsu-based Daido Gas, which manufactures and sells domestic and industrial LP gas, will begin the "Daido Carbon Zero Club" service in May 2008, selling gas with CO2 emissions rights. This is "the first time in Japan" that an energy company ever begins such a service, the company said.

Daido Carbon Zero Club members purchase the right to emit the CO2 that he/she emits when using LP gas by paying the purchase cost for the equivalent amount of CO2 to Carbon Offset Japan (COJ). COJ sends the CO2 emissions rights certificate and an annual report to members once a year. Club members and Daido Gas will provide the purchasing cost at a proportion of 3:2.

According to the calculation Daido Gas performed in light of the amount of gas consumption, annual cost is likely to be about ¥2,000 (US$19.7) per household. This service can reduce CO2 emissions about 800kg every year, the company said.

The service is based on the program dubbed "LP gas to virtually offset greenhouse gas (CO2: carbon dioxide)" that was jointly formulated by Daido Gas and COJ. COJ is offering carbon offset programs, utilizing the emission credits it acquires through greenhouse gas reduction projects authorized by the United Nations. As a result, emission credits traded through the Daido Carbon Zero Club service will be included in the goals of the Kyoto Protocol.

Daido Gas aims to increase user awareness about energy through this service and will provide benefits such as offering discounts for energy-saving devices, the company said. This service targets general households, but the company is also considering offering a similar service for industrial customer, it added.

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