1. Copyright(C)2004 NTT DATA Corporation Development of the National Registry System in Japan 2004/11/8 NTT DATA CORPORATION

2. Copyright(C)2004 NTT DATA Corporation 2 Development of the National Registry System in Japan Overview Responsible Ministries ： Responsible Ministries ： Ministry of Economy Trade and Industry (METI) Ministry of the Environment (MOE) System construction ： Nov. 2002 ~ System construction ： Nov. 2002 ~ Approach: a new system is being developed from scratch Trial operation: Dec. 2003 ~ Trial operation: Dec. 2003 ~ Trial of emission trading with 90 participants by METI and MOE is under execution. Through the above trial, Japanese government may establish the domestic rules of emission trading systems.

3. Copyright(C)2004 NTT DATA Corporation 3 Summary of Functions (System development in the 2002,2003 fiscal year) Account Management Opening/Closing accounts of each legal entity Opening/Closing accounts of each legal entity Kyoto Units Management Referring account information Referring account information Issuing Kyoto Units in the registry Issuing Kyoto Units in the registry Transferring Kyoto Units inside the registry Transferring Kyoto Units inside the registry Information Disclosure Disclosing information on the total amounts of Kyoto Units and transactions inside the registry Disclosing information on the total amounts of Kyoto Units and transactions inside the registry Linking with application acceptance system Creating reports for audit

4. Copyright(C)2004 NTT DATA Corporation 4 Future tasks in the system Development （ System development in the 2004,2005 fiscal year ） Domestic challenges Development of additional function meeting with domestic institution Development of additional function meeting with domestic institution Reinforcement in security Reinforcement in security International challenges Development of functions in international transactions Development of functions in international transactions Expansion of information disclosure according to the Marrakesh accords Expansion of information disclosure according to the Marrakesh accords Development of function to terminate transactions in case a discrepancy was found Development of function to terminate transactions in case a discrepancy was found Technical assistance to development of the National Registry for other countries Technical assistance to development of the National Registry for other countries

5. Copyright(C)2004 NTT DATA Corporation 5 Technical Aspects We are now developing the registry based on DES Draft 6 using the following aspects: Web Services using SOAP to communicate with ITL Web Services using SOAP to communicate with ITL Hardware-based Virtual Private Network to achieve secure communication Hardware-based Virtual Private Network to achieve secure communication Digital signature authentication Digital signature authentication

6. Copyright(C)2004 NTT DATA Corporation 6 Timelines 2002200320042005200620072008 Tasks International Transaction via ITL after initialisation 1stCP Developed Core functions Linked with domestic application acceptance system Developed Core functions ExpertTeamReview Develop additional functions for domestic users initialisation

7. Copyright(C)2004 NTT DATA Corporation 7 System Architecture Accountholders Public Internet Data Center METI MOE External Web server DB serverInternal Web server AP server Internet Communication line System administrator Registryadministrators Firewall DMZ DMZ: DeMilitarized Zone

8. Copyright(C)2004 NTT DATA Corporation 8 Rules for using the National Registry Japanese government has decided “Rules for using the national registry of Japan.” Main contents: 1.Opening account A legal entity or a person can open an account. A legal entity or a person can open an account. Kyoto Units are NOT transferred and/or reduced without account holder’s agreement. Kyoto Units are NOT transferred and/or reduced without account holder’s agreement. 2.Transferring Kyoto units An account holder can request registry administrators for transfer. An account holder can request registry administrators for transfer. The registry administrators transfer the units according to the request. The registry administrators transfer the units according to the request.

9. Copyright(C)2004 NTT DATA Corporation 9 Rules for using the National Registry Main contents (Cont’d) 3.Reliability of the registry 4.Information Disclosure Account holders in the registry Account holders in the registry JI projects JI projects Kyoto units holding in the registry Kyoto units holding in the registry 5.Change for “Rules for using the national registry of Japan” These rules may be changed unilaterally according to international agreement and/or domestic policy. These rules may be changed unilaterally according to international agreement and/or domestic policy.

10. Copyright(C)2004 NTT DATA Corporation 10 Top page of the National Registry System in Japan

11. Copyright(C)2004 NTT DATA Corporation 11 Contact points Japanese Government METI: Yoshiko SHIMAYAMA (shimayama-yoshiko@meti.go.jp) shimayama-yoshiko@meti.go.jp MOE: Yoshiaki OKADA (YOSHIAKI_OKADA@env.go.jp) YOSHIAKI_OKADA@env.go.jp System Integrator NTT DATA: Masuhiro MIZUNO (mizunomsh@nttdata.co.jp)