Development of the National Registry System in Japan

1. Development of the National Registry Systemin Japan 2004/11/8 NTTDATACORPORATION

2. Development of the National Registry System in Japan • Overview • Responsible Ministries： • Ministry of Economy Trade and Industry (METI) • Ministry of the Environment (MOE) • System construction： Nov. 2002 ~ • Approach: a new system is being developed from scratch • 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. Summary of Functions(System development in the 2002,2003 fiscal year) • Account Management • Opening/Closing accounts of each legal entity • Kyoto Units Management • Referring account information • Issuing Kyoto Units in the registry • Transferring Kyoto Units inside the registry • Information Disclosure • Disclosing information on the total amounts of Kyoto Units and transactions inside the registry • Linking with application acceptance system • Creating reports for audit

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 • Reinforcement in security • International challenges • Development of functions in international transactions • Expansion of information disclosure according to the Marrakesh accords • Development of function to terminate transactions in case a discrepancy was found • Technical assistance to development of the National Registry for other countries

5. TechnicalAspects • We are now developing the registry based on DES Draft 6 using the following aspects: • Web Services using SOAP to communicate with ITL • Hardware-based Virtual Private Network to achieve secure communication • Digital signature authentication

6. Timelines Expert Team Review Developed Core functions Developed Core functions 1st CP Linked with domestic application acceptance system initialisation International Transaction via ITL after initialisation Develop additional functions for domestic users

7. System Architecture Internet Data Center Account holders Registry administrators Firewall DMZ Communication line METI DB server Internal Web server AP server Public External Web server MOE Internet System administrator DMZ: DeMilitarized Zone

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

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

10. Top page of the National Registry System in Japan

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