Cosmo Energy Holdings and Chiba Prefecture Sign Agreement to Promote Forest Conservation and Decarbonization

Cosmo Energy Holdings Co., Ltd. (President and CEO: Shigeru Yamada, hereinafter "the Company"), Chiba Prefectural Forest Association, National Federation of Forest Owners' Cooperatives, and Norinchukin Bank have concluded the "Cooperation Agreement on the Utilization of J-Credits for Forest Conservation Activities in the Chiba Prefecture Area" (hereinafter referred to as "the Agreement") to promote forest conservation activities and realize a decarbonized society in the Chiba Prefecture area.

As the first initiative under this Agreement, the forest development project "Creating a Rich Kamogawa Forest for the Future," promoted in collaboration by the Cosmo Energy Group and the Chiba Prefectural Forest Association, has been registered with the J-Credit System. The Company will purchase all of the J-Credits generated through this initiative from the Chiba Prefectural Forest Association via the National Federation of Forest Owners' Cooperatives and Norinchukin Bank, and utilize them for carbon offsets for the Company and its group companies.

Background

In recent years, as the importance of global warming countermeasures increases, expectations for the CO2 absorption function of forests are growing.

This Agreement aims to leverage the multifaceted functions of forests, including CO2 absorption, water resource conservation, and biodiversity maintenance, by appropriately conserving and managing forest resources in the Chiba Prefecture area. It also contributes to the realization of a decarbonized society by utilizing the J-Credit System.

Furthermore, the Company operates its main plant, the Chiba Refinery, within Chiba Prefecture and has been making donations for the improvement of forest roads in Chiba Prefecture (※) with the aim of strengthening the foundation for forest management. The "Creating a Rich Kamogawa Forest for the Future" project is a concrete initiative of a "local production and local consumption of carbon credits" model, aimed at contributing to forest conservation in the Chiba Prefecture area through close relationship building with the region.

(※) Comparison before and after forest road improvement through donations

Project Overview (J-Credit Registration)

Project Number

JCS-PJ00701

Project Name

Creating a Rich Kamogawa Forest for the Future

~Regional Cooperation Project between Chiba Prefectural Forest Association and Cosmo Energy Group~

Implementer

Chiba Prefectural Forest Association

Registration Month

March 2026

Target Forest Area

593.7 ha

CO2 Absorption Volume

9,964 t

Cooperation Details

Based on this Agreement, each party will undertake the following roles to aim for regional forest conservation and the realization of carbon neutrality.

• Cosmo Energy Holdings

Will purchase all J-Credits generated in Chiba Prefecture (Kamogawa City, Futtsu City) and utilize them for carbon offsetting of CO2 emissions from the Company and its group companies. Will also engage in regional contributions such as forest conservation activities.

• Chiba Prefectural Forest Association

Will generate J-Credits through forest management (thinning, reforestation, etc.) and reinvest the sales revenue into forest development, thereby promoting sustainable forest management and resource circulation.

• National Federation of Forest Owners' Cooperatives

Will provide application support necessary for J-Credit generation and handle sales operations.

• Norinchukin Bank

Will be responsible for overall coordination and condition adjustment, strengthening cooperation among stakeholders, and supporting smooth project promotion.

Expected Effects

The following effects are expected from the above cooperation:

・Promotion of appropriate management and circular utilization of forest resources

・Improvement of operational efficiency and safety through forest road development

・Sustainable development of regional forestry

・Visualization of CO2 absorption and emission reductions, and promotion of decarbonized management

・Creation of environmental value rooted in the region

Future Development

Based on this Agreement, forest management and J-Credit generation will be promoted long-term. The certification period is expected to extend up to 2041, aiming for mid-to-long-term contributions to decarbonization and regional revitalization.