International Seminar for Climate Change and Forests“REDD+ Finance Mechanism and Its Optimum Use - How to incentivize forest conservation –” Feb, 3-4, 2015

Outlines of Joint Crediting Mechanism Guidelines
for Developing Proposed Methodology for REDD-plus
Mitsuo MATSUMOTO
REDD Research and Development Center
Forest and Forest Research Institute, Japan1

Joint Crediting Mechanism (JCM)• Japanese government is promoting the Joint Crediting Mechanism(JCM) as a potential mitigation measure.
• The JCM facilitates diffusion of leading low carbon technologies,products, systems, services, and infrastructure as well asimplementation of mitigation actions, and contributes tosustainable development of developing countries.
• The JCM is managed by the Joint Committee that is establishedbetween Japan and each host country.

Quoted from the Web of “New Mechanism Information Platform”
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Countries which have singed bilateral documents for the JCM• 12 countries which have signed bilateral documents for
the JCM as of January 2015
– Mongolia– Bangladesh– Ethiopia– Kenya– Maldives– Vietnam– Laos– Indonesia– Costa Rica
– Palau– Cambodia– Mexico3

Joint Crediting Mechanism Guidelinesfor Developing Proposed Methodology for REDD-plus
Note: These draft guidelines are tentative.
The draft guidelines are subject to a consultationand decision by each Joint Committee.

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A Set of the JCM Guidelines••••••

Rules of Implementation for the JCM
JCM Glossary of Term
JCM Project Cycle Procedure
JCM Guideline for Designation as a Third-Party Entity
JCM Guidelines for Developing Proposed Methodology
JCM Guidelines for Developing Project Design Document andMonitoring Report• JCM Guidelines for Validation and Verification

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TitleJoint Crediting Mechanism Guidelines for Developing
Proposed Methodology for Reducing Emissions from
Deforestation and Forest Degradation in developing
countries; and the role of conservation, sustainable
management of forests and enhancement of forest
carbon stocks in developing countries (REDD-plus)(JCM Guidelines for Developing Proposed Methodology for REDD-plus)

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Contents• 1. Scope and applicability• 2. Terms and definitions• 3. Key concepts– 3.1. Reference levels– 3.2. Eligibility criteria– 3.3 Specific guidelines for REDD-plus• 4. General Guidelines• 5. Instructions for completing the Proposed Methodology Form for REDD-plus• 6. Instructions for completing the Proposed Methodology Spreadsheet forREDD-plus• Annex I. Guidance for establishment of reference levels• Annex II. Guidance for project boundary• Annex III. Guidance for monitoring of net GHG emissions• Annex IV. Guidance for promoting and supporting REDD-plus safeguards
under the JCM
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Points of the guidelines• Scope• Project level activities• Reference levels• Boundaries• Monitoring• Discount factors• Safeguards

8Concept of the Guidelines••••

Operational and transparent
Promoting participation of multi stakeholders
Scaling up from project levels to sub-national levels
Continuous improvement of the guidelines
Interview to FS companiesand NGOs
Respecting existing
standards such as
UNFCCC, IPCC, AR-CDM,Simple guidelines for all
stakeholders

FCPF, VCS

Scientific outcomes,
experiences and knowledge
9Scope• These Guidelines are to be referred to by the Joint Committee indeveloping and assessing proposed methodologies for REDDplus.
• In line with the Cancun Agreements, REDD-plus activities are tocontribute to: (a) reducing emissions from deforestation; (b)reducing emissions from forest degradation; (c) conservation offorest carbon stocks; (d) sustainable management of forests; and(e) enhancement of forest carbon stocks.
• These Guidelines for REDD-plus seek to assist developing themethodologies for REDD-plus to achieve reducing net
emissions in forest land by these activities.

The draft guidelines are subject to a consultation and decision by each Joint Committee.
10Project level activities• JCM projects are not national/sub-national but projectlevel.
• Eligibility criteria in proposed methodologies forREDD-plus contain the following:– (a) Requirements for the project in order to be registered as aJCM project.
– (b) Requirements for the project to be able to apply theapproved methodology for REDD-plus.

11Reference levels• In the JCM, emission reductions to be credited are defined as the difference
between reference levels and project net emissions.
• The reference levels are calculated to be below business-as-usual (BaU) netemissions which represent plausible emissions in providing the same outputs
or service level of the proposed JCM project in PARTNER COUNTRY.

Indicative diagram of the relationship between the BaU net emissions,reference levels and project net emissions
12How to establish reference levels

5 points stocks

C Emissions

C Stocks• Reference levels should be established using carbon stock data from at least
five points of time (which means four net emissions data) during reference
period which dates back at least about 10 years from the start of the project.
4 emissions= 4 stock changes• The following three approaches are available:– (a) Based on average GHG net emissions in the past
– (b) Using a regression formula based on historical trends– (c) Using models• If a national or sub-national reference levels has already been established foran area that includes the project area, the relationship between the project’sreference level and the national or sub-national reference level is explained.
• The reference levels are reassessed within five years intervals.
13Boundaries• The project area fulfills the internationally accepted national definitions offorest especially reported to the UNFCCC by the country.
– The project area is to have been fulfilling the definitions for a minimum 10 years
before the project start.

• The proposed methodology for REDD-plus is examined following four items
when considering the project’s boundaries;: project area, reference area,carbon pools and GHG types.
• Guidance:– At least 80 percent of the project area is under the control at validation, and theentire project area comes to be under the control by first verification event.
– Reference area: The reference area is similar to a project area regarding the driversof deforestation and/or forest degradation, landscape configuration, socioeconomic and cultural conditions.
– Carbon pools and GHG sources: Five carbon pools: above-ground biomass;
below-ground biomass; dead wood, litter and soil organic carbon. Net GHG
emissions may be excluded if net GHG emissions associated with these carbon
pools and GHG are less than five percent of total of net GHG emissions fromthe project.
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Monitoring• The monitoring of net GHG emissions should apply a
combination of remote sensing and ground-based survey.
• Guidance– Remote sensing: no less than 30 meter resolution of satellite imagery isused for monitoring land use and land-use changes. The imagery analysis
has a forest/non-forest classification accuracy of 80 percent or[above][higher]. Analyses for each forest type have an accuracy of 80
percent or [above][higher], and it is encouraged that forest type isclassified in consideration of the amount of carbon stock per area. Foresttypes should reflect each country’s designated forest types.
– Ground-based survey: measurements used for estimating carbon stocks
per area should be based on data obtained from ground-based surveys. If
it is not applicable, the IPCC’s Emission Factor Database (EFDB),
national forest inventories or other internationally recognized data may beused.

15Discount factors• Potential sources of reversal of net emission reductions areidentified.
• As approaches for effectively dealing with reversals, reference
levels are estimated using discount factor considering internalrisks, external risks and natural risks.
• Discount factor, as default value, should be accounted as 30percent.
– Based on the results of feasibility studies so far, 30 percent discounts
were required to cover the risks.

• When different approach is used to deal with risk of reversals, its
accounting method and reasonable explanation are provided.

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Safeguards• Guidance for promoting and supporting REDD+ Safeguards
under the JCM will be shown in the “JCM Guidelines forDeveloping Project Design Document and Monitoring Report”.
• Guidance– According to Cancun safeguard items including national forest
governance structures, the knowledge and rights of indigenous peoples
and members of local communities, participation of relevant stakeholders
and the conservation of natural forests and biological diversity, orpromoting and supporting REDD+ Safeguards under the JCM areexplained.
– Respecting Cancun safeguard, criteria and general steps to ensure thecriteria are explained.

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Japan Public-Private Platform for REDD+18

Japan Public-Private Platform for REDD+• The Purpose of the Platform– to facilitate REDD+ activities that aim to contribute to addressing climate change,
conservation of biodiversity, sustainable development, and poverty reduction byconserving forests severely damaged by human activities in developing countries,
in collaboration with private companies, private organization, government
agencies, and research institutions• Our Activities– Activities of the platform• Promotion of understanding of REDD+• Sharing information and knowledge• Development of win-win business model– Activities of participating organizations are:
• Working with other stakeholders to contribute to the platform activities• Actively engaged in the activities in the forest conservation including• REDD+ in developing countries from the medium- and long-perspective

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Thank you for attention

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