Japan’s initiative for low carbon
development: updates on thestate of the Joint Crediting
Mechanism (JCM)
Chisa Umemiya, PhD
Climate and Energy Area, Institute for Global
Environmental Strategies (IGES)
February 13th, 2014

Emissions per capita

Green Growth Path
DevelopedCountries

DevelopingCountries

High Energy
Locked‐in Type
Development
With High
Damage on
Economy andNatural System

Leapfrog
Development

Modeling Sustainable Clean and Low‐Carbon Asia

Time

“Asian Low‐Carbon Society Scenario Development Study” FY2009‐2013, funded byGlobal Environmental Research Program, MOEJ

http://2050.nies.go.jp/index.html
Source: Adopted from the Ministry of the Environment, Japan (2013b)

2

Basic concept of the JCM

Note: ‘MRV’ stands for measurement, reporting, verification.

Source: Adopted from the Government of Japan (2014)3

Japan’s Package Support
Japan

Japan’sPackage Support

Environmentally
Sustainable Cities

Technology Transfer‐Ministries‐Local Gov‐Private sector‐Researchinstitutions‐ Joint Crediting
Mechanism

Action plan
Legislations, Standards

TechnologySystem

Humanresource

Capacity Building

Partner Cities
Source: Adopted from the Ministry of the Environment, Japan (2013b)

4

Example of Japan’s Package Support
In case of Waste Management
Planning

SupportforPlanningCapacity
Building

Training
Workshop

Smart Separationand collection

Japan’sLocal gov
SupportJapan’s know‐how,system & technology

Heat/ HotwaterMethaneGas
Recovery

ReduceReuse

RecycleEfficient resource
productivity

MarketKitakyushu Eco town

Source: Adopted from the Ministry of the Environment, Japan (2013b)

Incineration

Landfill

Waste to Energy

5Capacity Building Support in Asia forMarket Mechanisms• CDM (2003~)• JCM, New Market
Mongolia
Mechanisms (2011~)
Japan
Our activities:
China• Awareness raising andMyanmar Laosconsultation
Thailand Vietnam• Training
Philippines
Cambodia• Methodology
developmentIndonesia• Policy research and6outreach
Source: IGES Website. http://www.iges.or.jp/en/index.html

Overviews of JCM capacity building

Introduction of theJCM

WorkshopMatching
Consultation
Methodology check
Eligibility criteria

Validation andVerification

Project development
Feasibility studies

For any queries, please contact at: mrv-info@iges.or.jp

7Basic concept of the JCM

Note: ‘MRV’ stands for measurement, reporting, verification.

Source: Adopted from the Government of Japan (2014)8

Image of JCM projects:
renewable energy
Reference Case
Reference emissions =X

Project CaseReduction
Project emissions =JCM project

XXImage of JCM projects (2):energy efficiency
Reference Case

Conventionaltype発電High energyefficiency

Project Case

発電

JCM project

Reductionof GHG
10

Status of development
We are here!

FY2011Governmental
consultation
Feasibility studies

Source: Government of Japan (2014)

FY2012MRV
demonstration
projects

FY2013

JCM operation
JCM demonstration
projects

1110 signatory countries
In 2013;
In 2014;
1. Mongolia (January)
10. Republic of Palau(January)
2. Bangladesh (March)
3. Ethiopia (May)
4. Kenya (June)
5. Maldives (June)
6. Vietnam (July)
7. Lao PDR (August)
8. Indonesia (August)
9. Costa Rica (December)
Note: Information as of February 3, 2014.
Source: New Mechanisms Information Platform. (2014)12

Targeted countries of feasibility
and other studies

Note: Data cover the period between 2010 and July in 2013. Total number of studies is 248.
13

Source: Based on IGES internal data, 2013

Relationship to UNFCCC
Views of Japan:• Include JCM in broad approaches under
the framework for various approaches forlong-term cooperative action under theConvention (i.e., beyond 2020)

Source: Government of Japan. (2013)14

Kea features of the JCM• “The JCM starts its operation as the non-tradable
credit type mechanism”.
• “A project which started operation on or after 1January 2013 is eligible for consideration as the JCMproject”.
• “The JCM covers the period until a possible coming
into effect of a new international framework under theUNFCCC. Both sides consider possible extension ofthe JCM….
Source: Joint Crediting Mechanism (JCM) between Mongolia and Japan.

15

Overview of institutions
Host countryJapanGovernment

JointCommittee

SecretariatProjectParticipants

Government
Secretariat

Third partyentities

Project
Participants16

Necessary documents prepared by
JC (Joint Committee)

a. rules of procedures of the Joint Committee;
b. guidelines for the development of methodologies;c. methodologies;
d. guidelines for the designation of third-party entities;
e. guidelines for the validation;
f. monitoring guidelines;
g. guidelines for the verification of GHG emission reductions
or removals;
h. common specifications for registries;
i. formats for project design document (hereinafter referredto as “PDD”), request for registration of JCM projects,
monitoring report, request for verification of emission
17
reductions or removals, etc.
Source: Joint Crediting Mechanism (JCM) between Mongolia and Japan.

Project cycle of JCM
Submission of Proposed
Methodology

Joint Committee

Approval of Proposed
Methodology

Step2

Project Participant (PP)

Step3

Third Party Entities

Step4

Joint Committee

Step5

Project Participant (PP)

Step6

Third Party Entities

Step7

Joint Committee decides the amount and Each
Government issues the credit

Can be conducted by the same TPE
Can be conducted simultaneously

Step1

Project Participant (PP)/ Each
Government, Joint Committee

Developmentof PDD
Validation

Registration
Monitoring
Verification

Issuance of credits

18

Financial support
Subsidy programme is available for energyrelated projects:• By MoEJ (1.2 billion JPY in FY2013)– No more than half of the initial installation costof equipment• By METI (3.51 billion JPY in FY2013)– A participant(s) should purchase equipment at
its residual value after MRV
Note: METI stands for Ministry of Economy, Trade and Industry;
MoEJ for The Ministry of the Environment.
19

Coverage of subsidy programme byMoEJ• Construction cost
• Ancillary work cost
• Machinery and appliances cost
• Measurement and survey cost
• Administrative cost

Source: Ministry of the Environment of Japan. (2013)20

Additional financial support• Funding for JICA and ADB to promote
JCM for FY2014

Source: Ministry of the Environment of Japan. (2013c)

21

Key features of methodology
To reduce burdens:• A check list for eligibility criteria– E.g., Efficiency above XXX; historical data
available for longer than YYY• List of parameters to be informed• List of default values available beforehand• Premade sheet for calculation22

Conservative way of calculation

Option 1:Option 2:

Source: Adopted from the Government of Japan (2014)23

Summary• The JCM, currently being promoted byJapan, is to support low carbon
development in Asia and other regions• Cooperation among local governments,
private sector, ministries, and others isessential for implementation of the JCM– Local government: planning and policy
implementation– Private sector: low carbon technologies
24Summary (2)• The JCM represents the unique
opportunity to reduce emissions jointly
under the UNFCCC• The design of the JCM has beendeveloped in cooperation between Japanand a host country• The effective scheme design andimplementation is key for theimplementation of the JCM
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For the most updated information:please visit

http://www.mmechanisms.org/e/
26

THANK YOU FOR YOUR ATTENTION!
For any queries, please contact at:
mrv‐info@iges.or.jp

27

References:
IGES Website. (2014) http://www.iges.or.jp/en/index.html
Government of Japan (2013). Submission by Japan on various approaches,
including opportunities for using markets, to enhance the cost-effectiveness of, and topromote, mitigation action. Available at
http://www.mmechanisms.org/document/130423_submission_japan.pdf.
Government of Japan (2014). Recent Development of The Joint Crediting
Mechanism (JCM). Available at
http://www.mmechanisms.org/document/20140122_JCM_goj.pdf
Joint Crediting Mechanism (JCM) between Mongolia and Japan. JCM Rules ofImplementation for The Joint Crediting Mechanism (JCM). Available at
http://www.mmechanisms.org/document/JCM/mongolia/JCM_MN_RoI_ver01_0.pdf
Ministry of the Environment of Japan. (2013) 平成25年度二国間クレジット制度を利用したプロジェクト設備補助事業公募要領（五次募集） Available at
http://gec.jp/gec/jp/Activities/jcmsbsd-cfp/2013/jcmsbsd25_koboyoryo5th.pdf
Ministry of the Environment, Japan. (2013b) By Kotaro Kawamata. Japan's
support to realize "Leapfrog" Low Carbon Development in Asian Cities. In Low
Carbon Policies in Cities and Creation of Business Opportunities, ISAP 2013.
Available at http://www.iges.or.jp/isap/2013/PDF/PL6/ISAP_PL6_2_kawamata.pdf.
Ministry of the Environment, Japan. (2013c) 川崎市企業向けセミナー． JCMを活用した一足飛び型発展. Available at
http://www.city.kawasaki.jp/300/cmsfiles/contents/0000052/52102/20131003MOEJ.pdf
New Mechanisms Information Platform. (2014) Available at28
http://www.mmechanisms.org/e/initiatives/index.html