Call for Proposals for JCM Model Projects in 2020

Guidelines for Submitting Proposals(Tentative translation)

6 April 2020
Global Environment Centre Foundation (GEC)Table of Contents
1.

Purpose ........................................................................................................................................1

2.

Contents .......................................................................................................................................1(1) Overview ........................................................................................................................ 1(2) Eligible Projects.............................................................................................................. 3(3) Countries of Priority....................................................................................................... 3(4) Who Is Eligible to Participate? ....................................................................................... 4(5) Requirements of International Consortium Members..................................................... 4(6) Costs Eligible for Financing ............................................................................................ 6(7) Amounts of Financial Support ........................................................................................ 7(8) Maximum Percentage of Financial Support .................................................................... 7(9) Implementation Period of Model Projects....................................................................... 8(10) Schedule ....................................................................................................................... 8

3.

Evaluation and Selection of Proposals ......................................................................................9(1) Selection of Model Projects ............................................................................................. 9(2) Evaluation of Proposals .................................................................................................. 9(3) Announcement of Selected Model Projects.................................................................... 10

4.

Procedure after Announcement of Selection...........................................................................10(1) Application for Contract of Finance.............................................................................. 10(2) Conclusion of Contract of Finance ................................................................................ 10(3) Points to be Considered for Starting Model Projects..................................................... 10(4) Changes in Financial Support and Implementation Plans.............................................. 11(5) Cost ............................................................................................................................... 11(6) Reports to be Submitted and its Review......................................................................... 11(7) Disbursement of Finance ............................................................................................... 11(8) Management of Acquired Property ............................................................................... 12(9) Changes in Members of International Consortium ....................................................... 12(10) Cancellation of Contract of Finance............................................................................ 12(11) Penalty for Injustice Acts ............................................................................................ 12

5.

Submission of Proposals ...........................................................................................................13(1) How to Submit Proposals .............................................................................................. 13(2) Deadline for Submission of Proposals ........................................................................... 13(3) Documents to be Submitted .......................................................................................... 13(4) Where to Submit Proposals? ......................................................................................... 14(5) Questions and Answers ................................................................................................. 14

6.

Treatment of Information........................................................................................................ 14

7.

Note
(1) Presentations on Model Projects ................................................................................... 14(2) Other ............................................................................................................................ 14

Annex 1 Categorization by applied technology type, Number of JCM model project by eachcountry ...............................................................................................................................15
Annex 2 Evaluation Criteria for Selecting JCM Model Projects in FY2020 ...............................16

1. Purpose
Japan establishes and implements the Joint Crediting Mechanism (hereinafter referred to as “theJCM”) in order both to appropriately evaluate contributions from Japan and to greenhouse gas (GHG)
emission reductions or removals in a quantitative manner achieved through the diffusion of low carbon
or decarbonizing technologies, products, systems, services, and infrastructure as well as
implementation of mitigation actions in developing countries.
Starting from Mongolia in January 2013, Japan has established the JCM with 17 partner countries(Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau,
Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand and Philippines) as of 6 April 2020.
In order to support the implementation of candidate JCM projects, Ministry of the Environment,
Japan (hereinafter referred to as “MOEJ”) has been implementing the “JCM Model Projects(hereinafter referred to as “model project”),” which includes collaboration with projects supported by
the Japan International Cooperation Agency (JICA) and government-affiliated financial institutions.
The purpose of this model project is to financially support the implementation of projects which
reduce GHG emissions by utilizing leading low carbon technologies in developing countries, and in
return, to acquire JCM credits for achievement of Japan’s GHG emission reduction target. Moreover,along with the Overseas Development Strategy (Environment) compiled by Cabinet Office in June
2018, the JCM model project aims to contribute to global GHG emission reductions, through the
diffusion of leading low carbon or decarbonizing technologies.
In the fiscal year 2020, a new scheme named “JCM Eco Lease Scheme” will be introduced by
MOEJ for further promotion of the model projects. This new scheme has an advantage in reducing thereporting burden of representative participants with shorter monitoring period and simple proposal
document.
Unique rules and conditions applied to the JCM Eco Lease Scheme are explained in the related
chapters.

2.

Contents(1) Overview
Participants in the model project shall implement a project to reduce GHG emissions utilizing
leading low carbon technologies, and also shall conduct measurement, reporting and verification(MRV) of GHG emission reductions.
The model project will finance part of an investment cost, as premises for seeking to deliver JCM
credits (at least half of issued credits) to the Government of Japan. The finance will be provided to a
Japanese representative participant in an international consortium composed of a Japaneseparticipant(s) and a JCM partner-country participant(s) which shall efficiently promote theimplementation of projects (hereinafter referred to as “international consortium”).

Page 1 of 21

Participants shall conduct the following procedures of their relevant project:(a) Application for registration as JCM Project:
Participants shall apply their relevant project to be registered as a JCM project, including
developing a Project Design Document (PDD), conducting a local stakeholder consultation(LSC) as a part of development of PDD, and cooperating with a Third-Party Entity (TPE)
which implements validation of their relevant project. In principle, application for registration
should be conducted within 1 year from the start of the operation of the facilities/equipment
introduced by the project. In order to apply for registration of JCM project, it is necessary todevelop an appropriate JCM methodology approved by the Joint Committee. Participants shalldevelop a JCM methodology by themselves or cooperate with JCM methodologies developers,
by providing information necessary for the development of JCM methodology(ies) applicableto the relevant project, etc. In the JCM Eco Lease Scheme, participants shall not develop new
methodology(ies). In principle, participants are able to propose a project when there is alreadyapproved or proposed JCM methodology(ies).
(b) Monitoring
Participants shall conduct monitoring to quantitate the effects of the facilities/equipment on
GHG emission reductions based on a MRV methodology approved or expected to be approvedby the Joint Committee and report the results and operation of the facilities/equipment to
MOEJ on an annual basis until the end of legal durable years of the facilities/equipment as
stipulated by the Japanese law (provided that the JCM bilateral document is valid for thepartner county). Please note that MOEJ may share the results of monitoring with partnercountry government.
(c)Request for Issuance of JCM Credits
Based on the approved JCM methodology(ies), participants shall request for issuance of JCM
credits using the monitoring results. The issuance includes development of a monitoring report,
verification by a TPE, and submission of “JCM Credits Issuance Request” to a JCM Joint
Committee. However, this shall not apply in the case that participants are not able to request
for issuance due to the bilateral considerations. Also, the participants shall deliver at least fifty
percent of the issued JCM credits to the account of Japanese government.
Participants shall request for issuance of JCM credits for emission reductions achieved fromthe start of commercial operation to the end of legal durable years (provided that the JCM
bilateral document is valid (including the extension period). For example, if the expiry of JCM
bilateral document is extended from 2020 to 2030 and if the end of legal durable years is later
than 2030, participants shall request issuance of JCM credit for emission reductions achievedby 2030.) Participants are allowed to request for issuance of JCM credits beyond the legal
durable years, however, in this case, participants shall deliver at least fifty percent of the issued
JCM credits to the account of Japanese government.)

Page 2 of 21

The first request for credit issuance shall be conducted within 1 year from the registration of
the JCM project in principle. After the first request, participants may request at once forissuance of JCM credits for emission reductions achieved during several years, but they shallrequest by the end of 2031 for emission reductions achieved from 2021 to 2030.
* For Japanese legal durable years, please refer to the website below (Japanese only):https://elaws.egov.go.jp/search/elawsSearch/elaws_search/lsg0500/detail?lawId=340M50000040015
In case of the JCM Eco Lease scheme, the monitoring period applied for the JCM Eco Lease
Scheme is equal to the leasing period, which is at least five years.
* Please note that costs related to (a) through (c) are not covered by this model project. However,if MOEJ considers it’s necessary, it may be covered by a contract other than JCM model projectby MOEJ for development of methodologies, Project Design Documents (PDDs) andmonitoring reports, and validation/verification.

(2) Eligible Projects
A project eligible for the model project shall satisfy the requirements (a) to (d) listed below:(a)Projects that reduce energy-related CO2 emissions with leading low carbon technologies indeveloping countries with which Japan has signed or has been consulting to sign a bilateral
document on JCM, and that are expected to contribute to achieving Japan’s GHG emission
reduction target through the JCM;(b)

Projects contribute to the sustainable development in partner countries. The installation andoperation of the facilities/equipment shall comply with the relevant laws and regulations of
the partner country and international practices and guidelines regarding the environmental
protection(c)Reduction of GHG emissions achieved by the projects can be quantitatively calculated andverified; and(d) Facilities/equipment installed by the projects do not receive any other subsidy by theGovernment of Japan.

(3) Countries of Priority
The model project shall prioritize the following countries that have already established the JCM(as of 6 April 2020):
Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica,
Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand and Philippines(*If other countries establish JCM, they shall be included.)

Page 3 of 21

(4) Who Is Eligible to Participate?
A participant which is entitled to request and receive financial support under the model project
shall satisfy the requirements (a) to (g) listed below:
A representative participant of the model project shall be a Japanese entity which is:(a)i.

a private company,ii.

an independent administrative institution,iii.

an incorporated association/foundation, oriv. any organization admitted as appropriate by GEC with approval from the Minister of theEnvironment, Japan(b) A participant described in (a) shall be the representative entity of an international consortium.
Note 1: International consortium is an association (no legal personality) that consists of aJapanese entity mentioned in (a) and a foreign entity(ies), etc., with the objective ofeffectively implementing the project.
Note 2: Application for the model project shall be submitted by the representative participant.
Member(s) of the international consortium other than the representative participant iscalled as a partner participant(s).
Note 3: Unless GEC approves, the representative participant and a partner participant(s) cannot
be changed after the selection of project.
A participant shall have developed structure for the implementation of the eligible project and(c)have technical capacity to appropriately implement the eligible project;(d) A participant shall have a financial basis to bear the costs necessary to appropriately
implement the eligible project;
A participant shall have adequate management structures and handling capacity for accounting(e)and other administrative work related to the eligible project;
A participant shall explain the contents, effect on GHG emission reductions, details of the cost,(f)investment plan, etc. of the eligible project;(g) A participant shall take a pledge regarding the exclusion of boryokudan, or organized crimegroups.
(5) Requirements of International Consortium Members
Japanese entity as a representative participant of an international consortium is responsible for(a)the followings:i.

Applying for the model project,ii.

Managing the progress in the project, developing the project implementation plan, andacting as the contact entity for accounting and other administrative work related to theproject,iii.

Introducing the leading low carbon or decarbonizing technologies,

Page 4 of 21

iv.

Purchasing, installing and commissioning of the facilities/equipment during theconstruction period, and managing the facilities/equipment to be utilized according to the
purpose of the model project for legal durable years of the facilities/equipment as
stipulated by the Japanese law,v.

Return of the finance resulting from violations of the Financing Regulations by any of thepartner participants.

(b) All members of the international consortium are responsible for the followings:i.

To cooperate with JCM methodology developers by providing information required todevelop a methodology applicable to the project for GHG emission reductions;ii.

To cooperate with TPEs by providing materials and information required to efficiently
conduct validation of the abovementioned project and verification of GHG emission
reductions at the project site;iii.

To reduce, monitor and calculate GHG emissions utilizing the facilities/equipment withleading low carbon or decarbonizing technologies.

iv.

To estimate the GHG emission reductions by the project, and to report it to MOEJ annually
until the end of the legal durable years of the facilities/equipment as stipulated by theJapanese law, which is unique to each project;v.

To request the Joint Committee to issue credits and take necessary actions such as
application for the project registration by the Joint Committee set up or to be set up by theGovernments of Japan and JCM partner country;vi.

To deliver to the account of Japanese government at least fifty percent of the JCM creditsof GHG issued corresponding to emission reductions achieved by the project for theabovementioned legal durable years;

vii. To manage the facilities/equipment with due care of a prudent manager for their legal
durable years as stipulated by the Japanese law in order to realize their efficient operationin accordance with the purpose of the financial support even after the completion of themodel project.
viii. To report to GEC in case that a constituent member is changed and to continue the above
obligations from i. to vii.
(c) Responsibility of consortium member who applies equipment lease.
If a consortium member provides equipment lease (lessor) to other consortium member (lessee),a draft lease contract and details of lease calculation shall be submitted to GEC as a part ofapplication documents to certify that the amount of financial support provided under thisprogram is deducted from the amount of principle of the equipment lease. If its lease period
expires before its legal durable years expire, the lessor shall maintain the equipment until theend of legal durable years by extending the lease contract or transferring the equipment to lessee.

Page 5 of 21

(d) Cross-border installment sales
If a consortium member sells equipment to the other consortium member through crossborder installment sales. (Note: “Cross-border installment sales” refer to deferred payment sales
or installment sales that are carried out across national borders.) If the ownership is transferredfrom the beginning of the transaction, details of instalments calculation shall be submitted to
GEC as a part of application documents to certify that the owner of the equipment who
implements the project enjoys the benefit of the financial support by the JCM Model Project.
The seller can charge interest for such installment payments. Also, note the followings:
i. If a representative participant carries out the installment sale, the party is responsible
for the requirements as set forth under (a) above.
ii. If an entity other than a representative participant located in Japan or a third country
carries out the installment sale, the party needs to be a member of the international
consortium at least until the buyer completes its payments.
iii. In both i. and ii. above, the basis for calculating the costs eligible for financing is considered
fixed when the seller procures an equipment from a party outside the international consortium(e) JCM Eco Lease Scheme
Participants shall submit documents (breakdown of lease charge) to prove that the equivalentamount to the financial support is reduced from the lease contract (draft) submitted at the
proposal.

(6) Costs Eligible for Financing
The model project covers the following costs. Note that the financial support is limited only tothose costs that can be verified as having been spent for implementation of eligible projects. Costs
eligible for financing support in the JCM Eco Lease Scheme are limited to a leasing fee of the costsof facilities/equipment and relevant lease interests.
(a)

Cost of main construction work(b) Cost of ancillary work(c)

Cost of machinery and appliances(d) Cost of surveying and testing(e)

Cost of facilities/equipment (including monitoring equipment)(f)

Cost of administrative work; and(g) Other necessary costs approved by GEC[Costs NOT eligible for financing]
The following costs are not covered by the model project:(a)

Cost of removing existing facilities/equipment (including miscellaneous expenses related toremoval costs)

Page 6 of 21

(b) Equipment and consumable supplies/materials for maintenance of the facilities/equipment
installed by the model project, emergency facilities/equipment, safety equipment (such as fire
extinguisher, sprinkler, PPE etc.) and security equipment.
(c)

Civil engineering work and building (excluding structures that directly contribute to energyrelated CO2 emission reductions)(d) Cost related to a simple restoration of function, such as restoring the function to the state at
the time of installation by updating existing facilities/equipment(e)

Spare parts (excluding those used for testing and commissioning)(f)

Cost related to on-site inspections and writing reports that are submitted to GEC as part of themodel project(g) Cost of forward exchange contract and remittance charge(h) Cost related to land acquisition(7) Amounts of Financial Support
Total amount of the budget for this financing program is 9 billion yen for 3 years. Suggested sizeof a model project is, in principle, under 2 billion yen in terms of the amount of financial support. A
total of 500 million yen for three years is suggested for the budget of JCM Eco Lease Scheme.
Maximum amount of financial support shall be calculated by multiplying the aggregate amount ofeligible costs by the percentage listed in (8).
Maximum amount of financial support for the JCM Eco Lease Scheme shall be calculated basedon costs of leasing (costs of facilities/equipment and the relevant lease interest) multiplied by thepercentage of the financial support, which is 10%.
In addition, actual amount of financial support shall be determined based on the cost which isverified as actually spent for implementation of the project and be indicated in a notice to arepresentative participant. There is no disbursement prior to the spending of cost.

(8) Maximum Percentage of Financial Support
Maximum percentage of financial support shall be determined based on the number of alreadyselected project(s) using a similar technology in each partner country. Please refer to Annex 1“Categorization by applied technology type, Number of JCM model project by each country” foractual number of already selected projects.
Number of already selected project(s) using asimilar technology in each partner country

Percentage of financial support

None (0)Up to 50% (determined by GEC)

Up to 3 (1 - 3)

Up to 40% (determined by GEC)

More than 3 (>3)

Up to 30% (determined by GEC)

Page 7 of 21

The uniform percentage of financial support for the JCM Eco Lease Scheme; 10%.
Maximum amount and percentage of financial support will be determined by the financial contract.

(9) Implementation Period of Model Projects
The implementation period of the model projects (i.e. the period for installing facilities/equipment
and completing all the payment) shall be from the date indicated on the Notice of Contract of Finance
until 31 January 2023 at longest. Contract or purchase order prior to or after this period is not coveredby this model project.

(10) Schedule
Application is open from 5th April through 30th October. (It may close before the deadline due tothe availability of remaining budget.)
Date

Items

Japanese Fiscal Year 2020
Monday, 6 April 2020

Announcement of call for proposals

Tuesday, 11 May 2020

Submission deadline for the 1st selection of model projects

Within 4 weeks from the closing

Proposal review

of submission

Interview with applicants (conducted in Tokyo)

Around end of June

Selection of model projects
Information session for participants of selected projects
Review of application documents (technical aspects andproject budget (including supporting documents for theWithin 90 days from the date ofbudget), etc.)

preliminary selection

Notice of Contract of Finance issued to Japanese
representative participants.
Implementation of model projects
Review of proposals submitted after 12th May will start after
the completion of the 1st selection. GEC will inform theresults within 2 months of the review start date.

Friday, 30 October (12:00 JST)

Deadline for submitting proposals (Application may close

2020

before the deadline due to the availability of remaining
budget.)End of February 2021

[1-year project] Completion of model projects

February - March 2021

[1-year project]- Submission of final reports (due by 10 March 2021)- Inspection by GEC (document review and on-site

Page 8 of 21

inspection, etc. if necessary)[2- or 3-year projects]- Midterm inspection by GEC (document review and onsite inspection, etc. if necessary)- Submission of midterm reports (due by 10 April 2021)
Japanese Fiscal Year 2021
April 2021

Disbursement of financial support

End of February 2022[2-year project] Completion of model projects

February - March 2022[2-year project]- Submission of final reports (due by 10 March 2022)- Inspection by GEC (document review and on-site
inspection, etc. if necessary)[3-year projects]- Midterm inspection by GEC (document review and onsite inspection, etc. if necessary)- Submission of midterm reports (due by 10 April 2022)

Japanese Fiscal Year 2022
April 2022

Disbursement of financial support

End of January 2023

[3-year project] Completion of model projects

February - March 2023

[3-year project]- Submission of final reports (due by 28 February 2023)- Inspection by GEC (document review and on-site
inspection, etc. if necessary)

March 2023

Disbursement of financial support

3. Evaluation and Selection of Proposals(1) Selection of Model Projects
GEC conducts call for request for proposals and evaluates the submitted proposals according toAnnex 2 “Evaluation Criteria for selecting JCM Model Projects” (hereinafter referred to as“Evaluation Criteria”). After the assessment and hearings, in consultation with MOEJ, GEC will selectmodel projects within the budget.

(2) Evaluation of Proposals
Firstly, proposals are assessed whether they satisfy all the criteria in “(1). Eligibility Review” of
Evaluation Criteria. For those proposals that pass the first round of assessment, GEC will conducthearings based on the criteria in “(2). Assessment Review” of Evaluation Criteria. Please note that
Page 9 of 21

GEC may request additional documents during the evaluation. Interviews will be conducted asnecessary after receiving the proposal.

(3) Announcement of Selected Model Projects
GEC will issue a notice to participants of selected model projects, and the information about theseselected projects (name of Partner Country and representative participant, title of project, and expected
GHG emission reduction, etc.) are publicly posted on MOEJ and GEC’s websites.
GEC will also inform participants that their model projects are not selected. Please note that resultof evaluation or reasons for not selecting the projects cannot be disclosed.

4. Procedure after Announcement of Selection(1) Application for Contract of FinanceParticipants of selected model projects shall submit application documents for Contract of Financebetween the participants and GEC within 90 days since their selection was announced. If these
documents are not fully developed and not submitted within 90 days, their applied project may be
regarded as difficult to be implemented, and the selection may be cancelled.

(2) Conclusion of Contract of Finance
GEC shall examine the contents of the submitted documents (such as technical aspects and projects
budget, including supporting documents for the budget), and conclude Contract of Finance with theparticipants when these documents are appropriately completed. In case the Contract of Financecannot be concluded due to the grounds not attributable to GEC within 90 days after the date ofannouncement as a selected model project or within Japanese fiscal year, GEC has a right to cancel
the selection of the model project. It should be noted that it will normally take 30 days for theexamination by GEC. Hence, participants are recommended to complete their documents at least 30
days before starting their model projects.

(3) Points to be Considered for Starting Model Projects
Starting a model project is possible only after the Contract of Finance is concluded. Participants
should note the following points to be considered.
(a) For the contracts which are necessary to implement the model project between participants andother entities, the date of concluding contracts must be later than the date of concluding
Contract of Finance.
(b) For the abovementioned contracts, participants should select other entities through competition
principle as long as it’s applicable.
(c) For the abovementioned contracts, payments to other entities should be completed by end ofeach fiscal year.

Page 10 of 21

(4) Changes in Financial Support and Implementation Plans
1.

If participants need to change implementation plans and then financial support for some reason,
participants need to submit documents applying for the change in financial support and obtain an
approval from GEC in advance.

2.

Even though there is no changes in financial support, participants shall submit documents
applying for the changes described below and obtain the approval from GEC.
1. Modifying the proportion of cost allocated in each classification except for changes within
15 % of the lowest cost.
2. Changing the implementation plan except for the following small changes.
a) No changes in the purpose of the project and increase efficiency based on creativity byparticipantsb) Small changes in the implementation plan not related to the purpose and the efficiencyof the projectc) No changes in the amount of GHG emission reductions and estimation of JCM credits(5) Cost
For the cost covered by the model project, participants shall prepare and maintain account books.
The books shall separate other costs which are not covered by the model project, and record amountof income, expense and its usage, attached with relevant evidences of such income and expense.
The account books and evidences shall be stored for 5 years after the model project is completed.

(6) Reports to be Submitted and its Review(a) Reports by each end of fiscal year
Participants shall submit reports by each end of fiscal year to GEC by 10th April(b) Report for completion of model project
Participants shall submit a report for completion of model project within 30 days from thecompletion of model project, or by 10th March of each year (by 28th February in Japanese
fiscal year 2021, the final year of 3-year project), whichever comes first. All payments byparticipants to other entities in line with respective contracts shall be completed by thesubmission of report for completion of model project.

(7) Disbursement of Finance
GEC will pay financial support to participants in response to the request for subsidy submitted by
the participants by 30 April in the next Japanese fiscal year after on-site visits for reviewing thesubmitted requests. Also, when participants request for the intermediate payment, the same financial
procedures will be conducted based on the completed portion of the model project.

Page 11 of 21

(8) Management of Acquired Property
Participants shall prepare a property ledger for the property acquired or gained its value throughthe model project (hereinafter referred to as “property”), in order to properly manage such property
and report the status of the property to MOEJ on an annual basis. Participants shall monitor toquantitate effects of the facilities/equipment on GHG emission reductions after the model project iscompleted. When participants plan to use, sell, exchange, lend, collateralize, dismantle or dispose of
the property (limited to equipment or facility etc. with a unit value of 500,000 JPY and over) for the
purpose other than the model project, participants shall seek an approval by GEC prior to these actions
taken for the property. Participants shall provide necessary information to MOEJ if requested. Whenparticipants plan to collateralize the property, participants shall seek an approval by GEC prior to theaction. Note that such actions may result in return of finance. In addition, even if the property isdismantled or disposed of upon the approval by GEC, participants shall request for credit issuance forthe emission reductions achieved before the action is taken, according to the 2(1)(c) of this guidelines.
When participants plan to use, sell, exchange or lend property among members of the international
consortium in line with the purpose of the model project, participants shall report to GEC prior to theseactions taken for the property.
All of the equipment, facility, etc. installed through the model project must have a sticker showingthat it is part of the JCM Model Project by MOEJ.

(9) Changes in Members of International Consortium
In case when the name or address of the participants are changed, or the participants are mergedwith other entities within legal durable years from the completion of the model project, therepresentative participants shall report it to GEC without delay.

(10) Cancellation of Contract of Finance
When participants corresponds to one of the following actions, Contract of Finance may becancelled fully or partially. Participants shall return whole or part of the received finance.
(a) Violate relevant Laws, Financing Regulations, or order by GEC(b) Use the finance to other purpose that are not relevant to model project(c) Act inappropriately(d) No longer need to implement the model project due to the changes in the circumstances ofparticipants(11) Penalty for Injustice Acts
When false application, receiving of other subsidy by the Government of Japan, or any violations
to other Laws are identified, Contract of Finance may be cancelled and/or return of finance may beordered.

Page 12 of 21

5. Submission of Proposals(1) How to Submit Proposals
A complete proposal must be submitted to GEC Tokyo Office in a sealed envelope by registeredmail, private courier service or by hand-delivery. Proposals submitted by fax, e-mail or via Internet
will be rejected. Proposals should be written in Japanese.

(2) Deadline for Submission of Proposals
Friday, 30 October 2020 (12:00 JST)* Application may close before the deadline due to the availability of remaining budget.
* GEC accepts proposals 10:00 - 12:00 and 13:00 - 17:00 (except Saturdays, Sundays andpublic holidays)(3) Documents to be Submitted
Following documents must be included in a proposal. If a format is specified, please download theformat from the website for this call for proposals (available only in Japanese).
A complete proposal must be submitted in one original and 1 copy, and 2 sets of CD-R containing
the electronic version of proposal must also be submitted along with the paper version.
(a)Form No.1 Application Form(b) Form No.2 Declaration by Representative Participant(c)Form No.3a Project Implementation Plan
* Supporting documents must be included according to the Checklist (Form No. 6).

(d) Form No.3b Project Idea Note for the JCM Model Project* Without prior notice to a representative participant, this document may be shared withgovernment officials of a partner country where a project will be implemented. Also, we
may forward questions from the government officials and request for the answers.
(e)Form No.4 Budget (including supporting documents, such as quotations, of the budget)(f)Company information (such as company brochure) and articles of incorporation of both
representative participant and partner participant(s)*If the company is not established yet at the moment, participants need to submit drafts ofarticles of incorporation for the company which was already approved or will be approved in
the future. However, it is necessary for participants to submit documents to show thedescription of the business in case that drafts are not created yet.
(g) Financial statement of both representative participant and partner participant(s) (audited,recent 3 consecutive years)(h) International consortium agreement
Draft International consortium agreement and status toward signing the agreement. Signed

Page 13 of 21

agreement must be submitted to apply for Contract of Finance.
(i)Form No.5 Agreement on the Allocation of JCM Credits* Signed agreement must be submitted.

(j)Form No.6 Checklist for Submission of Proposal(k) Other supporting documents(4) Where to Submit Proposals?
A complete proposal must be submitted to the address below:
Postal address: Global Environment Centre Foundation Tokyo Office
4th Floor Hongo Ozeki Bldg., 3-19-4 Hongo Bunkyo-ku,
Tokyo 113-0033, Japan(5) Questions and Answers
Questions can be submitted via e-mail: jcm-info@gec.jp

6. Treatment of Information
Documents including accounting documents and supporting documents (e.g. invoices, contracts,
proof of payments) etc. and electronic data of these documents submitted to GEC in accordance withthis Guidelines and Financing Regulations are treated with due care of prudent manager and used only
for: evaluation of proposals; conclusion of Contract of Finance; and determination of amount offinancial support.

7. Note(1) Presentations on Model Projects
MOEJ will disseminate information on the overviews and results of the model projects to the world.
Therefore, GEC will ask participants to share their photographs of facilities/equipment installed by
the model projects which can be presented to public. Also, participants are encouraged to present theirprojects publicly by themselves, and when doing so, participants should explain that the projects are
implemented as JCM Model Projects funded by MOEJ.

(2) OtherIn addition to this Guidelines, participants to the model project shall conform to the Act on theRegulation of Execution of Budgets Pertaining to Subsidies, etc. (Act No. 179 of 1955), the Order for
Enforcement of said Act (Order No.255 of 1955), and Financing Regulations.

Page 14 of 21

Page 15 of 21
BD_AM003, ID_AM011, TH_AM004
ID_AM012
VN_AM009

Loom
Old Corrugated Cartons Process
Battery Case Forming Device

Total

5. Transportation

and Disposal

4. Waste Handling

Energy

5

4

7

1

2

3

1

1

1

1

2

1

2

1

2

4

5

1
2

3
1

1

10

1

1

Power Generation by Waste Heat

Biomass Co-generation

Biogas boiler

Biomas boiler

Biogas Power Plant

Biomass Power Plant

Wind Power Plant

Small Hydropower Plant

Solar Power Plant with Battery

Solar Power Plant

Injection Modling Machine

Number of technology： 48

Reefer Container

CNG-Diesel Hybrid Bus

Digital Tachograph System

RecoveryNo. of Methodology：67

VN_AM001

MM_AM001

Waste-to-Energy Plant
Power Generation by Methane

ID_AM016, TH_AM009

Gas Co-generation

ID_AM001, TH_AM007

ET_AM003

MM_AM004

PH_AM001

KE_AM003, ID_AM019, ID_AM021,

ID_AM017

TH_AM001, PH_AM002

KH_AM002, MX_AM001, CL_AM001,

ID_AM013, CR_AM001, PW_AM001,

MV_AM001, VN_AM007, LA_AM002,

MN_AM003, BD_AM002, KE_AM002,

1

8

4

1

2

2

25

1

1

1

2

3

36

1

2

1

1

5

1

2

1

4

3

5

8

1

6

1

3

1

4

1

1

10

1

1

1

42

3

1

1

1

1

10

6
1

1
1

13

173

1

1

1

1

1

5

3

1

2

2

1
1

1

9
4

2

48

1

1

1

1

Multi-effect Distillation System

Autoclave

1
1

1

2

1

1

1

1

4

2

2
1

1

1

1

2

1
1

1
1

Electric Forklift

VN_AM014

1

1

1

1

Gantry craneWire Stranding Machines

Production

SA_AM001

KH_AM005

Freaquency Inverter for Pump

Electrolyzer in Chlorine

VN_AM015

Air Conditioning Control System

Gas Fired Melting Furnace

3.Effective Use of Recovery

Energy2. Renewable

2

5
15

2

5

PH

3

2

4

3

1

TH

1
2

2

MM

Myanmar Thailand Philippine

1

2

CL

Chile

1

1

SA

1

1

Saudi
Arabia

1

1

MX

1

Mexico

KH

PW

1

1

1

CR

Rica

1

2

1

4

1

ID

1

2

1

LA

VN_AM010

1

1

4

1

1

4

3

VN

Nam

Gas Fired Furnace

2

MV

KE

Orange more than 4 projects = Up to 30%

Cambodia

Palau

1

1

ET

Costa

1-3 project(s) = Up to 40%

Lao PDR Indonesia

ID_AM009

1

2

BD

Viet

Regenerative Burners

6

2

MN

Maldives

Kenya

0 project = Up to 50%

1

TH_AM002

Air Compressor

White

Mongolia Bangladesh Ethiopia

6 April 2020

Aeration System

VN_AM013

Pump

Dimming System

Efficiency

ID_AM018, KH_AM001

ID_AM005, ID_AM020

LED Lighting
LED Street Lighting with

VN_AM005, LA_AM003

CR_AM003

MM_AM003

Transformer

Heat Exchanger

Waste Heat Recovery System

Water Heater Using Waste Heat

Boiler

ID_AM008

Fridge and Freezer Showcase
MN_AM002, ID_AM015,

VN_AM012, ID_AM010

TH_AM006

ID_AM022

ID_AM003, TH_AM008, MM_AM002

TH_AM005

CR_AM002, KH_AM003, TH_AM003,

BD_AM001, VN_AM011, ID_AM002,

VN_AM006, ID_AM004

JCM Methodology

Double Bundle-type Heat Pump

conditioning System

Swirling Induction Type Air-

Heat

Absorption Chiller Using Waste

Refrigerator

Chiller

Air Conditioning System

Technology

1. Energy

Sector

Percentage of Financial Support) :Yellow

Annex 1 Categorization by applied technology type, Number of JCM model project by each country
If one JCM model project applies several technologies, the numbers are counted for each technology.

Annex 1 Categorization by applied technology type, Number of JCM model
project by each country

Annex2

Evaluation Criteria for Selecting JCM Model Projects in FY2020(Tentative translation)
6 April 2020
Global Environment Centre Foundation

1.

INTRODUCTION
In order to select JCM Model Projects (hereinafter referred to as “model projects”) in fair
and transparent way, the Global Environment Centre Foundation (GEC) organized an external
committee and established this evaluation criteria, which was approved by the committee.
Based on this set of criteria, GEC will consult with the Ministry of the Environment, Japan,
and select model projects with consideration of technological distributions etc.

2.

PURPOSE OF MODEL PROJECT
The purpose of model projects is to financially support parts of the implementation costsof projects (including collaboration with projects supported by the Japan International
Cooperation Agency (JICA) or other institutions including government-affiliated financial
institutions) which reduce GHG emissions in developing countries by utilizing advanced
technologies of such private sectors including leading low carbon or decarbonizing
technologies, and in return seeks to acquire JCM credits for achievement of Japan’s GHG
emission reduction target. Moreover, along with the Overseas Development Strategy(Environment) compiled by Cabinet Office in June 2018, the JCM model projects aim tocontribute to global GHG emission reductions, through the diffusion of leading low carbon
or decarbonizing technologies.

3.

OVERVIEW OF CRITERIA
Proposals for model projects will be reviewed based on the following criteria. Assessment
reviews are conducted for applicants who satisfy all the eligibility criteria.

(1) Eligibility Review
A proposal will be reviewed whether it meets the following eligibility criteria. When all

Page 16 of 21

of these eligibility criteria are met, the proposal will proceed to the “(2). Assessment Review.”
If any of these eligibility criteria is not met, the application will be rejected.

1)

Does the applicant meet the criteria for an eligible participant?
The applicant shall meet 2.(4) in the “Guidelines for Submitting Proposals”.

2)

Is the model project expected to reduce emissions of GHG including energy-related CO2
through JCM?
The technology applied in the project shall reduce emissions of GHG including energyrelated CO2, that means: Amount of emission reductions can be quantitatively calculated; The emission reductions are not result of decreased activities, such as lower production;and The emission reductions from the project can be clearly separated from the emission
reductions by other factors that may influence the emissions.

3)

Does the financial support promote investment in projects with leading low carbon or
decarbonizing technologies by private companies, etc.?

4)

Can the applicant objectively show the superiority of the technology introduced in themodel project? This means: The evidence of its superiority including technologies of other companies, such as dataor literature with comparative, should be present; or The technology should demonstrate high performance in terms of energy savings, etc.
specified in a standard of the country where the model project is implemented(hereinafter referred to as “partner country”).

5)

Can the applicant objectively show that the technology is not adequately diffused in thepartner country so far?

6)

Is the technology internationally in practical use and can be introduced in the partnercountry? This means: The technology should be realized in other project(s) (a track record of commercial
operation or demonstration project etc. will be reviewed); or The facilities/equipment using the technology should be commercially manufactured(Catalogues, specification etc. will be reviewed.).

Page 17 of 21

7)

Is there a high potential that the technology is diffused in the partner country after thismodel project is implemented? Also, does the applicant have a concrete strategy topromote autonomous technology diffusion on a commercial basis?

8)

Does the model project contribute to the sustainable development in the partnercountry?



The installation and operation of the facilities/equipment shall comply with theenvironmental laws and regulations of the partner country and refer to international
practices and guidelines regarding the environmental protection (air pollution, watercontamination, waste treatment, noise/vibration, ecosystem etc.).

9)

In case the model project is going to introduce a similar technology, does the project
meet the eligibility criteria of approved JCM methodologies for the similar technology ofboth the partner county in which the project will be implemented and other partnercountries? Please refer to documents published by GEC for details of the eligibility
criteria.
.

10)

Is the expense for the model project appropriately estimated?

The expense should be estimated using the same or similar project implemented in thepast; or

The expense should be based on the actual design and specification.

The evidence for estimation of personnel expense and travel cost is clear andappropriate.

11) If the model project is implemented in collaboration with other project that JICA or otherinstitutions including government-affiliated financial institutions provides equity or loan,
can the applicant draw a clear line between the part covered by this financial support(applicable to the extent) and the ODA financed project by JICA or government-affiliatedfinancial institutions?

12) The facilities/equipment introduced by the model project shall not receive any otherfinancial support from the Government of Japan.

(2) Assessment Review
After passing the eligibility review, the proposal will be reviewed and scored using thefollowing assessment criteria. The project in the following countries which have alreadyestablished the JCM will be prioritized (as of 3 April 2020):

Page 18 of 21

Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia,
Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand andPhilippinesA) Robustness of the project implementation (40 points)
1)

Management and operational capacities of a representative participant and partner
participant(s) to implement the project (10points)

2)

Appropriateness of the project plan (including the schedule, decisions for the project
location, concession and license for the project implementation, and status of concludinga Power Purchase Agreement in case of a power generation project) and financial plan(including the actual amount of investment by each participants and certainty of financing
arrangements) . When projects require participants to place a bid in order to obtain theright of project implementation, effects by the financial support of the model project andthe schedule for bidding must be submitted. (10 points)

3)

Profitability of the project, including economic performance, forecast of cash flow andpayback period (For a tentative indicator, the payback period is preferred to be 3 years or
longer with the financial support.) (5 points)

4)

Status of the project implementation structure (including the decision on roles of each
entity in the international consortium) (5 points)

5)

Appropriateness of financial plan (The amount of investment by each entity is clearlystated, including the certainty of financial arrangement.) (10 points)

B) Amount of emission reductions of energy-related CO2, and cost-effectiveness of emission
reductions of GHG (30 points)
1)

Total emission reductions of GHGs (carbon dioxide equivalent (CO2eq)) (15 points)
Total emission reductions [tCO2eq]= GHG emission reductions per year [tCO2eq/y] × legal durable years of the
facilities/equipment as stipulated in the Japanese law [y]2)Cost-effectiveness of emission reductions of GHGs in terms of financial support (15points)Cost-effectiveness for GHG emission reductions [JPY/ tCO2eq]= Amount of financial support [JPY]) / Total emission reductions of GHGs [tCO2eq]

Page 19 of 21

Cost-effectiveness of financial support necessary to reduce 1 ton of GHG emissions will
be evaluated. In principle, cost-effectiveness of GHG emission reductions should be 4,000
JPY/tCO2eq or lower. However, if the number of similar technological projects in apartner country is more than 5 in Annex 1 “Categorization by applied technology type,
Number of JCM model project by each country”, its cost-effectiveness is expected to be
3,000 JPY/tCO2eq or lower. (Over five solar power projects in Mongolia, Palau andPhilippine and hydropower projects in Indonesia) Also, if the number of similar
technological projects in a partner country is at least 10, the cost effectiveness is expected
to be 2,500 JPY/tCo2eq or lower. (Over 10 solar power projects in Thailand)
Refer to the relevant Japanese law for legal durable years. However, in case of the JCM
Eco Lease scheme, monitoring period is equal to the lease period of the project.

C) Potential of the dissemination of the technology and strategy (10points)
 Implementation of the model project shall lead to the autonomous diffusion of thetechnology on a commercial basis in the future, in consideration of following points:➢

Market potential for the technology used in the model project in the partner country➢

Potential of the technology to be diffused in the partner country➢

A strategy to promote the technology

 The model project should be consistent with the partner country’s relevant policies including
Nationally Determined Contribution (NDC).
 Adequate support system and technologies for the operation and maintenance of the

facilities/equipment should be available in the partner country.
 Implementation of the model project is expected to be in line with the objectives of theOverseas Development Strategy (Environment).
* Overseas Development Strategy (Environment) is established by MOEJ on 7th June 2018
based on the Export Strategy for Infrastructure Systems decided in the meeting on thestrategy relating infrastructure export and economic cooperationD) Concepts for developing JCM methodology and monitoring (10 points)
 Calculation of the amount of GHG emission reductions:
Calculations should be performed based on the approved JCM methodologies, if therelevant methodologies have already been developed.
If relevant methodologies have not been developed, calculations should be performed
conservatively based on reference emissions and project emissions
 Monitoring of the amount of GHG emission reductions:
Procedures and structure should be appropriate for the required monitoring.

Page 20 of 21

E)

Contribution to the sustainable development in the partner country (10 points)


The model project should meet policies including NDC in the partner country.



The model project should contribute to the sustainable development and SDGs of thepartner country with reference to the partner country’s policy, etc. Also, it should follow
the Annex for gender guideline for Joint Crediting Mechanism (JCM).
*The SDGs is a set of international development goals from 2016 to 2030, described in the2030 Agenda for Sustainable Development which was adopted by the UN Sustainable
Development Summit held in September 2015.

***

Page 21 of 21