About the Joint Crediting Mechanism( JCM)
Japan, aiming to facilitate global GHG emission reduction and removal, implements
the Joint Crediting Mechanism ( JCM) as a scheme for decarbonizing technology
diffusion and implementation measures to respond to challenges in partner countries
in a ﬂexible and swift manner.
The use of carbon market mechanisms, including the JCM, is articulated under Article
6 of the Paris Agreement. The market mechanism under Article 6, including the JCM,
is not only for GHG emission reduction, but also for the sustainable development of
the partner countries.
Japan has established partnerships with 24 countries (as of October 25th, 2022) andcontinues to communicate with other developing countries.

Mongolia

Bangladesh

Ethiopia

Kenya

Maldives

Viet Nam

Lao PDR

Indonesia

Costa Rica

Palau

Cambodia

MexicoSaudi Arabia

Chile

MyanmarThailandPhilippines

SenegalTunisia

Azerbaijan

Moldova

Georgia

Sri Lanka

Uzbekistan

Basic Concept of the JCM● Facilitating diffusion of advanced decarbonizing technologies, products, systems,
services and infrastructure as well as implementing mitigation actions, andcontributing to the sustainable development of developing countries● Appropriately evaluating contributions from Japan to GHG emission reductions
and removals in a quantitative manner and using them to achieve Japan andpartner countryʼs NDC emission reduction targets● Contributing to the ultimate objective of the UNFCCC by facilitating global actions
for GHG emission reductions and removals

Japan

Operation and managementby the Joint Credit Committee
which consists of representatives
from both sides

Position of the JCM in the Plan for Global Warming Countermeasures（Cabinet Decision, October 2021）

Japan will establish and implement the Joint Crediting Mechanism (JCM) in order to quantitatively evaluate
contributions of Japan to greenhouse gas emission reductions and removals which are achieved through the
diffusion of, among others, leading decarbonizing technologies, products, systems, services, and infrastructures aswell as through the implementation of measures in developing countries and others, and in order to use suchcontributions to achieve Japanʼs NDC. By doing so, through public-private collaborations, Japan aims to secure
accumulated emission reductions and removals at the level of approximately 100 million t-CO2 by ﬁscal year 2030.

JCM Global Partnership
JCM Global Partnership aims to strengthen international
partnerships towards decarbonization by facilitating
mutual communication among various entities such as
JCM partner countries, international organizations,
local governments, private companies and ﬁnancial
institutions for decarbonizing project development
through the JCM, the Article 6 of the Paris Agreement(market mechanisms), and achievement of SDGs.

Diffusion of advanced
decarbonizing technologies, etc.,
and implementation of mitigation actions

Credits are used toachieve Japan's emission
reductions target

Three Pillars of Activities

Credits

PartnerCountry
JCM Projects
MRV**measurement ,reportingand veriﬁcation

GHG emission
reductions/removals

http://carbon-markets.env.go.jp/eng/jcmgp/index.html

JCM Decarbonizing Project
Promoting utilization of ﬁnancing schemes and business matchings to formulate JCM projects throughcollaboration among various stakeholders

JCM

Article6 (Market mechanisms)

Sharing how the JCM is being implemented as a program under Article 6 of the Paris Agreement with actual cases

JCM SDGs
Sharing relevant information of JCMʼs contribution to SDGs

1

Financing Programme for JCM Model Projects
International Consortium
Collaboration with various international ﬁnancing schemes
under JICA, JBIC, ADB, World Bank, etc.

Collaboration with
“City-to-City Collaboration Programme for a Decarbonized Society”

Ministryof theEnvironmentof Japan

JCM partner-country
entity B

Project management &MRV Reporting

Installation andmaintenance ofequipment & conducting MRV

representative participant

Provide funds to cover up tohalf of projectʼ s investment cost

Global Environment
Centre Foundation

Japanese
entity A

Incentivize selecting
decarbonizing technologies
with the ﬁnancial support
to initial cost

partner participant

Project in the partner country
SelectJapanesegovernment & entities

GHG
emission

Japan will acquire
JCM credits in return forthe ﬁnancial support.

Initialcost

Conventional
equipment & facility

Emission
reduction

FinancialsupportGHG
emission

Initialcost

Decarbonizing
equipment & facility

Partner country
government & entities
The consortium conducts MRV to estimate GHG emission reductions.

JCM Model Projects FlowCall for proposal
Evaluation of proposals（Proposal review & interview with applicants,
Inquiry of PIN* to partner countries）

Selection of model projects
Documentation brieﬁng forthe notice of contract of ﬁnancing

Model Projects Start
Review ofapplication documents
Submission of application
Notice of contract of ﬁnancing

Implementation of model projects●1-year project & Last year of
2 or 3-year project ………… Submission of ﬁnal reports & Onsite inspection●1st year & midterm of
2 or 3-year project … Submission of midterm reports & Midterm inspection

Inspection

Disbursement ofﬁnancial support●1-year project & Last year of
2 or 3-year project ………… Disbursement of ﬁnancial support●1st year & midterm of
2 or 3-year project … Disbursement of part of ﬁnancial support※PIN: The Project Idea Note is a proposal document shared with a partner country prior to the selection as a JCM Model Project.
※Submission of application should be done within 30 days after the selection of model projects so that the notice of contract of ﬁnancing can be established within 60 days after the selection.

2

MRV Process for the JCM（MRV：Measurement, Reporting and Veriﬁcation ）MRV Process for the JCM

JCM Project Registration and Credit Issuance

Measurement, Reporting and Veriﬁcation of amount of
GHG emission reductions for JCM Project

Main Actors at each Process

Process

Approval of
Proposed
Methodology

Project Participant

Developmentof PDD※

Third Party Entities

Validation

Joint Committee

Registration

Project Participant

Monitoring

Third Party Entities

Veriﬁcation

Joint Committee decides
the amount
Each Government issues
the credit

Issuanceof JCM credits

ReportingVeriﬁcation

JCM
CreditCreditIssuance

Joint Committee

Measurement

Project
Registration

Submission of
Proposed
Methodology

Methodology
Development

Project Participant / Each
Government
Joint Committee

Representative Participant of JCM Projects shall conduct
measurement, reporting and veriﬁcation (MRV) of the
GHG emission reductions realized after installation andcommissioning of the facilities/equipment for theissuance of JCM credits.

※PDD: Project Design Document

3

Examples of JCM Model Projects by Technology
Energy Efﬁciency

Chiller (Thailand)
The Kansai Electric Power Company, Incorporated

Amorphous Transformers (Lao PDR)
Yuko Keiso Co., Ltd.

Boiler (Viet Nam)
Acecook Co., Ltd.

Energy Efﬁciency

Raw Water Intake Pumps(Viet Nam)
Yokohama Water Co., Ltd.

LPG Boilers(Mongolia)
Saisan Co.,Ltd.

Effective Use of Energy

Energy Efﬁcient Distillation System(Mexico)
Suntory Spirits Ltd.

Waste Heat Recovery (Myanmar)
Global Engineering Co., Ltd.

Gas Co-generation System & Chiller (Thailand)
Kansai Electric Power Co., Inc.

Mini Hydro Power (Indonesia)
Toyo Energy Farm Co., Ltd.

Solar Power (Chile)
Farmland Co., Ltd.

Solar Power (Palau)
Sharp Energy Solutions Corporation

Renewable Energy

Binary Geothermal Power Generation(Philippines)
Mitsubishi Heavy Industries, Ltd.

Renewable Energy

Biogas Power & Fuel Conversion (Philippines)
Itochu Corporation

Waste Handling and Disposal

Transportation

Waste to Energy Plant(Myanmar)
JFE Engineering Corporation

Power Generation with Methane Gas Recovery System(Mexico)
NTT Data Institute of Management Consulting, Inc.

4

CNG-Diesel Hybrid Public Bus(Indonesia)
Hokusan Co., Ltd.

● Effective Use of Energy

Case Examples of
JCM Model Project● Energy Efﬁciency

1

2

3MW Solar Power Project in Chillan,Ñuble Region

Introduction of Gas Co-generation System andAbsorption Chiller to Fiber FactoryCountry
Representative
Partner● Renewable Energ yCase Examples of
JCM Model Project

ThailandThe Kansai Electric Power Co., Inc.
Kansai Energy Solutions (Thailand) Co., Ltd.

Country
Representative
Partner

Chile
FARMLAND Co., Ltd.
Land and Sea SpA, Farmdo Energy Chile SpAThis project aims to reduce greenhouse gas emissions by constructing a photovoltaic
power generation facility with generating capacity of 3 MW and supplying electricity
to the urban area of Chillan, Ñuble Region. This project contributes to Chileʼs policy
to achieve a renewable energy ratio target of 70% by 2050.

This project aims to reduce CO2 emissions by introducing gas co-generation
system (5 MW class x 2 sets) and absorption chiller (800 USRT class) to ﬁber
factory in Bangpa-in, Ayutthaya.These gas co-generation system and absorption
chiller contribute to energy saving and cost reduction and can improve reliability
for power supply.

Photovoltaic Modules

Grid PowerElectric
Network

InverterElectricity

Gas Cogeneration
Measuring
Equipment

Steam

Waste
Heat

Boiler

DC Power

Absorption
Chiller
Centrifugal
Chiller

Chilled
Water
Remote Monitoring
System5

Transformer

City-to-City Collaboration

Case Examples of
JCM Model Project● Energy Efﬁciency

34Introduction of High Efﬁciency Boiler System toFood FactoryCountry
Representative
Partner● Energy Efﬁciency

Case Examples of
JCM Model ProjectIntroduction of Amorphous High Efﬁciency
Transformers in Power Grid

Vietnam
Acecook Co., Ltd.
Acecook Vietnam Joint Stock Company
Sojitz Osaka Gas Eenergy Co., Ltd.

Countries
Representative
Partner

Vietnam, Lao PDR
Yuko Keiso Co., Ltd.
①EVN SPC, EVN HANOI, KHANH HOA PC, DON NAI PC②Electricite Du Laos

The purpose of this project is to reduce CO2 emissions and non-load losses (standby
electricity) through the introduction of amorphous high efﬁciency transformers instead oftransformers with silicon steel core in power grid. 1,307 transformers in total were introduced
to Electricite Du Laos. Before Lao PDA, this technology had been widely introduced in
Vietnam and further expansion to other JCM partner countries can be expected.

This project replaces existing coal boilers at the Binh Duong plant and Hung Yen
plant operated by Acecook Co., Ltd. with high-efﬁciency once-through boilers thatuses CNG and LPG instead of coal for fuel. The boiler system ﬂexibly responds to fuelmarket trends and reduces greenhouse gas emissions.
Natural gas

CNG stationC❷ Lao PDR
Alternative
natural gas

D❶ Vietnam

LPG facility

Steam
LPG

Air

Mixer

B

Production
line

Expanding toother partnercountries

Boiler

6

A

AmorphousHigh Efficiency
Transformers

A 9,554 units …… ❶B 2,020 units …… ❶C 279 units …… ❶D 1,307 units …… ❷

● Renewable Energ yCase Examples of
JCM Model Project

6

5

Introduction of Biomass Boiler
to Cooking Oil Factory

29MW Binary Power Generation Projectat Palayan Geothermal Power Plant
Country
Representative
Partner

Philippines
Mitsubishi Heavy Industries, Ltd.
Bac Man Geothermal Inc.

Country
Representative
Partner

Separator Steam Turbine

Condenser

Exhaust Hot Water

Evaporator

Wastewater
Preheater

Production
Well

Reinjection
Well

Thailand
Tepia Corporation Japan Co., Ltd.
Thanakorn Vegetable Oil Products Co., Ltd.

A biomass boiler with the steam production capacity of 35 tons per hour is installed ina cooking oil factory in Samut Prakan Province. The steam is used in the oil
production process. Palm Kernel Shell (PKS) is used as its biomass fuel, and PKS is
produced from multiple suppliers so as to secure the stability of steam production.

This project introduces a 29 MW binary geothermal power plant with the Organic
Rankine Cycle (ORC) system to the existing 120MW ﬂash type geothermal power
plant in southern part of the Luzon island. This plant utilizes exhaust hot water of low
enthalpy from the existing power plant without producing hazardous gasses.

Steam● Renewable Energ yCase Examples of
JCM Model Project

Generator
Cooling Tower

Flash Cycle
Geothermal Power Plant
Binary Turbine

Generator

Regenerator

Condenser

Thermal Medium
Binary Geothermal Power Plant

Steam（35t /h）ElectricPower

Cooling Tower

Biomass Fuel:
Palm Kernel Shell (PKS)
Grid

7

Multi-Fuel Biomass Boiler(Water Tube-Fire Tube Combination Boiler
with Step Grate)

The stem is used toreﬁne cooking oil.

● Renewable Energ yCase Examples of
JCM Model Project

7

8

10MW Mini Hydro Power Plant Projectin North SumatraCountry
Representative
PartnerIntroduction of Low-carbon Facilities
Utilizing Lease Scheme

Indonesia
Toyo Energy Farm Co., Ltd.
PT. Citra Multi Energi

Country
Representative
PartnerA mini hydro power plant is constructed in Humbang Hasunduran District of North
Sumatra with a capacity of 10MW (5MWx2). The electricity generated by the plant is
to be supplied to a power company, resulting in GHG emission reductions byreplacing grid electricity. As North Sumatra has been experiencing energy shortages,
this project is also expected to contribute to improving energy supply in the region.

Need for reduction of
initial investment

Integrated Meter 1
Transmission

Monitoring ofactual sale of electricity
Monitoring ofactual power generation

Indonesia
Tokyo Century Corporation
PT. Dynaplast, etc.

By introducing highly efﬁcient injection molding machines and refrigerators with aleasing scheme, power consumption and CO2 emissions will be reduced. The leasing
scheme offers an alternative long-term ﬁnancing and is expected to expand advanced
low-carbon or decarbonizing technologies.

Dolok Sanggul Substation

Cross-check andveriﬁcationof data● Energy Efﬁciency

Case Examples of
JCM Model Project

JCM Model Projects
International Consortium

Sale ofElectricity

Electricity
Representative
entityIntegrated Meter 2
Partner entity（Leasing company）

SCADA system
Extraction andintegrated managementof monitoring data

Tax beneﬁts

Partner entity
Leasing

Sumatra Grid

10 MW Mini Hydropower Plant

EPC contractor

8

Supply of equipment

Total 211projects

JCM Model Projects（FY2013-2022）● Energy Efﬁciency● Renewable Energy

Mongolia：6 Projects● Heat Only Boiler (HOB)● 8.3MW Solar PV in Farm
● Fuel Conversion by Introduction of LPG ● 10MW Solar PV● 2.1MW Solar PV in Farm
● 15MW Solar PV

Bangladesh：4 Projects● Centrifugal Chiller● Centrifugal Chiller● Loom at Weaving Factory● 315kW PV-diesel Hybrid System● Effective Use of Energ y● Waste Handling and Disposal

As of September, 2022

Viet Nam：40 Projects● Amorphous Transformers 1● Energy saving Equipment in Lens Factory ● 320kW Solar PV● Energy Saving Equipmentin Wire Production Factory in Shopping Mall
● Amorphous Transformers 2● Energy Saving Equipment in Brewery Factory ● 2MW Solar PV● Amorphous Transformers 3● Container Formation Facility● Amorphous Transformers 4● 2.5MW Solar PV● Air-conditioning in Lens Factory ● 5.8MW Solar PV● High Efﬁciency Chiller 1● High Efﬁciency Boiler● Air-conditioning in Hotel 1● 9.8MW Solar PV● Air Conditioning System & Chiller ● Inverters for Raw Water Intake Pumps ● 12MW Solar PV● High Efﬁciency Water Pumps● Air-conditioning in Hotel 2● 49MW Solar PV● Electricity Kiln
● LED Lighting to Ofﬁce Building ● 57MW Solar PV● Air-conditioning Control System ● Chiller and LED Lighting● 9MW Solar PV to Factories● Biomass Boiler to Chemical Factory● Biomass Boiler to Coffee Factory● 20MW Biomass Power Plant● 16MW Mini Hydro Power Plant● 7.9MW Solar PV● 0.4MW Solar PV(Eco Lease)● 5.7MW Solar PV● Biomass Co-generation System● Digital Tachographs● Modal Shift with Reefer Container● Waste to Energy Plant

Thailand：50 Projects

Maldives：1 Projects● 186kW Solar Power on School Rooftop

Saudi Arabia：2 Projects● Electorolyzer in Chlorine Production Plant● 400MW Solar PV

Ethiopia：1 Projects● 5MW Solar PV● Heat Recovery Heat Pump
● 1.6MW Solar PV(Eco Lease)● Upgrading Air-saving Loom
● 25MW Solar PV in Industrial Park
● Centrifugal Chiller & Compressor ● Heat Exchanger in Fiber Factory ● 8.1MW Solar PV● 23MW Solar PV● 12MW Waste Heat Recovery in Cement Plant● Centrifugal Chiller in Tire Factory ● High Efﬁciency Chiller
35MW
Solar
PV
and
Storage
Battery●● ORC Waste Heat Recovery● Ion Exchange Membrane Electrolyzer ● 1MW Solar PV on Factory Rooftop● 5MW Floating Solar PV●● Gas Co-generation System & 22MWSolar PV● Once-through Boilers to Garment Factory ● 2MW Solar PV3● 32MW Solar PV and Floating Solar PV ●● 0.8MW Solar PV and● 0.13MW Solar PV(Eco Lease)● Refrigeration System● Biomass Co-Generation System to Food FactoryCentrifugal Chiller● Air Conditioning System & Chiller ● 1.85MW Solar PV(Eco Lease)● Biomass Boiler to Cooking Oil Factory ●● 37MW Solar PV and● 2MW Solar PV 1
● Chilled Water Supply System● 30MW Solar PV
Melting Furnace● Energy Saving at Convenience Store ● 2MW Solar PV 2
● 2.7MW Solar PV with Blockchain Technology ● 4MW Solar PV●● High Efﬁciency Boiler, Chiller,● LED Lighting to Sales Stores● 2.9MW Solar PV
and Solar PV● Boiler System in Rubber Belt Plant ● 2.6MW Solar PV● 1MW Solar PV●● Co-generation in Motorcycle Factory● Air-conditioning Control System ● 3.4MW Solar PV 1
● Methane Avoidance and Biomass ●● Co-generation in Motor Parts Factory● 3.4MW Solar PV 2
● Refrigerator and Evaporator
Boiler in Fruit Processing Factory ●● Co-generation in Fiber Factory

Philippines：16 Projects● 120MW Solar PV

Kenya：３Projects● 1MW Solar PV at Salt Factory● 3.1MW Solar PV● 2.3MW Solar PV

Myanmar：８Projects● Refrigeration System in Logistics Center ● 8.8MW Waste Heat Recovery in Cement Plant● Brewing Systems to Brewery Factory ● 700kW Waste to Energy Plant● Once-through Boiler in Instant Noodle Factory ●● Brewing Systems and● 7.3MW Solar PV
Biogas Boiler to Brewery Factory● 1.8MW Rice Husk Power Generation

Laos：5 Projects● Amorphous Transformers● 14MW Floating Solar PV● 11MW Solar PV● Transportation● 14MW Solar PV● 19MW Solar PV

Cambodia：6 Projects● LED Street Lighting● 0.9MW Solar PV at International School● Inverters for Distribution Pumps ● Biomass & Solar PV● 200kW Solar PV at International School ●● Solar PV & Centrifugal Chiller● Air Conditioning System● 33MW Wind Farm
● 1MW Rooftop Solar PV● 29MW Binary Geothermal Power Generation● 1.2MW Rooftop Solar PV● 28MW Binary Geothermal Power Generation● 1.53MW Rooftop Solar PV● 14.5MW Mini Hydro Power Plant● 2MW Solar PV(Eco Lease)● 9MW Solar PV● 4MW Solar PV● 0.8MW Solar PV(Eco Lease)● 18MW Solar PV● 60MW Solar PV● 20MW Flash Geothermal Power Generation
Chile：11 Projects● Biogas Power Generation and Fuel Conversion● 1MW Rooftop Solar PV● 3MW Solar PV 1
Palau：5 Projects● 3MW Solar PV 2
● 3MW Solar PV 3
● 370kW Solar PV for Commercial Facilities● 9MW Solar PV 1
● 445kW Solar PV for Commercial FacilitiesⅡ● 9MW Solar PV 2
● 0.4MW Solar PV for Supermarket● 34MW Solar PV● 155kW Solar PV for School● 3.4MW Rice Husk Power Generation● 1MW Solar PV for Supermarket● 6MW Solar PV● 9MW Solar PV 3
● 9MW Solar PV 4

Mexico：5 Projects● Once-through Boiler and Fuel Switching● Energy Efﬁcient Distillation System● 30MW Solar PV● 20MW Solar PV● 1.2MW Power Generation with
Methane Gas Recovery System

Costa Rica：2 Projects● Chiller and Heat Recovery System● 5MW Solar PV

Indonesia：46 Projects● 3.1MW Solar PV● Centrifugal Chiller at Textile Factory 1 ● Old Corrugated Cartons Process ● High Efﬁciency Boiler● 8MW Hydro Power Plant● Centrifugal Chiller at Textile Factory 2 ● Upgrading to Air-saving Loom ● High Efﬁciency Autoclave 2● 2.1MW Solar PV● 10MW Hydro Power Plant 1● Centrifugal Chiller at Textile Factory 3 ● Centrifugal Chiller in Shopping Mall ● Once-through Boiler in Chemical Factory ● 10MW Hydro Power Plant 2● Gas Co-generation System for● Energy Saving at Convenience Store ● High Efﬁciency Thermal Oil Heater ● 0.5MW Solar PV
Automobile Manufacturing Plant● 2.3MW Hydro Power Plant● Refrigerants to Cold Chain Industry ● Smart LED Street Lighting System ● 3.3 MW Solar PV● 30MW Waste Heat Recovery● 6MW Hydro Power Plant 3● Absorption Chiller● Once-through Boiler System in Film Factory ● 4.2MW Solar PV
in Cement Industry● 12MW Biomass Power Plant● Once-through Boiler in Golf Ball Factory ● 2MW Hydro Power Plant● High Efﬁciency Autoclave 1● Rehabilitation of Hydro Power Plant ● CNG-Diesel Hybrid Public Bus● Looms in Weaving Mill● 1.6MW Solar PV in Jakabaring Sport City ●● Gas Co-generation System and● Injection Molding Machine● 5MW Hydro Power Plant● 500kW Solar PV and Storage Battery● Double Bundle-type Heat Pump ● LED Lighting to Sales Stores● 6MW Hydro Power Plant 1
Absorption Chiller● 5MW Solar PV● Industrial Wastewater Treatment System ● 6MW Hydro Power Plant 2● Regenerative Burners

9Outline of Guidelines for Submitting JCM Model Project Proposal in FY2022（1）PurposeMaximum Percentage of Financial Support

To ﬁnancially support the implementation of projects which reduce greenhouse gas(GHG) emissions by utilizing leading decarbonizing technologies in developing
countries, and in return, to acquire JCM credits to achieve Japanʼs GHG emission
reduction target.

Shall be determined according to the number of previously selected project(s) using
a similar technology in each partner country.

Eligible Projects
Projects that reduce energy-related CO2 emissions with leading decarbonizing
technologies in developing countries, with which Japan has signed or has been
consulting to sign a bilateral document on JCM, and that are expected to contributeto achieving Japanʼs NDC through the JCM

Number of previously
selected project(s) using
a similar technology
in each partner country

None

Up to 3More than 3

Percentage ofﬁnancial support

Up to 50%

Up to 40%

Up to 30%

(0)

(1-3)

(4 and more)

Costs Covered by Financial Support
This programme covers the following costs that directly contribute to energy-related
CO2 emission reductions. The typical costs not covered by this programme are also
listed below.

Requirements for Representative Participant

Covered

A representative participant of the JCM model project shall be a Japanese entity andshall appropriately manage and implement the project as a representative entity of aninternational consortium which includes JCM partner-country entities. A
representative participant also shall conduct measurement, reporting and veriﬁcation(MRV) of GHG emission reductions.

● Facilities/equipment ( including monitoring equipment )● Main construction work
● Ancillary work
● Machinery and appliances● Surveying and testing● Administrative work
● Other necessary costs approved by GEC

Implementation Period of Model Projects

NOT covered

Participants of the model project shall start installation after the contract of ﬁnance isconcluded and shall ﬁnish installation and payments of the eligible facilities andequipment within 3 years.

● Removal of existing facilities /equipment(including miscellaneous expenses related to removal costs )● 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.
● Civil engineering work and building(excluding structures that directly contribute to energy-related CO2 emission reductions)● 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● Spare parts (excluding those used for testing and commissioning )● On-site inspections and writing reports that are submitted to GEC as part of the model project● Forward exchange contract and remittance charge● Cost related to land acquisition

BudgetAbout JPY 17.1 billion (approx. USD 158 million) from FY 2022 for 3 years

Financial Support per Project
Equal to or less than JPY 2 billion in principle※Costs eligible for ﬁnancial support in the JCM Eco Lease Scheme are limited to a leasing fee of the costsof facilities/equipment and relevant lease interests.

10Outline of Guidelines for Submitting JCM Model Project Proposal in FY2022（2）Period of Measurement, Reporting andVeriﬁcation (MRV)

Cost-effectiveness of Emission Reductionsof GHGs

Participants of the model project shall conduct measurement, reporting andveriﬁcation (MRV) of GHG emission reductions until the end of legal durable years of
the facilities/equipment as stipulated by the Japanese law. Please note that the legal
durable years of the same facility may vary depending on the purpose of businessusage as shown in the examples below.

The cost of reducing 1 ton of GHG emissions shall be JPY4,000/tCO2eq or lower inprinciple. However, if the number of similar technological projects in a partner country
is 5 or more, its cost-effectiveness is expected to be JPY3,000/tCO2eq or lower. If it is 10
or more, JPY2,500/tCo2eq or lower.If it is 20 or more, JPY2,000/tCo2eq or lower

Cost-effectiveness of emission reductions of GHG〔JPY/ tCO2eq〕＝ Amount of ﬁnancial support〔JPY〕
Total emission reductions of GHG〔 tCO2eq 〕*

Ministerial Ordinance on the Durable Years, etc.
of Depreciable Assets( Ordinance NO.15 of Ministry of Finance, March 31, 1965 )Appendix table 2

Producing “other ﬁnal products” by using installed facilities

Appendix table 1

Other cases than the above
ex. the building owner introduces facilities as shared equipment*Total emission reductions of GHG＝ Emission reductions of GHG per year〔 tCO2eq /y〕 legal durable years〔 y〕* Amount of ﬁnancial support〔JPY〕＝ Costs eligible〔 JPY〕 Percentage of ﬁnancial support〔%〕〈Examples 〉
In principle, If the number of similar technology in a partner country is less than 5,

Category oftechnology

Purpose of business usage

Legal durable
years

JPY4,000/tCO2eq or lower

Solar power
generation
facilities

Electric power sales

17 years

If the number of similar technology in a partner country is 5 or more,Internal consumption at car manufacturing factories

9 years

Boilers

Absorption
chillers

JPY3,000/tCO2eq or lower
If the number of similar technology in a partner country is 10 or more,Internal consumption
from rooftop equipment on warehouses

12 years

JPY2,500/tCO2eq or lower

Cooking oil production

10 years

JPY2,000/tCO2eq or lower

Rubber products production

9 years

Hot water supply for hotels

17 years

Supply of chilled water in chemical factories

8 years

Air conditioning in shopping malls

If the number of similar technology in a partner country is 20 or more,

Solar power project (except Thailand in which the number of similar technology
is 20 or more)

JPY2,500/tCO2eq or lower
Hydropower project

JPY500/tCO2eq or lower

15 years※Regarding the number of similar technology in the partner countries, please refer to Annex 2 “Categorization
by applied technology type, Number of JCM model project by each country” of Guidelines for Submitting
Proposals.

※ For questions regarding how to determine the appropriate legal durable years for your project, pleasecontact Japanese local tax ofﬁce.

11Outline of Guidelines for Submitting JCM Model Project Proposal in FY2022（3）Main Evaluation Criteria for Selecting JCM Model
Projects in FY2022 including New Points

JCM Eco Lease Scheme
From the ﬁscal year 2020, “JCM Eco Lease Scheme” is implemented to cover leasing
charges and interests. This scheme has an advantage in reducing the reporting burdenof representative participants with shorter monitoring period and simpler proposal
document.

Measures to respect human rights
Project participant should take the best possible measures to respect human rights under its
own responsibility in accordance with the Action Plan on Busine ss and Human Rights(2020-2025) (the Inter-Ministerial Committee for Japanʼs National Action Plan on Businessand Human Rights, October 2020)

Representative
Participant

Japanese leasing company

Amount of
Financial Support

Up to JPY500 million for 3 years in principle

The model project shall prioritize the partner countries that have already established theJCM. Also, project proposals in the Indo-Paciﬁc region (speciﬁcally Asia and Island regions)and African region will be received on the premise that selection is considered in parallelwith bilateral negotiations for new partner countries, based on the Implementation of
Article 6 following COP26 (MOEJ, November 2021).

Percentage ofFinancial Support

Uniformly 10% of total leasing charges including leasing
interests

Period of MRV

Equal to leasing period

Additional point for JCM focus areas of the Infrastructure Initiativefor Decarbonization (MOEJ, June 2021)

Leasing Period

At least 5 years

Costs Eligible forFinancing

Leasing charges of the costs of facilities/equipment
and relevant lease interests

Eligible Type ofTechnologies

In principle, technologies with JCM methodology (ies)that have been either approved or proposed

Financial Statement
for Application

Only ﬁnancial statements of Representative Participant
need to be submitted.

Countries of priority

Projects that introduce following leading decarbonizing technol ogies that are among the
focus areas for JCM according to the Infrastructure Initiative for Decarbonization (MOEJ,
June 2021) (*Excluding countries that have already introduced or are introducing thesetechnologies as JCM model projects):
1) Renewable energies (solar power, wind power, hydro power, geothermalenergy, biomass energy, green hydrogen, and so forth)2) Green logistics including cold chain (non-ﬂuorocarbon cooling system,
modal shift, airports, ports and harbors, and so forth)
3) Waste management infrastructure (waste to energy, and so forth)

Submission of Proposals

Criteria for solar power plants
The conversion rate from optical to electric energy of photovoltaic modules mustbe 20% or higher.

How to Submit Proposals:
Proposals must be submitted electronically.

Criteria for solar power plants with batteries

Period:From Wednesday, 6 April 2022 to Wednesday, 30 November 2022 (12:00 JST)*It may be closed before the deadline based on the availability of remaining budget.

● Photovoltaic module:
The efﬁciency of photovoltaic modules must be 20% or higher.
● Battery:If the battery meets the requirements stipulated in Guidelines for Submitting Proposals,
the battery will also be covered by this programme.

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Japan Platform for Redesign: Sustainable Infrastructure（JPRSI）
What is JPRSI?
JPRSI is a public-private partnership platform established by the Ministry of the Environmentof Japan in September 2020 to comprehensively support partner countries' governments andcorporations, etc. to improve environment by introducing Japanese environmental
infrastructure.

Environmental Infrastructure① Infrastructure for Environmental Conservation
Waste to energy (WtE), waste water treatment plant, decentralized domestic wastewater
treatment system (“Johkasou"), renewable power generation, renewable hydrogen etc.

② Infrastructure that Contributes to Decarbonization andReduction of Environmental Impacts･ Introduction of renewable energy and energy-saving equipment to infrastructures andcities,･ Highly-efﬁcient energy utilization and management in infrastructure,･ Introduction of equipment for emissions reduction of pollutants (wastewater, exhaustgas, dust, etc.),･ Introduction of disaster prevention systems that contribute to climate change
adaptation, etc.

Major Activities and Achievements① Dissemination of technical information provided
by Japanese companies
A list of environmental technologies of JPRSI members is compiled and disseminated(179 technologies, available in English)② Matching local needs with Japanese corporationsʼ solutions
The JPRSI platform receives inquiries from local governments and/or private sectors ofcommerce with interest in Japanese environmental technologies and the possibility tocollaborate in projects, and introduces the inquiries to JPRSI members for matching.

Japan
Corporations
Local governments
Financial institutions(banks, Investors, etc.)
Consultants
Experts
Relevant ministries
and agencies

Sharing
information

Matching
needs andsolutions

Partner countries
Governments
CitiesCorporations

Internationalorganizations/MDBs
ADB, GCF etc.

JPRSI HP:JPRSI Secretariat (FY2022)
Overseas Environment Cooperation Center (OECC)
Mail: info-jprsi@oecc.or.jp

JPRSI Members （as of September 30, 2022)
461 Japanese corporations etc.
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Application Support by GEC for JCM Model Project
GEC Website
GEC introduces project examples selected so far in the JCM Model Project on the GEC website. You can search by sector suchas renewable energy for project study. For additional information, please refer to “Guidelines for Submitting Proposals” andQ&A on the website.

Suitable for

Obtaining information on the programme including past projects and how toapply, etc.

https://gec.jp/jcm/“JCM Global Match” JCM Business Matching Platform ‒ Free of charge The JCM Global Match is a free-of-charge online business matching platform designed to help you ﬁnd your business partners
for an International Consortium of your JCM Model Project. Among the registrants in the platform, you will be able to ﬁnd
Japanese and international companies with excellent decarbonization technologies, JCM partner country companies to use
such technologies, consultants familiar with the JCM Programme and helpful in deal making, and Japanese and multinational
ﬁnancial institutions. About 40 % of the registrants are Japanese entities and the rest are from more than 40 countries.
You can appeal your companyʼs specialties and projects to all the registrants in various ways, like adding your information in
the proﬁle and specialty sections, posting a chat about your company or project in the "Open Discussion" room, etc. And you
can ﬁnd your potential business partner from the search window or the lists of the companies by categories. If you ﬁnd aregistrant of a company you are interested in, send a “Matching Request” to him/her. Once the receiver accepts your request,
you can get his/her whereabouts to contact directly with him/her. In addition, you will get useful information about JCM andevents on the platform. Register now. Itʼs easy.
(Contact for JCM Global Match: jcm-gm@gec.jp)

Suitable forhttps://gec.force.com/JCMGlobalMatch/s/?language=en̲US
Finding JCM project partners including Japanese companies expanding businessoverseas and overseas companies wishing to introduce technologies using JCM funding.

Consultation by GEC
GEC provides application consultation in order to assist project formation for entities interested in JCM Model Project. Please feel free to contact us. Please send an e-mail to
jcm-info@gec.jp. Subject of e-mail should be “Consultation on application for JCM Model Project (Your company name)” .

Suitable for

Cover Pictures

Asking questions to or consulting with GEC staff directly at various phases of proposal preparation from early planning
to application.

Top from the left ; Amorphous Transformers (Lao PDR) Yuko Keiso Co., Ltd. / Boiler (Viet Nam) Acecook Co., Ltd. / Chiller (Thailand) The Kansai Electric Power Co., Inc. / Boiler (Indonesia) Japan Pulp and Paper Company Limited
Bottom from the left ; Solar Power (Cambodia) Asian Gateway Corporation / Waste Heat Recovery (Myanmar) Global Engineering Co., Ltd. / Gas Co-generation System and Chiller (Thailand) The Kansai Electric Power Co., Inc.
/ Solar Power (Mexico) Sharp Energy Solutions Corporation

14

【Tokyo Ofﬁce】

4th Floor Hongo Ozeki Bldg., 3-19-4 Hongo Bunkyo-ku, Tok yo 113-0033, Japan【Osaka Headquarters】

2-110, Ryokuchi-koen, Tsurumi-ku, Osaka 538-0036, Japan☎+81-3-6801-8860☎+81-6-6915-4122 (Climate Change Division)

http://gec.jp/jcm /http://twitter.com/GEC̲ JCM̲Info
jcm-info@ gec. jp