Introduction of the Joint
Crediting Mechanism (JCM) &Financing Programme for
JCM Model Projects

Published in August 2023

Expanding JCM Partner Countries
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 27 countries (as of August 31st, 2023) andcontinues to communicate with other developing countries.

Mongolia

Bangladesh

Ethiopia

Kenya

Maldives

VietnamLao 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

Position of the JCM in the Plan for Global Warming Countermeasures
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 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

Operation and managementby the Joint Committee
which consists of representatives
from both sides（Cabinet Decision, October 2021）

JCM Global Partnership

Papua New Guinea United Arab Emirates

Credits are used toachieve Japan's emission
reductions target

Three Pillars of Activities

Credits

KyrgyzPartnerCountry
JCM Projects
MRV**measurement ,reportingand veriﬁcation

GHG emission
reductions/removals

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

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

JCM

Article 6 (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

Overview of Japanʼs Support for the JCM Partner Countries
Programme

Ministry

Ministry of theEnvironment

Type of support

Finance Programme for JCM
Model Projects*1

Subsidy

Finance Programme for F-gas Recovery
and Destruction Model Projects*1(See page 14)

Subsidy

Japan Fund for the JCM (JFJCM)- managed by ADB*2 (See page 15)

Grant

JCM Support Programme by UNIDO*1*3(See page 16)

Ministry of
Economy,Trade andIndustry
Forestry Agency

Grant for projects, technical cooperation

Project Development/
Capacity Building/MRV Support

Technical cooperation

JCM Feasibility Study

Technical cooperation

JCM Demonstration Projects

Government-commissioned project

Field Studies for JCM REDD+

Government-commissioned project*1 These programmes can support projects implemented by government-owned companies but not those implemented by the government itself.
*2 JFJCM : ADB (Asian Development Bank) Trust Fund/Japan Fund for Joint Crediting Mechanism, *3 UNIDO : United Nations Industrial Development Organization

2

Financing Programme for JCM Model Projects
Japan

Contribution from Japan (example)

Partner Country

Ministry of theEnvironment

Joint Committee

Credits

Initial cost

SelectFinancialsupportGHG
emissions

Partner Participant(JCM Partnercountry Entity, etc.)

Initial cost

Subsidy

JCM
Model Project

Incentivize selection of
decarbonizing
technologies, etc. by
the ﬁnancial support or
the investment to theinitial cost

Emission reductions

International Consortium

GHG emissions

Global Environment
Centre Foundation

Representative
Participant(Japanese Entity)

Japanesegovernment& entities

Partner Countryʼs
government& entities

Japan will acquire apart of JCM credits(in return for thecontribution of Japan,such as ﬁnancial
support or investment
for projects*)＊The proportion ofﬁnancial support
depends on
supporting schemes.

Advanced decarbonizing

Conventional
equipment & facility

equipment & facility

JCM Model Projects FlowCall for Proposal
Evaluation of
proposals（Proposal review & interview
with applicants, Inquiry of
PIN*1 to partner countries）
Selection of model projects
Documentation brieﬁng forthe notice of contractof ﬁnancing

Review ofapplication
documents*2
Submission of
application
Notice of contractof ﬁnancing

Model Projects Start

Implementation of model projects●Single 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

MRV

Inspection

Disbursement of ﬁnancial
support●Single 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 ofﬁnancial support

Measurement

ReportingVeriﬁcation

CreditIssuance

Representative Participant of JCM Model Projects
shall conduct measurement, reporting andveriﬁcation (MRV) of the GHG emission reductions
realized after installation and commissioning of the
facilities/equipment for the issuance of JCM credits.

*1 PIN: The Project Idea Note is a proposal document shared with a partner country prior to the selection as a JCM Model Project to inquire if there is an objection.
*2 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.

3

Project Cycle of the JCM
Project Participant
Joint Committee

Can be conductedby the same TPE.
Can be conductedsimultaneously.

Submission of PIN*1*2
Conﬁrmation of no objection*2

Project Participant / Each Government
Joint Committee

Submission of proposed
methodology

Joint Committee

Approval of proposed
methodology

Project Participant

Development of PDD*3

Third Party Entities

Validation

Joint Committee

Registration

Project Participant

Monitoring

Third Party Entities

Veriﬁcation

Joint Committee decides the amount
Each Government issues the credit

Issuance of credits*1 PIN (Project Idea Note):
A document used to explain theoutline of the project to thepartner country and conﬁrm noobjection.
*3 PDD (Project Design Document):
A document that includes
monitoring methods andestimated emission reductions.
Required for project registration.

JCM Home Page
URL: https://www.jcm.go.jp/＜Contents＞● General information page
● Individual JCM partnercountries-Japan page

＜Function＞● Information sharing to the
public, e.g.,
・JC decision
・JCM rules and guidelines
・methodologies and projects
・issuance of JCM credits
・call for public inputs/
comment
・status of TPEs, etc.
● Internal information sharing
for the JC members, e.g.,・ﬁle sharing for electronic
decisions by the JC*2 For the latest information on JCM rules and guidelines, including the PIN procedures adopted by each Partner Country government, please conﬁrm each partner country page on the
JCM home page.

4

Examples of JCM Model Projects by Technology
Energy Efﬁciency

Air Cooled Chiller (Vietnam）
Hitachi-Johnson Controls Air Conditioning, Inc.

Thermal Oil Heater System (Indonesia）
Fumakilla Limited

Autoclave（Indonesia）
Otsuka Pharmaceutical Factory, Inc.

Energy Efﬁciency

Once Through Boiler (Thailand）
Osaka Gas Co., Ltd.

Boiler (Thailand）
The Kansai Electric Power Co., Inc.

Effective Use of Energy

LED Lighting (Vietnam）
Endo Lighting Corporation

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

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

Mini Hydro Power Plant (Indonesia)
Voith Fuji Hydro K.K.

Biomass Boiler（Vietnam）
Daiichi Jitsugyo Co., Ltd.

Biomass Boiler（Vietnam）
Marubeni Corporation

Renewable Energy

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

Renewable Energy

Solar Power (Indonesia）
Alamport Inc.

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.

5

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

● Renewable Energ yCase Examples of
JCM Model Project

1

2

Rehabilitation Project of Power Generation
System at Karai 7 Mini Hydro Power Plant
Country
Representative
Partner● Renewable Energ yCase Examples of
JCM Model Project

Biogas Power Generation and Fuel Conversion
Project in Pineapple Canneries

Indonesia
Voith Fuji Hydro K.K.
PT Global Karai Energi

Country
Representative
Partners

This project is to conduct a rehabilitation for Karai 7 Hydro Power Project (3.54MW x2) located in north Sumatra. By introducing the latest turbine technology includingHigh Velocity Oxygen Fuel (HVOF) coating to increase wear resistance andreplacement of generators, the maximum output and annual power generation are
expected to be increased by 8.8% and 5.7% respectively.

【Before renewal】

Philippines
Itochu Corporation
Met Power Venture Partners Holdings Inc.,
Surallah Biogas Ventures Corporation

In this project, biogas derived from pineapple residue is utilized as fuel for gas enginesand boilers to generate power and steam at the two pineapple canning factories(Surallah and Polomolok) of Dole Philippines, Inc. This project aims to produce
renewable energy by utilizing the pineapple waste and contributes to reducing
greenhouse gases emissions as well as lowering electricity cost of the factories.
5.Digestate Treatment

Turbine1.Substrate
SupplyGenerator

Organic
Fertilizer

4.Biogas Conditioning/
Cleaning
Digestate
Tank

Gas Storage
Tank

Storage Tank

Digesters

Mixing Tank

Hydrolysis Tank

2.Substrate Conditioning/
Pre-Treatment

6

4A.Combined HeatPower Generarion
Heat

Electricity

Biogas3.Substrate
Digestion/
MethaneGeneration
4B.Methane：
Heat Utilization

● Renewable Energ yCase Examples of
JCM Model Project

Case Examples of
JCM Model Project3

4

Introduction of Biomass Boiler to
Chemical FactoryCountry
Representative
PartnerIntroduction of Air Cooled Chiller toOfﬁce Building

VietnamDaiichi Jitsugyo Co., Ltd.
Thuan Hai Corporation

Country
Representative
PartnerThis project introduces biomass (rice husk) -fueled steam boilers to supply steam to achemical factory located in Phu My 3 Specialized Industrial Park in Ba Ria Vung Tau
Province. It contributes to the achievement of the countryʼs Environment Protection
Visions to 2030 and Green Growth Strategy through achieving decarbonization byreplacing fossil fuel-ﬁred boilers.
Boiler Body

Belt Conveyor

Receiving
HopperThis project introduces a high efﬁciency air cooled chiller to Saigon Tower Ofﬁce
Building in Ho Chi Minh City and reduces energy consumption as well as greenhousegas (GHG) emissions.
Air Cooled Chiller

Water
Pre-heater

BucketConveyor

Belt Conveyor

Vietnam
Hitachi-Johnson Controls Air Conditioning, Inc.
Daibiru Saigon Tower Co., Ltd.

Chimney

Air Pre-heater

Primary
Storage Silo

BucketConveyor● Energy Efﬁciency

Buffer Silo
Forcedwith
Weight Scale Draft Fan

Bag Filter
Deaerator

Install kW meter for
power line of aircooled chiller
Induced Draft Fan

7

● Renewable Energ yCase Examples of
JCM Model Project

56

2.7MW Solar Power Project with Blockchain Technology
in Chiang Mai University Town Community
Country
Representative
Partner● Renewable Energ yCase Examples of
JCM Model Project

29MW Binary Power Generation Projectat Palayan Geothermal Power Plant

ThailandInabata Co., Ltd.
Thai Digital Energy Development Co., Ltd.

Country
Representative
PartnerThis 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.

This project introduces a 2.7 MW solar power generation system on the roofs ofmultiple buildings in Chiang Mai University. The system is operated by blockchain
technology which expands and optimizes the use of renewable energy on campus andreduces greenhouse gas (GHG) emissions.
Building A
Solar Panels

Building C

Smartmeter

Separator Steam Turbine

Chiang Mai
University Town

Condenser

Energy Managementwith Blockchain Technology

Building B

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

Steam

Exhaust Hot Water

Evaporator

Wastewater
Preheater

Production
Well

8

Reinjection
Well

Generator
Cooling Tower

Flash Cycle
Geothermal Power Plant
Binary Turbine

Generator

Regenerator

Condenser

Thermal Medium
Binary Geothermal Power Plant

ElectricPower

Cooling Tower

Grid● Effective Use of Energy

Case Examples of
JCM Model Project● Energy Efﬁciency

7

8

Introduction of Amorphous High Efﬁciency
Transformers in Power Grid

Introduction of Gas Co-generation System andAbsorption Chiller to Fiber FactoryCountry
Representative
Partner● Energy Efﬁciency

Case Examples of
JCM Model Project

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

Countries
Representative
Partners

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 District, Ayutthaya.These gas co-generation system andabsorption chiller contribute to energy saving and cost reduction, and can improvereliability for power supply.

Grid Power①Vietnam, ②Lao 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 this project in Lao PDR, this technology had been widely
introduced in Vietnam and further expansion to other JCM partner countries can be expected.

Electricity

C❷ Lao PDR
Gas CogenerationD❶ Vietnam

Steam

Waste
Heat

B

Boiler
Absorption
Chiller
Centrifugal
Chiller

Expanding toother partnercountries

Chilled
Water

9

A

AmorphousHigh Efficiency
Transformers

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

JCM Financing Programme by MOEJ（FY2013 〜 2023） as of August 17, 2023
Total 232 projects（27 partner countries）

152 underlined projects have been started operation.

71 projects with* have been registered as JCM projects.

● Model Projects : 219 projects (including Eco Lease : 7 projects), ● JFJCM : 6 projects, ● UNIDO : 1 project, ● REDD+ : 2 projects, ● F-gas : 4 projects
Cambodia：5 projects● LED Street Lighting＊● Solar PV & Centrifugal Chiller● 0.9MW Solar PV

Mongolia：9 projects● 200kW Solar PV at International School＊● Inverters for Distribution Pumps＊

Myanmar：8 projects● Brewing Systems and Biogas Boiler
to Brewery Factory● Brewing Systems to Brewery Factory● 4.3MW Solar PV

Bangladesh：5 projects● Loom at Weaving Factory＊● High Efﬁciency Transmission Line

Saudi Arabia：3 projects● Electorolyzer in Chlorine
Production Plant● 400MW Solar PV● 100MW Solar PV

Ethiopia：1 project● 2.1MW Solar PV in Farm＊● Upscaling Renewable Energy Sector● 15MW Solar PV2● 10MW Solar PV＊● Fuel Conversion by Introduction of LPG Boilers● 8.3MW Solar PV in Farm＊

Vietnam：44 projects● 700kW Waste to Energy Plant＊● Once-through Boiler in Instant Noodle Factory● 1.8MW Rice Husk Power Generation● Refrigeration System in Logistics Center● 8.8MW Waste Heat Recovery in Cement Plant● Centrifugal Chiller● 315kW PV-diesel Hybrid System＊● Centrifugal Chiller＊● Heat Only Boiler (HOB)＊＊● 15MW Solar PV1＊
● Improving Access to Health Services

Maldives：3 projects● 186kW Solar Power on
School Rooftop＊● Smart Micro-Grid System● Greater Male Waste to
Energy Project● 120MW Solar PV

Kenya：5 projects● Digital Tachographs＊● Container Formation Facility＊● Air-conditioning Control System● Energy Saving Equipment in Lens Factory＊● Amorphous transformers 4● Modal Shift with Reefer Container● F-gas Recovery and Dedicated Destruction Scheme● 49MW solar PV● Air-conditioning in Hotel2● 12MW Solar PV● F-gas Recovery and Mixed Combustion Scheme● 7.9MW Solar PV● 1.8MW Solar PV● Amorphous transformers1＊● 320kW Solar PV in Shopping Mall＊● 1.53MW Rooftop Solar PV＊● 4MW Solar PV＊● 29MW Binary Geothermal Power Generation● 20MW Flash Geothermal Power Plant● 28MW Binary Geothermal Power Generation● 14.5MW Mini Hydro Power Plant● 370kW Solar PV for Commercial Facilities＊● 155kW Solar PV for School＊● 445kW Solar PV for Commercial Facilities Ⅱ＊● Methane Avoidance and Biomass
Boiler in Fruit Processing Factory● 1MW Solar PV on Factory Rooftop＊● Centrifugal Chiller in Tire Factory● Refrigeration System＊● LED Lighting to Sales Stores● Co-generation System PV● Heat Recovery Heat Pump＊● Boiler System in Rubber Belt Plant● Co-generation in Fiber Factory● 3.4MW Solar PV● 8.1MW Solar PV● 2MW Solar PV2● 23MW Solar PV● Boiler, Chiller and PV● 0.13MW Solar PV (Eco Lease)● 4MW Solar PV● Upgrading Air-saving Loom＊● Co-generation in Motorcycle Factory＊● Ion Exchange Membrane Electrolyzer● 2MW Solar PV1● 3.4MW Solar PV＊● 30MW Solar PV＊● Air-conditioning Control System● Biomass Boiler● 0.8MW Solar PV and Centrifugal Chiller● 37MW Solar PV and Melting Furnace● Centrifugal Chiller to Machinery Factory● 2.7MW Solar PV with Blockchain Technology● Once-through Boiler in Garment Factory● 2MW Solar PV3● Gas Co-generation System & 22MWSolar PV● 2.9MW Solar PV● 1MW Solar PV● 1.6MW Solar PV (Eco Lease)● Centrifugal Chiller at Textile Factory＊● Refrigerants to Cold Chain Industry＊＊● Centrifugal Chiller at Textile Factory 2＊● 500kW Solar PV and Storage Battery＊● Centrifugal Chiller at Textile Factory 3＊● Upgrading to Air-saving Loom＊● Smart LED Street Lighting System● Gas Co-generation System＊● 1.6MW Solar PV in Jakabaring Sport City＊● 10MW Hydro Power Plant1● Industrial Wastewater Treatment System● Absorption Chiller＊● Rehabilitation of Hydro Power Plant● Boiler to Carton Box Factory● 6MW Hydro Power Plant2● 8MW Mini Hydro Power Plant● 6MW Hydro Power Plant3

10

Costa Rica：2 projects

Chile：13 projects● 0.4MW Solar PV for Supermarket＊● 1MW Solar PV for Supermarket

Indonesia：50 projects

Thailand：51 projects● 9MW Solar PV● 5.6MW Binary Geothermal Power Generation● 27MW Solar PV● 1.2MW Rooftop Solar PV＊● Biogas Power Generation and Fuel Conversion● 5MW Solar PV＊● Chiller and Heat Recovery System

Palau：5 projects

Laos：6 projects● Energy Saving at Convenience Store● Centrifugal Chiller & Compressor＊● Air Conditioning System & Chiller＊● Chilled Water Supply System● 12MW Waste Heat Recovery in Cement Plant＊● Refrigerator and Evaporator● 5MW Floating Solar PV＊● Biomass Co-generation System● 17.8MW Solar PV in Industrial Park● F-gas Recovery and Destruction Scheme● Heat Exchanger in Fiber Factory● 5MW Solar PV● 2.6MW Solar PV● 32MW Solar PV and Floating Solar PV● 35MW Solar PV and Storage Battery● 1.3MW Solar PV (Eco Lease)● ORC Waste Heat Recovery● 0.8MW Solar PV (Eco Lease)● 6MW Waste Heat Recovery in Cement Plant● 1.2MW Solar PV (Eco Lease)● 1MW Rooftop Solar PV● 9.6MW Solar PV● F-gas Recovery and Destruction Scheme● 1.2MW Power Generation with Methane Gas Recovery System● Once-through Boiler and Fuel Switching● 30MW Solar PV1● Energy Efﬁcient Distillation System● 0.5MW Solar PV (Eco Lease)● Amorphous transformers2● 14MW Floating Solar PV＊● 19MW Solar PV● High Efﬁciency Chiller● Air Cooled Chillers● Once-through Boiler to Food Factory● Waste to Energy● 5.8MW Solar PV● 16MW Mini Hydro Power Plant● 5.7MW Solar PV● Air-conditioning in Lens Factory＊● Biomass Boiler● LED Lighting to Ofﬁce Building● 2.5MW Solar PV● 48MW Offshore Wind Power● 9MW Solar PV● Chiller and LED

Philippines：17 projects

Mexico：5 projects● 1MW Solar PV at Salt Factory＊● 3.1MW Solar PV● 2.3MW Solar PV● 1.5MW Solar PV● 230kW Solar PV and Storage Battery● REDD+ through controlling slush-and-burn● Amorphous transformers＊● 11MW Solar PV＊● Electricity Kiln
● Amorphous transformers 3＊● Energy Saving Equipment in Brewery Factory● Inverters for Raw Water Intake Pumps● Biomass Boiler to Chemical Factory● 57MW solar PV● 2MW Solar PV● 9.8MW Solar PV● 20MW Biomass Power Plant● 0.4MW Solar PV (Eco Lease)● 0.8MW Solar PV● Air-conditioning in Hotel1＊● Amorphous transformers 2＊● High Efﬁciency Water Pumps＊● Energy Saving Equipment in Wire Production Factory＊● 1MW Rooftop Solar PV＊● 3.4MW Rice Husk Power Generation● 3MW Solar PV1＊
● 3MW Solar PV2● 25.8MW Solar PV● 9MW Solar PV1● 9MW Solar PV2● 3MW Solar PV3● 6MW Solar PV● 9MW Solar PV1● 9MW Solar PV2● 47MW Solar PV● 2.0MW Solar PV● Once-through Boiler in Chemical Factory● 2.1MW Solar PV● 55MW Geothermal Power Generation● Energy Saving at Convenience Store＊● Double Bundle-type Heat Pump＊● 30MW Waste Heat Recovery in
Cement Industry＊● Regenerative Burners＊● Old Corrugated Cartons Process＊● Centrifugal Chiller in Shopping Mall＊● Once-through Boiler System in Film Factory＊● Once-through Boiler in Golf Ball Factory＊● REDD+ through controlling slush-and burn
● Looms in Weaving Mill＊● 0.5MW Solar PV＊● High Efﬁciency Autoclave1● Injection Molding Machine● 10MW Hydro Power Plant2● 5MW Hydro Power Plant● Thermal Oil Heater System● 2.3MW Hydro Power Plant● 5MW Solar PV● 3.5MW Hydro Power Plant● 12MW Biomass Power Plant● LED Lighting to Sales Stores● Gas Co-generation system● CNG-Diesel Hybrid Public Bus● 2MW Mini Hydro Power Plant● 6MW Hydro Power Plant1● 4.2MW Solar PV● 3.3MW Rooftop Solar PV● High Efﬁciency Autoclave2● 3.1MW Solar PV● Energy Saving and Solar PV

Outline of Guidelines for Submitting JCM Model Project Proposal in FY2023 (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 34 and more

Percentage ofﬁnancial support

Up to 50%

Up to 40%

Up to 30%

(0)

(1-3)

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 15 billion (approx. USD 109 million) from FY 2023 for 3 ﬁscal 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.

11Outline of Guidelines for Submitting JCM Model Project Proposal in FY2023 (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.*1

The cost of reducing 1 ton of GHG emissions shall be JPY4,000/tCO2eq or lower.
However, if the number of similar technological projects in a partner country is 5 ormore, 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.*2*2 Regarding the number of similar technological projects in the partner countries, please refer to Annex 3“Categorization by applied technology type, Number of JCM model project by each country” of Guidelines
for SubmittingProposals.

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

Cost-effectiveness of emission reductions of GHG〔JPY/ tCO2eq〕＝ Amount of ﬁnancial support〔JPY〕*3
Total emission reductions of GHG〔 tCO2eq 〕*4Ministerial 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*3 Amount of ﬁnancial support〔JPY〕＝ Costs eligible〔 JPY〕 Percentage of ﬁnancial support〔%〕*4 Total emission reductions of GHG＝ Emission reductions of GHG per year〔 tCO2eq /y〕 legal durable years〔 y〕〈Examples 〉
Category oftechnology

Solar power
generation
facilities

Boilers

Absorption
chillers

Purpose of business usage

Legal durable
years

Electric power sales

17 yearsInternal consumption at car manufacturing factories

9 years

Internal consumption
from rooftop equipment on warehouses

12 years

Cooking oil production

10 years

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

In principle, if the number of similar technological projects in a partner country is less than 5,

JPY4,000/tCO2eq or lower
If the number of similar technological projects in a partner country is 5 or more,

JPY3,000/tCO2eq or lower
If the number of similar technological projects in a partner country is 10 or more,

JPY2,500/tCO2eq or lower
If the number of similar technological projects in a partner country is 20 or more,

JPY2,000/tCO2eq or lower
Solar power project

JPY2,500/tCO2eq or lower
Hydropower project

JPY500/tCO2eq or lower

15 years
12

Outline of Guidelines for Submitting JCM Model Project Proposal in FY2023 (3)Main Evaluation Criteria for Selecting JCM Model
Projects in FY2023 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.

Countries of priority
The model project shall prioritize the partner countries that have already established the JCM. Basedon the objective of increasing the number of partner countries to around 30 in accordance with theGrand Design and Action Plan for a New Form of Capitalism (Cabinet Decision in June 2022),
proposals for projects in non-partner countries will also be accepted on the basis that their selection
will be considered in parallel with the bilateral negotiations for new partnership.

Additional point for JCM focus areas of the Infrastructure Initiativefor Decarbonization (MOEJ, June 2021)
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 these technologies as JCM model projects):
1) Renewable energies (solar power, wind power, hydro power, geothermal energy, 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)Criteria for solar power plants
The conversion rate from optical to electric energy of photovoltaic modules mustbe 21% or higher.

Criteria for solar power plants with batteries● Photovoltaic module:
The efﬁciency of photovoltaic modules must be 21% or higher.
● Battery:If the battery meets the requirements stipulated in Guidelines for Submitting Proposals,
the battery will also be covered by this programme.

Representative
Participant

Japanese leasing company

Amount of
Financial Support

Up to JPY500 million for 3 years in principle

Percentage ofFinancial Support

Uniformly 10% of total leasing charges including leasing
interests

Period of MRV

Equal to leasing period

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.

Submission of Proposals
How to Submit Proposals:
Proposals must be submitted electronically.

Measures to respect human rights

Period:Representative participant should take the best possible measures to respect human rights under its
own responsibility in accordance with the National Action Plan on Business and Human Rights(2020-2025) (the Inter-Ministerial Committee for Japanʼs National Action Plan on Business andHuman Rights, October 2020)as well as the Guidelines on Respecting Human Rights in Responsible
Supply Chains (the Inter-Ministerial Committee on Policy Promotion for the Implementation ofJapanʼs National Action Plan on Business and Human Rights, September, 2022)

From Thursday, 6 April 2023 to Thursday, 30 November 2023 (12:00 JST)
● Pre-registration is recommended before submitting a proposal.
● It may be closed before the deadline based on the availability of remaining budget.

13

Finance Programme for JCM F-gas Recovery and Destruction Model Projects by MOEJ
Budget for FY2023
JPY 57 million (approx. USD 0.45million)(USD 1 = JPY 137)
Fixed amount grant for project cost
（up to JPY 57 million/case）

Ministry of theEnvironment
Global Environment
Centre Foundation

After issuance, some credits are to betransferred to the Japanese government.

International consortiums (which include Japanese entities)
Manufacturers ofequipment
containing F-gas(A/C manufacturers, etc.)

Business operators
who own equipment
containing F-gas

F-gas recovery and delivery
operators of F-gas(recycling or scrap operators)

PurposeF-gas destruction
operators (may use
existing facility for
destruction)

Project Period

To contribute to achieve Japanʼs emission reduction target byutilizing JCM credit through recovery and destruction of
F-gases without releasing them into the atmosphere

In principle, three years (Five years in maximum)(e.g., 1st year for making business scheme; 2nd year for
installing facilities and equipment; 3rd year for implementing
recovery/destruction)

Scope of Financing

Eligible Projects● Establishment of scheme for recovery and destruction● Installation of facilities/equipment for recovery/destruction● Implementation of recovery, transportation, destruction
and monitoring● Implement F-gas recovery/destruction activities from usedequipment● Aim to register as JCM project and issue credits

14

ADB Trust Fund: Japan Fund for the Joint Crediting Mechanism (JFJCM)
Budget for 2023: JPY 3 billion (approx. USD 22.5 million)

Budget● Cumulative contribution from 2014: JPY 14 billion (approx. USD 100 million)
including JPY 0.3 billion from the contributions for methane emission reductions

Overview

To provide ﬁnancial incentives for the adoption of expensive but advanced low-carbon/methane
in projects ﬁnanced by Asian Development Bank (ADB)

PurposeTo develop ADB projects with sustainable and decarbonizing transition perspective byintroducing advanced low-carbon technologies as well as to acquire JCM credits

JCM credits

ADB
MOEJ

Contribution*1 Ordinary Capital Resources are from:(1) Paid-in capital provided by shareholders,(2) Funds borrowed from capital markets
and private placements, (3) Accumulated

ADB source（OCR*1/ADF*2)

retained income (reserves). OCR loans areprovided to middle-income countries at aquasi-market rate.
*2 Asian Development Fund offers concessionalloan and grant to low-income countries.

Grant

JFJCM
(Trust Fund)

Co-Financing partners(Other ﬁnancial
institutions and funds)

MRV
Additional costs fromadvanced low-carbon
technologies

Loan/Grant, etc.

Co-ﬁnancing
Loan/Grant, etc.

15

Project(selected from ADB
project pipeline)

GHG
reduction

JCM Support Programme by UNIDO
JPY 200 million (approx. USD 1.46 million)
Budget● Supplementary budget for FY2022: JPY 100 million (approx. USD 0.73 million)(Contributions for methane emission reductions)● Cumulative contribution from 2014: JPY 400 million (approx. USD 2.92 million)
including JPY 0.3 billion from the contributions for methane emission reductions

Overview● Japanese service providers are to support the implementation of projects that utilize leading
decarbonizing technologies in JCM partner countries.
● Reduce the additional costs of the introduction of leading decarbonizing technology throughﬁnancial support from UNIDO

PurposeTargeting JCM partner countries, mainly in the African region, promote the transition to a
decarbonization of society by developing a leading decarbonizing technologies, through the JCM
scheme and aim to acquire JCM credits from realized GHG emissions reductions

Requirements(Non-Sovereign)● Application: Japanese company as a service provider/ an international consortium● Maximum percentage of ﬁnancial support：75%● Monitoring period：an annual basis for at least 5 years, etc.

JCM credit

MOEJ

Contribution

UNIDO

Grant
(Non Sovereign/
Sovereign)
Financial Support：
up to 75%

MRV

GHG
reduction

Leading
Additional decarbonizing
costs
technologies

Technologies,
etc.

Serviceprovider（Applicants ofthe grant）

JCM partner countries

Other funds

Loan/Grant, etc.

Mitigation through conventional technologies

UNIDO-JCM project16

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 provide comprehensive support for partner countryʼs governments
and corporations, etc. to improve environment by introduction of Japanese environmental
infrastructure.

Environmental Infrastructure Supported by JPRSI(1)Infrastructure for environmental conservation
Waste to Energy (WtE), Waste water treatment plant, Decentralized domestic wastewater
treatment system (“Johkasou"), Renewable power generation, renewable hydrogen, etc.

Shag Informa
t
rin

n
io

(1)Dissemination of technical information provided by Japanese companies

Government
CitiesCorporations

ns
ti o

g

nee

lu

Local governments
Corporations
Financial institutes
Banks
Investors
Experts
Consultants
Related ministries
and agencies

Partner countries

in

Major Activities and Achievements

Japan

M atc h(2)Infrastructure for decarbonization and reduction of environmental impacts
・Introduction of renewable energy and energy-saving equipment to infrastructure andcities,・Highly efﬁcient energy utilization and management in infrastructure,・Introduction of equipment for emissions reduction from pollutants (wastewater,
exhaust gas, dust, etc.),
・Introduction of disaster prevention systems that contribute to climate change
adaptation, etc.

ds

o
&s

ADB
GCF
UNIDO...

International organizations

A list of environmental technologies of JPRSI members are compiled and disseminated.
(220 technologies, available in English)(2)Matching needs in partner countries with Japanese corporationsʻ solutions
The JPRSI Secretariat 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
purposes.

Free registration
Sign up here
JPRSI HP: https://www.jprsi.go.jp/en
JPRSI Secretariat (FY2023):
Overseas Environmental Cooperation Center (OECC), Japan
E-mail: info-jprsi@oecc.or.jp

JPRSI Members（as of June 30, 2023）
484 Japanese corporations, etc. engaged in environmental infrastructure17

Application Support by GEC for JCM Financing Programme
GEC Website
GEC introduces project examples selected so far in the JCM Model Project on the GEC website. You can search by sector such as
renewable energy for project study. For additional information, please refer to “Guidelines for Submitting Proposals” and Q&A on
the website.

Suitable for

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

“JCM Global Match”

https://gec.jp/jcm/

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 foran International Consortium of your JCM Model Project as well as JCM F-gas Project, ADB JFJCM and UNIDO-JCM 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 therest 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 proﬁleand 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 a registrant of a company you areinterested 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 and events on the platform. Register now. Itʼs easy.
(Contact for JCM Global Match: jcm-gm@gec.jp)

Suitable forhttps://jcm-gm.my.site.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 face to face or online at various phases of proposal preparation from earlyplanning to application.

Upper row : Biomass Boiler (Vietnam) Daiichi Jitsugyo Co., Ltd. / Middle row left : Biogas Power & Fuel Conversion (Philippines) Itochu Corporation
Middle row right : Mini Hydro Power (Indonesia) Voith Fuji Hydro K.K. / Lower row : Solar Power utilizing farmland (Chile) Farmland Co., Ltd.

18

【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