Overview of JCM Eco Lease Scheme
Overview• “JCM Eco Lease Scheme” is a new scheme which supports more
effective diffusion and expansion of the de-carbonizing technologies
through financial support for leasing businesses instead of support for(physical) facilities.
• Japanese entity, which is a leasing company, shall be therepresentative participant and liable for implementation of the project.
Features• Monitoring period applied for the scheme is equal to the leasing
period (but no shorter than five years.)• Amount of the financial support is 10 % of the leasing charge acrossall projects. The percentage is similar to the interest rates of JCM
partner countries.
• Reference of cost-effectiveness (*) is equivalent to the existing JCMscheme.
(*) Amount of financial support [JPY] ÷ Total emission reductions of GHG [tCO2eq]＝ Amount of financial support for 1t of GHG.
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Overview of JCM Eco Lease scheme＜ Overview of JCM Eco Lease scheme (Comparison to the existing scheme)＞
Items

JCM Eco Lease scheme

Existing scheme

Amount of financial
supportUp to 500 million JPY（5 million USD） for 3 years in principle

Up to 2 billion JPY （20 million USD）3 years per
project in principle

Type of business

Lease

No special regulations （lease eligible）

Maximum percentage offinancial support

10% of total leasing charge including leasing interest (Uniform
percentage across all projects)

Maximum 50% of eligible cost

Costs Eligible forFinancing

Cost of facilities/equipment and the relevant leasing interest
based on leasing charge

Cost of machinery and appliances, cost ofconstruction work, cost of administrative work, etc.

Eligible types oftechnologies

In principle, technologies with JCM methodology(ies) that havebeen either approved or proposed.

The advanced low/de-carbonizing technologies

Eligiblefacilities/technologies

Those which GEC approve with consideration of results ofapproved JCM projects

Those which directly contribute to reduction of GHG
emission

Leasing Period

At least 5 years

No special regulations. (Owner of equipment must bein the consortium until the end of legal durableyears）

Period of MRV

Equal to the leasing period

Legal durable years of facilities/equipment

Disbursement offinancial support

Payments will be made after the completion of the project andthe final inspection by GEC.
Intermediate payments will not be made.

Intermediate payments can be made based on thecompleted portion of the model project as needed

Submission of thedocuments relevant to
the leasing project

Submission of the documents (breakdown of lease charge) toprove that the equivalent amount to the financial support isreduced from the lease contract (draft) is needed at the time ofproposal submission.

The same as JCM Eco Lease scheme whenparticipants use leasing operation

Simplification ofsubmission documents

Submission of financial statement is needed only forrepresentative participant (That of partner participant’s is not
required.)

Submission of financial statements of both
representative and partner participant are needed.

※1USD=100JPY2

JCM Model Projects (JCM ECO Lease Scheme)
Chart of JCM ECO Lease Scheme
Japanese Government(Ministry of the Environment)＜Financial Support＞
Uniformly 10% of
leasing charge
including interest①

Global Environmental Foundation (GEC)(Implementing Organization)< Selection, Contract,
Disbursement of financial
support>Intermediate payment not
acceptable②<Application of financial
support>
Simplification of submission
documents⑤International Consortium(Representative participantPartner Participant)＜Lease contract＞
At least 5 years(equal to MRVperiod)③④

Lessee※1USD=100JPY“JCM Eco Lease” scheme is financial support for leasingbusinesses.
Maximum allotted budget is about 500 million JPY(5million USD) out of about 9 billion JPY(90 million USD)
for 3 years＜Notable changes from the existing scheme＞
Eligible cost of financial support（Uniformly 10% of total leasing charge including leasing interest）＿①
Disbursement (Intermediate payment not acceptable)＿②
Leasing period(at least 5 years)＿③
Period of MRV(Equivalent to leasing period)＿④
Simplification of submission documents(Submission of financial statements is needed only forrepresentative participant)＿⑤＜Examples of eligible facilities/equipment＞
PV
High Efficiency Air Conditioner
High Efficiency Boiler
High Efficiency Refrigerator

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