Recent Development of
The Joint Crediting Mechanism (JCM)

Aug 2019
Government of Japan
All ideas are subject to further consideration and discussion with partner countries

Basic Concept of the JCM
 Facilitating diffusion of leading low carbon technologies, products,
systems, services, and infrastructure as well as implementation of
mitigation actions, and contributing to sustainable development ofdeveloping countries.
 Appropriately evaluating contributions from Japan to GHG emission
reductions or removals in a quantitative manner and use them to achieve
Japan’s emission reduction target.
 Contributing to the ultimate objective of the UNFCCC by facilitating global
actions for GHG emission reductions or removals.

JAPAN

Used to achieve
Japan’s emission
reduction target

Leading low carbon technologies,
etc, and implementation of
mitigation actions
Operation andmanagement by the Joint
Committee which consistsof representatives fromthe both sides

Credits

PartnerCountry
JCM
Projects
MRV*
GHG emission
reductions/removals*measurement, reporting and verification2

Scheme of the JCM
Partner Country

Japan•Notifies
issuance ofcredits

Government• Issuance of credits

Joint Committee(Secretariat)• Development/revision of
the rules, guidelines andmethodologies•Reports• Registration of projects
issuance of • Discusses thecredits
implementation of JCM•Notifies
issuance ofcredits•Reports
issuance ofcredits

Government• Issuance of credits

Conduct policy consultations•Request registration•Requestof projects
issuanceof credits•Submit PDD•Submit PDD/monitoring/monitoring
reportProject Participants
Third party entities report•Request
issuanceof credits•Request registrationof projects

Project Participants• Implementation &• Validation ofmonitoring of projects •Informprojects
results of • Verification ofvalidation
amount of GHG/verification emission reductions
or removals• Implementation &•Inform
monitoring of projects
results ofvalidation/verification

3

The role of the Joint Committee and each Government
 The Joint Committee (JC) consists of representatives fromboth Governments.
 The JC develops rules and guidelines necessary for the
implementation of the JCM.
 The JC determines either to approve or reject the proposed
methodologies, as well as develops JCM methodologies.
 The JC designates the third‐party entities (TPEs).
 The JC decides on whether to register JCM projects whichhave been validated by the TPEs.
 Each Government establishes and maintains a registry.
 On the basis of notification for issuance of credits by the JC,
each Government issues the notified amount of credits to
its registry.
4

Features of the JCM(1) The JCM starts its operation as a non‐tradable credit typemechanism.
(2) Both Governments continue consultation for thetransition to a tradable credit type mechanism and reacha conclusion at the earliest possible timing, taking
account of implementation of the JCM.
(3) The JCM aims for concrete contributions to assisting
adaptation efforts of developing countries after the JCM
is converted to the tradable credit type mechanism.

5Project Cycle of the JCM and the CDM

Can be conducted by the same TPE
Can be conducted simultaneously

JCM<Main actors at each process>

CDM

Project Participant / Each Government
Joint Committee

Submission of
Proposed
Methodology

Project Participant

Joint Committee

Approval of
Proposed
Methodology

CDM Executive Board

Project Participant

Developmentof PDD

Project Participant

Third Party Entities

Validation

Designated Operational Entities(DOEs)

Joint Committee

Registration

CDM Executive Board

Project Participant

Monitoring

Project Participant

Third Party Entities

Verification

DOEs

Joint Committee decides the amount
Each Government issues the credit

Issuanceof credits

CDM Executive Board

6

JCM Partner Countries
 Japan has held consultations for the JCM with developing countries since 2011 and has establishedthe JCM with Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa
Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand and the Philippines.

Mongolia
Jan. 8, 2013
（Ulaanbaatar）

Bangladesh
Mar. 19, 2013
(Dhaka)Ethiopia
May 27, 2013
(Addis Ababa)KenyaJun. 12,2013(Nairobi)

Maldives
Jun. 29, 2013
(Okinawa)

Viet Nam
Jul. 2, 2013
(Hanoi)Lao PDR
Aug. 7, 2013
(Vientiane)

Indonesia
Aug. 26, 2013
(Jakarta)

Costa Rica
Dec. 9, 2013
(Tokyo)Palau
Jan. 13, 2014
(Ngerulmud)

Cambodia
Apr. 11, 2014
(Phnom Penh)

MexicoJul. 25, 2014
(Mexico City)

Saudi Arabia
May 13, 2015

Chile
May 26, 2015
(Santiago)

http://japan.kantei.go.jp/

Myanmar
Sep. 16, 2015
(Nay Pyi Taw)

ThailandNov. 19, 2015
(Tokyo)the Philippines
Jan. 12, 2017
(Manila)7

Statement by Prime Minister Shinzo Abe at the COP21 (Excerpt)

The second component of Japan’s new set of contribution is innovation. The
key to acting against climate change without sacrificing economic growth is thedevelopment of innovative technologies. To illustrate, there are technologies to
produce, store and transport hydrogen towards realizing CO2–free societies, anda next‐generation battery to enable an electric car to run 5 times longer than thecurrent level. By next spring Japan will formulate the “Energy and Environment
Innovation Strategy.” Prospective focused areas will be identified and researchand development on them will be strengthened. (snip)
In addition, many of the advanced low‐carbon technologies do not generally
promise investment‐return to developing countries. Japan will, while loweringburdens of those countries, promote diffusion of advanced low carbon
technologies particularly through implementation of the JCM.

8

Japan’s INDC (Excerpt)
Japan’s INDC
○ Japan’s INDC towards post-2020 GHG emission reductions is at the level of a reduction of
26.0% by fiscal year (FY) 2030 compared to FY 2013 (25.4% reduction compared to FY 2005)(approximately 1.042 billion t-CO2eq. as 2030 emissions), ensuring consistency with its energy
mix, set as a feasible reduction target by bottom-up calculation with concrete policies, measuresand individual technologies taking into adequate consideration, inter alia, technological and cost
constraints, and set based on the amount of domestic emission reductions and removals
assumed to be obtained. .
Information to facilitate clarity, transparency and understanding○ The JCM is not included as a basis of the bottom-up calculation of Japan’s emission reduction
target, but the amount of emission reductions and removals acquired by Japan under the JCM
will be appropriately counted as Japan’s reduction.
Reference information
GHG emissions and removals
JCM and other international contributions○ Japan establishes and implements the JCM in order both to appropriately evaluate
contributions from Japan to GHG emission reductions or removals in a quantitative manner
achieved through the diffusion of low carbon technologies, products, systems, services, andinfrastructure as well as implementation of mitigation actions in developing countries, and to usethem to achieve Japan’s emission reduction target.
○ Apart from contributions achieved through private-sector based projects, accumulated emission
reductions or removals by FY 2030 through governmental JCM programs to be undertaken
within the government’s annual budget are estimated to be ranging from 50 to 100 million t-CO2.

9

JCM’s Contribution to NDC
 JCM‘s conservative emission reduction calculation (reference
emissions below BaU emissions) will ensure a net decrease and/or
avoidance of GHG emissions.
 This part of emission reductions will automatically contribute to theachievement of NDC.

Contribution toPartner Country NDC

GHG emissions

Start of project operation
Business as usual emissions(Baseline emissions under the CDM)

Reference Emissions under the JCM
Conservative
Emission
Reductions

Net Emission Reductions＋
Partner Country
Japan

Project emissions
Time

Contribution to
Japan’s NDC 10

The JCM related Articles in the Paris Agreement
Article 6 of the Agreement
2. Parties shall, where engaging on a voluntary basis in cooperative approaches thatinvolve the use of internationally transferred mitigation outcomes towards
nationally determined contributions, promote sustainable development andensure environmental integrity and transparency, including in governance, andshall apply robust accounting to ensure, inter alia, the avoidance of double
counting, consistent with guidance adopted by the Conference of the Parties
serving as the meeting of the Parties to the Paris Agreement.
3. The use of internationally transferred mitigation outcomes to achieve nationallydetermined contributions under this Agreement shall be voluntary and authorizedby participating Parties.
 Use of market mechanisms, including the JCM, is articulated under Article 6 which prescribes forthe use of emission reductions realized oversees towards national emission reduction targets.
 The amount of emission reductions and removals acquired by Japan under the JCM will beappropriately counted as Japan’s reduction in accordance with the Paris Agreement.
 Japan is going to contribute to the development of the guidance for robust accounting including
for avoidance of double counting to be adopted by the CMA*.
*the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement

11

The UNFCCC documents related to the JCM (1/2)
Decision 1/CP18
41. Acknowledges that Parties, individually or jointly, may develop andimplement various approaches, including opportunities for using
markets and non‐markets, to enhance the cost‐effectiveness of, and topromote, mitigation actions, bearing in mind different circumstancesof developed and developing countries;
42. Re‐emphasizes that, as set out in decision 2/CP.17, paragraph 79, allsuch approaches must meet standards that deliver real, permanent,
additional and verified mitigation outcomes, avoid double counting ofeffort and achieve a net decrease and/or avoidance of GHG emissions;
44. Requests the SBSTA to conduct a work programme to elaborate aframework for such approaches, drawing on the work of the AWG‐LCA
on this matter, including the relevant workshop reports and technicalpaper, and experience of existing mechanisms, with a view torecommending a draft decision to the COP for adoption at its 19th
session;
45. Considers that any such framework will be developed under theauthority and guidance of the Conference of the Parties;

12

The UNFCCC documents related to the JCM (2/2)
Decision 19/CP18
Common tabular format for“UNFCCC biennial reporting guidelines for developed country Parties”
Table 4(b) Reporting on progress The JCM is one of various approaches based on Decision 1/CP.18, jointly
developed and implemented by Japan and partner countries, and Japanintends to contribute to elaborating the framework for such approaches under
the UNFCCC.
 Japan has reported and will report to the COP the use of the JCM in Biennial
13
Reports including the Common Tabular in line with Decision 19/CP18.

JCM Registry
Establishment & operation
Japanese registrycredit issuance•A registry will be established by Account holders
Registry
based on notification
managerby the JC
each side (RoI (draft) para13 (b)).
accessGovernment account•The registries need to share
Private accounts“Common specifications”, e.g.,‐ functions (e.g. issuance,
General users
retirement, holding,General information
access(account holders,
cancelation of credits)amount of credits
issued etc.)‐ account type (e.g. holding
account, government holding Account holders can access both general information andown accounts while general users can only accessaccount, cancellation account, theirgeneral information.
and retirement account)‐ rules of serial number of the credit‐ information sharing•Japan has established its registry and started operation in Nov. 2015.
•The partner countries will also establish their own registry.

14

JCM Website
URL: https://www.jcm.go.jp/
Contents•General information page
•Individual JCM Partner countries‐
Japan page

Function•Information sharing to the public, e.g., Image of the general information page
Partner Country ‐ Japan‐ the JC decisions,‐ rules and guidelines,‐ methodologies,‐ projects,‐ call for public inputs/comments,‐ status of TPEs, etc.
•Internal information sharing for the JC
members, e.g.,‐ File sharing for electric decisions by
Image of the individual JCM Partner countries‐Japan page15
the JCProgress of the JCM in each partner country as of Aug 2 2019
Partnercountries

Start fromNo. of JC

Mongolia

Jan 2013

Bangladesh

Mar 2013

Ethiopia

May 2013

Kenya

Jun 2013

Maldives

Jun 2013

Viet Nam

Jul 2013

Lao PDRAug 2013

Indonesia

Aug 2013

Costa Rica

Dec 2013

Palau

Apr 2014

Cambodia

Apr 2014

MexicoJul 2014

Saudi Arabia

May 2015

Chile

May 2015

MyanmarSep 2015

ThailandNov 2015

Philippines

Jan 2017

6
4
3
3
4
8
4
8
2
5
4
2
2
2
2
4
1

Total

17

64

No. of registeredprojects

No. of approved
methodologies

5
3

6

3
3
3
3
1
15
3
19
3
1
2
1
1
1
1
9

52

69

1
14
1
17
3
1
1

Pipeline (JCM Financing
Programme & Demonstration
Projects in FY 2013‐2019)

10
6
3
2
26
5
34
2
5
5
7
1
2
7
32
11
158

16

Programmes by Government of Japan
JCM Demonstration Projects andJCM Financing ProgrammeFeasibility Studies
Capacity Building

17

JCM Promotion Scheme by METIJCM Demonstration Projects■JCM Demonstration Projects are implemented by NEDO (New Energy and Industrial
Technology Development Organization), which demonstrate and verify the effectiveness ofadvanced low carbon technology with technical assistance and its GHG emission reduction
effect in line with JCM rules and guidelines.
■Coverage of project cost: Cost of the Demonstration and verification of the projects
e.g. Cost of design, production, transfer, installation of equipment, technical adviser, JCM related procedure etc.

■Eligibility for the JCM Demonstration Projects:‐ To utilize the advanced Japanese technologies utmost and be deployed widely.
‐ To aim at Larger GHG emission reduction effect is expected through the diffusion of thetechnology introduced and demonstrated through the projects ,‐ To consist the Project Participants of entities from both countries, only the Japaneseentities can apply for the Projects. The projects shall be completed within 3 years.

JCM Feasibility Study (FS)■The study is to develop the strategic projects which contributes to achieve the GHG
emission reduction at the global level through the optimization of the advanced low carbon
technology and activate the low carbon business in line with JCM.

MRV Application Study■ By applying MRV methodology to the facility with low‐carbon technologies that havealready been installed or will certainly be installed in any JCM partner country; 1) toobtain verification by third party entity under the JCM; and 2) to conduct review andfeedback on efficiency and applicability of MRV.

Capacity Building Programmes■Dispatching technical experts to and inviting officials from host countries in order to solve
the problems they face to disseminate low carbon technology, etc.
18

Demonstration Projects by METI* (as of August 2019)
Mongolia:
 ★High efficiency and low loss powertransmission and distribution system (Hitachi)※FY2013 – Feb 2019

* Including NEDO and UNIDO
Vietnam: ★Energy saving by inverter air conditioner optimum operation at National Hospital(Mitsubishi Electric) ※Jan 2014 - Jun 2017
 ★Energy saving by BEMS optimum operation at Hotel (Hibiya Engineering)※Jan 2014 – Feb 2018
 ★Energy Saving and Work Efficiency Improvement Project by special LED

Kenya:
 Rural Electrification Project for Communities byMicro Hydro Power in Kenya(NTT Data Institute of Management consulting,Inc.)※FY2012 – Feb 2019※implemented by UNIDO

Thailand: Feasibility Study on IoT utilization promotion
project to streamline and advance power
generation assets for electric power companies
in ASEAN countries (Marubeni)※FY Feb 2019 –Equipment with new technology, COB(Stanley Electric)※ Jan 2015 – Feb 2018●

Feasibility Study on Demand Response Demonstration Project with High Efficiency
Air Conditioner System (THE Power Grid Solution & Daikin)※FY Feb 2019 –Lao PDR:
 ★Lao PDR Energy efficient date center(LEED) (Toyota Tsusho Corporation,
Internet Initiative Japan)※FY2014 - Oct 2018
Indonesia:
 Operation Optimization in Utility Facility (Azbil)※FY2013 – Dec 2018

Total：11 projects （6 countries) Underlined one project in Mongolia, threeprojects in Vietnam, one project in Lao
PDR, three projects in Indonesia wereregistered as JCM projects.
 Projects with “★” are those which JCM
credits have been issued.

 Energy Saving by Optimum Operation at Oil Refinery（Yokogawa）※FY2013 – Feb 2019 The low carbonization of mobile communication‘s BTS (Base Transceiver Station)by the Introduction of “TRIBRID system” (KDDI)※FY2015 – Feb 201919

JCM Project Development & Outreach Programme by MOEJ
JCM Project Development•To identify barriers and needs for JCM project development in
partner countries in terms of technology, financing and partnership,
and provide solutions for overcoming barriers through consultations.
•To enhance overall capacity for JCM implementation throughfacilitating understanding on the JCM rules & guidelines, and MRV
methodologies by organizing workshops, seminars, training courses
and site visits.
•JCM Business Matching Site “JCM Global Match” provides
business matching opportunities for sellers and buyers of
low and zero carbon technology for the JCM project.
https://gec.force.com/JCMGlobalMatch/

Outreach•Carbon Markets Express website provides informationon the latest updates on the JCM and relevant
programmes such as JCM promotion schemes by theGovernment of Japan.
https://www.carbon‐markets.go.jp/eng/•E‐mail Newsletter and up‐to‐date information are
distributed regularly. To register, access:(for JP) https://www.carbon‐markets.go.jp/newsletter/(for EN) https://www.carbon‐markets.go.jp/eng/en_newsletter/

20

JCM Model Projects by MOE
Budget for projects startingfrom FY 2019 is 9.9 billion JPY(approx. USD 99 million) in
total by FY2021

Government ofJapan(1 USD = 100 JPY)

Finance part of aninvestment cost(less than half)※Includes collaboration withprojects supported by JICA
and other governmental‐
affiliated financial institute.
Conduct MRV and expected
to deliver at least half of JCM
credits issued

International consortiums(which include Japanese entities)

 Scope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 fromfossil fuel combustion as well as construction cost for installing those facilities, etc.
 Eligible Projects : starting installation after the adoption of the financing andfinishing installation within three years.

21平成25年度予算○○百万円

ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)
Budget for FY2019•JPY 1 billion (approx. USD 10 million)
SchemeTo provide the financial incentives for the adoption of advanced low‐carbon technologies which aresuperior in GHG emission reduction but expensive in ADB(Asian Development Bank)‐financed projects
PurposeTo develop ADB projects with sustainable and low‐carbon transition perspective by introducing
advanced low‐carbon technologies as well as to acquire JCM credits
JCM Credits
ADB

MOEJ

Contribution

1 Ordinary Capital Resources are from:

JFJCM(Trust Fund)

Grant (Sovereign)
Interest
Buy‐down(Non‐sovereign)

ADB source(1) Paid‐in capital provided by（OCR1/ADF2)
shareholders, (2) Funds borrowed
from capital markets and private
placements, (3) Accumulated
retained income (reserves). OCR
loans are provided to middle‐income Co‐Financing partners
countries at a quasi‐market rate.
(Other financial
2 Asian Development Fund offers
institutions and funds)
concessional loan and grant to low‐income countries.

Loan/Grant etc.
Co‐financing
Loan/Grant etc.

MRV

GHG
reduction

Additional costs fromadvanced low‐carbon
technologies

Mitigation throughconventional
technologies(Selection from ADB
pipeline)
Project

22

JCM F‐gas Recovery and Destruction Model Project by MOE【Budget for FY 2019】41 million JPY (approx. 0.41
million USD) (1 USD = 100 JPY)

Government of Japan

Finance part of the cost in flat‐rate(up to 40 million JPY/year)

Conduct MRV to estimate GHG
emission reductions.
At least half or ratio of financial
support to project cost (larger ratio
will be applied) of JCM credits issued
are expected to be delivered to thegovernment of Japan

International consortiums (which include Japanese entities)
Manufacturersof equipment
which uses F‐gas

Users ofequipment
which uses F‐gas

Entities for recovery andtransportation of used F‐gas(recycling or scrap entities)

PurposeTo recover and destroy F‐gas (GHG except forenergy‐related CO2, etc) from used equipment
instead of releasing to air, and reduce emissions
Scope of Financing

Entities for destruction ofused F‐gas (may use existing
facility for destruction)

Project Period
Three years in maximum (Ex. 1st year for scheme, 2ndyear for facilities, 3rd year for recovery/destruction)
Eligible Projects•After the adoption of financing, start•Establish scheme for recovery and destruction
implementation of recovery/destruction within•Install facilities/equipment for recovery/destruction three years•Implementation of recovery, transportation,•Aim for the registration as JCM project anddestruction and monitoringissuance credits

23

JCM Financing Programme by MOEJ (FY2013～2019) as of Aug 2, 2019
Thailand:31 projects○Energy Saving at Convenience Store○1MW Solar PV on Factory Rooftop*○Upgrading Air-saving Loom*○Centrifugal Chiller & Compressor*○Centrifugal Chiller in Tire Factory○Co-generation in Motorcycle Factory○Air Conditioning System & Chiller*○Refrigeration System○Ion Exchange Membrane Electrolyzer○Chilled Water Supply System○LED Lighting to Sales Stores○12MW Waste Heat Recovery in Cement Plant○Co-generation System○Refrigerator and Evaporator○2MW Solar PV○3.4MW Solar PV*○Heat Recovery Heat Pump
○5MW Floating Solar PV○30MW Solar PV○Boiler System in Rubber Belt Plant○Air-conditioning Control System○Biomass Co-generation System○Energy Saving Equipment in Port ○Co-generation in Fiber Factory ○25MW Solar PV in Industrial Park
○3.4MW Solar PV○Biomass Boiler○0.8MW Solar PV and Centrifugal Chiller▲ Introduction of Scheme for F-gas Recovery and Destruction○37MW Solar PV and Melting Furnace○Heat Exchanger in Fiber Factory

Bangladesh:6 projects○Centrifugal Chiller○Loom at Weaving Factory*○315kW PV-diesel Hybrid System* ○50MW Solar PV Power Plant○Centrifugal Chiller*■High Efficiency Transmission Line

Saudi Arabia:1 project○Electorolyzer in Chlorine
Production Plant○15MW Hydro Power Plant○4MW Hydro Power Plant○1.53MW Rooftop Solar PV○1MW Rooftop Solar PV○1.2MW Rooftop Solar PV ○2.5MW Rice Husk Power Generation○0.16MW Micro Hydro Power Plant○4MW Solar PV○19MW Hydro Power Plant○18MW Solar PV○Biogas Power Generation and Fuel Conversion

Palau:5 projects○LED Street Lighting○200kW Solar PV at International School*○Solar PV & Centrifugal Chiller ○Inverters for Distribution Pumps■Battambang Wastewater Treatment Project

Total 147 projects in 16 partner countries○2.4MW Power Generation with Methane Gas Recovery System○Once-through Boiler and Fuel Switching○64MW Wind Farm ○20MW Solar PV○30MW Solar PV1 ○Energy Efficient Distillation System○30MW Solar PV2

Phillipines:11 projects○700kW Waste to Energy Plant○Brewing Systems to Brewery Factory○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○Brewing Systems and Biogas Boiler to Brewery Factory○ Model Project in FY 2013 (7 projects in 3 countries)○ Model Project in FY 2014 (12 projects in 5 countries)■ ADB Project in FY 2014 (1 project in 1 country)○ Model Project in FY 2015 (31 projects in 9 countries)○ Model Project in FY 2016 (35 projects in 9 countries)● REDD+ Model Project (2 projects in 2 countries)○ Model Project in FY 2017 (19 projects in 7 countries)■ ADB Project in FY 2017 (1 project in 1 country)○ Model Project in FY2018 (24 projects in 11 countries)■ ADB Project in FY 2018 (2 projects in 2 country)▲ F-gas Project in FY 2018 (2 projects in 2 country)○ Model Project in FY 2019 (11 projects in 5 countries)•
Other 1 project in Malaysia○Digital Tachographs*○Amorphous transformers1*○Air-conditioning in Hotel*○Air-conditioning in Lens Factory*○Container Formation Facility*○320kW Solar PV in Shopping Mall*○Amorphous transformers 2*○Air-conditioning Control System○Electricity Kiln
○High Efficiency Water Pumps1*○Energy saving Equipment in Lens Factory* ○Amorphous transformers 3*○Energy Saving Equipment in Wire Production Factory* ○Amorphous transformers 4○Energy Saving Equipment in Brewery Factory ○High Efficiency Chiller○Modal Shift with Reefer Container ○Inverters for Raw Water Intake Pumps▲ Collection Scheme and Dedicated System of F-gas ○Waste to Energy Plant○High Efficiency Water Pumps2○Biomass Boiler to Chemical Factory●REDD+ through controlling slush-and-burn〇Amorphous transformers〇14MW Floating Solar PV ○11MW Solar PV

Myanmar:7 projects○186kW Solar Power on School Rooftop* ■Smart Micro-Grid System

Viet Nam:22 projects

Laos:4 projects○1MW Solar PV at Salt Factory○38MW Solar PV

Maldives:2 projects○Heat Only Boiler (HOB)** ○2.1MW Solar PV in Farm* ○10MW Solar PV*○8.3MW Solar PV in Farm
〇15MW Solar PV○20MW Solar PV○21MW Solar PV■Upscaling Renewable Energy Sector○Fuel Conversion by Introduction of LPG Boilers

Mexico:7 projects

Kenya:2 projects

Cambodia:5 projects

Mongolia:9 projects

Costa Rica:2 projects○370kW Solar PV for Commercial Facilities*○155kW Solar PV for School*○445kW Solar PV for Commercial Facilities Ⅱ*○0.4MW Solar PV for Supermarket○1MW Solar PV for Supermarket

Indonesia:31 projects○Centrifugal Chiller at Textile Factory*○Refrigerants to Cold Chain Industry**○Centrifugal Chiller at Textile Factory 2*○507kW Solar Power Hybrid System○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 Plant○Industrial Wastewater Treatment System○Absorption Chiller○High Efficiency Autoclave○12MW Biomass Power Plant○5MW Solar PV○Chiller and Heat Recovery System

Chile:2 projects○1MW Rooftop Solar PV○2MW Solar PV and 4MWh Storage Battery○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
○LED Lighting to Sales Stores○0.5MW Solar PV*○Gas Co-generation system○10MW Hydro Power Plant○CNG-Diesel Hybrid Public Bus ○Rehabilitation of Hydro Power Plant○Injection Molding Machine

Underlined projects have started operation (91 projects)
Projects with * have been registered as JCM projects (42 projects)

24

FY2019 Cities joining the city to city collaboration program by MOEJ
1. Ho Chi Minh City (Vietnam) – Osaka City
City-to-City Collaboration Project between Ho Chi Minh City and Osaka City
2. Bali City (Indonesia) – Toyama City
Support on Tourism Future City of Bali Province through City-to-City Collaboration
3. Hlegu township,Yangon（Myanmar) – Kitakyushu City
Low carbonization in smart city development project in Yangon Region
4. Iskandar Development Area(Malaysia) ｰ Kitakyushu City
Promotion of Low Carbon Society in Iskandar Regional Area
5. Bangkok and Laem Chabang (Thailand) – Yokohama City
ports in Thailand to reduce GHG emission by advancing modal shift andenhancing terminal efficiency
6. Yangon city (Myanmar) – Kawasaki City
Support on Low Carbon Mega Food Park
through City-to-City Collaboration
7. Can Tho city（Vietnam） ｰ Hiroshima pref. government ８
3
Biomass power generation project using milled
６ 1
rice husks for compressed solid fuel8. Sagaing Region（Myanmar） ｰ Fukushima City
５
１
Promotion project of low-carbon regional development
７
in Sagaing Region10
9. Rokan Hulu Regency（Indonesia） ｰ Kawasaki City
4
Project to Promote Circular Economy for Palm Industry
９in Riau Province Region
10. Kuala Lumpur City（Malaysia） ｰ Tokyo Metropolitan Government
２
Project developing a policy framework forbuilding energy efficiency through city to city collaboration
between Kuala Lumpur Government and Tokyo Metropolitan Government

25

Reference:
Technical Details for the JCM(Subject to further consideration and discussion with partner countries)

26

Necessary documents for the JCM(Subject to further consideration and discussion with partner countries)

Rules and Guidelines
 Rules of Implementation
 Project Cycle Procedure
Overall Glossary of Terms
 Guidelines for Designation as a Third‐Party
Entity (TPE guidelines) Rules of Procedures for the Joint
Joint Committee
Committee (JC rules)
 Guidelines for Developing Proposed
Methodology
Methodology (methodology guidelines)
Developing  Guidelines for Developing Project Design
a PDD
Document and Monitoring Report (PDD
Project
Monitoringand monitoring guidelines)
Procedures
Validation  Guidelines for Validation and Verification
Verification(VV guidelines)

27

Methodology Development Procedure of the JCM(Subject to further consideration and discussion with partner countries)

Submission of
Proposed
Methodology

Project Participant

Government(Methodology Proponent)(Methodology Proponent) Prepare a proposed
methodology

 Prepare a proposed
methodology* Methodology guidelines* Proposed methodology
form* Proposed Methodology
Spreadsheet Form

* Methodology guidelines* Proposed methodology
form* Proposed Methodology
Spreadsheet Form

Joint Committee Develop a proposed
methodology under
the initiative of the
Joint Committee

Submit the proposed methodology

Completeness
Check

Notify the receipt of the submission
Communicate the result of completeness check Completeness check[7 days] (secretariat)
 Public inputs [15days] (secretariat)

Public Inputs

 Assessment of the
proposedmethodology [60days or up to 90
days]

Approval of
Proposed
Methodology
Notify the outcome of consideration
Note: Asterisk ( * ) indicates documentation relevant for each step of the procedure Approval of the
proposedmethodology

28

Registration & Issuance Procedure of the JCM (1/2)(Subject to further consideration and discussion with partner countries)

Project Participant

Third‐Party Entity

Joint Committee

Government Complete a PDD anddevelop a monitoring
plan

Developmentof PDD* PDD form and Monitoring Submit the draft PDD and MoC, and request for validationand public inputs
Spreadsheet* PDD and monitoring
guidelines

 Complete an MoC
Form* MoC Form

Notify the receipt of the submission

Validation
Validation andverification canbe conductedsimultaneously
or separately.

 Validate a project Prepare a validation
report* Validation and verification
guidelines* Validation report form
Submit the validation report Complete a
registration request
form

Registration

 Public inputs[30 days](secretariat)

Submit registration request form, the validated PDD and
MoC, and the validation report and request for registration* Registration request form

Notify the receipt of the request  Completeness check
Notify the conclusion[7 days] (secretariat)

Notify the registration  Registration

Notify the registration

29

Registration & Issuance Procedure of the JCM (2/2)(Subject to further consideration and discussion with partner countries)

Project Participant

Monitoring

Issuance

Joint Committee

Government

 Conduct monitoring Prepare a monitoring Submit the monitoring
report for verification
report* PDD and monitoring
guidelines* Monitoring report sheet

 Verify emission
reductions
 Prepare a verification
reportVerification
Validation andverification canbe conductedsimultaneously
or separately.

Third‐Party Entity* Validation andVerification guidelines* Verification report form
Submit the verification report Determine allocation Request for notification for issuanceof credits
 Complete a credit
Notify the receipt ofissuance request
the request  Completeness checkform[7 days] (secretariat)* Credit issuance requestform Decision on
notification of
Notify the result
Notify the amount of credits
amount of credits to to be issued
be issued
Notify the issuance Issuance of credits

30

Rules of Procedures for the Joint Committee
Members(Subject to further consideration and discussion with partner countries) The Joint Committee (JC) consists of representatives from both Governments.
 Each Government designates members, which may not exceed [10].
 The JC has two Co-chairs to be appointed by each Government (one from the partner country
and the other from Japan). Each Co-Chair can designate an alternate from members of the JC.

Decision making in the JC
 The JC meets no less than once a year and decision by the JC is adopted by consensus.
 The JC may adopt decisions by electronic means in the following procedure:(a) The proposed decisions are distributed by the Co-Chairs to all members of the JC.
(b) The proposed decision is deemed as adopted when,i) no member of the JC has provided negative assertion within [10] calendar days after
distribution and both Co-Chairs have made affirmative assertion, orii) all members of the JC have made affirmative assertion.
 If a negative assertion is made by one of the JC members, the Co-Chairs take into
account the opinion of the member and take appropriate actions.
 The JC may hold conference calls to assist making decisions by electronic means.

External assistance The JC may establish panels and appoint external experts to assist part of its work.

Languages: English Secretariat: The secretariat services the JC.
Confidentiality: Members of the JC, Secretariat, etc. respect confidentiality.
Record of the meeting: The full text of all decisions of the JC is made publicly available.

31Basic Concept for Crediting under the JCM(Subject to further consideration and discussion with partner countries) In the JCM, emission reductions to be credited are defined as thedifference between “reference emissions” and project emissions.
 The reference emissions are calculated below business‐as‐usual(BaU) emissions which represent plausible emissions in providing
the same outputs or service level of the proposed JCM project in thepartner country.
 This approach will ensure a net decrease and/or avoidance of GHG
emissions.
Start of project operation
GHG emissions fromsources covered by aproject

Likely range of BaU emissions
Emission
Reductions(credits)

Reference Emissions
Project emissions

Time

32

Addendum: ways to realize net reduction(Subject to further consideration and discussion with partner countries)

 A net decrease and/or avoidance of GHG emissions can be realized
in alternative way, instead of calculating the reference emissions
below BaU emissions.
 Using conservative default values in parameters to calculate projectemissions instead of measuring actual values will lead calculated
project emissions larger than actual project emissions.
 This approach will also ensure a net decrease and/or avoidance of
GHG emissions, as well as reduce burdens of monitoring.
Start of project operation
GHG emissions fromsources covered by aproject

BaU emissions
Emission
Reductions(credits)Time

Calculated project emissions
Actual project emissions

33

JCM Methodology
 Key Features of the JCM methodology
The JCM methodologies are designed in such a way that project participants canuse them easily and verifiers can verify the data easily.
In order to reduce monitoring burden, default values are widely used in aconservative manner.
Eligibility criteria clearly defined in the methodology can reduce the risks ofrejection of the projects proposed by project participants.
Eligibility
criteria• A “check list” will allow easy determination of eligibility of a
proposed project under the JCM and applicability of JCM
methodologies to the project.

Data(parameter)• List of parameters will allow project participants to determine what
data is necessary to calculate GHG emission reductions/removals
with JCM methodologies.
• Default values for specific country and sector are provided
beforehand.

Calculation• Premade spreadsheets will allow GHG emission
reductions/removals to be calculated automatically by inputting
relevant values for parameters, in accordance with methodologies.

34

Basic concept of Eligibility criteria in JCM methodology(Subject to further consideration and discussion with partner countries

Eligibility criteria in JCM methodologies contain the following: The requirements for the project to be registered as a JCM project. <Basis for theassessment of validation and registration of a proposed project> The requirements for the project to be able to apply the JCM methodology. <same as“applicability condition of the methodology” under the CDM>

1. Both Governments determine what technologies, products, etc should be included in theeligibility criteria through the approval process of the JCM methodologies by the Joint
Committee.
2. Project participants can use the list of approved JCM methodologies when applying for
the JCM project registration.
Examples of eligibility criteria 1.
Introduction of xx (products/technologies) whose design efficiency is above xx (e.g.
output/kWh) <Benchmark Approach>Introduction of xx (specific high efficient products/technologies, such as air conditioner
with inverter, electric vehicles, or PV combined with battery) <Positive List Approach>
Examples of eligibility criteria 2.
Existence of historical data for x year(s)Electricity generation by xx (e.g. PV, wind turbine) connected to the gridRetrofit of the existing boiler

35

Overview of JCM Methodology, Monitoring Plan and Monitoring Report(Subject to further consideration and discussion with partner countries) JCM methodology consists of the followings.
Approved Methodology Document
Monitoring Spreadsheet
Monitoring Plan Sheet (including Input Sheet & Calculation Process Sheet)Monitoring Structure SheetMonitoring Report Sheet (including Input Sheet & Calculation Process Sheet)
Approved Methodology Document

Monitoring Spreadsheet

Monitoring
Report Sheet
Monitoring
Structure Sheet
Monitoring Plan
Sheet

Cells for data &information input 36

PDD and Monitoring Plan
(Subject to further consideration and discussion with partner countries) Developing a Project Design Document (PDD) and a Monitoring PlanA PDD form should be filled in with information of the proposed project.
A Monitoring Plan consists of Monitoring Plan Sheet and Monitoring
Structure Sheet, and it should be filled in as well.
PDD

Monitoring Structure

Monitoring Plan

Roles and responsibilitiesof personnel for monitoringshould be described

Cells for data
input (ex ante)

Other necessary information on parameters
to be monitored are:
• Monitoring options• Source of data
• Measurement methods and procedures• Monitoring frequency

37

Possible Contents of the JCM PDD(Subject to further consideration and discussion with partner countries)
A. Project description
A.1. Title of the JCM project
A.2. General description of project and applied technologies and/or measures
A.3. Location of project, including coordinates
A.4. Name of project participants
A.5. Duration
A.6. Contribution from developed countries
B. Application of an approved JCM methodology(ies)B.1. Selection of JCM methodology(ies)B.2. Explanation of how the project meets eligibility criteria of the approved
methodology
C. Calculation of emission reductions
C.1. All emission sources and their associated greenhouse gases relevant to theJCM project
C.2. Figure of all emission sources and monitoring points relevant to the JCM
project
C.3. Estimated emissions reductions in each year
D. Environmental impact assessment
E. Local Stakeholder consultation
E.1. Solicitation of comments from local stakeholders
E.2. Summary of comments received and their consideration
F. References
Annex
Approved Methodology Spreadsheet consists of Monitoring Plan Sheet, Monitoring
Structure Sheet and Monitoring Report Sheet, and it shall be attached to the PDD. 38

Monitoring Report(Subject to further consideration and discussion with partner countries)

 Making a Monitoring Report
A Monitoring Report should be made by filling cells for data input (ex post)in the Monitoring Report Sheet with monitored values.
Project participants prepare supporting documents which include
evidence for stated values in the cells for data input.
Cells for data
input (ex post)
Monitoring Report
Monitoring
periodOther necessary information on monitored
parameters are to be filled in:• Monitoring options• Source of data
• Measurement methods and procedures• Monitoring frequency

39