Recent Developments of
The Joint Crediting Mechanism (JCM)

July 2021
Government of Japan
All ideas are subject to further consideration and discussion with partner countries

Basic Concept of the JCM
Facilitating diffusion of leading decarbonizing technologies ,etc andinfrastructure as well as implementation of mitigation actions, andcontributing to sustainable development of partner countries.
Appropriately evaluating contributions from Japan to GHG emission
reductions or removals in a quantitative manner and use them to achieve
Japan’s NDC.
Contributing to the ultimate objective of the UNFCCC by facilitating global
actions for GHG emission reductions or removals.
UNFCCC, Article 6 of the Paris Agreement
Reporting and Corresponding Adjustment
JCM

JAPAN

PartnerCountry

Leading decarbonizing technologies, etc, andimplementation of mitigation actions

JCM
Projects

Operation and management by
the Joint Committee which
consists of representatives fromthe both sides
Used to achieve Japan’s
NDC

Credits

MRV*
GHG emissions
reduction/ removal*measurement, reporting and verification2

Scheme of the JCM
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

Partner Country•Notifies
issuance ofcredits

Government•Reports
issuance ofcredits• 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• Implementation &• Validation ofmonitoring of projects •Informprojects• Verification of
results ofvalidation
amount of GHG/verification emissions reduction
or removal

Project Participants•Inform
results ofvalidation/verification• Implementation &monitoring of projects

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

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

5

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)Philippines
Jan. 12, 2017
(Manila)6

Japan’s Nationally Determined Contribution (NDC) decided March 2020(Excerpt)
On March 30, 2020, Japan decided its Nationally Determined Contribution (NDC).
Information related to the JCM
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 beappropriately counted as Japan’s reduction.
GHG emissions and removals, JCM and other international contributions• Japan establishes and implements the JCM in order both to appropriately evaluate contributions fromJapan to GHG emission reductions or removals in a quantitative manner achieved through the
diffusion of low carbon technologies, products, systems, services, and infrastructure as well as
implementation of mitigation actions in developing countries, and to use them to achieve Japan’semission 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 thegovernment’s annual budget are estimated to be ranging from 50 to 100 million t-CO2.

7

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.

GHG emissions

Net Emission Reductions
Reference Emissions under the JCM
Conservative
Emission Reductions(Partner Country)

Credits

Conservative
Emission Reductions(Japan)

Credits

Project emissions
Start ofproject operation

Time

Contribution toPartner Country Contribution to
Japan’s NDC
NDC

Business as usual emissions(Baseline emissions under the CDM)

8

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 emissions reductions realized overseas towards national emissions reduction targets.
The amount of emissions reduction and removal acquired by Japan under the JCM will beappropriately counted as Japan’s reduction in accordance with the Paris Agreement.
Japan will contribute to the development of the guidance for robust accounting including foravoidance 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

9

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.

10

JCM Website
URL: https://www.jcm.go.jp/
Contents•General information page
•Individual JCM Partner countriesJapan 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 page11
the JCProgress of the JCM in each partner country as of June 29, 2021
Partner country

Start fromNo. of JC

No. of registeredprojects

No. of approved
methodologies

Pipeline (JCM Financing ProgrammeMongolia

Jan 2013

6

5

3

9

Bangladesh

Mar 2013

4

3

3

5

Ethiopia

May 2013

4

3

1

Kenya

Jun 2013

4

2

3

3

Maldives

Jun 2013

4

1

2

3

Viet Nam

Jul 2013

8

14

15

35

Lao PDRAug 2013

4

1

3

6

Indonesia

Aug 2013

9

23

28

43

Costa Rica

Dec 2013

2

1

3

2

Palau

Apr 2014

5

3

1

5

Cambodia

Apr 2014

5

2

5

6

MexicoJul 2014

2

1

6

Saudi Arabia

May 2015

3

1

1

2

Chile

May 2015

3

1

2

5

MyanmarSep 2015

2

1

5

9

ThailandNov 2015

4

8

10

42

Philippines

Jan 2017

1

2

15

Total

17

70

90

197

66

& Demonstration Projects in FY 20132021)

12

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

13

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 contribute to achieving 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 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 in dissemination of low-carbon technology, etc.
14Demonstration Projects by METI* (as of February 2021)* Including NEDO and UNIDO
Mongolia:★High efficiency and low loss powertransmission and distribution system (Hitachi)※FY2013 – Feb 2019

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

Kenya:
Rural Electrification Project for Communities byMicro Hydro Power in Kenya(NTT Data Institute of Management consulting,Inc.)※FY2012 – Feb 2019※implemented by UNIDO★Energy Saving and Work Efficiency Improvement Project by special LED
Equipment with new technology, COB(Stanley Electric)※ Jan 2015 – Feb 2018

Lao PDR:★Lao PDR Energy efficient date center(LEED) (Toyota Tsusho Corporation,
Internet Initiative Japan)
Thailand:IoT utilization promotion project to streamline
and advance power generation assets forelectric power companies in ASEAN countries(Marubeni)※FY Feb 2019 ｰ
Low-carbon Operation for Power Grid utilizing
Optimized Performance Enabling Network for
Volt/Var(Q) (OPENVQ)※FY Feb 2020 –Total：11 projects （6 countries)
Underlined projects, one in Mongolia,
three in Vietnam, one in Lao PDR, three
in Indonesia, one in Kenya wereregistered as JCM projects.
Projects with “★” are those which JCM
credits have been issued.

※FY2014 - Oct 2018

Indonesia:
Operation Optimization in Utility Facility (Azbil)※FY2013 – Dec 2018
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 201915

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/s/

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/

16

JCM Model Projects by MOE
Budget for projects startingfrom FY2021 is 8.3 billion JPY(approx. USD 83 million) in
total by FY2023(including Co-Innovation)(1 USD = 100 JPY)

Finance part of aninvestment cost(less than half)

Government ofJapan※Includes collaboration withprojects supported by JICA
and other governmentalaffiliated financial institute.
Conduct MRV and expected
to deliver 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 financing is awarded and finishinginstallation within three years.

17JCM Model Projects by MOE (JCM ECO Lease Scheme)•••“JCM Eco Lease” scheme is financial support for leasing businesses.
Financial support is uniformly 10% of total leasing charge including leasing interest.
Leasing period is at least 5 years.

Chart of JCM ECO Lease Scheme
Japanese Government(Ministry of the Environment)

Global Environmental
Foundation (GEC)(Implementing Organization)＜Merit＞
Shorter MRV period
・Equivalent to leasing period（At least 5years）
Simplified process
・Less documents for application
・No need to develop new methodology（Only applicable to approved methodology）＜Examples of eligible facilities/equipment＞

Representative participant

LesseePV

High Efficiency equipment18平成25年度予算○○百万円

ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)
Budget for FY2021•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
concessional loan and grant to low- institutions and funds)
income countries.

Loan/Grant etc.
Cofinancing
Loan/Grant etc.

MRV

GHG
reduction

Additional costs fromadvanced low-carbon
technologies
Mitigation throughconventional
technologies(Selection from ADB
pipeline)
Project

19

JCM F-gas Recovery and Destruction Model Project by MOE【Budget for FY 2021】
60million JPY (approx. 0.60
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 the 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 maximum (Ex. 1st year for scheme, 2ndyear for facilities, 3rd year for recovery/destruction)
Eligible Projects•After the financing is awarded, 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

20

JCM Financing Programme by MOEJ (FY2013～2020) as of June 29, 2021

• JCM Financing Programme by MOEJ (FY2013～2019) as of Aug 2, 2019
Total 186projects (17 partner countries)(●Model Project: 177 projects(including Eco Lease: 1project), ■ADB: 5 projects, ◆ REDD+: 2 projects, ▲F-gas: 2 projects) Other 1 project in Malaysia
115underlined projects have been started operation.
57 projects with * have been registered as JCM projects.
Cambodia:6 projects●LED Street Lighting※●200kW Solar PV at International School*●Solar PV & Centrifugal Chiller●Inverters for Distribution Pumps●Solar PV & Biomass Power Plant ●1.1MW Solar PV

Myanmar:9 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 ●7.3MW Solar PV●Brewing Systems and Biogas Boiler to Brewery Factory●Energy Saving Equipment to Complex Buildings

Bangladesh:5 projects●Centrifugal Chiller●Loom at Weaving Factory*●315kW PV-diesel Hybrid System*●Centrifugal Chiller*■High Efficiency Transmission Line

Mongolia:8 projects●Heat Only Boiler (HOB)** ●2.1MW Solar PV in Farm* ●10MW Solar PV* ●8.3MW Solar PV in Farm *●15MW Solar PV■Upscaling Renewable Energy Sector●Fuel Conversion by Introduction of LPG Boilers ■Improving Access to Health Services

Viet Nam:32 projects●Digital Tachographs* ●Amorphous transformers1* ●Air-conditioning in Hotel1* ●Electricity Kiln
●Air-conditioning in Lens Factory* ●Container Formation Facility*●Amorphous transformers 2*●320kW Solar PV in Shopping Mall* ●Air-conditioning Control System ●High Efficiency Water Pumps*●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●Biomass Boiler to Chemical Factory ●Air-Conditioning System and Air Cooled Chillers ●49MW solar PV●57MW solar PV ●Biomass Boiler to Soluble Coffee Manufacturing Plant ●Once-through Boiler to Food Factory●Biomass Co-generation System to Food Factory ●Air-conditioning in Hotel2 ●2MW Solar PV●Waste to Energy Project in Bac Ninh Province ●LED Lighting to Office Building●9MW Solar PV to Factories●10MW Rice Husk Power Plant

Saudi Arabia:2 projects

Mexico:6 projects

Maldives:3 projects

Phillipines:15 projects●Electorolyzer in Chlorine Production Plant●400MW Solar PV●186kW Solar Power on School Rooftop*■Smart Micro-Grid System■Greater Male Waste to Energy Project

Ethiopia:1 project●120MW Solar PV

Kenya:2 projects●1MW Solar PV at Salt Factory※●38MW Solar PV

Laos:5 projects◆REDD+ through controlling slush-and-burn●Amorphous transformers ●14MW Floating Solar PV●11MW Solar PV●14MW Solar PV

Thailand:40 projects●1.2MW Power Generation with Methane Gas Recovery System ●Once-through Boiler and Fuel Switching●20MW Solar PV ●30MW Solar PV1●Energy Efficient Distillation System●30MW Solar PV2●15MW Hydro Power Plant ●1.53MW Rooftop Solar PV
Costa Rica:2 projects●1MW Rooftop Solar PV●1.2MW Rooftop Solar PV●5MW Solar PV※●4MW Solar PV●2.5MW Rice Husk Power Generation●Chiller and Heat Recovery System●18MW Solar PV●0.16MW Micro Hydro Power Plant●33MW Wind Power●19MW Hydro Power Plant●2MW Solar PV (Eco Lease) ●Biogas Power Generation and Fuel Conversion
Chile:5 projects●29MW Binary Geothermal Power Generation●1MW Rooftop Solar PV*●60MW Solar PV●20MW Flash Geothermal Power Plant●3.4MW Rice Husk Power
Palau:5 projects
Generation●370kW Solar PV for Commercial Facilities*●3MW Solar PV1●155kW Solar PV for School*●3MW Solar PV2●445kW Solar PV for Commercial Facilities Ⅱ*●34MW Solar Power●0.4MW Solar PV for Supermarket ●1MW Solar PV for Supermarket

Indonesia:40 projects●Centrifugal Chiller at Textile Factory*●Energy Saving at Convenience Store*●Energy Saving at Convenience Store●1MW Solar PV on Factory Rooftop*●Refrigerants to Cold Chain Industry**●Double Bundle-type Heat Pump*●Upgrading Air-saving Loom* ●Centrifugal Chiller & Compressor*●Centrifugal Chiller in Tire Factory ●Centrifugal Chiller at Textile Factory 2*●30MW Waste Heat Recovery in Cement Industry*●Co-generation in Motorcycle Factory ●Air Conditioning System & Chiller* ●Refrigeration System ● 500kW Solar PV and Storage Battery*●Regenerative Burners*●Ion Exchange Membrane Electrolyzer ●Chilled Water Supply System ●LED Lighting to Sales Stores●Centrifugal Chiller at Textile Factory 3*●Old Corrugated Cartons Process*●2MW Solar PV1●12MW Waste Heat Recovery in Cement Plant ●Co-generation System PV●Upgrading to Air-saving Loom*●Centrifugal Chiller in Shopping Mall*●3.4MW Solar PV* ●Refrigerator and Evaporator ●Heat Recovery Heat Pump ●30MW Solar PV*●Smart LED Street Lighting System●Once-through Boiler System in Film Factory*●5MW Floating Solar PV* ●Boiler System in Rubber Belt Plant ●Air-conditioning Control System ●Gas Co-generation System*●Once-through Boiler in Golf Ball Factory*●Biomass Co-generation System ●Co-generation in Fiber Factory ●Biomass Boiler●1.6MW Solar PV in Jakabaring Sport City*◆REDD+ through controlling slush-and burn●25MW Solar PV in Industrial Park ●3.4MW Solar PV ●0.8MW Solar PV and Centrifugal Chiller ●10MW Hydro Power Plant1●Looms in Weaving Mill*●LED Lighting to Sales Stores▲ Introduction of Scheme for F-gas Recovery and Destruction ●37MW Solar PV and Melting Furnace ●Industrial Wastewater Treatment System●0.5MW Solar PV*●Heat Exchanger in Fiber Factory ●15MW Biomass Power Plant in Sugar Factory ●8.1MW Solar PV ●Gas Co-generation system●Absorption Chiller* ●High Efficiency Autoclave●Centrifugal Chiller to Machinery Factory ●5MW Solar PV ●2.6MW Solar PV●CNG-Diesel Hybrid Public Bus●Rehabilitation of Hydro Power Plant ●12MW Biomass Power Plant●2.5MW Solar PV with Blockchain Technology ●2MW Solar PV2 ●30MW Floating Solar PV●Injection Molding Machine3●2MW Mini Hydro Power Plant●Boiler to Carton Box Factory●Chiller ＆ PV ●Once-through Boiler in Garment Factory●10MW Hydro Power Plant2●6MW Hydro Power Plant1●6MW Hydro Power Plant2●5MW Hydro Power Plant●4.2MW Solar PV●8MW Mini Hydro Power Plant●Thermal Oil Heater System●3.3MW Rooftop Solar PV

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

22

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

Rules and Guidelines
Overall

Joint Committee
Methodology

Project
Procedures

Developing
a PDD
Monitoring
Validation
Verification

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

23

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

Project Participant

Submission of
Proposed
Methodology

Government(Methodology Proponent)(Methodology Proponent)

Prepare a proposed
methodology

Prepare a proposed
methodology* Methodology guidelines* Proposed methodology
form* Proposed methodology
spreadsheet form

Joint Committee
Develop a proposed
methodology under
the initiative of the
Joint Committee* Methodology guidelines* Proposed methodology
form* Proposed methodology
spreadsheet form

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

24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 projectPrepare a validation
report* Validation and verification
guidelines* Validation report form
Submit the validation reportComplete 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
Notify the conclusion

Completeness check[7 days] (secretariat)

Notify the registration

Registration

25

Notify the registration

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

Verification
Validation andverification canbe conductedsimultaneously
or separately.

Third-Party Entity

Verify emission
reductions
Prepare a verification
report* 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
Completeness checkthe request
form[7 days] (secretariat)* Credit issuance request
form

Notify the result

Decision on
notification of
Notify the amount of credits
amount of credits to to be issued
be issued
Notify the issuanceIssuance of credits

26

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 up to 10 members.
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.

27

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.
GHG emissions fromsources covered by aproject

Start of project operation

Likely range of BaU emissions
Emission
Reductions(credits)

Time

Reference Emissions
Project emissions28

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.
GHG emissions fromsources covered by aproject

Start of project operation

BaU emissions
Emission
Reductions(credits)Time

Calculated project emissions
Actual project emissions

29

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.

30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 efficiency 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

31

Overview of JCM Methodology, Monitoring Plan and Monitoring Report(Subject to further consideration and discussion with partner countries)

JCM methodology consists of the following:
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 32

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

33

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. Diagram showing all emission sources and monitoring points relevant to theJCM 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. 34

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 values stated 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

35