SDGs and the JCM
under Article 6of the Paris Agreement

December 2019

ADB: A Snapshot• ADB is committed to achieving aprosperous, inclusive, resilient, andsustainable Asia and the Pacific, while
sustaining its efforts to eradicate
extreme poverty.
• Founded in 1966
• 68 members—49 within in the AsiaPacific region and 19 outside HQ inManila, 28 resident missions, and 3
representative offices.
• Main instruments for helping its
developing member countries arepolicy dialogue, loans, equity
investments, guarantees, grants, andtechnical assistance.
Note: Niue joined ADB in 11 March 2019.

Source: ADB 2018 Annual Report

ADB Strategy 2030:
Achieving a Prosperous, Inclusive, Resilient, and Sustainable
Asia and the PacificSeven Operational Priorities

Addressing Remaining Poverty and Reducing Inequalities
Accelerating Progress in Gender Equality
Tackling Climate Change, Building Climate and Disaster Resilience,and Enhancing Environmental Sustainability
Making Cities More Livable
Promoting Rural Development and Food Security
Strengthening Governance and Institutional Capacity
Fostering Regional Cooperation and Integration

Target 75% of ADB’s of the number of committed operations (on a 3-year rollingaverage) will support climate mitigation and adaptation by 2030
Target Climate finance from ADB’s own resources reach $80 billion (2019-2030)

ADB Supporting DMCs through theCarbon Market Program 1.0
Technical Support Facility(2006 onwards)
Commenced in 2006
Implemented through a series of 5
Technical Assistance projects
TA 6363: Preparing Clean Energy
Projects Eligible for the Clean
Development Mechanism
TA 6438: Implementation of theTechnical Support Facility under
the Carbon Market Initiative
TA 8223: Supporting the Use ofCarbon Financing to Promote
Green Growth in Asia and thePacific
TA 8654: Supporting the Use ofCarbon Financing from New Carbon
Market Mechanisms to Promote
Green Growth in Asia and thePacific
TA 9062: Supporting Low-Carbon
Development in Asia and the Pacificthrough Carbon Markets

Asia Pacific Carbon Fund(2000-2014)

Future Carbon
Fund (2008-2021)

Japan Fund for the Joint
Crediting Mechanism(2014 onwards)$151.8 million Trust Fund topurchase pre-2013 CERs

$115 million Trust Fund topurchase post-2012 CERs

$70.0 million by the Ministryof the Environment Japan

Commenced in 2007

Commenced in 2009

Commenced in June 2014

Fund Participants include
Seven EuropeanGovernments

Fund Participants include Four
Governments and two private
sector entities from Europe andAsia

JFJCM provides financial
incentives for adoption ofadvanced low-carbon
technologies in ADB-financed
projects

Supported 71 CDM projects
in 9 DMCs
Contracted 15.63 million
CERs
Provided carbon finance to
1.9 GW renewable energy
projects
All contracted CERs received
and distributed to Fund
Participants
Fund closed in 2014

Contracted 10.45 million CERs
with an investment of $59.5
millionSupporting
36 CDM projects
in 12 DMCs
Disbursed $46.6 million as of 31October 2019
Providing carbon financesupport to 1.2 GW renewableenergy projects
Fund will close in 2021

Grant to sovereign projects(max. $10 million)
Interest subsidy tonon-sovereign projects(max. $10 million)$31.48 million committed to
five approved projects in
Maldives, Cambodia,
Bangladesh and Mongolia

Carbon Market Program 2.0

ADB Operations Financing and Support

Japan Fund for the Joint Crediting Mechanism
 Established in June 2014 as one of ADB’s trust funds
 Contribution by Government of Japan: $70.0M (2014-2019)
 Provides financial incentives for adoption of advanced low-carbon
technologies in ADB-financed projects that use the Joint Crediting
Mechanism (JCM)

6Sustainable Development andArticle 6.2 of the Paris Agreement
 “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 and ensure
environmental integrity and transparency, including in governance, and shall applyrobust accounting to ensure, inter alia, the avoidance of double counting,consistent with guidance adopted by the Conference of the Parties serving as themeeting of the Parties to this Agreement.”Promoting Sustainable Development through the JCM
 Each JCM project contributes to the sustainable development (SD) of the partnercountries by delivering a wide variety of co-benefits.
 Increased energy security with renewable energy generation to the grid and to thecommunity, diffusion of low-carbon technologies with built capacity,
new employment opportunity in the construction, operation and maintenancephases of projects, access to new infrastructure with improved access to economic
activities, air quality, health and hygiene, and improved livelihoods.
 Partner countries can design how to ensure sustainable development with greater
flexibility to meet countries’ priority.
E.g. Mongolia ensures sustainable development contribution of their projects byrequiring: JCM Sustainable Development Contribution Plan (ex-ante evaluation)
 Assessment of negative impacts of the project and how to minimize the effect Assessment of potential contributions to Sustainable Development Goals of the project JCM Sustainable Development Contribution Report (ex-post reporting)JFJCM approved projects#Project1

CountryJFJCM
grantApprovalTechnologies supported

Preparing Outer Islands for
Maldives
Sustainable Energy
Development Project (POISED)$5 million

Mar 2015

Advanced battery systemand energy management
system (EMS)

2

Provincial Water Supply andSanitation Project

Cambodia$10 million Dec 2017

Energy efficientwastewater treatment
system3

Southwest Transmission Grid
Expansion Project

Bangladesh$7 million

Jul 2018

Energy efficienttransmission lines

4

Upscaling Renewable Energy
Sector Project

Mongolia$6 million

Sep 2018

Solar PV with advanced
battery system and EMS

5Improving Access to HealthServices for Disadvantaged
Groups Investment Program

Mongolia$3.48million

Oct 2019

Energy efficient HVAC,
high insulation window,
rooftop solar PV andground source heat pump

$31.48 million

Case study : Green Hospital in Mongolia
Project name

Improving Access to Health Services for Disadvantaged Groups
Investment Program

JFJCM grant$3.48 million

Location

Ulaanbaatar, Mongolia

Technologies
supported

Energy efficient HVAC system, high insulation window, rooftop solar
PV and ground source heat pump (GSHP)

Expected SD
Contributions

1. Improved air quality and health by reductions in nitrogen oxides,
sulfur oxides, and particular matter
2. New job opportunities and leading to further research anddevelopment in other energy-efficient technologies for building
3. Exposure of engineers and the building industry to the newtechnology
4. Expected GHG emission reductions with 2.9 thousand tCO2/year10Future Expectations for the JCM
The JCM has been developed with anticipation of the featuresof Article 6.2 of the Paris Agreement, including promotion ofsustainable development.
Tangible sustainable development contributions can beobserved from the existing projects
As the Rulebook for the Article 6 of the Paris Agreement to befinalized, the JCM may need to further institutionalize how toensure its contribution for sustainable development

Article 6 of the Paris Agreement

New Publication on Article 6 and the JCM

Thank you.