Government of Japan

Scaling up of the JCM through collaboration
with relevant organizations
December 4, 2019
Maiko Uga

Ministry of the Environment ,Japan

The Joint Crediting Mechanism (JCM) Facilitating diffusion of leading low carbon technologies through contributions from Japan and evaluating realized GHG
emission reductions or removals in a quantitative manner to use them for achieving Japan’s emission reduction target.
 Japan will address the high initial cost barrier of introducing advanced low-carbon technologies in the Partner countries(17 countries) through the JCM (GoJ implements several supporting schemes)

Waste heat recovery in
Cement Industry, JFEengineering, Indonesia

Eco-driving with Digital
Tachographs, NITTSU,Vietnam

Energy saving atconvenience stores,
Panasonic, Indonesia

High efficiency air-conditioning High-efficiency Heat only
and process cooling, Ebara
Boilers, Suuri-Keikaku,
refrigeration equipment &Mongolia
systems, Indonesia

Upgrading air-saving loom at
textile factory, TORAY etc.,
Indonesia, Thai, Bangladesh

Installing solar PV system,
PCKK, Palau Maldives

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Co-generation system at
High efficiency airfactory, Toyota, Nippon
conditioning system, Hitachi,
Steel & Sumikin Engineering, Daikin, Vietnam
Indonesia, Thai

Solar power ,Farmdo Co.,
Ltd.,Mongolia

Waste to Energy Plant,
JFE engineering, Myanmar

High efficient refrigerator,
Mayekawa MFG,
Indonesia

Regenerative Burners inindustries, Toyotsu
Machinery, Indonesia

LED street lighting systemwith wireless network control,2
MinebeaMitsumi, Cambodia

Contributions from Japan
Partner Country
government & entities

Japanesegovernment &entities

Financial support

Japan will acquire apart of JCM credits(in return to thefinancial support)

Initial cost

GHGemissions

Conventionalequipment & facility

SelectCredits

Emission reductions

Initial cost

GHG emissions

Incentivize selecting
advanced low-carbon ordecarbonizing
technologies by thefinancial support to initialcost

Advanced low-carbonor decarbonizing
equipment & facility

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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）

Lao PDR
Aug. 7, 2013
(Vientiane)

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)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)

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

Saudi Arabia
May 13, 2015

Chile
May 26, 2015
(Santiago)

MyanmarSep. 16, 2015
(Nay Pyi Taw)

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

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JCM’s Contribution to NDC

 JCM‘s conservative emission reduction calculation (referenceemissions 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 theJCM

Conservative
Emission Reductions(Partner Country )ConservativeEmission Reductions(Japan )Project emissions

Start ofproject operationTimeCredits

Credits

Contribution toPartner Country Contribution toJapan’s NDC
NDC

Business as usual emissions(Baseline emissions under the CDM)

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JCM Financing Programme and Collaboration with MDBs

1. JCM Model Projects by Ministry of the Environment
2. JCM F-gas Recovery and Destruction Model Project
3. ADB Trust Fund: Japan Fund for Joint Crediting
Mechanism

4. Collaboration with the World Bank Group6

JCM Model Projects by MOE

Budget for projects starting from FY 2019 is 9.9 billion JPY(approx. USD 99 million) in total by FY2021 (1 USD = 100 JPY)
※Includes collaboration with projects supported by JICA and other governmental-affiliated financial
institute.

Government of Japan
Finance part of aninvestment cost(less than half)

Conduct MRV and
expected to deliverat least half of JCM
credits issued

International consortiums(which include Japanese entities)
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JCM F-gas Recovery and Destruction Model Project by MOE【Draft budget for FY 2018】
40 million JPY (approx. 0.4
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

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ADB Trust Fund: Japan Fund for Joint Crediting Mechanism
Draft 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:(1) Paid-in capital provided byshareholders, (2) Funds borrowed
from capital markets and private
placements, (3) Accumulated
retained income (reserves). OCR
loans are provided to middle-income
countries at a quasi-market rate.
2 Asian Development Fund offers
concessional loan and grant to lowincome countries.

JFJCM(Trust Fund)ADB source（OCR1/ADF2)
Co-Financing partners(Other financialinstitutions and funds)

Grant (Sovereign)
Interest
Buy-down(Non-sovereign)
Loan/Grant etc.
Cofinancing
Loan/Grant etc.

MRVGHG
reduction

Additional costs fromadvanced low-carbon
technologies

Mitigation throughconventionaltechnologies(Selection from ADBpipeline)
Project9

JCM Financing Programme by MOEJ (FY2013～2019) as of Nov 26, 2019
Total 153 projects (●Model Project: 144projects, ■ADB: 5 projects, ◆ REDD+: 2 projects, ▲F-gas: 2 projects) Other 1 project in Malaysia
94 underlined projects have been started operation.
48 projects with * have been registered as JCM projects.
Cambodia:5 projects●LED Street Lighting●200kW Solar PV at International School*●Solar PV & Centrifugal Chiller●Inverters for Distribution Pumps■Battambang Wastewater Treatment Project

Myanmar:7 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

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 inChlorine Production Plant

Maldives:3 projects●186kW Solar Power on School Rooftop*■Smart Micro-Grid System●1.1MW Rooftop Solar PV

Kenya:2 projects●1MW Solar PV at Salt Factory●38MW Solar PVLaos:4 projects◆REDD+ through controlling slush-and-burn●Amorphous transformers ●14MW Floating Solar PV●11MW Solar PV

Thailand:31 projects

Mongolia:10 projects●Heat Only Boiler (HOB)** ●2.1MW Solar PV in Farm* ●10MW Solar PV*●8.3MW Solar PV in Farm ●15MW Solar PV●20MW Solar PV●21MW Solar PV ■Upscaling Renewable Energy Sector ●Fuel Conversion by Introduction of LPG Boilers■Improving Access to Health Services

Viet Nam:23 projects●Digital Tachographs* ●Amorphous transformers1* ●Air-conditioning in Hotel* ●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 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●Air-Conditioning System and Air Cooled ChillersMexico:7 projects●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●15MW Hydro Power Plant●4MW Hydro Power Plant●1.53MW Rooftop Solar PV●1MW Rooftop Solar PV●1.2MW Rooftop Solar PV●4MW Solar PV●2.5MW Rice Husk Power Generation●0.16MW Micro Hydro Power Plant ●18MW Solar PV●19MW Hydro Power Plant●Biogas Power Generation and Fuel Conversion

Palau:5 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:33 projects

Costa Rica:2 projects●5MW Solar PV●Chiller and Heat Recovery System

Chile:3 projects●1MW Rooftop Solar PV*●1.4MW Solar PV and
2.3MWh Storage Battery●3.4MW Rice Husk Power
Generation●Energy Saving at Convenience Store●1MW Solar PV on Factory Rooftop*●Centrifugal Chiller at Textile Factory*●Energy Saving at Convenience Store*●Upgrading Air-saving Loom*●Centrifugal Chiller & Compressor*●Refrigerants to Cold Chain Industry**●Double Bundle-type Heat Pump*●Centrifugal Chiller in Tire Factory●Co-generation in Motorcycle Factory●Centrifugal Chiller at Textile Factory 2*●30MW Waste Heat Recovery in Cement Industry*●Air Conditioning System & Chiller*●Refrigeration System●507kW Solar Power Hybrid System●Regenerative Burners●Ion Exchange Membrane Electrolyzer●Chilled Water Supply System●Centrifugal Chiller at Textile Factory 3*●Old Corrugated Cartons Process*●LED Lighting to Sales Stores ●2MW Solar ●12MW Waste Heat Recovery in Cement Plant●Upgrading to Air-saving Loom*●Centrifugal Chiller in Shopping Mall*●Co-generation System PV●3.4MW Solar PV* ●Refrigerator and Evaporator●Smart LED Street Lighting System●Once-through Boiler System in Film Factory*●Heat Recovery Heat Pump
●30MW Solar PV●5MW Floating Solar PV●Gas Co-generation System*●Once-through Boiler in Golf Ball Factory*●Boiler System in Rubber Belt Plant●Air-conditioning Control System●1.6MW Solar PV in Jakabaring Sport City*◆REDD+ through controlling slush-and burn●Biomass Co-generation System●Energy Saving Equipment in Port
●10MW Hydro Power Plant●Looms in Weaving Mill*●LED Lighting to Sales Stores●Co-generation in Fiber Factory ●Biomass Boiler ●25MW Solar PV in Industrial Park
●Industrial Wastewater Treatment System●0.5MW Solar PV*●3.4MW Solar PV▲ Introduction of Scheme for F-gas Recovery and Destruction●Gas Co-generation system●Absorption Chiller●10MW Hydro Power Plant●0.8MW Solar PV and Centrifugal Chiller●37MW Solar PV and Melting Furnace
10●High Efficiency Autoclave●CNG-Diesel Hybrid Public Bus●Heat Exchanger in Fiber Factory●Rehabilitation of Hydro Power Plant ●12MW Biomass Power Plant ●Injection Molding Machine3●2MW Mini Hydro Power Plant●Boiler to Carton Box Factory

Technologies Transferred through JCM by MOEJ(FY2013-2019) Total of 147JCM Projects being developed in 17 partner countries 48% are energy efficiency and 43% are renewable energy Effective use of Energy, Transport, Waste to energy, F-gas Recovery and Destruction andREDD+ project shares 9%
Waste 2%
• Waste to Energy

Effective Use ofEnergy 3%Transport（1）2%• Digital Tachographs• Modal Shift• CNG-Diesel Hybrid

REDD+ 1%
• Controlling slush
and burn• Waste HeatRecovery• Gas Co-generation

As of August 2, 2019

• Recovery &Destruction

Energy efficiency
48%

Renewable energy
43%• Solar• Micro hydro• wind• Biomass

F-gas countermeasure 1%（26）• Boiler• Air Conditioning• Refrigerating• Chiller• Looms• Transformer• LED Lighting

11Collaboration with the World Bank Group

Memorandum of Cooperation between World Bank Group & MOEJ

 Identify suitable WBG programs where the MOEJ could potentially participate
through appropriate identified means and jointly develop mitigation outcomesfrom the projects using the JCM methodology
 Explore the possibility to scale up the JCM projects under the PMR and PMR
Successor Program Share information on identified candidate programs with the MOEJ to explore andexamine potential arrangements of the pilot projects with the JCM including
utilization of Measurement, Reporting and Verification (“MRV”) methodologies

Collaboration withWBG
DecarbonizedTechnologies

Partner Countries
JCM project finance

JCM scheme into WBG
projects↓
Development of Decarbonizedtechnologies
12Collaboration with the World Bank Group

2 Areas of Cooperation
Piloting Article 6 of the Paris Agreement• Collaboration with World Bank supported programs• Replication and scale-up JCM projects under the Bank program• Application of JCM methodologies
Partnership for Market Readiness (PMR)• Collaboration with PMR and next phase• Scale-up JCM projects under the PMR and next phase
Carbon Pricing Leadership Coalition (CPLC)• Showcasing MOEJ’s initiatives and business case for carbon pricing.

Innovate 4 Climate (I4C)• Participation and cooperate to I4C
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JCM Business Matching Site “JCM Global Match”
https://gec.force.com/JCMGlobalMatch/
Objectives• To facilitate business match making ofsellers and buyers of low and zerocarbon technology for the JCM projectFeatures• Automated match-making website basedon registered information• Arrangement of face-to-face meetings• Financial institutions and consulting firms
can also participate for match-making

QR codeto see the website

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Muchas gracias!
Thank you for your attention!

Government of Japan