Recent Developments of
The Joint Crediting Mechanism(JCM)

COP27 Japan Pavilion -Promoting and expanding the Joint Crediting Mechanism (JCM)8 th November 2022
Eri Matsumoto
Ministry of the Environment, Japan

GHG emissions and target in Japan❑ Long-term goal: Net zero emissions by 2050 compared to 2013
❑ Mid-term target: 46% emission reduction by 2030 compared to 2013
❑ GHG emissions in 2020: 1,149 mil ton of CO2 eq. (5.0% reduction to 2019, 18.4% reduction to 2013)❑ JCM target: cumulative GHG emission reduction for 100 mil tons of CO2 eq. by 2030

*measurement, reporting and verification2

Basic Concept of the JCM◼ Facilitate diffusion of leading decarbonizing technologies and infrastructure, etc., throughinvestment by Japanese entities, thereby contributing to GHG emission reductions or removals
and sustainable development in partner countries.
◼ Contribute to the achievement of both countries’ NDCs while ensuring the avoidance of double
counting through corresponding adjustments.
◼ Implement the JCM consistent with the guidance on cooperative approaches, referred to inArticle 6, paragraph 2 of the Paris Agreement.

UNFCCC, Article 6 of the Paris Agreement
Reporting and Corresponding Adjustments

JAPANJCM

PartnerCountry

Leading decarbonizing technologies, etc.,
and implementation of mitigation actions

Operation and management bythe Joint Committee which consists ofrepresentatives from the both sides

Used to achieve
Japan’s NDC

JCM Credits

JCM Projects
MRV*

GHG emission
reductions/removals*measurement, reporting and verification3

Implementation of the Article 6 rules into domestic rules◼ Establishment of the JCM Promotion and Utilization Council
consisting of five relevant Ministries* (January 17,2022)∗ Ministry of the Environment; Ministry of Economy, Trade and Industry; Ministry of Foreign Affairs; Ministry ofAgriculture, Forestry and Fisheries and Ministry of Land, Infrastructure, Transport and Tourism

The Council’s duties include:
1. the authorization of JCM credits as a Party to the Paris Agreement,
2. the determination of a method to apply corresponding adjustments to prevent double counting,
3. the revision of the Guidelines for the Implementation of the JCM.

◼ Formulation of the procedures on the authorization andcorresponding adjustments (April 7, 2022)- Establishment “Procedures for Authorization as a Party to the Paris
Agreement regarding the Joint Crediting Mechanism (JCM)” and “Proceduresfor Corresponding Adjustments regarding the Joint Crediting Mechanism.”◼ Expansion of JCM Partner Countries (June 7, 2022)- The Grand-design and Implementation Plan/Follow-ups of the New Capitalism(Cabinet Decision on June 7, 2022) stipulates “For the expansion the JCM, thegovernment accelerates consultations with relevant countries, aiming to increase theJCM partner countries up to around 30 by 2025.”

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JCM Partner Countries (24 countries)

Mongolia
Jan. 8, 2013
（Ulaanbaatar）

BangladeshMar. 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)

Myanmar
Sep. 16, 2015
(Nay Pyi Taw)

ThailandNov. 19, 2015
(Tokyo)Philippines
Jan. 12, 2017
(Manila)SenegalAug. 25, 2022
(Dakar)TunisiaAug. 26, 2022(Tunis)

Azerbaijan
Sept. 5, 2022(Baku)

Moldova
Sept. 6, 2022(Chisinau)

Georgia
Sept. 13, 2022(Tbilisi)

Sri Lanka
Oct. 10, 2022(Colombo)

Uzbekistan
Oct. 25, 2022
(Tashkent)*The photo at thetime of extension
in Oct 2021.

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JCM Financing Programme by MOEJ (FY2013～2022) as of October, 2022
Total 223projects (24partner countries)(●Model Project: 211 projects(including Eco Lease: 5project), ■ADB: 5 projects, ■UNIDO 1 project, ◆ REDD+: 2 projects, ▲F-gas: 4 projects)

129 projects have been started operation.
Cambodia:6 projects●●●●●●

68 projects with have been registered as JCM projects.
Mongolia:8 projects●●●●●●■■

Myanmar:8 projects●●●●●●●●

Bangladesh:5 projects●●●●■
Saudi Arabia:2 projects●●
Maldives:3 projects●■■
Ethiopia:1 project●

Kenya:4 projects●●●■
Laos:6 projects●●●●●◆Thailand:51 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲

Viet Nam:42 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲▲
Mexico:5 projects●●●●●
Phillipines:17 projects●●●●●●●●●●●●●●●●▲

Palau:5 projects●●●●●

Costa Rica:2 projects●●

Chile:11 projects●●●●●●●●●●●

Indonesia:47 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ●●●●●●●◆6

Projects supported by the JCM financing programmes
Renewable Energy

Solar power, FARMLAND Co.,
Ltd., Chile

Floating Solar PV,TSB Co.,
Ltd.,Thailand

Hydro Power Plant, Toyo
Energy Farm Co., Ltd.,
Indonesia

Biomass Co-Generation
System, Fuji-Foods Coporation,
ThailandEnergy efficiency [Consumer sector]

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy saving atconvenience stores,
Panasonic, Indonesia

Energy efficiency [Urban sector]

LED street lighting systemwith wireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Binary Power Generation Projectat Geothermal Power Plant, MHI,
Ltd., Philippines

Energy efficiency [Industrial sector]

Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia

High-efficiency airconditioning system,
Hitachi, Daikin, Vietnam

Waste

Power Generation withMethane Gas Recovery
System, NTTDATA, Mexico

Waste to Energy Plant,JFE engineering, Myanmar

Energy-saving of mobile
communications basetransceiver stations,KDDI Corp. Indonesia

Transport

CNG-Diesel Hybrid
Public Bus, HokusanCo., Ltd., Indonesia

7Technologies Transferred through JCM (FY2013-2022)◼ Total of 223 JCM Projects being developed in 24 partner countries (October, 2022)◼ 37% for energy efficiency, 53% for renewable energy, 4% for Effective use ofEnergy, Transport, Waste to energy, F-gas Recovery and Destruction and REDD+project shares
Waste (4) 2%• Waste to Energy• Power Generationwith Methane Gas

Effective Use ofEnergy (10) 4%• Waste Heat Recovery• Gas Co-generation

Energy efficiency (86)37%
• Boiler• Air Conditioning• Refrigerating/Chiller• Looms• Transformer• LED Lighting

Transport (3) 1%

REDD+ (2) 1%• Digital Tachographs• Modal Shift• CNG-Diesel Hybrid• Controlling slush
and burn

2%

1%

1%

September,2022

F-gas (4) 2%2%4%• Recovery &Destruction

37%53%

Renewable energy(125) 53%
• Solar(&Storage battery)• Micro hydro• Wind• Biomass• Geothermal8

JCM Model Projects by MOEJ
Budget for projects starting from FY
2022 is approx. 17.1 billion JPY(approx. USD 158 million) in total(1 USD = 108 JPY)
by FY2024

Governmentof Japan

Finance part of an investment cost
(up to half)∗ Includes collaboration with projects supported
by JICA and other governmental-affiliatedfinancial 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 from fossil fuelcombustion as well as construction cost for installing those facilities, etc.
⚫ Eligible Projects: starting installation after financing is awarded and finishing installation within
three years.

9JCM F-gas Recovery and Destruction Model Project by MOEJ
【Budget for FY 2022】
60 million JPY (approx. 0.56million USD)
(1 USD = 108 JPY)

Governmentof 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 areexpected to be delivered to the government of Japan

International consortiums (which include Japanese entities)
Manufacturers ofequipment whichuses F-gas

Users ofequipment whichuses F-gas

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

Entities for destruction of used
F-gas (may use existing
facility for destruction)

Purpose

Project Period

To recover and destroy F-gas (GHG except for energyrelated CO2, etc) from used equipment instead of releasing
to air, and reduce emissions

Three years in maximum(Ex. 1st year for scheme, 2nd year for facilities, 3rd yearfor recovery/destruction)

Scope of Financing

Eligible Projects• Establish scheme for recovery and destruction• Install facilities/equipment for recovery/destruction• Implementation of recovery, transportation, destruction
and monitoring• After financing is awarded, start implementation ofrecovery/destruction within three years• Aim for the registration as JCM project and issuancecredits

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ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)

Budget for FY2022

JPY 1 billion (approx. USD 9.3 million)

SchemeTo provide the financial incentives for the adoption of advanced low-carbon
technologies which are superior 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
GHG
reduction

ADB
MRV
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 tomiddle-income countries at a quasimarket rate.
2 Asian Development Fund offers
concessional loan and grant to lowincome countries.

JFJCM(Trust Fund)

Grant (Sovereign)

ADB source（OCR1/ADF2)

Loan/Grant etc.

Interest
Buy-down(Non-sovereign)

Co-financing
Co-Financing partners(Other financialinstitutions and funds)

Loan/Grant etc.

Additional costs fromadvanced lowcarbon technologies

Mitigation throughconventionaltechnologies(Selection from ADBpipeline)

Project11

Collaboration with UNIDO by the JCM◼ Signed Joint Declaration on Environmental Cooperation in order to support the JCM.
(Nov.10.2020)◼ The UNIDO-MOEJ Project to support JCM related activities, including financial support
for deploying the decarbonizing technologies in Africa and Asia.
• UNIDO Technical Cooperation• Cooperation in Promoting Private Investment
Linkage with existing
UNIDO programme,
including multi-funding

Utilization ofUNIDO network
Headquarter
UNIDO
TechnicalCooperation

Cooperation inPromoting
PrivateInvestment

JCM project
JCM project

Local office

UNIDO Investment
and Technology
Promotion Office,Tokyo

Aiming to facilitate close cooperation
between UNIDO and MOEJ on⚫ climate change⚫ the circular economy⚫ fluorocarbon life cycle management⚫ the reduction of industrial pollution⚫ the elimination and reduction ofpersistent organic pollutants⚫ life cycle management of mercury

Comprehensive Set of Assistances from Upper Stream to Lower Stream
Policy Dialog

Assistance for Planningand Legal System

Assistance for
Project Formation

Assistance for
Project Finance12

JCM x SDGs : Recent Development
JOINT CREDITING MECHANISM CONTRIBUTIONS TO SDGs
◼ Guidance :– The first publication to analyze the interlinkage between
the JCM and SDGs. It aims to clarify how the JCM
contributes to SDGs.
https://www.iges.or.jp/en/pub/joint-crediting-mechanism-jcm-contributions-sustainable-development-goals-sdgs/en◼ Best practices– This report summarizes the best practices of the JCM
contributions to the SDG achievement, which shows howeach project links with the SDG Goals.
(Publication Date:February 2021)

https://www.iges.or.jp/jp/pub/jcm-sdgs-best-practices/en

Guideline on Gender Equality for the Joint Crediting Mechanism (JCM)*◼ MOEJ developed the “Guideline on Gender Equality for the Joint
Crediting Mechanism (JCM)” with the aim of encouraging mainlyrepresentative participants and partner participants of the JCM Model
Projects to take actions toward gender equality.
*Start to apply from FY2020.

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JCM Business Matching Site “JCM Global Match”
Features of the “JCM Global Match”
Launched in July 2019
Many participants all over the world including
Japan and the JCM partner countries have alreadysigned up.
Reformed on December 2nd 2020 with a lot ofimprovements!
1.

Faster registration (takes 1 min only!)2.

Search bar to find your partners by names oftechnologies or companies

3.

Useful communication among all participants viachat rooms
4.

Opportunity to promote your company by Profileand Specialties sections

5.

1 to 1 Communication by private chat and Emailaddresses exchange

6.

Reservation of your Scheduled Meetings*Google Chrome and Firefox are recommended browsers.

☆Sign it up now from here→

https://gec.force.com/JCMGlobalMatch/s/

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Thank you for your kind attention

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