Overview of JCM Eco Lease Scheme⚫

Overview• “JCM Eco Lease Scheme” is a scheme which supports more effective
diffusion and expansion of the decarbonizing technologies throughfinancial support for leasing businesses instead of support for(physical) facilities.
• Japanese entity, which is a leasing company, shall be therepresentative participant and liable for implementation of the project.

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Features• Monitoring period applied for the scheme is equal to the leasing
period (but no shorter than five years.)• Amount of the financial support is 10 % or less of the leasing chargeacross all projects. The percentage is close to the interest rates of JCM
partner countries.
• Reference of cost-effectiveness (*) is equivalent to the existing JCMscheme.
(*) Amount of financial support [JPY] ÷ Total emission reductions of GHG [tCO2eq]＝ Amount of financial support for 1t-reduction of GHG emission.
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Overview of JCM Eco Lease scheme< Overview of JCM Eco Lease scheme (Comparison to the existing scheme) >Items

JCM Eco Lease scheme

Existing scheme

Amount of financial
support

500 million JPY (approximately 5 million USD) for 3 years, inprinciple (Up to 500 million JPY (approximately 5 million USD)
per one project, in principle)

Up to 2 billion JPY (approximately 20 million USD)
for 3 years per one project, in principle

Type of business

Lease

No special regulations (lease is eligible)

Maximum percentage offinancial support

10% or less of total lease charge including lease interest(Uniform percentage across all projects)

Maximum 50% of eligible cost

Costs Eligible forFinancing

Cost of facilities/equipment and the relevant leasing interest
based on leasing charge

Cost of machinery and appliances, cost ofconstruction work, cost of administrative work, etc.

Eligible types oftechnologies

In principle, technologies with JCM methodology(ies) that havebeen either approved or proposed.

The advanced decarbonizing technologies

Eligiblefacilities/technologies

Those which GEC approves with consideration of results ofapproved JCM projects

Those which directly contribute to reduction of GHG
emission

Leasing Period

At least 5 years

No special regulations. (Owner of equipment must bein the consortium until the end of legal durable years)

Period of MRV

Equal to the leasing period

Legal durable years of facilities/equipment

Disbursement offinancial support

Payments will be made after the completion of the project andthe final inspection by GEC.
In principle, intermediate payments will not be realized.
In case of the project including several lease contracts,
intermediate payments can be made based on the completion ofequipment installation for each contract.

Intermediate payments can be made based on thecompleted portion of the model project as needed

Submission of thedocuments relevant to
the leasing project

Submission of the documents (breakdown of lease charge) toprove that the equivalent amount to the financial support isreduced from the lease contract (draft) is needed at the time ofproposal submission.

The same as JCM Eco Lease scheme whenparticipants use leasing operation

Simplification ofsubmission documents

Submission of financial statement is needed only for
representative participant (partner participant’s one is notrequired.)

Submission of financial statements of both
representative and partner participant are required.

※1USD=100JPY

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JCM Model Projects (JCM ECO Lease Scheme)
Chart of JCM ECO Lease Scheme※1USD=100JPY⚫

Japanese Government(Ministry of the Environment)＜Financial Support＞
10% or less of leasing
charge includinginterest ①

Global Environmental Foundation (GEC)(Implementing Organization)< Selection, Contract,
Disbursement of financial
support>Intermediate payment not
acceptable ②<Application of financial
support>
Simplification of submission
documents ⑤International Consortium(Representative participantPartner Participant)＜Lease contract＞
At least 5 years(equal to MRVperiod) ③④

Lessee⚫

“JCM Eco Lease” scheme is financial support for leasing
businesses.
Maximum allocated budget is 500 million JPY(approximately 5 million USD) out of 12.8 billion JPY(approximately 128 million USD) for 3 years＜Notable changes from the existing scheme＞⚫ Eligible cost of financial support(only 10% or less of total leasing charge including leasinginterest)_①⚫ Disbursement (intermediate payment not possible)_②⚫ Leasing period (at least 5 years)_③⚫ Period of MRV (equal to leasing period)_④⚫ Simplification of submission documents(submission of financial statements is needed only for
representative participant)_⑤＜Examples of eligible facilities/equipment＞⚫ PV⚫ High Efficiency Air Conditioner⚫ High Efficiency Boiler⚫ High Efficiency Refrigerator

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