Overview of the Financing Programme
for JCM Model Projects

September 30, 2020

Global Environment Centre Foundation(GEC)Agenda1. Overview of the Financing Programme
for JCM Model Projects
2. Introduction of Business Matching
Platform “JCM Global Match”

2Basic concept of JCM Model Projects
Basic concepts of JCM

3

Basic concept of JCM Model Projects

Partner country
government & entities

4

Project Eligibility

Reduce energy-related CO2 emissions
with leading low carbon or decarbonizing
technologies in partner countries
Contribute to the sustainable developmentin partner countries.
Reduction of GHG emissions achieved by
the projects can be quantitativelycalculated and verified.
Facilities installed by the projects do notreceive any other subsidy by theGovernment of Japan.

FY20205Structure of International Consortium
International consortium
Jointly implement a JCM model project

Representative participantPartner participant(s)（Shall be a Japanese entity）
Main role : Overall project
management

Order(At least one local entity
shall be a partner)
Main role : Installation &management of facilities

Consortium must
include both anowner and user offacility installed by
the JCM project.

EPC contractor(a) A representative participant of the model project shall be a Japanese entity of aninternational consortium.
(b) A participant shall have capability for the implementation, such as technical capacity toappropriately implement the eligible project.
(c) A participant shall have a financial basis to bear the costs necessary to appropriately
implement the eligible project.
(d) A participant shall have adequate management structures and handling capacity foraccounting and other administrative work related to the eligible project;(e) A participant shall explain the contents, effect on GHG emission reductions, details ofthe cost, investment plan, etc. of the eligible project.

FY20206

Costs Eligible for JCM Financing
What kind of cost is covered or not covered in this program?
COVEREDNOT COVEREDFacilities and Equipment

Removal work for existing facilities
and equipment

Monitoring Equipment
Main construction work

Civil engineering work
Consumable supplies and materials

Surveying and Testing

Spare parts

Administrative Work

Emergency facilities and equipment

Other necessary costs
approved by GEC

Cost related to restoration offunction
Cost related to land acquisition
Forward exchange contract andremittance charge

FY20207Overview of JCM Financial Support
Amount of JCM Financial Support• Budget in FY 2020: 9 billion yen (Approx. USD 85million)• Max. financial support per project: Approx. 2 billion yen• All the eligible costs for financing will be supported by the certain
percentage of the support.

Percentage of JCM Financing Support• According to the number of already selected project(s) using a similar
technology in each partner country within the JCM programme.
the number of similar
technology in eachpartner country.

Zero(the firstproject)One or more
and less than 44 or more

Maximum percentage ofthe financial support

50 ％

40 ％

30 ％

8Cost-effectiveness of GHG Emission Reductions

JPY4,000 / tCO2-e

Legal durable years of the facilities is stipulated by the Japanese law,and are dependent on the industry classification.

JPY3,000 / tCO2-e

In case the number of similar technological projects in a partner country
is 5 or more (“Solar Power” projects in Mongolia, Palau and Philippineand “Hydropower” projects in Indonesia)

JPY2,500 / tCO2-e

In case the number of similar technological projects in a partner country
is 10 or more (“Solar Power” projects in Thailand)

FY20209Other Essential Requirements for JCM Projects
Appropriateness of Project Plan
Project schedule
Land acquisition
Concession and license for the project implementation
Power Purchase Agreement in case of a power generation
project
Financial plan including financing resources other than JCM
Profitability of Project
Cash flow and payback period of the project- Payback period should be 3 years or longer with JCM financial
support.
10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 participantLeasing company

PVHigh Efficiency equipment

11

JCM Model Projects Schedule in FY2020

From April 5 to October 30 :Proposal Acceptance Period

This figure shows the schedule of the first selection.
Additional selections will be conducted several times by the deadline
at the end of October, in which case the schedule after selection will
be shifted behind accordingly.

Disbursement of part of financial support

FY202012

List of JCM Model Projects Selected in Indonesia (1)Year

EntityProject Title

Sector

EBARA REFRIGERATION
Energy Saving for Air-conditioning and Process
2013 EQUIPMENT & SYSTEMS
Energy Efficiency
Cooling at Textile Factory 1CO., LTD.
Installation of Inverter-type Air Conditioning
System LED Lighting and Separate Type Fridge
2013 Lawson, Inc.
Energy Efficiency
Freezer Showcase to Grocery Stores in
Republic of Indonesia
Mayekawa Manufacturing Energy Efficient Refrigerants to Cold Chain
2013
Energy Efficiency
Co., Ltd.
Industry
2013 Toyota Tsusho Corporation

Energy Saving by Installation of Double BundleEnergy Efficiency
type Heat Pump

EBARA REFRIGERATION
Energy Saving for Air-conditioning and Process
2013 EQUIPMENT & SYSTEMS
Energy Efficiency
Cooling at Textile Factory 2CO., LTD.
JFE Engineering
Power Generation by Waste-heat Recovery in2014
Effective Use of Energy
Corporation
Cement Industry
2014 Itochu Corporation

2014

Toyotsu Machinery
Corporation

Installation of Solar Power System and Storage
Renewable Energy
Battery to Commercial Facility
Energy Saving through Introduction ofRegenerative Burners to the Aluminum Holding
Energy Efficiency
Furnace of the Automotive Components
Manufacturer

EBARA REFRIGERATION
Energy Saving for Textile Factory Facility
2014 EQUIPMENT & SYSTEMS
Cooling by High Efficiency Centrifugal Chiller
CO., LTD.

Energy Efficiency

Expected GHG
EmissionReductions（tCO2/y）

117

141

165
175
152
149,063
385

98

205

13

List of JCM Model Projects Selected in Indonesia (2)KANEMATSU
CORPORATION

Introduction of high efficient Old CorrugatedCartons Process at Paper Factory

Energy Efficiency

19,0112014 Toray Industries, Inc.

Reducing GHG emission at textile factories byupgrading to air-saving loom

Energy Efficiency

7422015 NTT FACILITIES, INC.

Energy Saving for Air-Conditioning at Shopping
Energy Efficiency
Mall with High Efficiency Centrifugal Chiller

3982015 NTT FACILITIES, INC.

Energy Saving for Industrial Park with Smart
LED Street Lighting System

Energy Efficiency

543

Mitsubishi ChemicalCorporation

Introduction of High Efficiency Once-throughBoiler System in Film Factory

Energy Efficiency

8162015 Toyota Tsusho Corporation

Installation of Gas Co-generation System for
Automobile Manufacturing Plant

Effective Use of Energy

2015 Sharp Corporation

1.6MW Solar PV Power Plant Project inJakabaring Sport City

Renewable Energy

917

Introduction of High Efficiency Once-throughBoiler in Golf Ball Factory

Energy Efficiency

148

2014

2015

2015

Sumitomo Rubber
Industries, Ltd.

2016 Toyo Energy Farm Co., Ltd.
2016

FAST RETAILING CO.,LTD.

2016 Nisshinbo Textile Inc.
EMATEC:Environmental
2016 Management andTechnology Center
Next Energy & Resources
2016Co., Ltd.

21,793

10MW Mini Hydro Power Plant Project in NorthRenewable Energy
Sumatra47,182Introduction of LED Lighting to Sales Stores

Energy Efficiency

2,583

Introduction High Efficiency Looms in Weaving
Energy Efficiency
Mill430

Energy Saving in Industrial Wastewater
Treatment System for Rubber Industry

Energy Efficiency

403

Introduction of 0.5MW Solar Power System toAroma and Food Ingredients Factory

Renewable Energy

369

14

List of JCM Model Projects Selected in Indonesia (3)2017 DENSO CORPORATION

Introduction of Gas Co-generation System andAbsorption Chiller to Motor Parts Factory

Energy Efficiency /Effective Use of Energy

2017 Tokyo Century CorporationIntroduction of Absorption Chiller to Chemical
Factory

Energy Efficiency

712

Otsuka Pharmaceutical
Factory, Inc.

Energy Saving by Introducing High Efficiency
Autoclave to Infusion Manufacturing Factory

Energy Efficiency

1,949

2018

4,629

2018 Hokusan Co., Ltd.

Introduction of CNG-Diesel Hybrid Equipment toTransportation
Public Bus in Semarang

2,667

2018 Voith Fuji Hydro K. K.

Rehabilitation Project of Power Generation
System at Karai 7 Mini Hydro Power Plant

Renewable Energy

1,133

12MW Biomass Power Plant Project in Aceh
Province, Sumatera

Renewable Energy

31,322

2018

Aura Green Energy Co.,Ltd.

2018 Tokyo Century Corporation

Introduction of High Efficiency Injection Molding
Energy Efficiency
Machine to Plastic Parts Factory

4,4622019 Aura Green Energy Co., Ltd2MW Mini Hydro Power Plant Project in East
Nusa Tenggara Province

6,839

2019

Japan Pulp and Paper
Company Limited

Renewable Energy

Introduction of High Efficiency Boiler System toEnergy Efficiency
Carton Box Factory

9752019 Voith Fuji Hydro K.K.

10MW Hydro Power Project in Bengkulu
Province

Renewable Energy

35,9502019 Voith Fuji Hydro K.K.

6MW Hydro Power Project in West Sumatera
Province

Renewable Energy

17,2422020 NiX Co., Ltd.

6MW Mini Hydro Power Plant Project in West
Pasaman, West Sumatra

Renewable Energy

18,319Total 34 Projects

Energy Efficiency: 21 Projects

Renewable Energy: 10 Projects

Effective Use of Energy: 3 Projects

Transportation 115

Trends in the JCM Model Projects
Total Budget（¥100mil）

Trends of JCM Financial Support

140

AverageFinancialSupport（¥100mil）

GHG Emission
Reductions（10K tCO2/Year）

4.040

120

3.5

35

100

¥9.9bil 3.030

2.5

25

2.0

2080

¥6.9bil¥6.0bil

60

1.540

1.020

0.500.0
2013

2014

2015

Total Budget

2016

2017

2018

2019

Average Financial Support per Projectand GHG Emission Reductions

Numberof Projects
4035353324191510

Number of JCM Selected Projects

71230222520151055002013

20142015
201620172018
2019
Expected GHG Emission Reductions
Number of Projects（excluding abolished projects）

Number and Ratio of JCM Large Projects
Ratio(Projects with GHG Emission Reductions over
10KtCO2/year)

60%

Number ofProjects
1455%
1250%
42%

1037%

40%

830%

617%

20%

12%

14%

410%

It is expected to propose a projectthat will achieve greater GHG emission
reductions and cost effectiveness.

20%0201320142015Ratio of Large Projects

2016

2017

2018

2019

Number of Large Projects

16JCM Investment Scale by Technology Type（2013-2020）
Number of
Project*Sector

Technology

Renewable
EnergySolar Power Plant
Small Hydropower Plant
Biomass
Other Renewable Energy (Wind Power, Geothermal)

EnergyEfficiency

Renewable Energy Subtotal
Air Conditioning, Chiller
Transformer
LED Lighting
BoilerOther Energy Efficiency

Effective
Use ofEnergy

Energy Efficiency Subtotal
Power Generation by Waste Heat Recovery
Waste Heat Recovery
Co-generation

Effective Use of Energy Subtotal

Waste

Waste-to-Energy Plant,
Power Generation by Methane Recovery

Transportation

CNG-Diesel Hybrid Bus, Reefer Container, etc.

Grand Total

52
10132773455112782
26513

Total ProjectCosts¥97.1bil¥30.2bil¥20.9bil¥20.3bil¥168.5bil¥11.4bil¥7.3bil¥3.4bil¥1.6bil¥21.1bil¥44.7bil¥7.6bil¥2.5bil¥3.8bil¥14.0bil2¥4.0bil3¥0.5bil

177¥231.7bil*Projects with multiple technologies are counted multiple times.

JCM Investment Scale by Country（2013-2020）
Partner Country

Number of Project（Number of Technology）

Total Project Costs

Mongolia

7 (8)¥14.0bil

Bangladesh

4 (4)¥0.9bil

Ethiopia

1 (1)¥10.7bil

Kenya

2 (2)

¥4.1bil

Maldives

1 (1)¥0.03bilViet Nam

26 (29)¥28.2bil

Lao PDR4 (4)¥5.0bilIndonesia

34 (37)¥26.7bil

Costa Rica2 (3)¥1.2bil

Palau

5 (5)

¥0.6bilCambodia6 (8)¥3.9bil

Mexico6 (6)¥13.2bil

Saudi Arabia

2 (2)¥22.4bil

Chile

4 (4)

¥2.3bil

Myanmar

7 (10)¥5.9bilThailand32 (40)¥47.6bilPhilippine

13 (13)¥45.0bilGrand Total

156 (177)¥231.7bil

JCM in the COVID-19 Period

During the COVID-19 Period,“New Normal” is required in our society.
Digital Transformation
Remote Control, Smart Factory
Digital Supply Chain
Resilience in the community, etc.

“Green Recovery” is needed for decarbonization.
Recovery from the pandemic of COVID-19
is a good opportunity to accelerate decarbonization.
“Financing Programme for JCM Model Projects”
can contribute to tackling with these issues.
19Consultation by GEC■Contact:
Takeyama, Tango
Global Environment Centre Foundation (GEC) Tokyo OfficeE-mail : jcm-info@gec.jp※Currently, due to COVID-19, we are partially doing telework, and provide
application consultation at web conference. Please send an e-mail to contact us.
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Promotion of JCM■Webinar※All events will be held as webinars in FY2020.
Thailand：August 25
Indonesia：September 30（15:00-17:40, GMT+7）
Tokyo：November
Costa Rica：November
Chile : December
Mexico：January 2021
Vietnam： January

Webinar for Thailand(August 2020)

Seminar in Indonesia(October 2019)■GEC’s Website on JCM
http://gec.jp/jcm/■GEC’s JCM Twitter
https://twitter.com/GEC_JCM_Info

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Global Environment Centre Foundation(GEC) Tokyo OfficeE-mail :jcm-info@gec.jp
URL : http://gec.jp/