COP28 side event @ Japan Pavilion
Progresses & challenges for implementing the JCM under Article 6 of the Paris Agreement
3 December 2023

Recent Developments ofthe Joint Crediting Mechanism(JCM)

Government of Japan
All ideas are subject to further consideration and discussion with partner countries

Basic Concept of the JCM

2Facilitate 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 verification

JCM Partner Countries（28 countries）

Mongolia
Jan. 8, 2013 （Ulaanbaatar）

Ethiopia
Bangladesh
Mar. 19, 2013 (Dhaka) May. 27, 2013 (Addis Ababa)KenyaJun. 12, 2013 (Nairobi)

3Maldives
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)

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)

Kyrgyz Republic
July. 6, 2023 (Bishkek)

Kazakhstan
Oct. 30, 2023 (Astana)

Papua New Guinea
United Arab Emirates
Nov. 18, 2022 (Sharm-el-Sheikh) April. 16, 2023 (Sapporo)

Palau
CambodiaJan. 13, 2014 (Ngerulmud) Apr. 11, 2014 (Phnom Penh)

MexicoJul. 25, 2014 (Mexico City)

Projects supported by the JCM financing programmes

4Renewable Energy

Solar power, FARMLAND Co.,
Ltd., Chile

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

Energy efficiency [Consumer sector]

Energy saving atconvenience stores,
Panasonic, Indonesia

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy efficiency [Urban sector]

LED street lighting systemwith wireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, YukoKeiso, Vietnam

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

Biogas Power Generation,
ITOCHU Corporation, Philippines

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

Energy efficiency [Industrial sector]

Effective Use of Energy

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

Gas Co-generation System andAbsorption Chiller, Kansai
Electric Power, Thailand

Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia

Waste

Power Generation withMethane Gas Recovery
System, NTTDATA, Mexico

Waste to Energy Plant,
JFE engineering, Myanmar

Transport

CNG-Diesel Hybrid
Public Bus, Hokusan
Co., Ltd., Indonesia

Can be conducted by the same TPE
Can be conducted simultaneously

Project Cycle of the JCM

5Project Participant

Submission of PIN＊

Joint Committee

Confirmation of no objection

Project Participant /Each Government
Joint Committee

Submission of Proposed
Methodology

Joint Committee

Approval of Proposed
Methodology

Project Participant

Development of PDD*

Third Party Entities

Validation

Joint Committee

Registration

Project Participant

Monitoring

Third Party Entities

Verification

Joint Committee decides the amount
Each Government issues the credit

Issuance of credits＜Terminology＞• PIN (Project Idea
Note): A document usedto explain the outline ofthe project to the partnercountry and confirm
whether there is anobjection.
• PDD (Project DesignDocument): A documentthat includes monitoring
methods and estimatedemission reductions.
Required for projectregistration.
<Note>For the latest information
on JCM rules and guidelines,
including the PIN
procedures adopted witheach Partner Country,
please refer to eachpartner country page on
the JCM website.

JCM Website
URL: https://www.jcm.go.jp/

6▼Image of the general information page

Contents
General information page
Individual JCM Partner countries-Japanpage

Function
Information sharing to the public, e.g.,• the JC decisions• rules and guidelines• methodologies and projects• issuance of JCM credits• call for public inputs/comments• status of TPEs, etc.
Internal information sharing for the JCmembers, e.g.
• File sharing for electric decisions bythe JC▼Image of the individual JCM Partner countries-Japan page
Partner Country - Japan

Implementation of the Article 6 rules into domestic rules

7

Plan for Global Warming Countermeasures (Cabinet decision on Oct 22, 2021)-Designate the JCM implementing authorities to establish the JCM Promotion and Utilization Council
Designate the JCM Promotion and Utilization Council to authorizes JCM credits issued in the JCM registry ofJapan and decide the procedures for authorization as a Party to the Paris Agreement.

Establishment of the JCM Promotion and Utilization Council
consisting of five relevant Ministries* (Jan 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.
* Reference: https://www.env.go.jp/content/000060591.pdf

Formulation of the procedures on the authorization and corresponding
adjustments (Apr 7, 2022)- Establishment “Procedures for Authorization as a Party to the Paris Agreement regarding the Joint Crediting
Mechanism (JCM)” and “Procedures for Corresponding Adjustments regarding the Joint Crediting
Mechanism.”* Reference: https://www.env.go.jp/content/000060562.pdf

Private-Sector JCM projects

8<Background>• In order to achieve the JCM target of "cumulative international emission reduction/removal of approximately 100 million t-CO2 by2030 through public-private partnership" based on the Global Warming Countermeasures Plan(approved by the Cabinet inOctober 2021), in addition to the conventional JCM project formation using financial support from the government, there is a needto promote the formation of JCM projects invested and implemented by private companies without any governmental financial
supports for the purpose of obtaining JCM credits (private sector JCM), in light of the growing interest in the use of JCM credits onthe part of private-sector companies in recent years.
• In FY2021, the "Study Group on Measures to Promote the Use of JCM by the Private Sector" released "Recommendations"
including the following.
• Significance of utilization of private-sector JCM and expectations from the private sector for the development of the system:
Necessity of developing specific procedures for the JCM system, etc.
• Promotion of partner countries' understanding of the concept of credit allocation, etc.: Importance of improving
foreseeability through the advance inquiry process, etc.
＜JCM Project Cycle＞

Promotion through the formulation of "Guidance on the development of PrivateSector JCM projects invested and implemented by private companies without
any governmental financial supports• Introduction of the following new procedure, which is under discussion with each
JCM Partner country:• Making an advance inquiry to the partner countries on the "Project Idea Note(PIN)" which includes the project contents and credit allocation plan
• Confirming whether there are any objections at the Joint Committee prior to
the implementation of a JCM project.
• Explanation of matters to be considered when proposing a private-sector JCM
project by PIN and requesting credit allocation (e.g., the concept of financial andnon-financial contributions).
• Support measures for implementation of private-sector JCM projects, points to keep
in mind when dealing with human rights, etc., and introduction of the support desk.
• This guidance will be updated as necessary based on future revisions of JCM ruleswith JCM partner countries and the status of private-sector JCM projects.

Confirmation ofno objection

Newly added process（under discussion
with partner countries）※To be implemented for all JCM projects

Overview of Japan’s support for the JCM partner countries
Programme

Ministry of theEnvironment

Ministry of Economy,
Trade and Industry

Ministry ofAgriculture, Forestryand Fisheries

Type of support

Finance Programme for JCM Model
Projects*

Subsidy

Finance Programme for F-gas Recovery
and Destruction Model Projects*

Subsidy

Japan Fund for the JCM (JF JCM)
- managed by ADB

Grant

JCM support programme by UNIDO*

Grant for projects,
technical cooperation

Project development/capacity
building/MRV support

Technical cooperation

JCM Feasibility Study

Technical cooperation

JCM Demonstration Programme

Government-commissioned project

Development of MRV for JCM projects inAgriculture –implemented by ADB

Technical cooperation

Field studies for JCM REDD+Government-commissioned project* These programmes can support projects implemented by government-owned companies but not those implemented by the government itself.

9Projects supported by the JCM financing programmes

10

Renewable Energy

Solar power, FARMLAND Co.,
Ltd., Chile

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

Energy efficiency [Consumer sector]

Energy saving atconvenience stores,
Panasonic, Indonesia

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy efficiency [Urban sector]

LED street lighting systemwith wireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, YukoKeiso, Vietnam

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

Biogas Power Generation,
ITOCHU Corporation, Philippines

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

Energy efficiency [Industrial sector]

Effective Use of Energy

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

Gas Co-generation System andAbsorption Chiller, Kansai
Electric Power, Thailand

Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia

Waste

Power Generation withMethane Gas RecoverySystem, NTTDATA, Mexico

Waste to Energy Plant,
JFE engineering, Myanmar

Transport

CNG-Diesel Hybrid
Public Bus, Hokusan
Co., Ltd., Indonesia