Expanding the Joint Crediting Mechanism (JCM)
8th November, 2021
Office of the Market Mechanism
Ministry of the Environment, Japan

The Plan for Global Warming Countermeasures

Ministry of the Environment
Government of Japan

Established on the basis of the Act on Promotion of Global WarmingCountermeasures (Law) - Cabinet Decision of the current plan：October 2021
Japan’s emission reduction target (NDC)

Japan aims to reduce its greenhouse gas emissions by 46
percent in fiscal year 2030 from its fiscal year 2013 levels,
setting an ambitious target which is aligned with the long-termgoal of achieving net-zero by 2050. Furthermore, Japan willcontinue strenuous efforts in its challenge to meet the lofty
goal of cutting its emissions by 50 percent.
the Joint Crediting Mechanism(JCM)
Aiming for a cumulative GHG emission reduction of about
100 million tons of CO2 through public-private partnerships.

2

The Joint Crediting Mechanism (JCM)

Ministry of the Environment
Government of Japan

Facilitating diffusion of leading decarbonizing technologies, etc. and infrastructure as well as
implementation of mitigation actions, and contributing to sustainable development of developingcountries.
Appropriately evaluating contributions from Japan to GHG emissions reduction or removal in aquantitative manner and use them to achieve Japan’s emissions reduction target.
Contributing to the ultimate objective of the UNFCCC and use of market mechanisms, including
the JCM, is articulated under Article 6.
UNFCCC, Article 6 of the Paris Agreement
Reporting and Corresponding Adjustment
JCMJAPAN

Leading decarbonizing technologies, etc, andimplementation of mitigation actions

Operation and management by theJoint Committee which consists ofrepresentatives from the both sides
Used to achieve Japan’semissions reduction target

Credits*measurement, reporting and verification

Partner Country
JCMProjectsMRV*
GHG emissions
reduction/ removal

3

The Joint Crediting Mechanism (JCM)

Ministry of the Environment
Government of Japan

Facilitating diffusion of leading decarbonizing technologies etc. through contributions from Japan and evaluating realized
GHG emissions reduction or removal in a quantitative manner to use them for achieving Japan’s emissions reduction target.
Japan will address the high initial cost barrier of introducing advanced low-carbon technologies in the Partner countries (17countries) through the JCM.

Waste heat recovery in
Cement Industry, JFEengineering, Indonesia

CNG-Diesel Hybrid PublicBus, Hokusan Co., Ltd.,
Indonesia

Energy saving atconvenience stores,
Panasonic, Indonesia

Hydro Power Plant, ChodaiCo., Ltd., Philippines

Power Generation withMethane Gas Recovery
System,NTT DATA,Mexico

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

Regenerative Burners inindustries, Toyotsu
Machinery, Indonesia

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Co-generation system atfactory, Toyota, Nippon
Steel Engineering,Indonesia, Thai

High-efficiency airconditioning system, Hitachi,Daikin, Vietnam

Solar power ,Farmdo Co.,
Ltd.,Mongolia

Waste to Energy Plant,
JFE engineering, Myanmar

High-efficiency
refrigerator, Mayekawa
MFG, Indonesia

Floating Solar PV,TSB Co., LED street lighting system withwireless network control,Ltd.,Thai
MinebeaMitsumi, Cambodia

4JCM Partner Countries

Ministry of the Environment
Government of Japan

Japan has held consultations for the JCM with developing countries since 2011 and has established the JCM withMongolia, 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）

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)

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)

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

Saudi Arabia
May 13, 2015

ChileMay 26, 2015
(Santiago)

Myanmar
Sep. 16, 2015
(Nay Pyi Taw)

ThailandNov. 19, 2015
(Tokyo)Philippines
Jan. 12, 2017
(Manila)5

JCM Financing Programmes by MOEJ (FY2013～2021) (November, 2021)

Ministry of the Environment
Government of Japan

Total 205projects (17 partner countries)(●Model Project: 194 projects(including Eco Lease: 3project), ■ADB: 5 projects, ◆ REDD+: 2 projects, ▲F-gas: 4 projects) Other 1 project in Malaysia

118 projects have been started operation.

Cambodia: 6 projects●●●●●●Myanmar: 9 projects●●●●●●●●●

Bangladesh: 5 projects●●●●■
Saudi Arabia: 2 projects●●
Maldives: 3 projects●■■
Ethiopia: 1 project●
Kenya: 2 projects●●
Laos: 6 projects●●●●●◆Thailand: 45projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲

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

Viet Nam: 37 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲▲
Mexico: 6 projects●●●●●●
Phillipines: 17 projects●●●●●●●●●●●●●●●●▲
Palau: 5 projects●●●●●
Indonesia: 43 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●◆

Costa Rica: 2 projects●●
Chile: 8 projects●●●●●●●●

6

Technologies Transferred through the JCM (FY2013-2021)

Ministry of the Environment
Government of Japan

Total of 205 JCM Model Projects being selected by MOEJ’s Finance Programme in 17 partnercountries
50% for renewable energy, 40% for energy efficiency, 10% for Effective use of Energy, Transport,
Waste to energy, F-gas Recovery and Destruction and REDD+ projectWaste (4) 2%• Waste to Energy• Power Generationwith Methane Gas

Effective Use ofEnergy (8) 4%

Transport (3) 1%• Digital Tachographs• Modal Shift• CNG-Diesel Hybrid
2%
4%

1% 1%

REDD+ (2) 1%• Controlling slush
and burn

F-gas (4) 2%2%

• Recovery &Destruction• Waste Heat Recovery• Gas Co-generation

Energy efficiency(86) 40%• Boiler• Air Conditioning• Refrigerating/Chiller• Looms• Transformer• LED Lighting

50%
40%

November,2021

Renewable energy(108) 50%
• Solar(&Storage battery)• Micro hydro• Wind• Biomass• Geothermal7

Arranging the conditions for the expansion of JCM
FY2030 target : Aiming for a cumulative GHG emission reduction of about 100 million
tons of CO2 from JCM projects through public-private partnerships
１．Formulation of Global Rules

Lead the discussion on Paris Agreement Article 6 (market mechanism)
Make JCM a global de-facto standard and develop decarbonization markets

２．Diversification of Financing

Cooperate with public funds (co-financing with JBIC and JOIN)
Cooperate with international organizations (JCM project creation with ADB, utilization offunds of the World Bank, and so on)
Improve the conditions for JCM projects with a focus on private funds

３．Global and Regional Expansion

Expand projects in the Indo-Pacific region target area
Introduce advanced technologies through cooperation with third countries including the USand Australia
Applicate JCM to Carbon Offsetting Reduction Scheme for International Aviation (CORSIA)

４．Facilitation of Decarbonization Market

Promote the transition to decarbonization, from the formulation of a long-term strategy toits implementation
Spread Japan’s efforts on Zero Carbon Cities, environmental measures and standards(Decarbonization Domino Effect)
Utilize “Japan Platform for Redesign: Sustainable Infrastructure” (413 members joined, as ofnow)

・・・8JCM Model Projects by MOEJ
Budget for projects starting from FY
2021 is approx. 8.3billion JPY(approx. USD 90million) in total by
FY2023(1 USD = 100 JPY)

Finance part of aninvestment cost(less than half)

Government ofJapan

Ministry of the Environment
Government of Japan※Includes collaboration withprojects supported by JICA andother 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 fromfossil fuel combustion as well as construction cost for installing those facilities, etc.
Eligible Projects: starting installation after financing is awarded and finishinginstallation within three years.

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

Ministry of the Environment
Government of Japan

Budget for FY2021
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:

JFJCM(Trust Fund)ADB source(1) Paid-in capital provided by（OCR1/ADF2)
shareholders, (2) Funds borrowed
from capital markets and private
placements, (3) Accumulated
retained income (reserves). OCR
loans are provided to middle-income Co-Financing partners
countries at a quasi-market rate.
(Other financial
2 Asian Development Fund offers
concessional loan and grant to low- institutions and funds)
income countries.

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

MRV

GHG
reduction

Additional costs fromadvanced low-carbon
technologies
Mitigation throughconventionaltechnologies(Selection from ADBpipeline)
Project10

JCM F-gas Recovery and Destruction Model Project by MOEJ
【Budget for FY 2021】
60 million JPY (approx. 0.60
million USD) (1 USD = 100JPY)

Government of Japan

Finance part of the cost in flat-rate

Ministry of the Environment
Government of Japan

Conduct MRV to estimate GHG emission
reductions. At least half or ratio offinancial support to project cost (larger
ratio will be applied) of JCM credits
issued are expected to be delivered tothe 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)

Purpose: To recover and destroy F-gas (GHG except forenergy-related CO2, etc) from used equipment instead ofreleasing to air, and reduce emissions
Scope of Financing:•Establish scheme for recovery and destruction•Install facilities/equipment for recovery/destruction•Implementation of recovery, transportation, destruction andmonitoring
Project Period:
Three years in maximum (Ex. 1st year for scheme, 2nd yearfor facilities, 3rd year for recovery/destruction)

Entities for destruction ofused F-gas (may use
existing facility fordestruction)11Collaboration with International Organizations

Ministry of the EnvironmentGovernment of JapanADB• Cooperation on Japan Fund for the JCM since 2013
• Collaboration on Paris Agreement Article 6 and SDGs
• Participation in WS held by ADBWorld Bank
• Memorandum of Cooperation for scaling-up of the JCM. (Aug.27.2019)• Develop the JCM by utilizing various World Bank's initiatives and programs• Partnership for Market Implementation(PMI), Innovate 4 Climate (I4C), Carbon
Pricing Leadership Coalition (CPLC)
Linkage with existing
UNIDO programme,
including multi-funding

Utilization ofUNIDO network

Headquarter
UNIDO
Cooperation inUNIDO TechnicalPromoting Private• Signed Joint Declaration onCooperation in Africa
Investment in Asia
Environmental Cooperation
JCM project
JCM projectin order to support the JCM.
(Nov.10.2020)• Cooperation in the formation ofLocal office
the JCM project in Africa and Asia
• Japan-UNIDO Week “PARTNERING FOR ISID: New challenges and opportunities for
the UNIDO-Japan cooperation” (June 29, 2021)
UNIDO Investment andTechnology Promotion
Office, Tokyo12

JCM x SDGs : Recent Development

Ministry of the Environment
Government of Japan

Contribute to the SDGs through JCM and create JCM projects
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-jcmcontributions-sustainable-development-goals-sdgs/en• Best practices : This report summarizes the best practices of the JCM
contributions to the SDG achievement, which shows how each 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 mainly representative participants and partner
participants of the JCM Model Projects to take action toward gender equality.
<Start to apply from FY2020>13

JCM Business Matching Site “JCM Global Match”

Ministry of the Environment
Government of Japan

Features of the “JCM Global Match”
Launched in July 2019
Many participants all over the world including Japanand the JCM partner countries have already signed up.
Reformed on December 2 nd 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 via chatrooms

4.

Opportunity to promote your company by Profile andSpecialties 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/

14Thank you for your kind attention

15