November 8, 2021

Article 6.2 cooperative approach- JCM linkages with the SDGs Climate and Energy Area / ResearcherTemuulen Murun
Akibi Tsukui

Outline• Sustainable development in Article 6.2• JCM Sustainable development guideline• Key finding from IGES “JCM - SDGs analysis”• Case studies: JCM projects in agriculture and water management2

Sustainable development in Article 6.2• Article 6.2 of the PA1
Parties shall, where engaging on a voluntary basis in cooperative approaches thatinvolve the use of internationally transferred mitigation outcomes towards NDCs,promote sustainable development and ensure environmental integrity and ….
• Reporting information related to SD under Article 6.2
C. Regular information²
Para 22 (e): Provides for, as applicable, the measurement of mitigation co-benefits
resulting from adaptation actions and/or economic diversification plans;Para 22 (g): Consistent with the sustainable development objectives of the hostParty, noting national prerogatives;2.

1. Article 6 of the Paris Agreement, https://unfccc.int/sites/default/files/English_paris_agreement.pdf
Draft CMA decision on guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement. (Version 3 of 15 December)
https://unfccc.int/sites/default/files/resource/DT.CMA2_.i11a.v3_0.pdf

3JCM: Sustainable development guideline
SD guideline under the JCM:

1. To prevent any negative impacts (focusing on environmental and social impacts)
2. Contributions to the SDGs in partner countries

1. Preventing negative impacts: SD Guideline in Indonesia³ and Mongolia 4• Project participants set out SD plan to prevent any negative impacts on theenvironment and submit SD report to address these impacts if they identify• Assessment impact category: Domestic policy alignment, Environmental impact
assessment, Pollution control, Safety and Health, Natural environment andBiodiversity, Economy, Social Environment and Community Participation, Technology

2. SDG contributions: SD Guideline in Mongolia4• To identify potential contributions to the SDGs through project implementation as apart of the SD report
3. SD Guideline under the JCM in Indonesia, https://www.jcm.go.jp/opt/id-jp/rules_and_guidelines/download/JCM_ID_GL_SDIP_IR_ver01.0.pdf
4. SD Guideline under the JCM in Mongolia, https://www.jcm.go.jp/opt/mn-jp/rules_and_guidelines/download/JCM_MN_GL_SDCP_CR_ver01.0.pdf

4IGES “JCM-SDGs analysis”• To support project participants to design JCM projects to link with the SDGs
• To facilitate partner countries to maximize potentials from JCM projects beyond
GHG emissions reduction
First Volume

Second Volume

JCM-SDGs Best practices- Developed qualitative andquantitative indicators for the JCM- Guidance to identify JCM project
linkages to the SDGs

- Best practices from differentpartner countries• Mar 2020

• Aug 2020

• Aug 2021

IGES JCM-SDG analysis publication link: https://www.iges.or.jp/en/pub/list/series/4680

5Key finding: Links with multiple goals and targets
SocialEnvironmental

Economic

JCM contributions to SDGs, https://www.iges.or.jp/en/pub/joint-crediting-mechanism-jcm-contributions-sustainable-development-goals-sdgs/en
JCM-SDGs linkage guidance, https://www.iges.or.jp/en/pub/jcm-and-sdgs-linkage-guidance/en

6Solar farm (agriculture sector)
Background information of Ulaanbaatar city:• City’s population is now estimated around 1,6 million in 2021 (1.94% annual increase since 2015)• Air pollution gets worse during the winter season, due to burning coal in a traditional dwelling house• Around 49% of nation’s vegetable demand is satisfied by local production
Needs:• Renewable energy sources are needed to contribute to reduce fossil fuel consumption and air pollution• Sustainable agriculture practice is needed to improve quality and increase amount of local vegetables
JCM project implementation as intervention:• Farmdo Co., Ltd and Everyday Farm LLC introduced alarge-scale Solar Farm® in the suburbs of Ulaanbaatar
Outcome – Renewable generated electricity, Stable income, Increase vegetable production• Electricity production: 40,139,379 kWh, and the amount of electricity sold is 38,163,056 kWh (31 Dec 2019).
• Revenue increased: Selling electricity generated by solar PV provides the local farm to increase investment in introducing
advanced Japanese agricultural technologies, as well as enabling stable employment at the farm site.
• Vegetable production: In 2019, the farm produced 27 tons of fresh vegetables.
• Sustainability: The local farmers has participated in agriculture training in Japan for consecutive 3 years. For solar PV
operation, manufacturing companies have conducted several intensive training programs for local technicians (11 people).
• Replicability: Developing the similar project under the JCM in Chile by using the experience from solar farm in Mongolia
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Water pumps (water management)
Background Information of Da Nang City:• The population is estimated to increase to over 2 million by 2025
• Number of tourists has been increasing in Da-Nang city
Needs:• A more stable water supply has become a high priority to meet the water demand
JCM project implementation as intervention:• Replaced existing conventional water pumps with Japanese higher
efficiency ones in two water pump stations of the water treatment
Outcome – Achieved a supply stable and ensured higher quality water for the city
• Water supply: Contributed to increasing the water supply by 50 thousand tonnes per a day. The local company supplies 70%of the water consumed in Da-Nang.
• Energy efficiency: Improved by around 20%• Better working environment: The new equipment is much quieter which has improved the working environment• Sustainability: Providing technical training sessions for local project participants for maintenance, operation and monitoring• Replicability: Led to the new business opportunity. Japanese company has implemented another project at a drinking water
treatment facility in Ho Chi Minh City8

Summary• Importance of SD in the mechanisms under Article 6.2• JCM SD guideline: both negative impacts and SDGs contributions (but country specific)• JCM-specific indicators (quantitative and qualitative) are to analyze JCM projects
linkages to the SDGs
• Projects linked with 12 Goals of 17 SDGs including agriculture and water management(Goal 2: Zero hunger, Goal 6: Clean water and sanitation)• Allow to design and plan projects from the SDG perspective in early stage• Partner countries are able to see potential sectors and technologies to enhance their
SDG achievement
9Thank you for your attention
Temuulen Murun
murun@iges.or.jp

Climate and Energy Area / Researcher

Annex11

Article 6 related activities in IGES
JCM MRV and methodology
development- Enhancing understandingof JCM methodology
development- Supporting MRV
development in context ofJCM projects

Article 6 capacity building

Enhanced Transparency
Framework- Organizing workshops andwebinars for partnercountries- Capacity building onreporting under Article 6.2of the Paris Agreement- Capacity building on Article
6.2 implementation forgovernmental officials- Supporting technicalcapacity building on
national reporting(BUR/BTR preparation)

Mutual learning program for Enhanced Transparency for Article 6 and Article 13 capacity building: https://www.iges.or.jp/en/projects/transparency

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Joint Crediting Mechanism introduction
UNFCCC, Article 6 of the Paris Agreement• Joint Crediting Mechanism (JCM):

Diffusion of leading low carbon technologies,
products, systems, services, and infrastructure ,,,,and contributes to sustainable development of thepartner countries.

• Current status:

17 partner countries and more 214 projects in different sectors (as of Sep 2021)
By 2030, the expected GHG emission reduction is more than 20 million tons of CO2 (as of Sep 2021)• Introduced technologies:

Renewable energy (RE) power generation technologies (Solar, wind, run-off hydro, biomass, waste-to-heat)
Energy efficiency (EE) technologies (Air-conditioning system, gas co-generation, transmission system)
Joint Crediting Mechanism, https://www.jcm.go.jp/13JCM: Governance• Joint Committee (JC): Representatives from both countries including ministries andagencies involving in JCM implementation• JCM Secretariat is to support JC members and to facilitate JCM administrative work

Joint Committee (JC)Japan Government
JCM Secretariat(Supports JC)• Develops rules, guidelines,
methodologies• Registers JCM projects• Designates Third Party Entities

Partner country’s
Government
JCM Secretariat(Supports JC)

Joint Crediting Mechanism, https://www.jcm.go.jp/

14JCM: Transparency• Public inputs in the approval process of JCM methodologies (15 calendar days) andproject registration (30 calendar days)• A local stakeholder consultation in the partner county (requirement for every project)• Project design documents including monitoring reports and methodologies are
publically available

Joint Crediting Mechanism, https://www.jcm.go.jp/

15Best practice: Solar PV System at a Salt Factory, Kenya
Project background information:• Electricity prices for manufacturing and industry sector are high
• Power outages often occur in rural areas (challenging issue for manufacturing)
Project overview:• Installation of a high-quality 991.1kW solar PV system as an alternative power source• Expected GHG emissions reduction: 630 t-CO2eq/year (average)
The reduction in the amount of electricity purchased from electric power companies has led to a reduction in the cost of electricity
usage in the factory. This makes it possible to manufacture and sell salt at a more affordable price.
Reducing fossil fuel consumption contributes to reduce air pollution. Reducing the environmental burden by improving air pollution
can improve the per capita environmental impact of cities.
Vocational training on how to operate the solar PV power generation facilities was conducted for engineers at the salt factory. Pacific
Consultant Co., Ltd developed and shared a monitoring manual for local employees.
20%-30% of the total annual electricity consumption at the factory is covered by electricity generated from the solar PV power
generation system. The project received the Best New Subscriber Award at the Energy Management Awards in Kenya in 2019.
The use of renewable energy reduces grid power consumption and supports Kenya’s transition to sustainable production while
increasing sustainability of the production.
Participating in JCM and collaborating with different stakeholders ensure the diffusion of low-carbon and decarbonisation
technologies and improve the partnership between the government and private sector in both countries. From project planning toimplementation, project participants maintain close communication with local governments and communities.
Source: Pacific Consultants Co., Ltd.

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