Recent Development ofJapan Fund for the Joint
Crediting Mechanism
Webinar on the JCM Implementation
in Republic of Palau- Innovation for Carbon Neutrality through the JCM -18 February 2022

Overview of Asian Development Bank Established in 1966
 68 members, 49 regional members, 41 borrowing members
 3,000+ employees globally Triple-A credit ratings (Moody’s / S&P / Fitch) Commitments in 2020: ($ million)
Total ADB
Total ADB Operations*
Sovereign
Loan
Guarantee
GrantsNonsovereign
Loan
Equity Investment
Guarantee
Others including Technical Assistance

31,594
26,82625,749
1,077
1,406
1,151
255
3,363

* Does not include co-financing including trust funds
Source: ADB Annual Report 2020.

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ADB’s commitment to tackling climate change, building climate and disaster
resilience, and enhancing environmental sustainability: Strategy 2030

Addressing remaining
poverty and reducing
inequalities

Making cities morelivableAccelerating progress ingender equality

Tackling climate change, building climateand disaster resilience, and enhancing
environmental sustainability

At least 75% of number of
ADB committed operations
by 2030

At least 75% of number of ADB committed
operations by 2030, total of $100 billion from
ADB’s own resources from 2019 to 2030

Promoting rural development
and food security

Strengthening governanceand institutional capacity

Fostering regional cooperationand integration

Key Approaches
Expanding private
sector operations
1/3 of number of ADB
committed operations by 2024

Catalyzing and mobilizing financial
resources for development

Strengthening
knowledge services$1 in private sector operations financing matchedby $2.50 of cofinancing

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ADB’s Carbon Market Program

Mobilizing carbon finance for incentivizing investments in low-carbon technologies

CDM: Clean Development Mechanism; CER: certified emission reduction; ETS: Emission Trading Systems​
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Japan Fund for the Joint Crediting Mechanism• Established in June 2014 as
one of ADB’s trust funds• Contribution by Governmentof Japan: $88.46M (20142021)• Provides financial
incentives (grant) for
adoption of advanced lowcarbon technologies in
ADB-financed projects that
use the Joint Crediting
Mechanism (JCM)*• Both sovereign andnonsovereign projects areeligible* JCM is a bilateral carbon market
mechanism initiated by the Governmentof Japan.
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JFJCM approved projects#Project1

CountryJFJCM
grantApprovalTechnologies supportedMaldivesPreparing Outer Islands for
Sustainable Energy
Development Project (POISED)$5 million

Mar 2015

Advanced battery systemand energy management
system (EMS)

2Southwest Transmission GridExpansion Project

Bangladesh$7 million

Jul 2018

Energy efficienttransmission lines

3

Upscaling Renewable Energy
Sector Project

Mongolia$6 million

Sep 2018

Solar PV with advanced
battery system and EMS

4Improving Access to HealthServices for Disadvantaged
Groups Investment Program

Mongolia$3.48
millionOct 2019

Energy efficient HVAC,
high insulation window,
rooftop solar PV andground source heat pump

5

Greater Male Waste to Energy
ProjectMaldives$10 million Aug 2020

Waste to energy plant(incineration)$31.48 million

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Case study 1: micro-grid technology in Maldives
Project namePreparing Outer Islands for Sustainable Energy Development
ProjectJFJCM grant$5 million

Technology supported Advanced battery system and energy management system
Description

On top of 1.6 MW of solar PV installed under the project,battery storage and EMS supported by JFJCM will: Smooth out the fluctuation of solar PV generation
 Optimize diesel generator operation Integrate large amounts of renewables to the grid

Location

Addu, Maldives

Emission reductions

1.3 thousand tCO2/yr (estimate)

Signing ceremony for the contract
on battery system and EMS

Project Site / Source: Ministry of Environment and Energy, Maldives

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78Locations of the Project
Population: approx. 32,000
Peak load: 6.0 MW, Current power supply: by 15 diesel generators
1.6 MW PV system has been installed(as of May 2019)
Hithadhooschool
246 kW

STO Warehouse
193 kW

Connection for
1.6 MW PVsystem

Sharafuddin
School375 kW
Addu HighSchool 160 kW

Convention
centre 626 kWHithadhooPower station

EMS and BESS
underoperation

Source: WorldAtlas.com

Addu City
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BESS and EMS under operation

BESS under operation
EMS(control room)

BESS area

BESS and EMS
in Hithadhoo Power station
EMS training
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9Expected impact of EMS-BESS with PV system

Actual improvement fromPV-diesel hybrid system
by EMS&BESS: 8.1%

Note: This is conceptual figure and needs to be reviewed according to demand increase.
Simulation is conducted in case of 1.7 MW PV system with 4.5 MW diesel grid.
Source: “Micro-grid System in the Addu Atoll”, March 2014

 Advanced EMS & BESS enables maximum use of solar energy as well as higher efficiency of
existing diesel generators (DGs)
 Without the EMS & BESS, efficiency drop of DGs will be caused and solar PV will bring only
4.4 % reduction in fuel consumption by DGs.
 With the advanced EMS & BESS, efficiency of DGs will be improved, and 12.5 % reduction
will be achieved, which means that the PV system with the EMS & BESS is expected toreduce fuel consumption by DGs by about three times than the PV system without them.
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10SDG Co-benefits
Projects supported by JFJCM will bring significant environmental,social and economic co-benefits.
The POISED project will:• increase energy supply and grid stability and reduce the cost ofenergy for consumers• contribute to reduction of diesel oil use, resulting in improved
energy security and trade balance of the Maldives as the country
heavily depends on imported diesel for power generation;• create income-generating opportunities, including skilled labor.
• improve local air quality by reducing emissions of air pollutants
such as SOx, NOx and particulate matter.

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11Pre-feasibility study for hydrogen infrastructurein Maldives and Palau
Purposes of thesurvey

 to identify the opportunities to introduce green hydrogen
infrastructure in the Maldives and Palau, which are partnercountries of the JCM;
 to contribute to the decarbonization of these countries;
 to assess if the identified opportunities can be developed as
ADB-financed projects in future with possible support fromJFJCM.

Survey period

Nov 2020 – Apr 2022

Amount$100,000 from JFJCM

Expecteddeliverables

 Report on hydrogen technology, market and policy,
highlighting good practice Report on hydrogen demand and supply chain Options for pilot-scale project on hydrogen, for energy
production, marine transport and/or others

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12Conclusion• JFJCM provides support for introduction of advanced low-carbon technologies,
which can help Palau to accelerate its efforts towards carbon neutrality and toachieve SDGs, by utilizing the JCM under Article 6 of the Paris Agreement.
• JFJCM support can be used to demonstrate the effectiveness of the advanced
technologies and to build local capacity, which can facilitate technology transferand dissemination.
• To increase penetration of renewable energy in Palau, advanced battery storage
system would play bigger roles not only in improving energy efficiency of diesel
generators but also in enabling more renewable energy by time shifting• JFJCM team continues to identify and develop new projects, including
renewable energy, WtE, green hydrogen, energy efficiency, clean transport, andvarious other interventions.

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Shintaro Fujii
Environment and Climate Change Specialist
JFJCM Fund manager+63 2 8632 4287 | sfujii@adb.org

Takahiro Murayama
Low Carbon Project Development Specialist (Consultant)+63 2 8632 4444 | tmurayama.consultant@adb.org

Thank you.