Government of Japan

Recent Development ofthe Joint Crediting Mechanism (JCM)
Webinar on the Joint Crediting Mechanism (JCM) Implementation in Republic of Palau- Innovation for Carbon Neutrality through JCM February 18, 2022
Ministry of the Environment ,Japan

GHG emissions and target in Japan

Ministry of the Environment
Government of Japan Long-term goal: Net zero emissions by 2050 compared to 2013
 Mid-term target: 46% emission reduction by 2030 compared to 2013
 GHG emissions in 2020: 1,149 mil ton of CO2 eq. (5.0% reduction to 2019, 18.4% reduction to 2013)
 JCM target: cumulative GHG emission reduction for 100 mil tons of CO2 eq. by 2030

46%↓Net zero2Basic concept of the JCM and contribution to carbon neutrality
UNFCCC, Article 6 of the Paris Agreement
Reporting and Corresponding Adjustment
JCM

JAPAN

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’s NDC

Credits

Partner Country
JCMProjects
MRV*
GHG emissions
reduction/ removal*measurement, reporting and verification

Cooperation towards achieving carbon neutrality
With the successful conclusion of the Rulebook for Article 6 of the Paris Agreement at COP26,
carbon markets will further expand. The JCM, as a pioneering mechanism under the Article 6,
will benefit not only for GHG emission reductions, but also for the sustainable developmentof the partner countries.

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JCM Partner Countries
 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）

Lao PDR
Aug. 7, 2013
(Vientiane)

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
Oct.14, 2021 (Hanoi)

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, 2015ChileMay 26, 2015
(Santiago)

Myanmar
Sep. 16, 2015
(Nay Pyi Taw)

ThailandNov. 19, 2015
(Tokyo)Philippines
Jan. 12, 2017
(Manila)4

JCM Financing Programme by MOEJ

Ministry of the Environment
Government of JapanJCM Model Projects(including ECO Leasescheme)

ADB Trust Fund:Japan Fund for JCM(JFJCM)JCM F-gas Recovery andDestruction ModelProject

Overview

Support projects which
reduce GHG emissions byutilizing leading
decarbonizing
technologies indeveloping countries.

Provide the financial
incentives for the adoption ofadvanced low-carbon
technologies which aresuperior in GHG emission
reduction but expensive in
ADB-financed projects

Support projects thatrecover and destroy of Fgas (GHG except for energyrelated CO2, etc.) fromused equipment instead of
releasing to air, and reduceemissions

FY2022
Draft budget

approx. 171 million

approx. 10 million

approx. 0.60 million

in total by FY2024(USD)

Type ofsupport

Subsidy

Grant (Sovereign) / Interest
Buy-down (Non-sovereign)

SubsidyMore info• https://gec.jp/jcm/kobo/• https://www.carbonmarkets.go.jp/eng/jcmgp/index.html

https://www.adb.org/what-wedo/funds/japan-fund-for-jointcrediting-mechanism

Please contact us.

Need business partners? JCM Global Match: https://gec.jp/jcm/globalmatch/

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JCM Financing Programmes by MOEJ (FY2013～2021) (December, 2021)
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●●●●●●

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

Myanmar:9 projects●●●●●●●●●

Bangladesh:5 projects●●●●■

Viet Nam:37projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲ ▲Mexico:6 projects●●●●●●

Saudi Arabia:2 projects●●
Maldives:3 projects●■■
Ethiopia:1 project●
Kenya:2 projects●●

Laos:6 projects●●●●●◆Thailand:45projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●▲

Phillipines:17 projects●●●●●●●●●●●●●●●●▲
Palau:5 projects●●●●●

Costa Rica:2 projects●●

Chile:8 projects●●●●●●●●

Indonesia:43 projects●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●◆

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Examples of the JCM Model Projects
Renewable Energy

Solar power, FARMLAND Co.,
Ltd.,Chile

Floating Solar PV,TSB Co., Ltd.,ThaiHydro Power Plant, Toyo Energy
Farm Co., Ltd., Indonesia

Energy efficiency [Consumer sector]

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy saving atconvenience stores,
Panasonic, Indonesia

Energy efficiency [Urban sector]

LED street lighting system withwireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Biomass Co-Generation
System, Fuji-Foods
Cooporation, , Thailand

Binary Power Generation
Project at Geothermal Power
Plant, MHI, Ltd. , Philippines

Energy efficiency [Industrial sector]

Regenerative Burners inindustries, Toyotsu Machinery,Indonesia

High-efficiency airconditioning system,
Hitachi, Daikin, Vietnam

Transport

Waste

Power Generation with Methane
Gas Recovery System,
NTTDATA,Mexico

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

Waste to Energy Plant,
JFE engineering, Myanmar

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

7Technologies Transferred through the JCM (FY2013-2021)
 Total of 205 JCM Model Projects being selected by MOEJ’s Finance Programme in 17partner countries 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+ project
Waste (4) 2%• Waste to Energy• Power Generation with
Methane Gas

Effective Use of Energy(8) 4%

Transport (3) 1%

REDD+ (2) 1%• Digital Tachographs• Modal Shift• CNG-Diesel Hybrid2%1%• Controlling slush andburn1%

F-gas (4) 2%2%4%• Recovery & Destruction• Waste Heat Recovery• Gas Co-generation

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

Feburuary,2022

50%
40%

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

8JCM Model Projects in Palau
JCM Model Project（2014）[have been started operation]
Solar PV System for Schools Project
JCM Model Project（2019）[Scheduled to start operation from April 2022
Introduction of 1MW Solar Power System on
Supermarket RooftopKoror
JCM Model Project（2014）[have been started operation]
Small-Scale Solar Power Plant forCommercial Facilities in Island States
Project II

JCM Model Project（2018）[have been started operation]
Introduction of 0.4MW Rooftop Solar Power System inSupermarket

JCM Model Project（2013）[have been started operation]
Small-Scale Solar Power Plant forCommercial Facilities in Island States
Project9

MOEJ - Implementation of Article 6 following COP26• At COP26, the Rulebook for the Article 6 (market mechanism) of the Paris
Agreement was concluded, paving the way for utilizing market mechanisms
to reduce global emissions.
• Leading Article 6 negotiations and being a frontrunner with the experience ofthe Joint Crediting Mechanism (JCM), Japan will take the following threeactions to contribute to global decarbonization.

＜３ Actions＞
1. Expanding JCM partner countries, and strengthen project development
and implementation in collaboration with international organizations;••

Accelerate expansion of the JCM partner countries, mainly in the Indo-Pacific region andstrengthen in African region
Strengthen cooperation with the Asian Development Bank (ADB), the UN IndustrialDevelopment Organization (UNIDO), the World Bank, and others

2. Scale up the JCM by mobilizing further private finance3. Contribute to the global operationalization of market mechanisms.
•Supporting capacity building for related officials and project operators with UNFCCC’s
Regional Collaboration Centre (RCC).

10Implementation of the Article 6 rules into domestic rules
 Establishment of the JCM Promotion and Utilization Council which consists ofrelevant 5 Ministries at January 2022 (MoEJ, Ministry of Economy, Trade and Industry,
Ministry of Foreign Affairs, Ministry of Agriculture, 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 a corresponding adjustment
to prevent double counting,
3. the revision of the Guidelines for the Implementation of the JCM.
 The draft procedures on the authorization and corresponding
adjustment are currently under public consultation process byMarch 2022.
※ These are referred in the Guidelines for the Implementation of the JCM in Japan(effective since 17 th January 2022) as the separately specified procedures.

11Thank you for your kind attention

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