Webinar on the Joint Crediting Mechanism (JCM)
Implementation in Republic of Palau- Innovation for Carbon Neutrality through JCM JCM Project Formation Studyin Republic of Palau
18 February 2022
Pacific Consultants Co., Ltd.

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Contents
1. Company Profile
2. Outline of JCM Project Formation Study in Palau
3. Challenges and Possible Solutions for Formulating JCM
Projects in Palau2

１．Company Profile

Company Profile

PACIFIC CONSULTANTS CO., LTD. (PCKK) September 4th, 1951 established 2,122 employees (as of 2021.10.01)
 Civil Engineering Consultant https://www.pacific.co.jp/e/
Global Network
Location & Maps

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Company Profile
Business Field

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Company Profile
Experiences on JCM Financing Programme

Small Scale Solar Power Plants for Commercial
Facilities in Island States (Palau)

Introduction of Solar PV System on Factory
Rooftop (Thailand)

Introduction of Solar PV System at Salt
Factory (Kenya)

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２．Outline of JCM Project
Formation Study in PalauOutline of JCM Project Formation Study in PalauCommissioned by Ministry of the Environment, Government ofJapan (MOEJ)Objective︓Finding and forming CO2 emission reduction*1
projects, which can be applicable to Financing Programme for
JCM Model Projects.
To identify possible project candidates for JCM,

To assist the project candidates to develop proposal for
JCM Financing Programme,

Targeted countries: Ethiopia, Kenya, Maldives, Palau, andSaudi Arabia*1: “CO2 emission reduction” in this regard means reduction of CO2 emission
resulting from fossil fuel combustion.
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Outline of JCM Project Formation Study in Palau Current status of JCM Model Project in Palau (as of February 2022)

Source: http://gec.jp/jcm/?country%5B%5D=palau&s=&operator=in#label_result

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Outline of JCM Project Formation Study in Palau
Current status of energy/electricity in Palau

Aimeliik Power Plant (12MW)

Babelthuap Is.

Koror Is.

Malakal Power Plant (24.45MW)<Current situation>• Two diesel power plants, Aimeliik Power Plant (12MW) and
Malakal Power Plant (24.45MW).
• Electric demand was 79,311 MWh (2016). Electric demand in2025 is estimated around 109,121 MWh (37.6% increase) .
• Installed solar PV system capacity was 2,356kW (as of June2017). Annual electric generation was around 735,988kWh (2016).
<Goals setting in the NDC>
• The below goals are set in the NDC (Target year is 2025)
Reduce CO2 emissions by 22% compared to 2005 in theenergy sector (equivalent to 19,360 tCO2)
45% of electricity demand will be covered by renewableenergyAchieve 35% energy saving compared to 2005
Necessary items (case of PV installation)- Solar PV (44MW)- Power conditioner (22MW)- Power storage 9.4MWh（17.6MW）

Source: Final report of the project for study on upgrading and maintenance improvement of national power grid in the Republic of Palau (JICA, 2019)
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10Outline of JCM Project Formation Study in Palau
Current status of Industry in Palau<Main industries>• Tourism• Fisheries
Visitor arrivals by Country Group, FY2008 to FY2021
180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,000
0JAPAN

SOUTH KOREATAIWAN

USA/CANADAEUROPEOTHERS

CHINA

Source: Bureau of Immigration, MOJ and Bureau of Budgetand Planning, MOF, Republic of Palau

Source: Republic of Palau : 2018 Article IV ConsultationPress Release; Staff Report; and Statement by theExecutive Director for the Republic of Palau, IMF country
report No.19/43, 2019

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３．Challenges and Possible Solutions
for Formulating JCM Projects in PalauChallenges and Possible Solutions for Formulating JCM Projects inPalau
Challenge 1: Lack of large scale projects suitable for use of JCM Financing ProgrammePossible Solution 1:
 Bundling multiple projects
 Coordination with other funds such as JICA
 Use of JCM eco-lease
Challenge 2: Small number of potential Japanese companies that could participate in
the JCM project in Palau
Possible Solution 2:
 Conduct public relations activities to promote understanding of the benefits ofusing JCM in Palau and other countries to Japanese companies
Challenge 3: Difficulty in raising necessary funds for project implementation
Possible Solution 3:
 Coordination with other funds such as JICA
 Use of JCM eco-lease
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Challenges and Possible Solutions for Formulating JCM Projects inPalau
Pros and Cons of Bundling Multiple Projects: Owner of the installed equipment

International Consortium

Japan

Palau

1. The simplest casePros:
 Relatively easy to form international consortiumand manage the project.
Cons: Difficult to secure the scale to utilize JCM
Financing Programme in Palau.

International Consortium

Japan

Palau

2. Bundling multiple projects into one
Pros: The scale of the project can be secured.
Cons: Forming an international consortium and project
management are difficult.

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Challenges and Possible Solutions for Formulating JCM Projects inPalau
Pros and Cons of Bundling Multiple Projects: Owner of the installed equipment

International Consortium

Japan

Palau

3. A case where multiple projects are managed byone Palauan company
Pros:
 The scale of the project can be secured.
 Project management can be done smoothly.
Cons: The number of Palauan companies that can
provide project management is limited.

International Consortium

Japan

Palau

4. A case where the equipment is owned by one
Palauan company but installed in multiple
locations
Pros:
 The scale of the project can be secured.
 Project management is easier than case 3.
Cons: The number of Palauan companies that cantake on the role of “●” is limited.
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Contact Information

Please contact PCKK at any time; when you have any ideas about implementing lowcarbon and decarbonization projects; and/or
 when you have any questions or concerns about theJCM Financing Programme.
Yoshihiro Mizuno yoshihiro.mizuno@tk.pacific.co.jp
Daiki Nosedaiki.nose@tk.pacific.co.jp
Shigezane Kidoura shigezane.kidoura@tk.pacific.co.jp
Project Management and Engineering Department
Global Company, Pacific Consultants Co., Ltd.
Phone: +81-3-6777-3733
Email: JCM_pckk@tk.pacific.co.jp
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Thank you so much forallowing us to make a presentation.

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