Japan Fund for
the Joint Crediting Mechanism
Seminar to promote the JCM implementation in Georgia

24 January 2024

ADB’s Climate Change Strategy
Strategy 2030 sets ADB’s course on how best torespond to Asia and Pacific’s changing needs

7 Operational Priorities

Committed to mobilizing $100 billion inclimate finance cumulatively from 2019
to 2030; 75% of committed operations
to support climate change mitigation
and adaptation by 2030 (October 2021)
Updated ADB’s Capital Adequacy
Framework (CAF) to expand the bank’s
annual new commitments capacity tomore than $36 billion to unlock $100billion in new funding capacity over thenext decade (September 2023)
2

ADBʼs Carbon Market ProgramMobilizing carbon finance for incentivizing investments in low-carbon technologies• Carbon finance• Technical support• Capacity building• Knowledge support

3

Japan Fund for the Joint Crediting Mechanism (JFJCM)
Ø Established in June 2014 as one of ADB’s trust funds
Ø Contribution by the Government of Japan: $118.77M (2014-2023)
Ø Provides financial incentives (grant) for the adoption of advanced low-carbon technologies inADB-financed projects
Ø JFJCM is one of financing programs to help develop and implement projects under
the Joint Crediting Mechanism (JCM), in accordance with Article 6 of the Paris Agreement

4

JFJCM Eligibility
Eligible CountryØ All ADB developing member countries that have signed bilateral agreements on the JCM
with the Government of Japan (18 out of 28 JCM partner countries).
Ø Azerbaijan, Bangladesh, Cambodia, Georgia, Indonesia, Kazakhstan, Kyrgyz Republic, Laos,Maldives, Mongolia, Myanmar, Palau, Papua New Guinea, Philippines, Sri Lanka, Thailand,
Uzbekistan, and Viet Nam (as of Dec 2023).

Eligible Project

Eligible Technology

Ø Investment project financed by ADB
or ADB administered funds.

Ø Advanced low-carbon technologies that
reduce greenhouse gas (GHG) emissions
including CO2 from energy sources.

Ø ADB technical assistance fordeveloping JFJCM pipeline projects.
* Can be used for additional financing
to ongoing ADB project.

Ø Must have a proven implementation andoperation record of its technicaleffectiveness.
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JFJCM Support Schemes
For Sovereign ProjectØ JFJCM provides grant for incremental cost ofadvanced low-carbon technologies
Ø Maximum amount of grant:
i. 10% of total project cost (capped to $10million)ii. $5 million if the project cost < $50 million

For Nonsovereign projectØ On top of the ADB loan, JFJCM provides grantby milestones to support deployment ofadvanced low-carbon technologies
Ø Maximum amount of grant:
10% of total project cost (capped to $10 million)

ADB
Ordinary capital
resources

Partner Country(Gov’t, SOE, etc.)
loan/grant

Asian Development FundSovereign
projects
applying JCM

JFJCM

incremental costgrant

ADB
Private SectorOperations
JFJCM

Project Ownerloan(in partner country)
Nonsovereign
projects
applying JCM

grant
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Approved JFJCM-funded Projects#ProjectCountry

JFJCM grant($ million)

ADB
Approval

Technologies supported

1

Preparing Outer Islands for Sustainable
Energy Development Project (POISED)

Maldives

5

Mar 2015

Advanced battery and energy management system(EMS)

2Southwest Transmission Grid Expansion
ProjectBangladesh

7

Jul 2018

Energy efficient transmission lines

3

Upscaling Renewable Energy Sector Project

Mongolia6

Sep 2018

Solar PV with advanced battery system and EMS

4Improving Access to Health Services for
Disadvantaged Groups Investment Program

Mongolia

3.48

Oct 2019Energy efficient HVAC, high insulation window,
rooftop solar PV and ground source heat pump

5

Greater Male Waste to Energy ProjectMaldives

10

Aug 2020

Waste-to-energy plant (incineration)

6

Geothermal Power Generation Project (Phase1)

Indonesia

10

Jun 2023

Geothermal power plant with advanced designs

7

Accelerating Sustainable System
Development Using Renewable Energy
Project (ASSURE)

Maldives

6.2

Sep 2023

Advanced flow battery system
Ocean renewable energy pilot

8

Disaster Resilient Clean Energy Financing
Project (DRCEF)

Palau5

Dec 2023

Financial intermediation to support investment inlow-carbon technologies

Total52.68
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How to Access JFJCM?
Sovereign Projects
Ø Project owners (= grant recipients) are usually public sector entities (governments, SOEs, etc)
Ø Procurement is made through a competitive bidding processØ Projects are discussed periodically between the Government and ADB
Ø For private sector entities:
Ø Participate as a contractor or sub-contractor (EPC, technology provider, etc)
Ø Participate as a consultant (individual/firm)

Nonsovereign Projects
Ø Project owners (= grant recipients) are usually private sector entities
Ø The first step is to discuss ADB’s loan with the Private Sector Operations Department of ADB
8Tatsuya Yanase
Environment and Climate Change Specialist
JFJCM Fund Manager
Climate Change and Disaster Risk Management Division
Sustainable Development and Climate Change Department
tyanase@adb.org

Takahiro Murayama
Low Carbon Project Development Specialist (Consultant)
Climate Change and Disaster Risk Management Division
Sustainable Development and Climate Change Department
tmurayama.consultant@adb.org

Thank you.