Хөшгийн хөндий 15 МВт НЦС118-р дунд сургууль, халаалтын зуухОюу толгой –Цагаан суварга дамжуулах шугамJOINT CREDITING MECHANISM
IN MONGOLIA
Otgontsetseg L,
Secretary of the JCM between Mongolia and Japan@Japan Pavilion, COP27
8 November 2022Дархан хот 10 МВт НЦСЭвэридэй Фарм 12.7 МВт НЦС

POLICY ENVIRONMENTSUSTAINABLE DEVELOPMENT GOALS

Vision-2050

Targeted development
program
The main directions for thedevelopment of Mongolia
within 2021-2025
Mongolia's 2021-2025
investment program

Action program
2020-2024 - Action plan

Yearly development
plan for 2022

2050

2030
NATIONALLY DETERMINED CONTRIBUTION TO IMPLEMENTING PARISAGREEMENT202520242022(Source: Ministry of Economic and Development Mongolia)

1
The JCMGHG
emission
reductions
include inthe Energy
sector target

2

22.7%

Mongolia’s GHG emission reduction target

16.89 m.t СО2

EnergyAgriculture

Industry

Transport

Construction

Waste

8.34 m.t

5.28 m.t

1.28 m.t

1.05 m.t

830 thous.t

106.1 thous.t

Climate Change
adaption target

Water

Animal husbandry
and grazing

Disasterprotection

Livelihood, social security

ForestFarming

Public health

Biodiversity

Arrangements necessary for the further implementation of the JCM within theframework of Article 6.2 of the Paris Agreement in Mongolia
For the preparation:➢ Domestic arrangements to authorize the use of JCM credits for ITMO’s and NDC targets➢ Domestic arrangements for corresponding adjustment (CA)➢ To develop domestic registry system for measures taken on emission reduction (JCM has its own online webbased registry system)➢ To prepare the reports (IR, AR, RI)

Actions that may need to be considered further in the implementation of the existing JCM:
➢ Ensure environmental integrity with conservative reference emissions.
➢ Support for sustainable development (JCM Mongolia has SDCP/SDCR documents that regulates the JCM
projects environmental integrity and contribution for SDG's, and the Gender equality guideline were adoptedin 2020)➢ JCM partner countries will have to fulfill their obligations to participate in the cooperative approach forexample, the most recent greenhouse gas inventory report required by decision.
18/CMA.1, MPGs https://unfccc.int/sites/default/files/resource/cma2018_3_add2_new_advance.pdf(Source: IGES, Mutual learning program)
11/8/2022 JCM Secretariat

Preparation status for the further implementation of the JCM within theframework of Article 6.2 of the Paris Agreement in Mongolia
For the preparation of further implementation of the JCM within the framework ofArticle 6.2 of the Paris Agreement:➢ The JCM has periodically made the arrangements since the adoption of the PA in 2015.
For example: The Gender equality guideline developed within the framework of theJCM in 2020, and JCM Mongolia-Japan developed and implemented the SDCP/SDCR
documents in 2018.
➢ According to the requirements of 6.2, the necessary arrangements for all regulations andguidelines were updated and approved by the 8th Joint Committee meeting of the JCM
between Mongolia and Japan, which was held on February, 2022.

CORSIA:➢ JCM Mongolia-Japan submitted its second application to CORSIA in February 2022. First
application was submitted in 2020.

(Source: www.jcm.go.jp)

11/8/2022 JCM Secretariat

Updates of regulations and guidelines of JCM in Mongolia under the requirement of CORSIA, andfollowing Paris Agreement decision
JCM Rules andGuidelines

MN sideSUBJECT
Rules of Implementation (RoI)

ISSUES ADDRESSED FOR CORSIA• Avoidance of double claiming• Corresponding adjustments• Written attestation

Common Specifications of the JCM Registry• Information on credit vintage (year of emission reductions)

Project Cycle Procedure (PCP)
Guidelines for Developing ProposedMethodology• Reference, crediting period• Reference, additionality, leakage and its procedure

Guidelines for Developing Project Design
Document and Monitoring Report• Review on the crediting period and its procedure

Rules of Procedure for JC• Conflict of Interest and its procedure

Glossary of Terms• Definition on the new terms

Registry (including website)• Tracking CORSIA-eligible units✓ JCM Mongolia-Japan plans to track units in the Mongolian registry in the same way as the Japaneseregistry. The status of those units authorized/canceled will be disclosed on the JCM website.
• Development of the guidelines✓ The Guidelines aim at:- Facilitating the efficient implementation- Issuance of the JCM credits in the JCM registry of Mongolia- Management of the issued JCM credits- Procedures and forms related PA and its relevant decisions- Rules and guidelines established on the basis of the bilateral document.

Guidelines for the Implementation of theJCM in Mongolia

11/8/2022 JCM Secretariat(Source: www.jcm.go.jp)

RENEWABLE ENERGY DEVELOPMENT IN MONGOLIAWind PP
Solar PP
Hydro PPZAVKHAN 5 МW+3.6MW
battery storage (JFJCM)

SALKHIT 50 MW (CDM)
DARKHAN 10 MW (JCM)

Bogd river 2 MW
MON NARAN 12.7 MW (JCM)
Myangad, Khovd 10 MW (WB)
Yesenbulag, Govi-Altai 10 MW (ADB)
Durgun 12 MW (CDM)
25 MW
HPP

Ulaanbaatar

KHUSHIG VALLEY 15 MW (JCM)

GOBI-SUMBER 10 МW (GCF)✓ Private sector+ GCF

Taishir-Guulin 11 MW (CDM)

SAINSHAND 30 MW76МВт
58%

ZAMIIN UUD 15 МWХКОМ-ынтөслүүд117.7MW295.7
MW155 MW
WPP

NewAirport 15MWTenun Gerel
SAINSHAND 55 МW (EBRD & EIB)TSETSII 50 МW (CDM)✓ 100% Private sector

Total RE installed capacity - 295.7 MW
JCM contribution 16% or 42.7 MW
11/8/2022 JCM Secretariat(Source: Ministry of Energy, Mongolia)MN001, MN002
of high efficiency boiler in“Installationth118 school of UB and Upgrading andInstallation of Centralized Control System
of High-efficiency HOB in Bornuursoum”
11/8/2022 JCM Secretariat

Project particpants:
ANU Service LLC
Suuri Keikaku LLC

Total amount of credits issued in2016 and 2018483 Т-CO2
Implementing period:
2013-2030

MN003
Installation of
12.7 MW Solar Farm project in
Ulaanbaatar suburb
Project particpants:

Everyday Farm LLC
Farmdo LLC
Implementing period:
2016 - 2030
Total amount of credits issued as of2022

44,299 Т-CO2e
11/8/2022 JCM Secretariat

8(Photo: Everyday Farm LLC)

MN004
10MW Solar Power Plant
project in Darkhan City
Project particpants:

Solar Farm International LLC
Sharp Corporation
Implementing period:

2016-2030
Total amount of credits issuedin 20178947 T-CO2
11/8/2022 JCM Secretariat(Photo: Solar PowerInternational LLC)

MN005
A HIGH EFFICIENCY AND
LOW LOSS POWER
TRANSMISSION AND
DISTRIBUTION SYSTEM IN
MONGOLIA

Project particpants:
NTPS SOE
Hitachi Ltd.

Implementing period:
2018-2019

Total amount of credits issued
in 2019
1 T-CO2PROJECT COMPLETED
11/8/2022 JCM Secretariat

Ulaanbaatar

Tsagaan Suvraga
Substation

Low-Loss conductor
installed at 220kW line.

Around 160km
Oyu Tolgoi
Substation

MN00615 MW Solar Power Plant
project located in Khushig
Valley, Tuv province
Project particpants:
Solar Farm International LLC
Sharp Corporation
Implementing period:
2017-2030

Expected GHG emission
reduction /per year/18438 Т-СО2Power generation /per year/
24 million KWh
11/8/2022 JCM
Secretariat11(Photo: Tenuun Gerel Construction LLC)

Figure 3.
BEFORE: DZL (16 ton/hour steam boiler)

Figure 4.
AFTER: DAEYEOL (4 boiler with a steam capacity of 3.4 tons), NTEC (8 boiler
with a heating capacity of 0.63 GCal/h)

MN007 –Fuel conversion project at te MCS Coca Cola factory.
Production in 2021: Heat produced by steam 3589 GJ, Heat produced by
hot water 409 GJ, CO2 emission reduction - 5781 tCO2e
11/8/2022 JCM Secretariat

Project particpants:
MCS International LLC
Saisan Co.,Ltd.
Photo: MCS International LLC; Otgontsetseg L

JFJCM(MN008) 5 MW solar PV with 3.6MWh battery storage andenergy management system in Uliastai(solar),
Aldarkhan(storage) soum in Zavkhan province

Project participants:
MCS International LLC, Ministry of Energy
NGK Insulators Ltd., ADB

Implementing period:
2018-2030

Expected GHG
emission reduction
6439 t-СО2 per year,
160,975 t-CO2 for 25years.
Official opening
ceremony will be in
mid of November,
2022

11/8/2022 JCM Secretariat(Photo: MCS International LLC)

JCM PROJECTS CREDIT ISSUANCE / CO2 REDUCTIONS➢ JCM partnership document is signed by 24 countries. Currently, a total of 53,730 t-CO2e credits issued for Mongolia whereas
so far 10 countries have been issued 126,628 t-CO2e credits for the 40 projects.
(as of Nov, 2022)
Credit issuance (1 credit =t-CO2e）CountryYearTotalJapan

Project implementer (bycountry)

Indonesia

2016-2020

56,25436,614

19,650

Mongolia

2016-2022

53,73042,982

10,748Vietnam

2017-2019

4,415

2,691

1,724

Palau

2016-2018

881

659

222Thailand
Laos

2018-2020
2019

4,032
207

2,017
174

2,015
33

Maldives

2019

152

78

77

Kenya

2021

486

-486

Cambodia

2020

92

92

-Saudi Arabia

2020

30743074-

11/8/2022 JCM Secretariat(Source: www.jcm.go.jp)

COMPARISON OF THE JCM PROJECTS EMISSION REDUCTION (as of Dec, 2021)№

PROJECT NAMESTARTED
DATE(year/month)

COMPLETEDDATE(year/month)

MN004

Darkhan 10 МW SPP

2016/2

2017/1

MN003

Mon Naran 12.7 MW SPP

2016/92017/8

MN006

Khushig Valley 15 МW SPP

2017/6

2019/6

MN001

HOB - 118th School ofUlaanbaatar

2013/72014MN002

Upgrading and Installationof Centralized Control
System of High-efficiency
HOB in Bornuur soum

2013/72014

Fuel Conversion by
Introduction of LPG Boilers
to Beverage Factory,
Ulaanbaatar

2019/102020/8startedconstruction

MN007

11/8/2022 JCM Secretariat

TOTAL ENERGYPRODUCTION(Кw/h)TOTAL
POWER
SUPPLY (Кw/h)

INTERNAL
USE (Кw/h)

CO2
REDUCTION(Т/СО2)

15,868,617.7*

15,739,112.9*

129,504.8*

12,567.94*

18,964,000.00

18,201,702.50

763,233.14

14,981.560

26,366,866.5

26,048,052

318,814.5

20,760.297

19,581 GJ

19,581 GJ

None

62

39,211 GJ

39,211 GJ

None

102

By steam: 3589,7 GJ
By water: 404.8 GJ

2195,3 GJ
404.8 GJ

1394,3 GJ

5781

ACHIEVEMENTS IN PAST 10 YEARS
1. Introduce low carbon technology➢ The key to reducing GHG emissions is to move from old technologies that are no longer economically viable,
emit more carbon, less energy efficient, and cause more air pollution.
2. Increase competitiveness and economic efficiency➢ The JCM projects in Mongolia are a combination of good practices which introduced new advanced
technologies, investments, financing, and international standards.
3. Private sector participation and contribution to climate change mitigation➢ JCM contributes to the expansion of public-private sectors cooperation in Mongolia.
4. Sustainable development goals➢ JCM contributes to sustainable development of Mongolia through its projects as well as improving humanhealth and working environment and gender equality is emphasized at all levels of JCM implementation.
5. Alternatives, cost-effectiveness, and benefits are all associated with the JCM.
➢ JCM helps in pre-finance the projects, thereby reducing the risk of complications during project development.

11/8/2022 JCM Secretariat

CONCLUSION▪ The country lacks national policy for integrating GHG emissions reductions
into the carbon market system, which is necessary to develop regulations toauthorize the use of JCM credits for ITMOs and NDC targets.
▪ Needs to establish a unified registry system, in order to track GHG emissions
reductions at the national level.
▪ Needs to be careful and avoid the risks that the results of emission reductionstransferred(ITMO) internationally in accordance with articles 6.2 and 6.4 ofthe Paris Agreement. Avoid double counting.
▪ Taking advantage of the use and adopting good practices, such as examples,regulations, registry systems, technology, know-how, and financing of theJCM, for other climate change-related projects.
11/8/2022 JCM Secretariat

Happy 10th Anniversary
to all JCM members!

THANK YOU!
www.jcm-mongolia.com
www.jcm.go.jp