Recent Developments ofthe Joint Crediting Mechanism (JCM)
Webinar on the Joint Crediting Mechanism JCM Implementation for Georgia- Contribution to GHG Emission Reductions in Georgia through the JCM –24 January, 2024

Ministry of the Environment, Japan

GHG emissions and target in 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 2021: 1.122 billion ton of CO2 eq. (20.3% decline compared to FY2013)❑JCM target: cumulative GHG emission reduction for 100 mil tons of CO2 eq. by 2030

2Basic Concept of the JCM◼ Facilitate diffusion of leading decarbonizing technologies and infrastructure, etc., through investment byJapanese entities, thereby contributing to GHG emission reductions or removals and sustainable development in
partner countries.
◼ Contribute to the achievement of both countries’ NDCs while ensuring the avoidance of double counting
through corresponding adjustments.
◼ Implement the JCM consistent with the guidance on cooperative approaches, referred to in Article 6, paragraph
2 of the Paris Agreement.

UNFCCC, Article 6 of the Paris AgreementReporting and Corresponding Adjustments

JAPANJCM

PartnerCountry

Leading decarbonizing technologies, etc.,
and implementation of mitigation actions

Operation and management by
the Joint Committee which consists ofrepresentatives from the both sides

Used to achieve
Japan’s NDC

JCM Credits

JCM Projects
MRV*

GHG emission
reductions/removals*measurement, reporting and verification

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Incentives to the JCM
Partner Country’s
government& entities

Japanesegovernment& entities
Credits

FinancialsupportJapan will acquire a part ofJCM credits(in return for thecontribution of Japan, suchas financial support orinvestment for projects*)＊The proportion of financial
support depends on supporting
schemes.

Initial costGHG
emissions

Conventional
equipment & facility

SelectEmission reductions

Initial cost

GHG emissions

Incentivize selection ofdecarbonizing
technologies, etc. by
the financial support or
the investment to theinitial cost

Advanced decarbonizing
equipment & facility

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Scheme of the JCM
Flow of the JCM

Japan

Submission of PIN＊

Project
Participants

Joint Committee
Submit PIN/PDD• Implementation &monitoring ofprojects(Secretariat)• Confirmation of noobjection to PIN• Registration of projects• Issuance of credits

Submission of Proposed
Methodology
Approval of Proposed
Methodology

Partner Country
Submit PDD/monitoring report

Confirmation of no objection

Inform results ofvalidation /verification

Third partyentities• Validation of projects• Verification of amountof GHG emissions
reduction or removal＜Terminology＞• PIN (Project Idea Note): A document used to explain the outline of the project to thepartner country and confirm whether there is an objection.
• PDD (Project Design Document): A document that includes monitoring methods andestimated emission reductions. Required for project registration.

Development of PDD*
Validation
Registration
Monitoring
Verification
Issuance of credits

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Information about the JCM
https://www.jcm.go.jp/

You can find...
• Rules and Guidelines• Approved Methodologies• Registered Projects• Issuance of credits• Third Party Entity

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JCM progress
28 JCM Partner countries (Up to 30 partner countries by 2025)

More than 240 Projects Formulation

101 Approved Methodologies

Approx. 20 million-tCO2 cumulative emission reductions by 2030

Alignment with Article 6.2 guidance (Authorization, Corresponding Adjustment
and Sustainable Development etc)

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JCM Partner Countries（28 countries）

Mongolia
Jan. 8, 2013 （Ulaanbaatar）

Ethiopia
Bangladesh
Mar. 19, 2013 (Dhaka) May. 27, 2013 (Addis Ababa)KenyaJun. 12, 2013 (Nairobi)

Maldives
Jun. 29, 2013 (Okinawa)

Viet Nam
Jul. 2, 2013 (Hanoi)

Lao PDR
Aug. 7, 2013 (Vientiane)

Indonesia
Aug. 26, 2013 (Jakarta)

Costa Rica
Dec. 9, 2013 (Tokyo)

Saudi Arabia
May. 13, 2015

Chile
May. 26, 2015 (Santiago)

Myanmar
Sep. 16, 2015 (Nay Pyi Taw)

ThailandNov. 19, 2015 (Tokyo)

Philippines
Jan. 12, 2017 (Manila)

SenegalAug. 25, 2022 (Dakar)

TunisiaAug. 26, 2022 (Tunis)

Azerbaijan
Sept. 5, 2022 (Baku)

Moldova
Sept. 6, 2022 (Chisinau)

Georgia
Sept. 13, 2022 (Tbilisi)

Sri Lanka
Oct. 10, 2022 (Colombo)

Uzbekistan
Oct. 25, 2022 (Tashkent)

Kyrgyz Republic
July. 6, 2023 (Bishkek)

Kazakhstan
Oct. 30, 2023 (Astana)

Papua New Guinea
United Arab Emirates
Nov. 18, 2022 (Sharm-el-Sheikh) April. 16, 2023 (Sapporo)

Palau
CambodiaJan. 13, 2014 (Ngerulmud) Apr. 11, 2014 (Phnom Penh)

MexicoJul. 25, 2014 (Mexico City)

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Projects supported by the JCM financing programmes
Renewable Energy

Solar power, FARMLAND Co.,
Ltd., Chile

Floating Solar PV,TSB Co.,
Ltd.,Thailand

Hydro Power Plant, Toyo
Energy Farm Co., Ltd.,
Indonesia

Biomass Co-Generation
System, Fuji-Foods Coporation,
ThailandEnergy efficiency [Consumer sector]

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy saving atconvenience stores,
Panasonic, Indonesia

Energy efficiency [Urban sector]

LED street lighting systemwith wireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Binary Power Generation Projectat Geothermal Power Plant, MHI,
Ltd., Philippines

Energy efficiency [Industrial sector]

Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia

High-efficiency airconditioning system,
Hitachi, Daikin, Vietnam

Waste

Power Generation withMethane Gas Recovery
System, NTTDATA, Mexico

Waste to Energy Plant,
JFE engineering, Myanmar

Energy-saving of mobile
communications basetransceiver stations,KDDI Corp. Indonesia

Transport

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

9Activities related to the JCM by Government of Japan

Capacity building• Article 6
Implementation
partnership• Secretariat work forthe JCM• Partnership for Market
Implementation Facility[World Bank]• City-to-city cooperation• Training for TPEs

ProjectdevelopmentProject
implementation

Monitoring/evaluation• Seminars/workshops• JCM Global Match (bizmatching website)• Consultation withproject
developers/consultants• City-to-city cooperation• JCM Feasibility Study• JCM Model Projects• Japan Fund for the JCM[ADB]• F-gas Recovery andDestruction ModelProject• Financial support forprojects [UNIDO]• JCM Demonstration
Projects• Support for MRV(development ofmethodology and project
design document,validation andverification by TPEs)• Secretariat of the Joint
Committee• Support forestablishment of aregistry
Outreach activities through Carbon Markets Express (website)

10Overview of Japan’s support for the JCM partner countries
Ministry

ProgrammeType of support

Ministry of theEnvironment

Finance Programme for JCM ModelProjects*

Subsidy

Finance Programme for F-gas Recovery
and Destruction Model Projects*

Subsidy

Japan Fund for the JCM (JFJCM)- managed by ADB

Grant

JCM support programme by UNIDO*

Grant for projects,
technical cooperation

Project development/capacity
building/MRV support

Technical cooperation

JCM Feasibility Study

Technical cooperationJCM Demonstration Programme

Government-commissioned
project

Field studies for JCM REDD+

Government-commissioned
project

Ministry ofEconomy, Tradeand Industry

Forestry Agency* These programmes can support projects implemented by government-owned companies but not those implemented
by the government itself.

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Finance programme for JCM Model Projects by MOEJ
Budget for projects starting from FY
2023 is approx. 15 billion JPY(approx. USD 109 million) in total(1 USD = 137
108 JPY)
by FY2025

Governmentof Japan

Finance part of an investment cost
(up to half)∗ Includes collaboration with projects supported
by JICA and other governmental-affiliatedfinancial institute.

Conduct MRV and expected to deliver
JCM credits issued

International consortiums(which include Japanese entities)⚫ Scope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 from fossil fuelcombustion as well as construction cost for installing those facilities, etc.
⚫ Eligible Projects: starting installation after financing is awarded and finishing installation within
three years.

12Finance programme JCM F-gas Recovery
and Destruction Model Project by MOEJ
【Budget for FY2023】
61 million JPY (approx. 0.45million USD)
(1 USD = 137 JPY)

Governmentof Japan

Finance part of the cost in flat-rate(up to 40 million JPY/year)

Conduct MRV to estimate GHG emission reductions.
At least half or ratio of financial support to project cost(larger ratio will be applied) of JCM credits issued areexpected to be delivered to the government of Japan

International consortiums (which include Japanese entities)
Manufacturers ofequipment whichuses F-gas

Users ofequipment whichuses F-gas

Entities for recovery andtransportation of used F-gas(recycling or scrap entities)

Entities for destruction of used
F-gas (may use existing
facility for destruction)

Purpose

Project Period

To recover and destroy F-gas (GHG except for energyrelated CO2, etc) from used equipment instead of releasing
to air, and reduce emissions

Three years in maximum(Ex. 1st year for scheme, 2nd year for facilities, 3rd yearfor recovery/destruction)

Scope of Financing

Eligible Projects• Establish scheme for recovery and destruction• Install facilities/equipment for recovery/destruction• Implementation of recovery, transportation, destruction
and monitoring• After financing is awarded, start implementation ofrecovery/destruction within three years• Aim for the registration as JCM project and issuancecredits

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JCM Financing Programme by MOEJ (FY2013～2023) as of October 30th 2023
Total 236 projects (28 partner countries)(●Model Project: 222 projects(including Eco Lease: 7projects), ■ADB: 7 projects, ■UNIDO: 1 project, ◆ REDD+: 2 projects, ▲F-gas: 4 projects)

157 underlined projects have been started operation.

Mongolia:9 projects

Cambodia:5 projects●LED Street Lighting*●200kW Solar PV at International School*●1MW Solar PV & Centrifugal Chiller●Inverters for Distribution Pumps*●0.9MW Solar PV

Myanmar:8 projects●700kW Waste to Energy Plant* ●Brewing Systems toBrewery Factory ●Once-through Boiler in Instant Noodle Factory●1.8MW Rice Husk Power Generation●Refrigeration System in Logistics Center ●4.3MW Solar PV●8.8MW Waste Heat Recovery in Cement Plant●Brewing Systems and Biogas Boiler to Brewery Factory

Bangladesh:5 projects●Centrifugal Chiller●Loom at Weaving Factory*●315kW PV-diesel Hybrid System*●Centrifugal Chiller*■High Efficiency Transmission LineMaldives:4 projects

Saudi Arabia:3 projects●Electorolyzer in Chlorine Production Plant*●400MW Solar PV ●100MW Solar PV

Ethiopia:1 project●120MW Solar PV●1MW Solar PV at Salt Factory※● 3.1MW Solar PV● 2.3MW Solar PV ■ 230kW Solar PV and Storage Battery●1.5MW Solar PV

Laos:6 projects◆REDD+ through controlling slush-and-burn●Amorphous transformers1※●11MW Solar PV※●Amorphous transformers2●Heat Only Boiler (HOB)**●2.1MW Solar PV in Farm*●10MW Solar PV*●8.3MW Solar PV in Farm *●15MW Solar PV1*
■Upscaling Renewable Energy Sector ●Fuel Conversion by Introduction of LPG Boilers■Improving Access to Health Services●15MW Solar PV2

Viet Nam:44 projects●Digital Tachographs*●Amorphous transformers1*●Air-conditioning in Hotel1*●Air-conditioning in Lens Factory*●Container Formation Facility*●320kW Solar PV in Shopping Mall*●Amorphous transformers 2*●Air-conditioning Control System●Electricity Kiln
●High Efficiency Water Pumps*●Energy saving Equipment in Lens Factory*●Amorphous transformers 3*●Energy Saving Equipment in Wire Production Factory*●Amorphous transformers 4●Energy Saving Equipment in Brewery Factory●High Efficiency Chiller●Modal Shift with Reefer Container●Inverters for Raw Water Intake Pumps▲ F-gas Recovery and Dedicated Destruction Scheme●Biomass Boiler to Chemical Factory●Air Cooled Chillers●49MW solar PV●57MW solar PV ●Once-through Boiler to Food Factory●Biomass Boiler●Air-conditioning in Hotel2 ●2MW Solar PV●Waste to Energy●LED Lighting to Office Building ●9MW Solar PV●12MW Solar PV●9.8MW Solar PV ●5.8MW Solar PV●2.5MW Solar PV●Chiller and LED▲ F-gas Recovery and Mixed Combustion Scheme●20MW Biomass Power Plant●16MW Mini Hydro Power Plant●7.9MW Solar PV●0.4MW Solar PV (Eco Lease)●5.7MW Solar PV●48MW Offshore Wind Power●1.8MW Solar PV●0.8MW Solar PV●1.9MW Solar PV

Philippines:17 projects●186kW Solar Power on School Rooftop*■Smart Micro-Grid System*■Greater Male Waste to Energy Project■BESS and Ocean Energy

Kenya:5 projects

72 projects with * have been registered as JCM projects.

●14MW Floating Solar PV※●15MW Solar PV●1.53MW Rooftop Solar PV *●1MW Rooftop Solar PV ●1.2MW Rooftop Solar PV *●4MW Solar PV * ●9.6MW Solar PV● Biogas Power Generation and FuelConversion●29MW Binary Geothermal Power Generation●20MW Flash Geothermal Power Plant ▲ F-gas Recovery and Destruction Scheme●28MW Binary Geothermal Power Generation●14.5MW Mini Hydro Power Plant●9MW Solar PV●0.8MW Solar PV (Eco Lease)●5.6MW Binary Geothermal Power Generation●6MW Waste Heat Recovery in Cement Plant●27MW Solar PV●1.2MW Solar PV (Eco Lease)

Mexico:5 projects●1.2MW Power Generation with Methane Gas
Recovery System●Once-through Boiler and Fuel Switching●30MW Solar PV1●Energy Efficient Distillation System●0.5MW Solar PV (Eco Lease)

Chile:14 projects

Palau:5 projects●370kW Solar PV for Commercial Facilities*●155kW Solar PV for School*●445kW Solar PV for Commercial Facilities Ⅱ*●0.4MW Solar PV for Supermarket*●1MW Solar PV for Supermarket

Thailand:51 projects●Energy Saving at Convenience Store ●1MW Solar PV on Factory Rooftop* ●Upgrading Air-saving Loom*●Centrifugal Chiller & Compressor*●Centrifugal Chiller in Tire Factory●Co-generation in Motorcycle Factory*●Air Conditioning System & Chiller*●Refrigeration System*●Ion Exchange Membrane Electrolyzer●Chilled Water Supply System●LED Lighting to Sales Stores●2MW Solar PV1●12MW Waste Heat Recovery in Cement Plant * ●Co-generation System PV ●3.4MW Solar PV*●Refrigerator and Evaporator●Heat Recovery Heat Pump *●30MW Solar PV*●5MW Floating Solar PV*●Boiler System in Rubber Belt Plant ●Air-conditioning Control System●Biomass Co-generation System●Co-generation in Fiber Factory●Biomass Boiler●17.8MW Solar PV in Industrial Park
●3.4MW Solar PV●0.8MW Solar PV and Centrifugal Chiller▲ F-gas Recovery and Destruction Scheme●37MW Solar PV and Melting Furnace●Heat Exchanger in Fiber Factory●8.1MW Solar PV●Centrifugal Chiller to Machinery Factory●5MW Solar PV ●2.6MW Solar PV●2MW Solar PV2●2.7MW Solar PV with Blockchain Technology●32MW Solar PV and Floating Solar PV ●23MW Solar PV●Once-through Boiler in Garment Factory●35MW Solar PV and Storage Battery ●Boiler, Chiller and PV●2MW Solar PV3●1.3MW Solar PV (Eco Lease)●0.13MW Solar PV (Eco Lease) ●Gas Co-generation System & 22MWSolar PV●ORC Waste Heat Recovery●4MW Solar PV●2.9MW Solar PV●0.9MW Solar PV●Methane Avoidance and Biomass Boiler in Fruit Processing Factory●1.6MW Solar PV (Eco Lease)●1MW Rooftop Solar PV*●3.4MW Rice Husk Power Generation
Costa Rica:2 projects●3MW Solar PV1* ●3MW Solar PV2●5MW Solar PV※●25.8MW Solar PV●9MW Solar PV1●Chiller and Heat Recovery●9MW Solar PV2●3MW Solar PV3System●6MW Solar PV●9MW Solar PV3●9MW Solar PV4●47MW Solar PV●2.0MW Solar PV●26.3MW Solar PV and 48MWh Storage Battery

Indonesia:52 projects●Centrifugal Chiller at Textile Factory1*●Energy Saving at Convenience Store*●Refrigerants to Cold Chain Industry**●Double Bundle-type Heat Pump*●Centrifugal Chiller at Textile Factory 2*●30MW Waste Heat Recovery in Cement Industry*● 500kW Solar PV and Storage Battery*●Regenerative Burners*●Centrifugal Chiller at Textile Factory*●Old Corrugated Cartons Process*●Upgrading to Air-saving Loom*●Centrifugal Chiller in Shopping Mall*●Smart LED Street Lighting System●Once-through Boiler System in Film Factory*●Gas Co-generation System*●Once-through Boiler in Golf Ball Factory*●1.6MW Solar PV in Jakabaring Sport City*◆REDD+ through controlling slush-and burn●10MW Hydro Power Plant1●Looms in Weaving Mill*●LED Lighting to Sales Stores●Industrial Wastewater Treatment System●0.5MW Solar PV*●Gas Co-generation system●Absorption Chiller* ●High Efficiency Autoclave1●CNG-Diesel Hybrid Public Bus●Rehabilitation of Hydro Power Plant●Injection Molding Machine●2MW Mini Hydro Power Plant●Boiler to Carton Box Factory●10MW Hydro Power Plant2●6MW Hydro Power Plant1●6MW Hydro Power Plant2●5MW Hydro Power Plant●4.2MW Solar PV●8MW Mini Hydro Power Plant●Thermal Oil Heater System●3.3MW Rooftop Solar PV●6MW Hydro Power Plant3●2.3MW Hydro Power Plant●High Efficiency Autoclave2●Once-through Boiler in Chemical Factory●5MW Solar PV●3.1MW Solar PV●2.1MW Solar PV●3.5MW Hydro Power Plant●Energy Saving and Solar PV■55MW Geothermal Power Generation ●12MW Biomass Power Plant●3MW Solar PV●Improvement of Flat Glass Production Melting Furnace

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Feasibility Studies by METI (as of July 2023)
Moldova:⚫ JCM feasibility study on the project of bio-gasification

using ethanol distillation residues in the Republic ofMoldova（SDG Impact Japan Inc.）

Uzbekistan:⚫ JCM feasibility study on the introduction of solar

Mongolia:⚫ JCM feasibility study on switching fuel for heating boilers to biochar in thecity of Ulaanbaatar（PEAR Carbon Offset Initiative, Ltd.）
Lao PDR:⚫ JCM feasibility study on decarbonization of steam by systemization ofhydrogen generators and hydrogen boilers in Lao People's Democratic
Republic（Hitachi Zosen Corporation）
Vietnam:⚫ Private-sector JCM feasibility study on integrated energy managementand data platform in industrial parks（Sojitz Corporation）

power generation and storage batteries, andboiler fuel conversion in public hospitals in theRepublic of Uzbekistan（Hanwa Co., Ltd.）

Thailand:⚫ Private-sector JCM feasibility study on GHG emission

Brazil:⚫ JCM feasibility study on converting production process ofcaustic soda and chlorine in Federative Republic of Brazil（AGC Inc.）

reductions in textile dyeing process by utilizing highly
efficient dyeing technology（Asahi Kasei Corp.）

Chile:⚫ JCM feasibility study on chemical goods/synthetic
fuel production using CO2 emitted from pulp mill asa raw material（Toyo Engineering Corporation）

Indonesia:⚫ Program-type JCM feasibility study on practices to improve biodiesel yield frompalm oil by utilizing AI（Kanematsu Corporation）

Total: 9 projects (9 countries)

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Thank you for your kind attention