Recent Development of
The Joint Crediting Mechanism (JCM)

June 2017
Government of Japan
All ideas are subject to further consideration and discussion with partner countries

Basic Concept of the JCM
 Facilitating diffusion of leading low carbon technologies, products,
systems, services, and infrastructure as well as implementation of
mitigation actions, and contributing to sustainable development ofdeveloping countries.
 Appropriately evaluating contributions from Japan to GHG emission
reductions or removals in a quantitative manner and use them to achieve
Japan’s emission reduction target.
 Contributing to the ultimate objective of the UNFCCC by facilitating global
actions for GHG emission reductions or removals.

JAPAN

Used to achieve
Japan’s emission
reduction target

Leading low carbon technologies,
etc, and implementation of
mitigation actions
Operation andmanagement by the Joint
Committee which consistsof representatives fromthe both sides

Credits

PartnerCountry
JCM
Projects
MRV*
GHG emission
reductions/removals*measurement, reporting and verification2

Scheme of the JCM
Partner Country

Japan•Notifies
issuance ofcredits

Government• Issuance of credits

Joint Committee(Secretariat)• Development/revision of
the rules, guidelines andmethodologies•Reports• Registration of projects
issuance of • Discusses thecredits
implementation of JCM•Notifies
issuance ofcredits

Government• Issuance of credits•Reports
issuance ofcredits

Conduct policy consultations•Request registration•Requestof projects
issuanceof credits•Submit PDD•Submit PDD/monitoring/monitoring
reportProject Participants
Third party entities report•Request
issuanceof credits•Request registrationof projects

Project Participants• Implementation &• Validation ofmonitoring of projects •Informprojects
results of • Verification ofvalidation
amount of GHG/verification emission reductions
or removals• Implementation &•Inform
monitoring of projects
results ofvalidation/verification

3

The role of the Joint Committee and each Government
 The Joint Committee (JC) consists of representatives fromboth Governments.
 The JC develops rules and guidelines necessary for the
implementation of the JCM.
 The JC determines either to approve or reject the proposed
methodologies, as well as develops JCM methodologies.
 The JC designates the third‐party entities (TPEs).
 The JC decides on whether to register JCM projects whichhave been validated by the TPEs.
 Each Government establishes and maintains a registry.
 On the basis of notification for issuance of credits by the JC,
each Government issues the notified amount of credits to
its registry.
4

Features of the JCM(1) The JCM starts its operation as a non‐tradable credit typemechanism.
(2) Both Governments continue consultation for thetransition to a tradable credit type mechanism and reacha conclusion at the earliest possible timing, taking
account of implementation of the JCM.
(3) The JCM aims for concrete contributions to assisting
adaptation efforts of developing countries after the JCM
is converted to the tradable credit type mechanism.

5Project Cycle of the JCM and the CDM

Can be conducted by the same TPE
Can be conducted simultaneously

JCM<Main actors at each process>

CDM

Project Participant / Each Government
Joint Committee

Submission of
Proposed
Methodology

Project Participant

Joint Committee

Approval of
Proposed
Methodology

CDM Executive Board

Project Participant

Developmentof PDD

Project Participant

Third Party Entities

Validation

Designated Operational Entities(DOEs)

Joint Committee

Registration

CDM Executive Board

Project Participant

Monitoring

Project Participant

Third Party Entities

Verification

DOEs

Joint Committee decides the amount
Each Government issues the credit

Issuanceof credits

CDM Executive Board

6

JCM Partner Countries
 Japan has held consultations for the JCM with developing countries since 2011 and has establishedthe JCM with Mongolia, 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）

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
(Hanoi)Lao PDR
Aug. 7, 2013
(Vientiane)

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)

Saudi Arabia
May 13, 2015

Chile
May 26, 2015
(Santiago)

http://japan.kantei.go.jp/

Myanmar
Sep. 16, 2015
(Nay Pyi Taw)

ThailandNov. 19, 2015
(Tokyo)the Philippines
Jan. 12, 2017
(Manila)7

Statement by Prime Minister Shinzo Abe at the COP21 (Excerpt)

The second component of Japan’s new set of contribution is innovation. The
key to acting against climate change without sacrificing economic growth is thedevelopment of innovative technologies. To illustrate, there are technologies to
produce, store and transport hydrogen towards realizing CO2–free societies, anda next‐generation battery to enable an electric car to run 5 times longer than thecurrent level. By next spring Japan will formulate the “Energy and Environment
Innovation Strategy.” Prospective focused areas will be identified and researchand development on them will be strengthened. (snip)
In addition, many of the advanced low‐carbon technologies do not generally
promise investment‐return to developing countries. Japan will, while loweringburdens of those countries, promote diffusion of advanced low carbon
technologies particularly through implementation of the JCM.

8

Japan’s INDC (Excerpt)
Japan’s INDC
○ Japan’s INDC towards post-2020 GHG emission reductions is at the level of a reduction of
26.0% by fiscal year (FY) 2030 compared to FY 2013 (25.4% reduction compared to FY 2005)(approximately 1.042 billion t-CO2eq. as 2030 emissions), ensuring consistency with its energy
mix, set as a feasible reduction target by bottom-up calculation with concrete policies, measuresand individual technologies taking into adequate consideration, inter alia, technological and cost
constraints, and set based on the amount of domestic emission reductions and removals
assumed to be obtained. .
Information to facilitate clarity, transparency and understanding○ The JCM is not included as a basis of the bottom-up calculation of Japan’s emission reduction
target, but the amount of emission reductions and removals acquired by Japan under the JCM
will be appropriately counted as Japan’s reduction.
Reference information
GHG emissions and removals
JCM and other international contributions○ Japan establishes and implements the JCM in order both to appropriately evaluate
contributions from Japan to GHG emission reductions or removals in a quantitative manner
achieved through the diffusion of low carbon technologies, products, systems, services, andinfrastructure as well as implementation of mitigation actions in developing countries, and to usethem to achieve Japan’s emission reduction target.
○ Apart from contributions achieved through private-sector based projects, accumulated emission
reductions or removals by FY 2030 through governmental JCM programs to be undertaken
within the government’s annual budget are estimated to be ranging from 50 to 100 million t-CO2.

9

The JCM related Articles in the Paris Agreement
Article 6 of the Agreement
2. Parties shall, where engaging on a voluntary basis in cooperative approaches thatinvolve the use of internationally transferred mitigation outcomes towards
nationally determined contributions, promote sustainable development andensure environmental integrity and transparency, including in governance, andshall apply robust accounting to ensure, inter alia, the avoidance of double
counting, consistent with guidance adopted by the Conference of the Parties
serving as the meeting of the Parties to the Paris Agreement.
3. The use of internationally transferred mitigation outcomes to achieve nationallydetermined contributions under this Agreement shall be voluntary and authorizedby participating Parties.
 Use of market mechanisms, including the JCM, is articulated under Article 6 which prescribes forthe use of emission reductions realized oversees towards national emission reduction targets.
 The amount of emission reductions and removals acquired by Japan under the JCM will beappropriately counted as Japan’s reduction in accordance with the Paris Agreement.
 Japan is going to contribute to the development of the guidance for robust accounting including
for avoidance of double counting to be adopted by the CMA*.
*the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement

10

The UNFCCC documents related to the JCM (1/2)
Decision 1/CP18
41. Acknowledges that Parties, individually or jointly, may develop andimplement various approaches, including opportunities for using
markets and non‐markets, to enhance the cost‐effectiveness of, and topromote, mitigation actions, bearing in mind different circumstancesof developed and developing countries;
42. Re‐emphasizes that, as set out in decision 2/CP.17, paragraph 79, allsuch approaches must meet standards that deliver real, permanent,
additional and verified mitigation outcomes, avoid double counting ofeffort and achieve a net decrease and/or avoidance of GHG emissions;
44. Requests the SBSTA to conduct a work programme to elaborate aframework for such approaches, drawing on the work of the AWG‐LCA
on this matter, including the relevant workshop reports and technicalpaper, and experience of existing mechanisms, with a view torecommending a draft decision to the COP for adoption at its 19th
session;
45. Considers that any such framework will be developed under theauthority and guidance of the Conference of the Parties;

11

The UNFCCC documents related to the JCM (2/2)
Decision 19/CP18
Common tabular format for“UNFCCC biennial reporting guidelines for developed country Parties”
Table 4(b) Reporting on progress The JCM is one of various approaches based on Decision 1/CP.18, jointly
developed and implemented by Japan and partner countries, and Japanintends to contribute to elaborating the framework for such approaches under
the UNFCCC.
 Japan has reported and will report to the COP the use of the JCM in Biennial
12
Reports including the Common Tabular in line with Decision 19/CP18.

JCM Registry
Establishment & operation
Japanese registrycredit issuance•A registry will be established by Account holders
Registry
based on notification
managerby the JC
each side (RoI (draft) para13 (b)).
accessGovernment account•The registries need to share
Private accounts“Common specifications”, e.g.,‐ functions (e.g. issuance,
General users
retirement, holding,General information
access(account holders,
cancelation of credits)amount of credits
issued etc.)‐ account type (e.g. holding
account, government holding Account holders can access both general information andown accounts while general users can only accessaccount, cancellation account, theirgeneral information.
and retirement account)‐ rules of serial number of the credit‐ information sharing•Japan has established its registry and started operation in Nov. 2015.
•The partner countries will also establish their own registry.

13

JCM Website
URL: https://www.jcm.go.jp/
Contents•General information page
•Individual JCM Partner countries‐
Japan page

Function•Information sharing to the public, e.g., Image of the general information page
Partner Country ‐ Japan‐ the JC decisions,‐ rules and guidelines,‐ methodologies,‐ projects,‐ call for public inputs/comments,‐ status of TPEs, etc.
•Internal information sharing for the JC
members, e.g.,‐ File sharing for electric decisions by
Image of the individual JCM Partner countries‐Japan page
14
the JCProgress of the JCM in each partner country as of Apr 30 2017
Partnercountries

No. of registeredprojects

No. of approved
methodologies

Start fromNo. of JC

Mongolia

Jan 2013

4
3
3
3
2
5
2
6
1
4
2
1
1
1
1
2

2

3
1
3
3
1
6

Bangladesh

Mar 2013

Ethiopia

May 2013

Kenya

Jun 2013

Maldives

Jun 2013

Viet Nam

Jul 2013

Lao PDRAug 2013

Indonesia

Aug 2013

Costa Rica

Dec 2013

Palau

Apr 2014

Cambodia

Apr 2014

MexicoJul 2014

Saudi Arabia

May 2015

Chile

May 2015

MyanmarSep 2015

ThailandNov 2015

Philippines

Jan 2017

Total

16

41

16

4

1
7

12

Pipeline (JCM Financing
Programme & Demonstration
Projects in FY 2013‐2016)

6
6
2
3
3
20
4
29

2
3

1
2

3
5

4
1

2
2

5
23
4

35

122

15

Registered Projects (1/2)
No.

Country

Project Title

General description of project

MN001 Mongolia

Installation of High‐Efficiency Heat
Only Boilers in 118th School of
Ulaanbaatar City ProjectIntroducing high‐efficiency HOBs to fulfill the demand of new heatfacilities for the school buildings. Optimizing boiler operation throughthe implementation of operation management and technical guidance.

MN002 Mongolia

Centralization of Heat Supply System Introducing high‐efficiency HOBs to fulfill the demand for heat supply
by Installation of High‐Efficiency Heat system in the public buildings. Optimizing boiler operation through the
Only Boilers in Bornuur soum Project implementation of operation management and technical guidance.
Improving transportation fuel efficiency by installing digitaltachographs, in which the quantity of fuel consumption and running
distance are continuously analyzed and provide feedbacks and advices
to the drivers based on the analyzed data.

VN001

Viet Nam

Eco‐Driving by Utilizing Digital
Tachograph System

VN002

Viet Nam

Promotion of green hospitals by
Installing inverter room air conditioners (RACs) and Energy
improving efficiency / environment in Management System (EMS) to optimize operation of multiple inverter
national hospitals in Vietnam
RACs in national hospitals

Viet Nam

Low carbon hotel project in Vietnam:
Installing high‐efficiency equipment of hot water supply, air
Improving the energy efficiency ofconnditioning management system and LED lighting for improving thecommercial buildings by utilization ofenergy efficiency of hotels
high efficiency equipment

Viet Nam

Introduction of amorphous highefficiency transformers in power
distribution systems in the southernpart of Viet Nam

VN003

VN004

ID001

Indonesia

ID002

Indonesia

Introducing 1,618 amorphous high efficiency transformers which
reduce transmission and distribution loss in the power distribution
system of southern Vietnam.

Improving energy saving for air‐conditioning and process
Energy Saving for Air‐Conditioning andcooling by introducing high‐efficiency centrifugal chiller equipped with
Process Cooling by Introducing High‐high‐performance economizer cycle, and super‐cooling refrigerant
efficiency Centrifugal Chiller
cycle in a textile factory.
Project of Introducing High Efficiency
Introducing advanced energy efficient cooling system using natural
Refrigerator to a Food Industry Cold
refrigerant in the food industry cold storage.
Storage in Indonesia

16Registered Projects (2/2)
No.

Country

ID003

Indonesia

Project of Introducing High Efficiency
Refrigerator to a Frozen Food
Processing Plant in Indonesia

Introducing advanced energy efficient cooling system using naturalrefrigerant in the frozen food processing plant.

Indonesia

Energy Saving for Air‐Conditioning at
Textile Factory by Introducing High‐efficiency Centrifugal Chiller in
Karawang, West Java

Improving energy saving for air‐conditioning and process cooling by
introducing high‐efficiency centrifugal chiller equipped with high‐performance economizer cycle, and super‐cooling refrigerant cycle in a
textile factory.

Indonesia

Energy Saving for Air‐Conditioning at Improving energy saving for air‐conditioning and process cooling by
Textile Factory by Introducing High‐
introducing high‐efficiency centrifugal chiller equipped with high‐efficiency Centrifugal Chiller in Batang, performance economizer cycle, and super‐cooling refrigerant cycle in aCentral Java (Phase 2)
textile factory.

Indonesia

Installation of Inverter‐type Air
Introducing high‐efficiency facilities to the grocery stores for saving
Conditioning System, LED Lighting and energy as below;
Separate Type Fridge Freezer Showcase ‐ Inverter‐type air conditioner
to Grocery Stores in Republic of‐ LED lighting
Indonesia‐ Fridge freezer showcase with natural refrigerant

Indonesia

Introducing double‐bundle modular
electric heat pumps at AXIA SOUTH
CIKARANG Tower 2

ID004

ID005

ID006

ID008

PW001 Palau
PW002 Palau
PW003 Palau

Project Title

General description of projectIntroducing a water‐to‐water double‐bundle modular electric heatpumps (modular HP) system for hot water supply and air conditioning
system to a new residential hotel.

Installing high quality solar cell modules with high conversion efficiency
with a monitoring system which realizes appropriate operation andmanagement.
Installing high quality solar cell modules with high conversion efficiency
Small Scale Solar Power Plants forwith a monitoring system which realizes appropriate operation and
Schools in Island States
management.
Installing high quality solar cell modules with high conversion efficiency
Small Scale Solar Power Plants forwith a monitoring system which realizes appropriate operation andCommercial Facilities in Island States II
management.
Small Scale Solar Power Plants forCommercial Facilities in Island States17

Approved Methodologies (1/4)
No.

Country

Sectoral
Scope

Methodology Title

GHG Emission Reduction Measures

MN_
Mongolia
AM001

Installation of energy‐saving
Energytransmission lines in the Mongolian
distribution
Grid

MN_
Mongolia
AM002

Installation of new HOB for hot water supply system and thereplacement of existing coal‐fired HOB. The boiler efficiency of theReplacement and Installation of HighEnergyreference HOB is typically lower than that of the project HOB.
Efficiency Heat Only Boiler (HOB) for
industries
Therefore, the project activity leads to the reduction of coal
Hot Water Supply Systems
consumption, resulting in lower emission of GHGs as well as air
pollutants.

MN_
Mongolia
AM003

EnergyInstallation of Solar PV System
industries

BD_
EnergyBangladesh demand
AM001

Reduction of transmission loss by introduction of LL‐ACSR/SA (LowElectrical Power Loss Aluminum Conductors, Aluminum‐Clad Steel
Reinforced).

Displacement of grid electricity and/or captive electricity by
installation and operation of solar PV system(s).

Energy Saving by Introduction of High Saving energy by introducing high efficiency centrifugal chiller for
Efficiency Centrifugal Chiller
the target factory, commerce facilities etc.

ET_
EthiopiaAM001

Displacement of electricity using diesel fuel and/or lighting using
EnergyElectrification of communities usingkerosene by installation and operation of the micro hydropowerindustries Micro hydropower generation
generation unit.

ET_
Ethiopia
AM002

EnergyElectrification by photovoltaic power Displacement of electricity using diesel fuel and/or lighting using
industries generation in Ethiopia
kerosene by installation and operation of the PV.

ET_
EthiopiaAM003

EnergyIntroduction of Biomass Combined
industries Heat and Power Plant

KE_
Kenya
AM001

Displacement of fossil fuel consumed for heat production andelectricity generation by installation and operation of a biomass CHP
plant.
Displacement of electricity using diesel fuel and/or lighting using
EnergyElectrification of communities usingkerosene by installation and operation of the micro hydropowerindustries Micro hydropower generation
generation unit.

KE_
Kenya
AM002

Energyindustries

Installation of Solar PV System

Displacement of electricity using fossil fuel as a power source byinstallation and operation of a small hydropower plant.

18

Approved Methodologies (2/4)
No.

Country

Sectoral
Scope

Methodology Title

GHG Emission Reduction Measures

KE_
Kenya
AM003

EnergyInstallation of Run‐of‐river Small
industries Hydropower Generation Plant

MV_
Maldives
AM001

Energy
Displacement of Grid and Captive Genset Displacement of grid electricity and/or captive electricity using diesel fuel as
industries Electricity by Solar PV Systema power source by installation and operation of the solar PV system(s)VN_Viet Nam
AM001

Transport

Improvement of driving efficiency by installation of digital tachograph system
Eco‐Driving by Utilizing Digital Tachographto freight vehicle fleets providing to the drivers a real‐time feedback against
Systeminefficient driving.

VN_
Viet Nam
AM002

EnergydemandIntroduction of Room Air Conditioners
Equipped with Inverters

VN_
Viet Nam
AM003

EnergydemandImproving the energy efficiency of
Reduction of electricity and fossil fuel consumed by existing facilities iscommercial buildings by utilization of high achieved by replacing or substituting these facilities with high efficiency
efficiency equipment
equipment.

VN_
Viet Nam
AM004

Waste
handling
anddisposal

Avoid the emissions of methane to the atmosphere from organic waste that
Anaerobic digestion of organic waste forhave been left to decay anaerobically at a solid waste disposal site and tobiogas utilization within wholesale
introduce renewable energy technologies that supply biogas that displaces
markets
fossil fuel use.

VN_
Viet Nam
AM005

Installation of energy efficient transformers (transformers with amorphous
EnergyInstallation of energy efficient
metal core) in a power distribution grid to reduce no‐load losses by
distribution transformers in a power distribution gridtransformers, which leads to reduction of losses for grid electricity.

VN_
Viet Nam
AM006

EnergydemandIntroduction of air conditioning systemequipped with inverters

Saving energy by introducing air‐conditioning system with inverter.

LA_
Laos
AM001

EnergydemandInstallation and operation of energy‐
efficient data center (DC) in the Lao PDR

Energy reduction which leads to reductions of GHG is achieved byintroducing energy‐efficient project DC in place of the reference DC.

Displacement of grid electricity and/or captive electricity using fossil fuel as a
power source by installation and operation of the solar PV system(s).

Energy saving achieved by introduction of RACs equipped with inverters.

19

Approved Methodologies (3/4)
No.

Country

Sectoral
Scope

Methodology Title

Energy Power Generation by Waste Heat
ID_
Indonesia
industries Recovery in Cement Industry
AM001
Energy Energy Saving by Introduction of HighID_
Indonesia
demand Efficiency Centrifugal Chiller
AM002
EnergyID_
Indonesia
demandAM003
EnergyID_
Indonesia
demandAM004

GHG Emission Reduction Measures
Waste heat recovery (WHR) system generates electricity through waste heatrecovered from cement production facility. Electricity generated from the
WHR system replaces grid electricity resulting in GHG emission reductions of
the connected grid system.
Saving energy by introducing high efficiency centrifugal chiller for the target
factory, commerce facilities etc.

Installation of Energy‐efficient
Refrigerators Using Natural Refrigerant at Saving energy by introducing high efficiency refrigerators to the food industry
Food Industry Cold Storage and Frozen
cold storage and frozen food processing plants.
Food Processing Plant
Installation of Inverter‐Type Air
Saving energy by introducing inverter‐type air conditioning system for cooling
Conditioning System for Cooling forfor grocery store.
Grocery Store

Energy Installation of LED Lighting for Grocery
ID_
Indonesia
demand Store
AM005

Saving energy by introducing LED (Light Emitting Diode) lighting for grocery
store.

Introduction of plant optimization control systems (APC) that reduce energy
Energy GHG emission reductions throughID_
optimizationofrefineryplant
operationin
consumption
in the hydrogen production unit (HPU) and hydro cracking unit
Indonesia
demand Indonesia
AM006(HCU) at a refinery plant.

Energy GHG emission reductions throughID_
optimization of boiler operation inIndonesia
demand Indonesia
AM007
EnergyID_
Indonesia
demandAM008

The project achieves energy conservation in boilers, through operation
optimization by applying Utility Facility Operation Optimization Technology.

Saving total energy of in‐store showcase and air conditioning system by
Installation of a separate type fridge‐
introducing a separate type natural refrigerant fridge‐freezer showcase forfreezer showcase by using natural
grocery store, which leads to GHG emission reductions, through therefrigerant for grocery store to reduce air
reduction of air conditioning electricity load demand by not releasing wasteconditioning load inside the store
heat inside the store.

Energy Replacement of conventional burners with By replacing conventional burners with regenerative burners for aluminumID_
regenerative burners for aluminum
holding furnaces, consumption of natural gas is reduced, which leads to theIndonesia
demand holding furnaces
AM009
reduction of GHG emissions.

20

Approved Methodologies (4/4)
No.

Country

Sectoral
Scope

Methodology Title

Energy Introducing double‐bundle modular
ID_
Indonesia
demand electric heat pumps to a new building
AM010

GHG Emission Reduction Measures
The project contributes to GHG emission reductions at a new building, byreducing electricity and oil consumption with efficient double‐bundle
modular electric heat pumps where heating/cooling energy issimultaneously generated.

Energy Installation of energy saving air jet loom at Installing air jet looms equipped with energy saving technologies at textileID_
factory which reduces compressed air consumption and leads to reducing
Indonesia
demand textile factory
AM011
electricity consumption by the compressor.
EnergyID_
Indonesia
demand
AM012
PW_
Palau
AM001

Installing energy saving technologies to OCC lines in a cardboard factory.
Reduction of Energy Consumption by
Mechanical efficiency of each element device is improved and system
Introducing an Energy‐Efficient Old
configuration and control are optimized for e.g. improvement of impeller‐
Corrugated Carton Processing System into
shape in an agitator leading to higher motor efficiency and optimization of
a Cardboard Factory
the system configuration of pumps.

Energy Displacement of Grid and Captive Genset Displacement of grid electricity and/or electricity using diesel fuel as a powerindustries Electricity by a Small‐scale Solar PV System source by installation and operation of the solar PV system(s).

Energy Installation of LED street lighting system The street lighting system that introduces LED lamps and lighting control
KH_
devices with utilization of wireless network is installed on streets to saveCambodiademand with wireless network control
AM001
electricity consumption.
EnergyKH_
Installation of Solar PV System
Cambodiaindustries
AM002

Displacement of grid electricity and/or captive electricity using diesel fuel as
power source by installation and operation of the solar PV system(s).

TH_Thailand
AM001

EnergyInstallation of Solar PV System
industries

Displacement of grid electricity and/or captive electricity using fossil fuel as
power source by installation and operation of the solar PV system(s)TH_Thailand
AM002

Energy Energy Saving by Introduction of Multi‐
demand stage Oil‐Free Air Compressor

Introducing multi‐stage oil‐free air compressor in manufacturing process ofsemiconductors.

21

Programmes by Government of Japan
JCM Demonstration Projects andJCM Financing ProgrammeFeasibility Studies
Capacity Building

22

JCM Promotion Scheme by METIJCM Demonstration Projects (Budget for FY2016: 2.4 billion yen)
■JCM Demonstration Projects are implemented by NEDO (New Energy and Industrial
Technology Development Organization), which supports the project costs necessary toverify the amount of GHG emission reduction in line with JCM rules and guidelines.
■Coverage of project cost: Cost of the JCM Demonstration Projects necessary for MRVe.g. Cost of design, machines, materials, labor, travel, etc.

■Eligibility for the JCM Demonstration Projects:‐ Concrete Projects to demonstrate the effectiveness of leading Japanese technologies
and/or products installed and operated in the projects, and the amount of their GHG
emission reduction with MRV methodology by actual operation‐ Project Participants consist of entities from both countries, only the Japaneseentities can apply for the JCM Demonstration projects. The projects shall be completed
within 3 years.

JCM Feasibility Study (FS)■The study to promote potential JCM projects and to survey their feasibility as well as tocheck the practicality of the MRV methodology.

MRV Application Study■ By applying MRV methodology to the facility with low‐carbon technologies that havealready been installed or will certainly be installed in any JCM signatory country; 1) toobtain verification by third party entity under the JCM; and 2) to conduct review andfeedback on efficiency and applicability of MRV.

Capacity Building Programmes■Variety of capacity building activities to increase technical experts
e.g.,) Experts on measuring amount of emission reductions by introducing low carbon
technologies and products in the host country.

23

JCM Feasibility Studies, MRV Applicability and Verification Studies by METI & NEDO in FY2015
→ METI’s FSs for Policy Recommendation

Cambodia:Improvement of energy saving in plants

Bangladesh:▲CCGT power generation (since FY2013)

through the introduction of energy
management systems (EMSs)
 Mega Solar Power Development Project
for a Special Economic Zone with Ultra‐
Lightweight Solar Modules

 → NEDO’s FSs for Project Exploration /Development▲→ NEDO’s MRV Applicability Verification Studies

Mexico:CCS‐EOR projects in southern

MexicoCCS into onshore oil field

Saudi Arabia:
Introduction of energy‐saving

Vietnam:equipment into the seawater
desalination project CCUS

Improvement of energy saving in plants through theintroduction of energy management systems (EMSs)
 Water utilization technology to improve efficiencyof air‐conditioning system▲Ecological convenience store(since FY2014)

Iran:Promoting Low‐carbon

technologies andproducts through JCM

Chile: Solar boost technologies for coal &gas fired power stations

India:
Mass dissemination of high‐efficiency

solar pump systems for irrigation in
the field of agricultureIntroduction of energy‐saving
technology into India’s steel industry
Smart City in Navi Mumbai

Thailand:Maldives: Medium‐size

wind power
generation

Indonesia:
Reduction of Global Warming Gases through torrefaction systems in which

Indonesian biomass is used
 Investigation for developing energy saving and heat recovering waste

treatment system

Introduction of energy‐saving technology intoplants that manufacture thin steel sheets Energy Conservation Distillation System
 High‐efficiency thermal power generation

24

JCM Feasibility Studies, MRV Applicability and Verification Studies by METI & NEDO in FY2016
→ METI’s FSs for Policy Recommendation
 → NEDO’s FSs for Project Exploration /Development▲→ NEDO’s MRV Applicability Verification Studies

Mexico:Vietnam:▲Ecological convenience store(since FY2014)

CCS at onshore oil field in Mexico

Iran:Waste to Energy

Islamic Republic of IranPhilippine:Electric jeepneys introduction for low carbon city

development in Manila Metropolitan Area
Geothermal power generation

Portable geothermal power project■

Kenya:
Installing Solar PV system at Mwea rice mill in

Kenya▲Electrification of communities using Microhydropower generation

Thailand:Applying carbon recovery and mineralization

technology and its diffusion in the Thai cement
sector■Energy saving projects in automobile factories

25

JCM Demonstration Projects by NEDO in FY2016
Mongolia:
 High efficiency and low loss powertransmission and distribution system (Hitachi)※since FY2013
Reduction of transmission loss by introduction of
LL-ACSR/SA (Low Electrical Power Loss Aluminum
Conductors, Aluminum-Clad Steel Reinforced).
Kenya, Ethiopia:
 Rural Electrification Project for Communities
by Micro Hydro Power in Ethiopia and Kenya(NTT Data Institute of Management consulting,Inc.) ※since FY2012
Introduction of "micro hydro power systems" which
can generate electricity at ultra low head in off gridcommunity.
※implemented by UNIDO (covering Kenya andEthiopia)

Maldives: Isolated area type wind power generation and
ReMs demonstration project(KOMAI HALEC,TAKAOKA TOKO, TEPCO Power Grid) ※since
FY2016The Renewable energy Management System(ReMs) combined with 300kW wind power generator
is introduced in Naifaru and Himafushi.

Total：12 projects （7 countries)
Underlined Project in Vietnam isregistered as a JCM project.

Vietnam: Energy saving by inverter air conditioner optimum operation at National
Hospital (Mitsubishi Electric) ※since FY2013
Installing inverter room air conditioners (RACs) and Energy Management System(EMS) to optimize operation of multiple inverter RACs in national hospitals.
 Energy saving by BEMS optimum operation at Hotel (Hibiya Engineering)※since FY2013
Integrating highly-proven energy saving technologies for hot water supply andlighting combined with energy management system to optimize these technologies.
 Energy saving paper making process(Marubeni) ※since FY2014
Introduction of high efficient and environment friendly machines to alter oldpapermaking process in paper production line.
 Energy Saving and Work Efficiency Improvement Project by special LED
Equipment with new technology, COB(Stanley Electric) ※since FY2015
Introducing the special LED lighting equipment with new technology,
COB module as a source of light into the fishing vessels currently
equipped with the metal halide light and incandescent lamps.
Lao PDR: Lao PDR Energy efficient date center(LEED) (Toyota Tsusho Corporation,
Internet Initiative Japan) ※since 2014
Utilizing high energy efficient container-type data centers, related technologies will bedemonstrated under Lao PDR environment, such as unstable power supply, hot andhumid atmosphere etc.
Indonesia:
 Energy saving by optimum operation at Oil factory (Yokogawa Electric)※since FY2013
Multivariable model predictive control (MMPC), a kind of advanced optimization
control at oil refinery plants, is added on existing DCS (Distributed Control
System) and realizes the automatic operation control for the optimum production.
 Utility facility operation optimization technology into Oil factory（Yokogawa）※since FY2013
The project achieves energy conservation in boilers, through operation
optimization by applying Utility Facility Operation Optimization Technology.
 The low carbonization of mobile communication‘s BTS (Base Transceiver
Station) by the Introduction of “TRIBRID system” (KDDI) ※since FY2015
Energy management system for BTS "TRIBRID system" will be installed at 22
locations in Off-grid and Poor-grid area.

26

JCM Project Development & Outreach Programme by MOEJ
JCM Project development•To identify barriers and needs for JCM project development in partner countries interms of technology, financing and partnership, and provide solutions forovercoming barriers through consultations and matching between companies.
•To enhance overall capacity for JCM project implementation through facilitating
understanding on the JCM rules & guidelines, and MRV methodologies byworkshops, seminars, training courses and site visits.
•To conduct feasibility studies on specific projects for elaborating investment planwith considering expected emission reductions. To see reports, access:<http://gec.jp >Types of Feasibility Studies (FS)FS on JCM Project by City to City Collaboration
FS on JCM large‐scale CO2 reduction projectOutreach•New Mechanisms Information Platform website
provides information on the latest updates on the JCM
and on the relevant programme such as JCM promotion
schemes by the Government of Japan.
<http://www.mmechanisms.org/e/index.html>•Mail magazine and up‐to‐date information are
distributed regularly. To register, access:(for JP) <http://www.mmechanisms.org/newsletter/index.html>(for EN) <http://www.mmechanisms.org/e/newsletter/index.html>

27

JCM Model Projects by MOE
The budget for projects
starting from FY 2017 is
6.0 billion JPY (approx. USD
60million) in total by FY2019

Government ofJapan※Includes collaboration withprojects supported by JICA
and other governmental‐
affiliated financial institute.

(1 USD = 100 JPY)

Finance part of aninvestment cost(less than half)

Conduct MRV and expected
to deliver at least half of JCM
credits issued

International consortiums(which include Japanese entities)

 Scope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 fromfossil fuel combustion as well as construction cost for installing those facilities, etc.
 Eligible Projects : starting installation after the adoption of the financing andfinishing installation within three years.

28

平成25年度予算○○百万円

ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)
Budget for FY2017
JPY 1 billion (approx. USD 10 million)(1 USD = 100 JPY)
※JPY 1.2 billion in 2016, and 1.8 billion in 2015 and 2014 respectively

SchemeTo provide the financial incentives for the adoption of advanced low‐carbon technologies which aresuperior in GHG emission reduction but expensive in ADB(Asian Development Bank)‐financed projects
PurposeTo develop ADB projects with sustainable and low‐carbon transition perspective by introducing
advanced low‐carbon technologies as well as to acquire JCM credits
JCM Credits
ADB

MOEJ

Contribution

1 Ordinary Capital Resources are from:

JFJCM(Trust Fund)

Grant (Sovereign)
Interest
Buy‐down(Non‐sovereign)

ADB source(1) Paid‐in capital provided by（OCR1/ADF2)
shareholders, (2) Funds borrowed
from capital markets and private
placements, (3) Accumulated
retained income (reserves). OCR
loans are provided to middle‐income Co‐Financing partners
countries at a quasi‐market rate.
(Other financial
2 Asian Development Fund offers
concessional loan and grant to low‐ institutions and funds)
income countries.

Loan/Grant etc.
Co‐financing
Loan/Grant etc.

MRV

GHG
reduction

Additional costs fromadvanced low‐carbon
technologies

Mitigation throughconventional
technologies(Selection from ADB
pipeline)
Project

29

JCM REDD+ Model Projects by MOE(1 USD = 100 JPY)

【Background 】• Deforestation andforest degradation indeveloping countries• 17 demonstration
feasibility studies from2011 to 2014
【Expected outcome 】• Participatory monitoringof illegal logging, disasterprevention, and forest
restoration• Provision of alternative
livelihoods《 Projects outline》【Budget for FY 2017】80 million JPY (approx. USD 0.8 million)

Governmentof JapanFinance partof the cost
Deliver JCM
credits issued＊

International
consortiums(which include
Japanese
entities))p*At least half or ratio of financial support to project cost of JCM
credits issued are expected to be delivered to the government ofJapan except the amount which is allocated to the partner country
based on its legislation.
※These projects may be implemented in cooperation with otherorganizations such as JICA

※REDD+ (Reducing Emissions from Deforestation and Forest Degradation in developing countries; and the role ofconservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries )Purpose

Project budget and implementation term

Implement activities for REDD+ and use them forcontributing to achieve Japan’s emission
reduction target through the JCM.

Up to 80 million JPY/year (fixed)

Eligible Companies
Japanese corporation(the representativeof international consortiums)

30

JCM Financing programme by MOEJ (FY2013～2017) as of June 26, 2017
Mongolia:

Thailand:○Heat Only Boiler (HOB)**○2.1MW Solar PV in Farm*○10MW Solar PV*○8.3MW Solar PV in Farm 〇15MW Solar PV○Energy Saving at Convenience Store○1.0MW Solar PV on Factory Rooftop○Upgrading Air-saving Loom○Centrifugal Chiller & Compressor○Co-Generation in Motorcycle Factory○Centrifugal Chiller in Tire Factory○Air Conditioning System & Chiller○Refrigeration System○Ion Exchange Membrane Electrolyzer ○Chilled Water Supply System○LED Lighting to Sales Stores ○12MW Waste Heat Recovery in Cement Plant○Co-generation System○Refrigerator and Evaporator○1.5MW Solar PV and EMS in Paint Factory○3.4MW Solar PV○Heat Recovery Heat Pump ○5MW Floating Solar PV ○27MW Solar PV○Boiler System in Rubber Belt Plant○Air-conditioning Control System○Biomass Co-generation System ○Energy Saving Equipment in Port

Viet Nam:○Digital Tachographs*○Amorphous transformers*○Air-conditioning in Hotel○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

Bangladesh:○Centrifugal Chiller○Loom at Weaving Factory○320kW PV-diesel Hybrid System ○50MW Solar PV Power Plant○Centrifugal Chiller○Air-conditioning system

Saudi Arabia:○Electorolyzer in Chlorine
Production Plant

Laos:●REDD+ through controlling slush-andburn〇Amorphous transformers〇14MW Floating Solar PV

Cambodia:

Ethiopia:○Biomass CHP Plant○LED Street Lighting○Solar PV & Centrifugal Chiller○Inverters for Distribution Pumps

Kenya:

Palau:

Myanmar:Phillipines:○6MW Hydropower Generation○1MW Solar PV at Salt Factory○700kW Waste to Energy Plant○Brewing Systems to Brewery Factory○Once-through Boiler in Instant Noodle Factory○1.8MW Rice Husk Power Generation○Refrigeration System in Logistics Center

Maldives:○190kW Solar Power on School Rooftop■Smart Micro-Grid System○ Model Project in FY 2013 (7 projects in 3 countries)○ Model Project in FY 2014 (12 projects in 5 countries)■ ADB Project in FY 2014 (1 project in 1 country)○ Model Project in FY 2015 (33 projects in 10 countries)○ Model Project in FY 2016 (37 projects in 10 countries)● REDD+ Model Project (2 projects in 2 countries)○ Model Project in FY 2017 (18 projects in 8 countries)* Other 1 project in Malaysia

Total 110 projects in 17 partner countries

Mexico:○4.8MW Power Generation with Methane
Gas Recovery System○Once-through Boiler and Fuel Switching○64MW Wind Farm ○20MW Solar PV○200kW Solar PV at International School○800kW Solar PV at International School○370kW Solar PV for Commercial Facilities*○150kW Solar PV for School*○440kW Solar PV for Commercial Facilities Ⅱ*

Costa Rica:○5MW Solar PV○Chiller and Heat Recovery System○15MW Hydro Power Plant ○4MW Hydro Power Plant○1.53MW Rooftop Solar PV ○1MW Rooftop Solar PV

Chile:○1MW Rooftop Solar PV○4.6MW Solar PV

Indonesia:○Centrifugal Chiller at Textile Factory* ○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○20kW Solar Power Hybrid System○Regenerative Burners○Centrifugal Chiller at Textile Factory 3* ○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 Plant○Looms in Weaving Mill
○LED Lighting to Sales Stores○Industrial Wastewater Treatment System○0.5MW Solar PV○Gas Co-generation system○1MW Solar PV○Air-conditioning utility system in Airport
Underlined projects have started operation (46 projects, including 4 partially started projects)
Projects with * have been registered as JCM projects (16 projects)

JCM Planning/Feasibility Studies in FY2015 by MOEJ◆-- JCM Project Planning Study (PS)◆-- JCM Feasibility Study (FS)Mongolia:◆Distributed heat supply system using
biomass and coal mixture combustion
type boiler

Myanmar:◆Rice husk power generation in rice millfactory in Ayeyarwady
Bangladesh:◆Energy saving by utilizing lithium‐ion
batteries at base transceiver stationsin unstable‐grid areas

Lao PDR:◆Utilization of agricultural biomass in Cement Kiln
◆Biogas recovery and utilization in tapioca starch factory
Viet Nam：◆Recovery and utilization of biogas
from agricultural processing waste in
Ninh Binh Province◆Waste Heat Recovery Power
Generation at Cement Factory inQuang Ninh Province
Philippines:◆Talubin Mini‐Hydropower
Project

Thailand:◆Energy saving by introducing
regenerative energy storage system in
Skytrain◆Saving Energy for station facilities
utilizing regenerative energy from trains◆Energy saving by co‐generation project in
the fiber factory

Cambodia:◆Installation of high‐efficiency chillers inlarge‐scale hotels

Costa Rica:◆Low‐carbon project byintroducing PV and energy
saving equipment in Hotel,
Office Building and others

Chile:◆Geothermal Power Generationin the south of Santiago

Indonesia:◆Energy saving in industrial wastewater treatment for
rubber industry◆Hybrid Power Generation Project Using Biogas and Solar
Power◆Development of District Energy Supply Business byintroducing co‐generation◆Introduction of co‐generation and solar power generation
systems in large shopping malls

32

FY2016 Feasibility studies on JCM projects by MOEJ
Feasibility Study on JCM Project by City to City Collaboration
1.

2.
3.

4.
5.
6.
7.

8.

9.

*RE : Renewable Energy

The study of high‐efficiency heat pump installation projects for Energy‐saving field and PV generation projects for RE* field in
Mongolia(Ulaanbaatar city‐Sapporo city/Hokkaido)
The study of cogeneration and exhaust heat recovery projects for RE field in
Vietnam(Hai phong city‐Kitakyushu city)
The study of PV generation projects for RE field and high‐efficiency boiler
installation projects for Energy‐saving field in Myanmar(Yangon city‐
Kawasaki city)
The study of water treatment system installation and WtE projects for RE
field in Myanmar(Pathein city‐Fukushima city)
The study of biomass power generation projects and PV generation projects
for RE field in Cambodia(Siem reap state‐Kanagawa pref.)
The study of WtE, cogeneration and exhaust heat recovery for RE field in
Thailand(Rayong prov.‐Kitakyushu city)
The study of project formulation by assisting planning the action plan forthe climate change strategy and projects for RE field and Energy‐saving in
Cambodia(Phnom Penh city‐Kitakyushu city)
The study of cogeneration projects for RE field and high‐efficiency air
conditioning system installation projects for Energy‐saving field in
Malaysia(Iskandar development region‐Kitakyushu city)
The study of high‐efficiency air conditioning system installation and heat
desorption unit installation projects in Indonesia(Batam city‐Yokohama city)

Feasibility Study on JCM large‐scale CO2 reduction project1.
2.

The study of a biomass power generation project by rice hull and grain
waste for RE field in Indonesia(West Sumatra prov.)
The study of refining waste water and residue into bio gas and supplying forvehicles for RE field in Thailand(Ubon Ratchathani prefecture etc.)

１

4

3

2
2
6 5
7
8
1

9

33

Reference:
Technical Details for the JCM(Subject to further consideration and discussion with partner countries)

34

Necessary documents for the JCM(Subject to further consideration and discussion with partner countries)

Rules and Guidelines
 Rules of Implementation
 Project Cycle Procedure
Overall Glossary of Terms
 Guidelines for Designation as a Third‐Party
Entity (TPE guidelines) Rules of Procedures for the Joint
Joint Committee
Committee (JC rules)
 Guidelines for Developing Proposed
Methodology
Methodology (methodology guidelines)
Developing  Guidelines for Developing Project Design
a PDD
Document and Monitoring Report (PDD
Project
and monitoring guidelines)
Monitoring
Procedures
Validation  Guidelines for Validation and Verification
Verification(VV guidelines)

35

Methodology Development Procedure of the JCM(Subject to further consideration and discussion with partner countries)

Submission of
Proposed
Methodology

Project Participant

Government(Methodology Proponent)(Methodology Proponent) Prepare a proposed
methodology

 Prepare a proposed
methodology* Methodology guidelines* Proposed methodology
form* Proposed Methodology
Spreadsheet Form

* Methodology guidelines* Proposed methodology
form* Proposed Methodology
Spreadsheet Form

Joint Committee Develop a proposed
methodology under
the initiative of the
Joint Committee

Submit the proposed methodology

Completeness
Check

Notify the receipt of the submission
Communicate the result of completeness check Completeness check[7 days] (secretariat)
 Public inputs [15days] (secretariat)

Public Inputs

 Assessment of the
proposedmethodology [60days or up to 90
days]

Approval of
Proposed
Methodology
Notify the outcome of consideration
Note: Asterisk ( * ) indicates documentation relevant for each step of the procedure Approval of the
proposedmethodology

36Registration & Issuance Procedure of the JCM (1/2)(Subject to further consideration and discussion with partner countries)

Project Participant

Third‐Party Entity

Joint Committee

Government Complete a PDD anddevelop a monitoring
plan

Developmentof PDD* PDD form and Monitoring Submit the draft PDD and MoC, and request for validationand public inputs
Spreadsheet* PDD and monitoring
guidelines

 Complete an MoC
Form* MoC Form

Notify the receipt of the submission

Validation
Validation andverification canbe conductedsimultaneously
or separately.

 Validate a project Prepare a validation
report* Validation and verification
guidelines* Validation report form
Submit the validation report Complete a
registration request
form

Registration

 Public inputs[30 days](secretariat)

Submit registration request form, the validated PDD and
MoC, and the validation report and request for registration* Registration request form

Notify the receipt of the request  Completeness check
Notify the conclusion[7 days] (secretariat)

Notify the registration  Registration

Notify the registration

37

Registration & Issuance Procedure of the JCM (2/2)(Subject to further consideration and discussion with partner countries)

Project Participant

Monitoring

Issuance

Joint Committee

Government

 Conduct monitoring Prepare a monitoring Submit the monitoring
report for verification
report* PDD and monitoring
guidelines* Monitoring report sheet

 Verify emission
reductions
 Prepare a verification
reportVerification
Validation andverification canbe conductedsimultaneously
or separately.

Third‐Party Entity* Validation andVerification guidelines* Verification report form
Submit the verification report Determine allocation Request for notification for issuanceof credits
 Complete a credit
Notify the receipt ofissuance request
the request  Completeness checkform[7 days] (secretariat)* Credit issuance requestform Decision on
notification of
Notify the result
Notify the amount of credits
amount of credits to to be issued
be issued
Notify the issuance Issuance of credits

38

Rules of Procedures for the Joint Committee(Subject to further consideration and discussion with partner countries)

Members
 The Joint Committee (JC) consists of representatives from both Governments.
 Each Government designates members, which may not exceed [10].
 The JC has two Co-chairs to be appointed by each Government (one from the partner country
and the other from Japan). Each Co-Chair can designate an alternate from members of the JC.

Decision making in the JC
 The JC meets no less than once a year and decision by the JC is adopted by consensus.
 The JC may adopt decisions by electronic means in the following procedure:(a) The proposed decisions are distributed by the Co-Chairs to all members of the JC.
(b) The proposed decision is deemed as adopted when,i) no member of the JC has provided negative assertion within [10] calendar days after
distribution and both Co-Chairs have made affirmative assertion, orii) all members of the JC have made affirmative assertion.
 If a negative assertion is made by one of the JC members, the Co-Chairs take into
account the opinion of the member and take appropriate actions.
 The JC may hold conference calls to assist making decisions by electronic means.

External assistance The JC may establish panels and appoint external experts to assist part of its work.

Languages: English Secretariat: The secretariat services the JC.
Confidentiality: Members of the JC, Secretariat, etc. respect confidentiality.
Record of the meeting: The full text of all decisions of the JC is made publicly available.

39

Basic Concept for Crediting under the JCM(Subject to further consideration and discussion with partner countries) In the JCM, emission reductions to be credited are defined as thedifference between “reference emissions” and project emissions.
 The reference emissions are calculated below business‐as‐usual(BaU) emissions which represent plausible emissions in providing
the same outputs or service level of the proposed JCM project in thepartner country.
 This approach will ensure a net decrease and/or avoidance of GHG
emissions.
Start of project operation
GHG emissions fromsources covered by aproject

Likely range of BaU emissions
Emission
Reductions(credits)

Reference Emissions
Project emissions

Time

40

Addendum: ways to realize net reduction(Subject to further consideration and discussion with partner countries)

 A net decrease and/or avoidance of GHG emissions can be realized
in alternative way, instead of calculating the reference emissions
below BaU emissions.
 Using conservative default values in parameters to calculate projectemissions instead of measuring actual values will lead calculated
project emissions larger than actual project emissions.
 This approach will also ensure a net decrease and/or avoidance of
GHG emissions, as well as reduce burdens of monitoring.
Start of project operation
GHG emissions fromsources covered by aproject

BaU emissions
Emission
Reductions(credits)Time

Calculated project emissions
Actual project emissions

41

JCM Methodology
 Key Features of the JCM methodology
The JCM methodologies are designed in such a way that project participants canuse them easily and verifiers can verify the data easily.
In order to reduce monitoring burden, default values are widely used in aconservative manner.
Eligibility criteria clearly defined in the methodology can reduce the risks ofrejection of the projects proposed by project participants.
Eligibility
criteria• A “check list” will allow easy determination of eligibility of a
proposed project under the JCM and applicability of JCM
methodologies to the project.

Data(parameter)• List of parameters will allow project participants to determine
what data is necessary to calculate GHG emission
reductions/removals with JCM methodologies.
• Default values for specific country and sector are provided
beforehand.

Calculation• Premade spreadsheets will allow GHG emission
reductions/removals to be calculated automatically by inputting
relevant values for parameters, in accordance withmethodologies.

42

Basic concept of Eligibility criteria in JCM methodology(Subject to further consideration and discussion with partner countries

Eligibility criteria in JCM methodologies contain the following: The requirements for the project to be registered as a JCM project. <Basis for theassessment of validation and registration of a proposed project> The requirements for the project to be able to apply the JCM methodology. <same as“applicability condition of the methodology” under the CDM>

1. Both Governments determine what technologies, products, etc should be included in theeligibility criteria through the approval process of the JCM methodologies by the Joint
Committee.
2. Project participants can use the list of approved JCM methodologies when applying for
the JCM project registration.
Examples of eligibility criteria 1.
Introduction of xx (products/technologies) whose design efficiency is above xx (e.g.
output/kWh) <Benchmark Approach>Introduction of xx (specific high efficient products/technologies, such as air conditioner
with inverter, electric vehicles, or PV combined with battery) <Positive List Approach>
Examples of eligibility criteria 2.
Existence of historical data for x year(s)Electricity generation by xx (e.g. PV, wind turbine) connected to the gridRetrofit of the existing boiler

43

Overview of JCM Methodology, Monitoring Plan and Monitoring Report(Subject to further consideration and discussion with partner countries) JCM methodology consists of the followings.
Approved Methodology Document
Monitoring Spreadsheet
Monitoring Plan Sheet (including Input Sheet & Calculation Process Sheet)Monitoring Structure SheetMonitoring Report Sheet (including Input Sheet & Calculation Process Sheet)
Approved Methodology Document

Monitoring Spreadsheet

Monitoring
Report Sheet
Monitoring
Structure Sheet
Monitoring Plan
Sheet

Cells for data &information input 44

PDD and Monitoring Plan
(Subject to further consideration and discussion with partner countries) Developing a Project Design Document (PDD) and a Monitoring PlanA PDD form should be filled in with information of the proposed project.
A Monitoring Plan consists of Monitoring Plan Sheet and Monitoring
Structure Sheet, and it should be filled in as well.
PDD

Monitoring Structure

Monitoring Plan

Roles and responsibilitiesof personnel for monitoringshould be described

Cells for data
input (ex ante)

Other necessary information on parameters
to be monitored are:
• Monitoring options• Source of data
• Measurement methods and procedures• Monitoring frequency

45

Possible Contents of the JCM PDD(Subject to further consideration and discussion with partner countries)
A. Project description
A.1. Title of the JCM project
A.2. General description of project and applied technologies and/or measures
A.3. Location of project, including coordinates
A.4. Name of project participants
A.5. Duration
A.6. Contribution from developed countries
B. Application of an approved JCM methodology(ies)B.1. Selection of JCM methodology(ies)B.2. Explanation of how the project meets eligibility criteria of the approved
methodology
C. Calculation of emission reductions
C.1. All emission sources and their associated greenhouse gases relevant to theJCM project
C.2. Figure of all emission sources and monitoring points relevant to the JCM
project
C.3. Estimated emissions reductions in each year
D. Environmental impact assessment
E. Local Stakeholder consultation
E.1. Solicitation of comments from local stakeholders
E.2. Summary of comments received and their consideration
F. References
Annex
Approved Methodology Spreadsheet consists of Monitoring Plan Sheet, Monitoring
Structure Sheet and Monitoring Report Sheet, and it shall be attached to the PDD. 46

Monitoring Report(Subject to further consideration and discussion with partner countries)

 Making a Monitoring Report
A Monitoring Report should be made by filling cells for data input (ex post)in the Monitoring Report Sheet with monitored values.
Project participants prepare supporting documents which include
evidence for stated values in the cells for data input.
Cells for data
input (ex post)
Monitoring Report
Monitoring
periodOther necessary information on monitored
parameters are to be filled in:• Monitoring options• Source of data
• Measurement methods and procedures• Monitoring frequency

47