Recent Development of
The Joint Crediting Mechanism (JCM)

July 2018
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
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

Partner Country•Notifies
issuance ofcredits

Government•Reports
issuance ofcredits• Issuance of credits

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

Project Participants•Inform
results ofvalidation/verification• Implementation &monitoring of projects

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

JCM’s Contribution to NDC
 JCM‘s conservative emission reduction calculation (reference
emissions below BaU emissions) will ensure a net decrease and/or
avoidance of GHG emissions.
 This part of emission reductions will automatically contribute to theachievement of NDC.

Contribution toPartner Country NDC

GHG emissions

Start of project operation
Business as usual emissions(Baseline emissions under the CDM)

Reference Emissions under the JCM
Conservative
Emission
Reductions

Net Emission Reductions＋
Partner Country
Japan

Project emissions
Time

Contribution to
Japan’s NDC 10

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

11

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;

12

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
13
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.

14

JCM Website
URL: https://www.jcm.go.jp/
Contents•General information page
•Individual JCM Partner countriesJapan 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 page15
the JCProgress of the JCM in each partner country as of July 18 2018
No. of JC

No. of registeredprojects

No. of approved
methodologies

Pipeline (JCM Financing
Programme & Demonstration
Projects in FY 2013-2018)

Jan 2013

5

5

3

8

Bangladesh

Mar 2013

4

1

3

5

Ethiopia

May 2013

3

3

2

Kenya

Jun 2013

3

3

3

Maldives

Jun 2013

3

1

1

2

Viet Nam

Jul 2013

6

5

9

21

Lao PDRAug 2013

3

1

1

4

Indonesia

Aug 2013

8

13

16

33

Costa Rica

Dec 2013

2

3

2

Palau

Apr 2014

5

3

1

4

Cambodia

Apr 2014

4

1

2

6

MexicoJul 2014

2

1

5

Saudi Arabia

May 2015

2

1

1

Chile

May 20152

11MyanmarSep 2015

2

1

6

ThailandNov 2015

4

7

26

Philippines

Jan 2017

1

Total

17

59

Partnercountries

Start from

Mongolia

4

8
34

56

137

16

Registered Projects (1/4)
No.

Country

Project Title

Registration Date

Emission Reductions(Average）

MN001Mongolia

Installation of High-Efficiency Heat Only Boilers in 118th
School of Ulaanbaatar City Project

30 Jun 1592

MN002Mongolia

Centralization of Heat Supply System by Installation of HighEfficiency Heat Only Boilers in Bornuur soum Project

30 Jun 15

206

MN003Mongolia

Installation of 2.1MW Solar Power Plant for Power Supply In
Ulaanbaatar Suburb

26 May 17

2,106

MN004Mongolia

10MW Solar Power Project in Darkhan City

26 May 17

11,221

MN005Mongolia

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

16 Nov 17467

BD002 Bangladesh

Installation of High Efficiency Centrifugal Chiller for Air
Conditioning System in Clothing Tag Factory in Bangladesh

10 Jan 18

485

MV001 Maldives

Solar Power on Rooftop of School Building Project

15 Jul 18

129

VN001 Viet Nam

Eco-Driving by Utilizing Digital Tachograph System

04 Aug 15292

VN002 Viet Nam

Promotion of green hospitals by improving efficiency /environment in national hospitals in Vietnam

30 Nov 15515

17

Registered Projects (2/4)
No.

Country

Project Title

Registration Date

Emission Reductions(Average）

VN003 Viet Nam

Low carbon hotel project in Vietnam: Improving the energy
efficiency of commercial buildings by utilization of highefficiency equipment

15 May 16272

VN004 Viet Nam

Introduction of amorphous high efficiency transformers in
power distribution systems in the southern part of Viet Nam

15 May 16

610

VN005 Viet Nam

Introduction of High Efficiency Air-conditioning in Hotel

10 Oct 17792

LA001 Laos

Lao PDR Energy Efficient Datacenter Project (LEED)

31 Jul 17567

ID001 Indonesia

Energy Saving for Air-Conditioning and Process Cooling by
Introducing High-efficiency Centrifugal Chiller

31 Oct 14

114

ID002 Indonesia

Project of Introducing High Efficiency Refrigerator to a Food
Industry Cold Storage in Indonesia

29 Mar 15

120

ID003 Indonesia

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

29 Mar 15

21

ID004 Indonesia

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

24 Mar 16

176

ID005 Indonesia

Energy Saving for Air-Conditioning at Textile Factory by
Introducing High-efficiency Centrifugal Chiller in Batang,
Central Java (Phase 2)

24 Mar 16

145

18

Registered Projects (3/4)
No.

Country

Project Title

Registration Date

Emission Reductions(Average）

ID006 Indonesia

Installation of Inverter-type Air Conditioning System, LED
Lighting and Separate Type Fridge Freezer Showcase toGrocery Stores in Republic of Indonesia

03 Jun 16

115

ID008 Indonesia

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

10 Feb 17

166

ID009 Indonesia

Energy Saving for Air-Conditioning at Shopping Mall with High
Efficiency Centrifugal Chiller

04 Dec 17

325

ID011 Indonesia

Reduction of Energy Consumption by Introducing an EnergyEfficient Waste Paper Processing System into a Packaging
Paper Factory in Bekasi, West Java

22 Dec 17

17,822

ID012 Indonesia

GHG emission reductions through utility facility operation
optimization system for refineries in the Republic of Indonesia

10 Jul 18

20,000

ID013 Indonesia

Power generation by waste heat recovery in the PT Semen
Indonesia (Persero) Tbk factory in Tuban

10 Jul 18

132,500

ID014 Indonesia

Energy saving by optimum operation at an oil refinery

10 Jul 18

1,275

ID016 Indonesia

Installation of Tribrid System to mobile communication’s BaseTransceiver Stations in Republic of Indonesia

10 Jul 18359

19

Registered Projects (4/4)
No.

Country

Project Title

Registration Date

Emission Reductions(Average）

PW001 Palau

Small Scale Solar Power Plants for Commercial Facilities in
Island States

21 Apr 15

227

PW002 Palau

Small Scale Solar Power Plants for Schools in Island States

12 Jul 16108

PW003 Palau

Small Scale Solar Power Plants for Commercial Facilities in
Island States II

12 Jul 16315

KH001 Cambodia

Introduction of Ultra-lightweight Solar Panels for Power
Generation at International School

12 Mar 18

99

TH001 Thailand

GHG emission reductions through utility facility operation
optimization system for refineries in the Republic of Indonesia

21 Aug 17

440

TH002 Thailand

Power generation by waste heat recovery in the PT Semen
Indonesia (Persero) Tbk factory in Tuban

20 Apr 18

253

TH003 Thailand

Energy saving by optimum operation at an oil refinery

20 Apr 18

3,327

TH004 Thailand

Installation of Tribrid System to mobile communication’s BaseTransceiver Stations in Republic of Indonesia

20 Apr 18

324

20

Approved Methodologies (1/7)
No.

Country

Sectoral
Scope

Methodology Title

Date of
Approval

Methodology Proponent

MN_
Mongolia
AM001

EnergyInstallation of energy-saving transmission
distribution lines in the Mongolian Grid

20 Feb 14

Hitachi, Ltd.

MN_
Mongolia
AM002

Energyindustries

Replacement and Installation of High
Efficiency Heat Only Boiler (HOB) for Hot
Water Supply Systems

28 Jan 15

Suuri-Keikaku CO., LTD., Climate Experts
LTD.

MN_
Mongolia
AM003

Energyindustries

Installation of Solar PV System

30 Jan 17

Institute for Global Environmental
Strategies

BD_
EnergyBangladesh demand
AM001

Energy Saving by Introduction of High
Efficiency Centrifugal Chiller

15 Mar 18

Nippon Koei Co., Ltd.

BD_
EnergyBangladesh industries
AM002

Installation of Solar PV System

16 Oct 17

Institute for Global Environmental
Strategies

BD_
EnergyBangladesh demand
AM003

Energy efficiency improvement through theintroduction of energy efficient air jet looms
in textile industry

16 Oct 17

Toyota Tsusho Corporation; Mitsubishi
UFJ Morgan Stanley Securities Co., Ltd.

ET_
Ethiopia
AM001

Energyindustries

Electrification of communities using Microhydropower generation

03 Apr 16

NTT DATA INSTITUTE OF MANAGEMENTCONSULTING, Inc.

ET_
Ethiopia
AM002

Energyindustries

Electrification by photovoltaic power
generation in Ethiopia

21 Mar 17

NTT DATA INSTITUTE OF MANAGEMENTCONSULTING, Inc.

ET_
EthiopiaAM003

Energyindustries

Introduction of Biomass Combined Heat andPower Plant

21 Mar 17

Pacific Consultants Co., Ltd.

21

Approved Methodologies (2/7)
No.

Country

Sectoral
Scope

Methodology Title

Date of
Approval

Methodology Proponent

KE_
Kenya
AM001

Energyindustries

Electrification of communities using Microhydropower generation

03 Feb 16

NTT DATA INSTITUTE OFMANAGEMENT CONSULTING, Inc.

KE_
Kenya
AM002

Energyindustries

Installation of Solar PV System

23 Mar 17

Pacific Consultants Co., Ltd.

KE_
Kenya
AM003

Energyindustries

Installation of Run-of-river Small
Hydropower Generation Plant

23 Mar 17

Pacific Consultants Co., Ltd.

MV_
Maldives
AM001

Energyindustries

Displacement of Grid and Captive Genset
Electricity by Solar PV System

25 Mar 15

Pacific Consultants Co., Ltd.

VN_
Viet Nam
AM001

Transport

Eco-Driving by Utilizing Digital Tachograph System

20 Oct 16

Nippon Express Co., Ltd, Nittsu ResearchInstitute and Consulting, Inc., Mitsubishi
UFJ Morgan Stanley Securities Co., Ltd.

VN_
Viet Nam
AM002

EnergydemandIntroduction of Room Air Conditioners Equippedwith Inverters

10 Oct 17

Joint Committee

VN_
Viet Nam
AM003

EnergydemandImproving the energy efficiency of commercial
buildings by utilization of high efficiency
equipment

10 Oct 17

Joint Committee

VN_
Viet Nam
AM004

Waste
Anaerobic digestion of organic waste for biogas
handling
utilization within wholesale markets
and disposal

10 Oct 17

Joint Committee

VN_
Viet Nam
AM005

EnergyInstallation of energy efficient transformers in a
distribution power distribution grid

03 Sep 15

YUKO-KEISO Co., Ltd., Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd.

22

Approved Methodologies (3/7)
No.

Country

Sectoral
Scope

Methodology Title

Date of
Approval

Methodology Proponent

VN_
Viet Nam
AM006

EnergydemandIntroduction of air conditioning system equippedwith inverters

10 Oct 17

Joint Committee

VN_
Viet Nam
AM007

Energyindustries

Installation of Solar PV System

10 Oct 17

Institute for Global Environmental
Strategies

VN_
Viet Nam
AM008

EnergydemandInstallation of LED lighting equipment tofishing boats

10 Oct 17

Stanley Electric Co., Ltd.

VN_
Viet Nam
AM009

EnergydemandInstallation of Container Formation Facility at
Lead Acid Battery Factory

10 Oct 17

Hitachi Chemical Co., Ltd.

LA_
Laos
AM001

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

14 Oct 16

Toyota Tsusho Corporation; Internet
Initiative Japan Inc.; Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd

ID_
Indonesia
AM001

EnergyPower Generation by Waste Heat Recovery inindustries Cement Industry

19 May 14

JFE Engineering Corporation

ID_
Indonesia
AM002

EnergydemandEnergy Saving by Introduction of High Efficiency
Centrifugal Chiller

10 Nov 15

Nippon Koei Co., Ltd.

ID_
Indonesia
AM003

EnergydemandInstallation of Energy-efficient Refrigerators Using
Natural Refrigerant at Food Industry Cold Storage
and Frozen Food Processing Plant

10 Nov 15

EX Research Institute LimitedID_
Indonesia
AM004

EnergydemandInstallation of Inverter-Type Air Conditioning
System for Cooling for Grocery Store

10 Nov 15

myclimate Japan Co., Ltd.

23

Approved Methodologies (4/7)
Country

Sectoral
Scope

ID_
Indonesia
AM005

EnergydemandInstallation of LED Lighting for Grocery Store

10 Nov 15

myclimate Japan Co., Ltd.

ID_
Indonesia
AM006

EnergydemandGHG emission reductions through optimization ofrefinery plant operation in Indonesia

04 Dec 17

Yokogawa Electric Corporation

ID_
Indonesia
AM007

EnergydemandGHG emission reductions through optimization ofboiler operation in Indonesia

18 May 15

Azbil Corporation

ID_
Indonesia
AM008

EnergydemandInstallation of a separate type fridge-freezer
showcase by using natural refrigerant for grocery
store to reduce air conditioning load inside thestore

10 Nov 15

myclimate Japan Co., Ltd.

ID_
Indonesia
AM009

EnergydemandReplacement of conventional burners withregenerative burners for aluminum holding
furnaces

10 Feb 17

Toyotsu Machinery Corporation, Mizuho
Information & Research Institute, Inc.

ID_
Indonesia
AM010

EnergydemandIntroducing double-bundle modular electric heatpumps to a new building

06 Aug 15

Toyota Tsusho Corporation

ID_
Indonesia
AM011

EnergydemandInstallation of energy saving air jet loom at textile
factory

10 Feb 17

Toray Industries Inc.

ID_
Indonesia
AM012

EnergydemandReduction of Energy Consumption by Introducing
an Energy-Efficient Old Corrugated Carton
Processing System into a Cardboard Factory

10 Feb 17

Nomura Research Institute, Ltd.

ID_
Indonesia
AM013

EnergyInstallation of Solar PV System
industries

04 Dec 17

Institute for Global Environmental
Strategies

No.

Methodology Title

Date of
Approval

Methodology Proponent

24

Approved Methodologies (5/7)
No.

Country

Sectoral
Scope

Methodology Title

Date of
Approval

Methodology Proponent

ID_
Indonesia
AM014

EnergyInstallation of Tribrid Systems to mobile
industries communication’s Base Transceiver Stations

04 Dec 17

KDDI corporation

ID_
Indonesia
AM015

Energydemand10 Jul 18

Nippon Koei Co., Ltd.

ID_
Indonesia
AM016

Installation of gas engine cogeneration
Energysystem to supply electricity and heat toindustries facility

10 Jul 18

Institute for Global Environmental
Strategies

CR_
Costa Rica
AM001

EnergyInstallation of Solar PV System
industries

08 Sep 17

Institute for Global Environmental
Strategies

CR_
Costa Rica
AM002

EnergydemandEnergy Saving by Introduction of High
Efficiency Centrifugal Chiller

12 Mar 18

NTT DATA INSTITUTE OF MANAGEMENTCONSULTING, INC.

CR_
Costa Rica
AM003

EnergydemandInstallation of Electric Heat Pump Type Water
Heater for Hot Water Supply Systems

12 Mar 18

NTT DATA INSTITUTE OF MANAGEMENTCONSULTING, INC.

PW_
Palau
AM001

Energy
Displacement of Grid and Captive Genset
industries Electricity by a Small-scale Solar PV System

20 Feb 15

Pacific Consultants Co., Ltd.

KH_
Cambodia
AM001

Energydemand26 Apr 16

Minebea Co., Ltd. & Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd.

KH_
Cambodia
AM002

EnergyInstallation of Solar PV System
industries

04 Feb 17

Institute for Global Environmental
Strategies

Energy Saving by Introduction of High
Efficiency Once-through Boiler

Installation of LED street lighting system withwireless network control

25

Approved Methodologies (6/7)
No.

CountryMX_
MexicoAM001

Sectoral
Scope

Methodology Title

EnergyInstallation of Solar PV System
industries

SA_
EnergySaudi Arabia
AM001
demandIntroduction of High Efficiency Electrolyzer in
Chlor-Alkali Processing Plant

Date of
Approval

Methodology Proponent

29 Dec 17

Institute for Global Environmental
Strategies

18 Oct 17

Thyssenkrupp Uhde Chlorine Engineers(Japan) Ltd.; Kanematsu Corporation

CL_
ChilieAM001

EnergyInstallation of Solar PV System
industries

19 Dec 17

Institute for Global Environmental
Strategies

MM_
Myanmar
AM001

Power generation and avoidance of landfill
Energygas emissions through combustion ofindustries municipal solid waste (MSW)

25 Jun 18

JFE Engineering Corporation

TH_
Thailand
AM001

EnergyInstallation of Solar PV System
industries

23 Aug 16

Pacific Consultants Co., Ltd.

TH_
Thailand
AM002

EnergydemandEnergy Saving by Introduction of Multi-stage OilFree Air Compressor

21 Aug 17

Sony Corporate Services (Japan)
Corporation

ＴＨ_
Thailand
AM003

EnergydemandEnergy Saving by Introduction of High
Efficiency Centrifugal Chiller

21 Aug 17

Sony Corporate Services (Japan)
Corporation

ＴＨ_
Thailand
AM004

EnergydemandInstallation of energy saving air jet loom at
textile factory

21 Aug 17

Toray Industries Inc.

ＴＨ_
Thailand
AM005

Energy Saving by Introduction of HighEnergyEfficiency Non-Inverter Type Centrifugal
industries Chiller

21 Aug 17

Nippon Koei Co., Ltd26

Approved Methodologies (7/7)
Date of
Approval

Methodology Proponent

TH_
Thailand
AM006

Energydemand / Installation of Displacement Ventilation Air
Manufactu Conditioning Unit in the Cleanroom of
Semiconductor Manufacturing Factoryringindustries

21 Aug 17

Sony Semiconductor Manufacturing
Corporation

TH_
Thailand
AM007

EnergyPower Generation by Waste Heat Recovery inindustries Cement Industry

20 Apr 18

NTT DATA INSTITUTE OF MANAGEMENTCONSULTING, Inc.

No.

Country

Sectoral
Scope

Methodology Title

27

Programmes by Government of Japan
JCM Demonstration Projects andJCM Financing ProgrammeFeasibility Studies
Capacity Building28

JCM Promotion Scheme by METIJCM Demonstration Projects (Budget for FY2018: 1.3 billion yen)

■JCM Demonstration Projects are implemented by NEDO (New Energy and Industrial
Technology Development Organization), which demonstrate and verify the effectiveness ofadvanced low carbon technology with technical assistance and its GHG emission reduction
effect in line with JCM rules and guidelines.
■Coverage of project cost: Cost of the Demonstration and verification of the projects
e.g. Cost of design, production, transfer, installation of equipment, technical adviser, JCM related procedure etc.

■Eligibility for the JCM Demonstration Projects:- To utilize the advanced Japanese technologies utmost and be deployed widely.
- To aim at Larger GHG emission reduction effect is expected through the diffusion of thetechnology introduced and demonstrated through the projects ,- To consist the Project Participants of entities from both countries, only the Japaneseentities can apply for the Projects. The projects shall be completed within 3 years.

JCM Feasibility Study (FS)■The study is to develop the strategic projects which contributes to achieve the GHG
emission reduction at the global level through the optimization of the advanced low carbon
technology and activate the low carbon business in line with JCM.

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 partner 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■Dispatching technical experts to and inviting officials from host countries in order to solve
the problems they face to disseminate low carbon technology, etc.
29

JCM Feasibility Studies, MRV Applicability and Verification Studies by METI & NEDO in FY2017
→ METI’s FSs for Policy Recommendation

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

Saudi Arabia:

Study of master plan for creating a low-carbon

energy system

Vietnam:■ Feasibility study of floating PV generation projects on existinghydroelectric dams
■ Demand Response by high efficiency air conditioner cooperate withpower sector

Thailand:Study on Introduction of High Efficiency

Automotive Air-conditioners■Improvement of power generation efficiency

by upgrading gas turbine in Thailand■ Feasibility Study of Development andStandardization of Power Digital Solution for
Utilities in ASEAN region

ケニア:
Feasibility Study on Renewable

Energy Creation in Kitui County,
Kenya with Installation of Mega Solar
System▲ Feasibility Study on Rural
Electrification Project forCommunities by Micro Hydro Powerin KenyaIndonesia:
The study on feasibility of Polyester recycling business in Indonesia
Feasibility Study of EPC Contracting and Financing for Multiple Micro

Hydropower Generation Projects■ Study for CCUS (CO2-EOR) projects development in the South Sumatra

region on the Republic of Indonesia under Joint Crediting Mechanism(JCM

30

JCM Feasibility Studies, MRV Applicability and Verification Studies by METI & NEDO in FY2018
→ METI’s FSs for Policy Recommendation

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

Saudi Arabia:

Study on low carbonization of resource ofhydrocarbon based on Carbon Capture andstorage

India:

Study on boosting solar power generation by use ofreused EV battery in a stationary application in India

Thailand:Study on Introduction of High Efficiency

Automotive Air-conditioners
Study on the road map for variableKenya:

renewable energy (VRE) integration to power
grid▲ Feasibility Study on Rural

Electrification Project forCommunities by Micro Hydro Powerin Ethiopia and Kenya

31

JCM Demonstration Projects by METI* (as of June 2018)* Including NEDO and UNIDO

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)

Vietnam: Energy saving by inverter air conditioner optimum operation at National

Hospital (Mitsubishi Electric) ※Jan 2014 - Jun 2017
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)※Jan 2014 – Feb 2018
Integrating highly-proven energy saving technologies for hot water supply andlighting combined with energy management system to optimize these technologies.
 Energy Saving and Work Efficiency Improvement Project by special LED
Equipment with new technology, COB(Stanley Electric)※ Jan 2015 – Feb 2018
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 FY2014
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)

Total：10 projects （6 countries)
Underlined one project inMongolia, two projects in Vietnam,
one project in Lao PDR wereregistered as JCM projects.

※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.

32

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•Carbon Markets Express website provides informationon the latest updates on the JCM and on the relevant
programme such as JCM promotion schemes by theGovernment of Japan.
<https://www.carbon-markets.go.jp/eng/>•E-mail Newsletter and up-to-date information are
distributed regularly. To register, access:(for JP) <https://www.carbon-markets.go.jp/newsletter/>(for EN) <https://www.carbon-markets.go.jp/eng/en_newsletter/>

33

JCM Model Projects by MOE
The budget for projects
starting from FY 2018 is
6.9 billion JPY (approx. USD
69million) in total by FY2020

Government ofJapan(1 USD = 100 JPY)

Finance part of aninvestment cost(less than half)※Includes collaboration withprojects supported by JICA
and other governmentalaffiliated financial institute.
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.

34平成25年度予算○○百万円

ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)
Budget for FY2018
JPY 1 billion (approx. USD 10 million)
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.
Cofinancing
Loan/Grant etc.

MRV

GHG
reduction

Additional costs fromadvanced low-carbon
technologies
Mitigation throughconventional
technologies(Selection from ADB
pipeline)
Project

35

JCM F-gas Recovery and Destruction Model Project by MOE【Draft budget for FY 2018】
40 million JPY (approx. 0.4
million USD) (1 USD = 100 JPY)

Government of 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
are expected to be delivered to thegovernment of Japan

International consortiums (which include Japanese entities)
Manufacturersof equipment
which uses F-gas

Users ofequipment
which uses F-gas

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

PurposeTo recover and destroy F-gas (GHG except forenergy-related CO2, etc) from used equipment
instead of releasing to air, and reduce emissions
Scope of Financing

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

Project Period
Three years in maximum (Ex. 1st year for scheme, 2ndyear for facilities, 3rd year for recovery/destruction)
Eligible Projects•After the adoption of financing, start•Establish scheme for recovery and destruction
implementation of recovery/destruction within•Install facilities/equipment for recovery/destruction three years•Implementation of recovery, transportation,•Aim for the registration as JCM project anddestruction and monitoringissuance credits
36

JCM Financing programme by MOEJ (FY2013～2018) as of July 27, 2018
Thailand:26 projects○Energy Saving at Convenience Store○Upgrading Air-saving Loom*○Centrifugal Chiller in Tire Factory○Air Conditioning System & Chiller*○Ion Exchange Membrane Electrolyzer○LED Lighting to Sales Stores○Co-generation System○1.5MW Solar PV and EMS in Paint Factory○Heat Recovery Heat Pump
○27MW Solar PV○Air-conditioning Control System○Energy Saving Equipment in Port
○25MW Solar PV in Industrial Park

Bangladesh:5 projects○Centrifugal Chiller○320kW PV-diesel Hybrid System○Centrifugal Chiller*

Mongolia:7 projects○Heat Only Boiler (HOB)** ○2.1MW Solar PV in Farm* ○10MW Solar PV*○8.3MW Solar PV in Farm
〇15MW Solar PV○20MW Solar PV○21MW Solar PV○1.0MW Solar PV on Factory Rooftop*○Centrifugal Chiller & Compressor*○Co-generation in Motorcycle Factory○Refrigeration System○Chilled Water Supply System○12MW Waste Heat Recovery in Cement Plant○Refrigerator and Evaporator○3.4MW Solar PV○5MW Floating Solar PV○Boiler System in Rubber Belt Plant○Biomass Co-generation System○Co-generation in Fiber Factory○3.4MW Solar PV○Loom at Weaving Factory○50MW Solar PV Power Plant

Saudi Arabia:1 projects○Electorolyzer in Chlorine
Production Plant

Ethiopia:1 projects○Biomass CHP Plant

Kenya:2 projects○6MW Hydropower Generation○1MW Solar PV at Salt Factory

Myanmar:6 projects○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○8.8MW Waste Heat Recovery in Cement Plant

Maldives:2 projects

Viet Nam:18 projects○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○Modal Shift with Reefer Container ○Inverters for Raw Water Intake Pumps

Laos:3 projects●REDD+ through controlling slush-and-burn〇Amorphous transformers〇14MW Floating Solar PV

Cambodia:6 projects○LED Street Lighting○Solar PV & Centrifugal Chiller■Battambang Wastewater Treatment Project

Palau:4 projects○370kW Solar PV for Commercial Facilities*○150kW Solar PV for School*○440kW Solar PV for Commercial Facilities Ⅱ*○0.4MW Solar PV for Supermarket

Phillipines:8 projects

Mexico:5 projects○4.8MW Power Generation with Methane Gas
Recovery System○Once-through Boiler and Fuel Switching○64MW Wind Farm ○20MW Solar PV○30MW Solar PV○200kW Solar PV at International School*○Inverters for Distribution Pumps○1.5MW Solar PV

Costa Rica:2 projects○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○1.2MW Rooftop Solar PV○2.5MW Rice Husk Power Generation○4MW Solar PV○0.16MW Micro Hydro Power Plant

Chile:1 project○1MW Rooftop Solar PV

Indonesia:30 projects○ 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 (35 projects in 10 countries)● REDD+ Model Project (2 projects in 2 countries)○ Model Project in FY 2017 (19 projects in 8 countries)■ ADB Project in FY 2017 (1 Project in 1 country)○ Model Project in FY2018 (17 Projects in 9 countries)* Other 1 project in Malaysia○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○Absorption Chiller○10MW Hydro Power Plant○2.8MW Solar PV○High Efficiency Autoclave○CNG-Diesel Hybrid Public Bus○Centrifugal Chiller and Air-conditioning Control System

Total 127 projects in 17 partner countries

Underlined projects have started operation (73 projects, including 1 partially started projects)
Projects with * have been registered as JCM projects (27 projects)○190kW Solar Power on School Rooftop*■Smart Micro-Grid System

36

FY2018 Cities joing the city to city collaboration program by MOEJ
1. Quezon City (Philippines) – Osaka city
・ Energy saving technologies, Solar PV system installation and retrofit of waste collection truck
2 Bangkok and Laem Chabang (Thailand) – Yokohama city
・ CO2 emission reduction and to become “Smart Ports”
3. Davao city (Philippines) – Kitakyushu city・ Support for a development of local climate change action plan
4. Phnom Penh city (Cambodia) – Kitakyushu city
・ Low carbonization in transportation and green production fields
5. Jakarta city (Indonesia) – Kawasaki City・ Green Building and Green Power Optimization
6. Semarang city (Indonesia) – Toyama city
・ Introduction of energy saving equipment in industry sector
7. Yangon city (Myanmar) – Kawasaki city
・ Utilization of energy and energy saving in wholesale market
8. Batam city (Indonesia) – Kawasaki city
13
・ Green Building and optimization of renewable energy
14
utilization in Industrial Parks
7 12
9. Ho Chi Minh (Vietnam) – Osaka city
・ Promoting energy efficiency equipment in water supply system
11 2
10. Bali City (Indonesia) – Toyama city
4 9・ Support on Tourism Future City
11. Ayeyarwady Region , Sagaing Region (Myanmar) – Fukushima city
・ Feasibility of low-carbon industrial area and promotion of activities
8
12. Chiangmai Province (Thailand) – Kitakyushu city
・ Project to accelerate low carbonization in newly industrial estate
13. Hai Phong city (Vietnam) – Kitakyushu city
5
・Low carbonization project through Eco Park in Vietnam
14. Mandalay (Myanmar) – Kitakyushu city・ To realize low carbonization in Mandalay region in the field of Waste & Energy

１
3

13
6 10
38

38

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

39

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
Monitoringand monitoring guidelines)
Procedures
Validation  Guidelines for Validation and Verification
Verification(VV guidelines)

40

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

Project Participant

Submission of
Proposed
Methodology

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

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

Joint Committee Develop a proposed
methodology under
the initiative of the
Joint Committee* Methodology guidelines* Proposed methodology
form* Proposed Methodology
Spreadsheet Form

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

41

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

42

Notify the registration

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

Verification
Validation andverification canbe conductedsimultaneously
or separately.

Third-Party Entity

 Verify emission
reductions
 Prepare a verification
report* 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

43

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

44

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.
GHG emissions fromsources covered by aproject

Start of project operation

Likely range of BaU emissions
Emission
Reductions(credits)

Time

Reference Emissions
Project emissions

45

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.
GHG emissions fromsources covered by aproject

Start of project operation

BaU emissions
Emission
Reductions(credits)Time

Calculated project emissions
Actual project emissions46

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.

47

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

48

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 49

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

50

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. 51

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

52