Evaluation Criteria for selecting JCM Model Projects in FY2016(Tentative translation)

April 2016
Global Environment Centre Foundation

1.

INTRODUCTION
In order to select JCM Model Projects (hereinafter referred to as “model projects”) in fair
and transparent way, the Global Environment Centre Foundation (GEC) called an external
committee and established this evaluation criteria, which was approved by the committee.
Based on this criteria, GEC will consult with the Ministry of the Environment, Japan, andselect model projects with consideration of technological distributions etc.

2.

PURPOSE OF MODEL PROJECT
The purpose of model projects is to financially support the implementation of projects(including collaboration with projects supported by the Japan International Cooperation
Agency (JICA) and other government-affiliated financial institution) which reduce GHG
emissions by utilizing leading low carbon technologies in developing countries, and in
return seeks to acquire JCM credits for achievement of Japan’s GHG emission reduction
target.

3.

OVERVIEW OF CRITERIA
Proposals for model projects will be reviewed based on the following criteria. Hearings areconducted for applicants who satisfy all the eligibility criteria.
A. Eligibility Review
A proposal will be reviewed whether it meets the following eligibility criteria. When
all of these eligibility criteria are met, the proposal will proceed to the “B. Assessment
Review.” If any of these eligibility criteria is not met, the application will be rejected.
1)

Does the applicant meet the criteria for an eligible participant?
The applicant shall meet 2.(4) in the “Guidelines for Submitting Proposals”.

2)

Is the model project expected to reduce emissions of energy-related CO2 and GHG
through JCM?
The technology applied in the project shall reduce emissions of energy-related CO2, thatmeans:
Amount of emission reductions can be quantitatively calculated;
The emission reductions are not result of decreased activities, such as lower
production; andThe emission reductions from the project can be clearly separated from the emission
reductions by other factors that may influence the emissions.

3)

Can the technology be introduced in the country where the model project isimplemented (hereinafter referred to as “partner country”), while the technology isinternationally in practical use, but not adequately utilized in the partner country yet?
The technology should be realized in other project(s) in commercial operation(certificates etc. will be reviewed); orThe facility or equipment using the technology should be commercially manufactured(Catalogues, specification etc. will be reviewed.).
4)

Can the applicant objectively show the superiority of the technology introduced in themodel project?
The evidence of its superiority, such as catalogue or literature should be present.
The technology should demonstrate high performance in terms of energy savings, etc.
specified in a standard of the partner country.

5)Does the model project have no adverse effect on the environment or social-economic
circumstance in the partner country?
The installation and operation of the facility/equipment shall comply with theenvironmental laws and regulations of the partner country and international practices
and guidelines regarding the environmental protection (air pollution, watercontamination, waste treatment, noise/vibration, ecosystem etc.).
The project should contribute to the sustainable development of the partner country.

6)

Is the expense for the model project appropriately estimated?
The expense should be estimated using the same or similar project implemented in thepast; orThe expense should be based on the actual design and specification.
The evidence for estimation of personnel expense and travel cost is clear andappropriate.

7)

Does the model project contribute to the climate change mitigation in collaboration
with JICA or other government-affiliated financial institution? (for the collaboration
project with JICA etc. only)
The project should aim to reduce energy-related CO2 in collaboration with JICA orother government-affiliated financial institution.
The status of project selection by JICA or other government-affiliated financialinstitution will be reviewed.

8)

The facility/equipment introduced by the model project shall not receive any otherfinancial support or grant from the Government of Japan.

B. Assessment Review
After passing the eligibility review, the proposal will be reviewed and scored using thefollowing assessment criteria. The project in the following countries which have alreadyestablished or decided to establish the JCM will be prioritized (as of 8 April 2016):
Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia,Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand andPhilippinesi.

Robustness of the project implementation (40 points)
1)

Management and operational capacities of a representative participant and partner
participant(s) to implement the project (10 points)

2)

Appropriateness of the project plan (including the schedule, decisions for the project
location, concession and license for the project implementation, and status ofconcluding a Power Purchase Agreement in case of a power generation project) andfinancial plan (including the actual amount of investment by each participants andcertainty of financing arrangements) (10 points)

3)

Profitability of the project, including economic performance, forecast of cash flow andpayback period (For a tentative indicator, the payback period is preferred to be 3 years
or longer with the financial support.) (10 points)

4)

Status of the project implementation structure (including the decision on financing
arrangements and roles of each entity in the international consortium) (10 points)

ii.

Amount of emission reductions of energy-related CO2, and cost-effectiveness of emission
reductions of CO2 and GHG (40 points)
Cost-effectiveness of financial support necessary to reduce 1 ton of CO2 and GHG
emissions will be evaluated. For the project with financial support of 500 million JPY or
higher, cost-effectiveness of GHG emission reductions is expected to be 5,000 JPY/tCO2or better. For the project with financial support of less than 500 million JPY,
cost-effectiveness of GHG emission reductions is expected to be 10,000 JPY/ tCO2 or
better.
1)

Emission reductions of energy-related CO2 (15 points)
Total emission reductions [tCO2] = energy-related CO2 emission reductions per year[tCO2/y] × legal durable years of the facility/equipment as stipulated in theJapanese law [y]2)

Cost-effectiveness of emission reductions of energy-related CO2 in terms of financialsupport (3 points)

Cost for emission reductions [JPY/tCO2]=3)[(]/ )×[ ]Cost-effectiveness of emission reductions of GHG in terms of financial support (20points)
Cost for emission reductions [JPY/tCO2 equivalent]=4)[(]/ )×[ ]Cost-effectiveness of emission reductions of energy-related CO2 in terms of total
investment cost which is related to emission reductions (2 points)
Cost for emission reductions [JPY/tCO2]=[[]/ ]×[ ]Above calculations should be performed in a rational way, such as using an approved JCM
methodology or result obtained from a feasibility study. Also, refer the relevant Japanese law
for legal durable years.
iii. Potential of the dissemination of the technology (10 points)
Size of the market for the technology in the partner country and effect of the project on themarket
Consistency in relation to the partner country’s relevant policy
System for supporting the entities in the partner country during the installation andoperation of the facility/equipment
iv. Concept for developing JCM methodology and its developing status (10 points)
Eligibility criteria, calculation of reference emissions, calculation of project emissions, andmonitoring structure will be reviewed.