Memorandum of Cooperation on the Low Carbon Growth
between the Japanese side and the Costa Rican side

The Japanese side and the Costa Rican side (hereinafter referred to as “both sides”), inpursuit of the ultimate objective of the United Nations Framework Convention on
Climate Change (hereinafter referred to as the “Convention”) as stated in its Article 2 aswell as the achievement of sustainable development and continued cooperation beyond
2012 in order to address climate change, promote the initiative on the Low Carbon
Growth, which is governed by the following items:
1.

Both sides will promote close policy consultations at various levels of cooperation
focused on low carbon growth in regional and bilateral frameworks.

2.

Both sides, in order to promote investment and deployment of low carbon
technologies, products, systems, services and infrastructure to achieve low carbon
growth in the Republic of Costa Rica, establish a Joint Crediting Mechanism(hereinafter referred to as the “JCM”) and implement it, according to the principlesof the Convention and national laws and regulations in each country on the subject.

3.

Both sides establish the Joint Committee to operate the JCM, which consists ofrepresentatives of both sides.
(1) The rules of procedures of the Joint Committee are formulated throughconsultations between both sides.
(2) The Joint Committee develops rules and guidelines, methodologies to quantify
the amount of emissions reductions or removals of greenhouse gases, therequirements for the designation of third-party entities and other matters related tothe implementation and administration of the JCM as needed.
(3) The Joint Committee convenes meetings on regular basis to evaluate theimplementation of the JCM.

4.

Both sides mutually recognize that verified emission reductions or removals from themitigation projects under the JCM can be used as a part of their own internationallypledged greenhouse gases mitigation efforts.

5.

Both sides ensure the robust methodologies, transparency and the environmental
integrity of the JCM and maintain the JCM simple and practical, to promote concrete
actions for global greenhouse gases emissions reductions or removals.

6.

Neither side uses any mitigation projects registered under the JCM for the purpose of
any other international climate mitigation mechanisms to avoid double counting on
greenhouse gases emission reductions or removals.
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7.

Both sides work in close cooperation to facilitate financial, technological andcapacity building support necessary for the implementation of the JCM, according tonational capacities of each side.

8.

The JCM starts its operation as the non-tradable credit type mechanism. Both sides
will continue consultation for the transition to the tradable credit type mechanism
and reach a conclusion of such consultation at the earliest possible timing, taking
account of implementation of the JCM.

9.

Both sides have aim to contribute concretely in adaptation efforts in developing
countries, through the JCM, once the JCM becomes a tradable credit typemechanism.

10.

Both sides may modify this document by mutual written consent between both sides.

11.

The term of this document covers the period until a possible entry into effect of a
new international framework under the Convention. Both sides consider an extension
or completion of this document before the period above-mentioned, taking into
account, among other things, progress made in the negotiations of the United Nations
on Climate Change.

Signed in Tokyo on 9th December 2013, in duplicate original in English. Two duplicate
originals in Japanese and Spanish will be signed. All texts have equal values. In case of any
divergence of interpretation of the texts, the English text will be referred to.

Nobuteru Ishihara
Minister of the Environment
JapanDr. Rene Castro Salazar
Minister of Environment and Energy
Republic of Costa Rica2