JOINT CREDITING MECHANISMCONTRIBUTIONS TOSUSTAINABLE DEVELOPMENT GOALS

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Table of Contents

1. Introduction ............................................................................2
2. Overview of the analysis ....................................................4
3. Target JCM projects for the analysis ...............................5
4. Goals and Targets ................................................................6
5. Case Studies ........................................................................20
6. Summary ...............................................................................24

Authors:
Temuulen Murun, Policy Researcher, Climate and Energy, IGES
Akibi Tsukui, Policy Researcher, Climate and Energy, IGES
Contributors:
Kentaro Takahashi, Programme Manager, Climate and Energy, IGES
Tetsuro Yoshida, Research Manager, Sustainability Governance Centre, IGES
Shinji Onoda, Policy Researcher, Sustainability Governance Centre, IGES
Toru Taguchi, Policy Researcher, Climate and Energy, IGES
Emma Fushimi, Editing Coordinator, Strategic Management office, IGES

Copyright ©2020 Ministry of the Environment, JapanAll copyrights are reserved. The source must be clearly stated if this report is cited, reproduced, translated or transmitted
in any form or by any means.
Copyrights for the top left photograph and the bottom left photograph belong to Toyota Tsusho Corporation and Everyday
Farm LLC, respectively. Copyrights for the remaining photographs belong to Global Environment Centre Foundation (GEC).
Published in March 2020
This report is printed on eco-friendly paper2

1. Introduction
Objective of the Joint Crediting Mechanism (JCM)
The Joint Crediting Mechanism (JCM) facilitates diffusion of leading low-carbon and zero emission
technologies, products, systems, services and infrastructure, and contributes to sustainable development indeveloping countries. Under the JCM, greenhouse gas (GHG) emission reductions or removals arequantitatively evaluated by applying measurement, reporting and verification (MRV) methodologies and used
to achieve emission reduction targets in Japan and partner countries. In this way, the GHG emission reductions
and removals through the JCM contribute to the ultimate goal of United Nations Framework Convention on
Climate Change (UNFCCC).
In 2015, the Paris Agreement (PA) was enacted with the aim of “keeping a global temperature rise thiscentury well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature
increase even further to 1.5 degrees Celsius”. Article 6 of PA regulates the international market mechanisms tocontribute to achievement of this long-term goal. Especially under Article 6.2 of PA, the cooperative approachis to utilise mitigation outcomes for the achievement of each country’s emission reduction target in Nationally
Determined Contribution (NDC). The JCM has been receiving much attention in recent years as a pioneering
scheme based on Article 6.2. To achieve NDCs, both developed and developing countries have to commit to
low-carbonisation and de-carbonisation. However, many advanced low-carbon and zero emission technologies
have high upfront costs, making it difficult for developing countries to recover their investment. Therefore, theJapanese government covers a part of initial investment to install the low-carbon and zero emission
technologies through the JCM.
By March 2020, 17 countries 1 participated in the JCM and 61 projects were registered. Through theJCM, 83,223 tonnes of carbon dioxide (CO2) emission reductions were issued as credits. By 2030, 50 million –100 million tonnes of GHG emission reductions or removals are expected to have been achieved through theJCM. So far, disseminated technologies have included various types such as solar PV power generation, energy
efficiency technologies, eco-drive technologies, high-efficiency refrigerator system, co-generation, andmethane absorption technology.
From 2020, the implementation of the Paris Agreement will begin and Parties are required to takeactions toward achievement of NDC. The JCM supports the introduction of advanced technologies that can
reduce GHG emissions by responding to the needs of partner countries, meaning that the mechanism
contributes to emission reduction achievement both in Japan and partner countries.

2

Under the JCM, representatives from both countries’ governments establish a Joint Committee, whichmakes important decisions for JCM project-related matters including approving methodologies, registering
projects and notification of issuing credits

1 As of March 2020, Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar,
Thailand, Philippines https://www.jcm.go.jp/
2 JCM website https://www.jcm.go.jp/

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Linkage between Sustainable Development Goals (SDGs) and the JCM
In 2015 when the Paris Agreement was adopted, the international community agreed on anotherambitious framework: “The 2030 Agenda for Sustainable Development” (Agenda 2030), including the
Sustainable Development Goals (SDGs). The SDGs depict a universal blueprint for sustainable society andconsist of 17 goals and 169 targets. To achieve the goals, all stakeholders, including developing and developed
countries, national and local governments, civil society and the private sector, are expected to strengthen andaccelerate initiatives as one team.

In November 2019, the United Nations Department of Economic and Social Affairs and the United

Nations Framework Convention on Climate Change (UNFCCC) published a report entitled “Maximizing Cobenefits by Linking Implementation of the Sustainable Development Goals and Climate Action 3”, which seeks

further collaborative approaches to maximise synergies and minimise trade-offs for achieving the objective of
the PA and SDGs. For instance, the report summarises that the transition to sustainable energy (Goal 7) cansignificantly reduce GHG emissions and contribute to achieve the PA’s long-term temperature goal.

Development of sustainable industrialisation (Goal 9), sustainable food production systems and resilient

agricultural practices (Goal 2), and transition to sustainable consumption and production (Goal 12) can lead toa lower emission pathway, the creation of new kinds of jobs as well as making long-term progress towards

eradicating poverty. In addition, the report states that, although many initiatives are implemented followinginternational frameworks such as NDCs, progress towards these goals is slow. There have been requests totake urgent actions beyond borders.

The JCM is a framework for strengthening partnerships at the global level, which enables countries

and regions to simultaneously promote actions towards climate change and SDGs. For instance, introducing
renewable energy and energy efficiency technologies can reduce GHG emissions directly. Developing theseprojects can strengthen the relationship with the partner countries, support their shift towards decarbonisation society, and increase resilience to climate change.

4This report is the first publication to analyse the interlinkage between JCM and SDGs and aims toclarify how the JCM contributes to SDGs targets. The JCM projects are mainly developed between a Japanesecompany and a local company in the partner country; therefore, we included interviews from those companies
participating in the JCM in order to give a private sector perspective. We believe that understanding theinterlinkage between JCM and SDGs would be the important step to accelerate further contribution towards
SDGs through JCM project implementation.

3 Conference Summary on Global Conference on Strengthening Synergies between the Paris Agreement on Climate Change and The 2030 agenda for Sustainable
Development: “Maximizing Co-benefits by Linking Implementation of the Sustainable Development Goals and Climate Action”
https://sustainabledevelopment.un.org/content/documents/22398Summary_document_Copenhagen_FINAL_for_website.pdf
4 UN Sustainable Development Goals https://www.un.org/sustainabledevelopment/news/communications-material/4

2. Overview of the analysis
In this report, we included a quantitative and qualitative assessment of the JCM scheme, registered
JCM projects, an assessment of the JCM project design document (PDD), a literature review on UN publishedreports and JCM related materials, as well as interviews and online surveys from project participants in both
Japan and the partner countries.
In Section 4, the JCM scheme and its projects were assessed based on the quantitative and qualitative
indicators to measure the projects’ contribution to SDGs and their Targets. We have developed uniquequantitative indicators to evaluate the JCM project progress towards SDGs in quantitative data. We utilised the“Business Reporting on the SDGs: An Analysis of Goals and Targets 5” report published by the Global Reporting
Initiative (GRI) and United Nations Global Compact (UNGC) as a reference to develop these indicators. The 232
Indicators of the SDGs are used to measure the progress worldwide, not for business activities. Therefore, thereport by GRI and UNGC is for the private sector to evaluate the companies’ business contribution to the SDGs
and their Targets by using different types of indicators. Since the JCM projects are mainly developed between
a Japanese company and a local company, we used the report to develop indicators for the JCM because it issuitable to assess project activities. The quantitative data for assessing progress was collected from the IGES
database 6 and other available sources. For the JCM data, we utilised the IGES JCM database, which describes
project technologies, product types, and country basis. We also assessed the PDD for each JCM project,including methodology, emission reductions, and monitoring report.
The qualitative indicators of the JCM are used to qualitatively assess the JCM scheme and individual
project contributions to SDGs and their Targets. We developed these indicators because some of the SDGs
targets and contributions are difficult to quantify. The unique qualitative indicators have been developed basedon the above mentioned report.
In Section 5, we introduced the JCM case studies that include interviews and online surveys with theJapanese companies and local companies in the partner countries in order to examine how each project cancontribute to the SDGs in practice. We selected four projects in Viet Nam, Mongolia, Bangladesh and Indonesia,
and conducted interviews with four Japanese companies and one local company, and online surveys for two
local companies in the case studies.

5 GRI and UN Global Compact, Business Reporting on the SDGs: An Analysis of Goals and Targets https://www.unglobalcompact.org/library/5361
6 IGES JCM Database https://www.iges.or.jp/en/pub/iges-joint-crediting-mechanism-jcm-database/en

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3. Target JCM projects for the analysis
We selected 57 registered projects with 15 renewable energy (RE) projects and 42 energy efficiency(EE) projects. For the analysis, we categorised these projects into nine groups (Table 1). This classification isbased on our qualitative and quantitative assessment of the registered projects toward SDGs and their Targets.
Therefore, some projects overlap across different categories.
The JCM scheme in Section 4, Goals and Targets, refers to the JCM project development, technicaltraining and seminars, the JCM financial support, the issued JCM credits, which are all actions and progress
implemented under the JCM.
Table 1. Types of JCM project and explanations
Types of Project

RE projects

EE projects

Agriculture related
projects
EE projects infactories

Waste recycling
related projects
Transportation
related projects
Energytransmission
projects
Water utility
related projects

Explanation

Renewable energy (RE) projects include solar photovoltaic (PV) power generation infactories and farms, and rooftop solar PV power generation in school buildings,
commercial facilities and shopping malls.
Example: 10MW Solar Power Project in Darkhan City,
https://www.jcm.go.jp/projects/22
Energy efficiency (EE) projects aim to introduce advanced low-carbon and zero
emission technologies and equipment such as high-efficiency refrigerator systems, gas
co-generation, and chillers and compressors in factories. This category also includes
energy efficiency technologies in public and energy infrastructure.
Example: Energy Saving for Semiconductor Factory with High Efficiency Centrifugal
Chiller and Compressor, https://www.jcm.go.jp/projects/45
These projects are mainly solar PV power generation in the agriculture sector.
Example: Installation of 12.7 MW Solar Power Plant for Power Supply In Ulaanbaatar
Suburb, https://www.jcm.go.jp/projects/21
Energy efficiency (EE) projects include advanced low-carbon technologies andequipment installed in the manufacturing sector. This category also includes energy
efficiency technologies in water infrastructure.
Example: Installation of High Efficiency Loom at Weaving Factory,
https://www.jcm.go.jp/projects/38
Waste recycling related projects are energy efficiency technologies introduced inrecycling waste treatment factories.
Example: Reduction of Energy Consumption by Introducing an Energy-Efficient
Waste Paper Processing System into a Packaging Paper Factory,
https://www.jcm.go.jp/projects/29
These projects are to improve fuel efficiency in the transportation sector.
Example: Eco-Driving by Utilizing Digital Tachograph System,
https://www.jcm.go.jp/projects/7
Energy transmission projects cover high efficiency transmission and distribution
system introduction in energy infrastructure sector.
Example: Introduction of Amorphous High Efficiency Transformers in Southern andCentral Power Grids, https://www.jcm.go.jp/projects/35
Water utility related projects are advanced low-carbon technology and equipment
installed in water infrastructure sector.
Example: Introduction of High Efficiency Water Pumps in Da Nang City,
https://www.jcm.go.jp/projects/55

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4. Goals and Targets
Goal 2. Zero Hunger“Ending hunger, achieving food security and improved nutrition, and promoting sustainableagriculture will lead to a stable supply of food for all worldwide” 7. Despite a great deal of effort over many
years, as of 2017, the number of people facing starvation in the world was on the rise with approximately 821
million people malnourished. The primary causes of severe food crises are extreme weather due to climatechange, and conflicts 8. Eliminating hunger requires simultaneous measures in the agriculture sector as well as
mitigation actions towards climate change. By supporting the introduction of renewable energy and energy
efficiency technologies in the agricultural sector, the JCM is contributing to building sustainable foodproduction systems and reducing GHG emissions.
According to the qualitative indicators for JCM contributions to Goal 2 (Table 2), the projects for the
installation of solar photovoltaic (PV) power generation on farmland have contributed to Targets 2.4 and 2.a.
Introducing RE projects and low-carbon technologies in the agriculture sector reduces GHG emissions, thereby
contributing to climate change mitigation. The amount of sustainable food production is increasing due to
implementation of projects because revenue from selling electricity generated from solar PV power stations
can secure a stable income. The projects also aim to establish a production system, which is suited to the local
environment, by utilising revenue to introduce advanced agricultural technologies from Japan. These initiatives
are raising the awareness of employees toward sustainable food consumption. Achieving Target 2.4 requires
investment in infrastructure and technology through international cooperation. Developing low-carbon
technologies and RE projects in agriculture in different parts of the world would expand sustainable agriculture
practices.
Table 2. Qualitative indicators for the JCM to measure its contribution to Goal 2
2.4

2.a

Goal and Target
By 2030, ensure sustainable food production
systems and implement resilient agricultural
practicesthat
increaseproductivity
andproduction, that help maintain ecosystems, thatstrengthen capacity for adaptation to climatechange, extreme weather, drought, flooding andother disasters and that progressively improve landand soil quality
Increase investment, including through enhanced
international cooperation, in rural infrastructure,
agricultural research and extension services,
technology development and plant and livestock
gene banks in order to enhance agricultural
productive capacity in developing countries, inparticular least developed countries

Qualitative indicator
Taking actions to mitigate
climate change impacts andto reduce greenhousegassesIncreasing the proportion ofsustainably produced goods
and services
Raising the awareness of
employees on sustainable
food consumption
Investing in sustainableagriculture by low-carbon
technologies and RE

7 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-02/

8 UNICEF, The State of Food Security and Nutrition in the World 2019 https://data.unicef.org/resources/sofi-

2019/#:~:text=This%20year's%20The%20State%20of,of%20economic%20slowdowns%20and%20downturns.

JCM Project
Agriculture
relatedprojects
Agriculture
relatedprojects
Agriculture
relatedprojects
Agriculture
relatedprojects

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Goal 3. Good Health and Well-Being“Ensuring healthy lives and promoting well-being for all at all ages is an important basic human right”9.

One consequence of the rapid economic development of recent years has been worsening air pollution,

especially in developing countries. Air pollution is a major environmental risk to health. In 2016, approximately
4.2 million people died as a result of ambient air pollution from traffic, industry, power generation, waste-burning and residential fuel combustion 9 . Air pollution can be reduced by lowering the concentration ofparticulate matter (PM2.5), ozone (O3), nitrogen dioxide (NO2) and sulfur dioxide (SO2) in the atmosphere. Thisrequires introducing cleaner transportation systems and renewable energy, energy-efficiency in housing andindustry, as well as policies and investment for properly managing urban waste. The JCM supports the reductionof air pollutants by disseminating renewable energy projects and digital tachograph technologies in the partnercountries.

Based on the quantitative indicator of JCM contributions to Goal 3 (Table 3), the JCM has contributed

to Target 3.9 by implementing RE projects and digital tachograph projects. A digital tachograph is an operation

recorder that records information such as speed, running time and driving distance on a memory card.
Recorded driving data collected by a digital tachograph is used to improve driving skills so that drivers are
more efficient, which improves fuel efficiency and reduces exhaust gas emissions from vehicles. Such projects
can reduce air pollutant concentration and health risks which meets Target 3.9 of the SDGs. Based on thequantitative indicator, the amount of CO2 was reduced by 76,786 tonnes through this project implementation
by 2019.

Table 3. Quantitative indicators for the JCM to measure its contribution to Goal 3
Goal and Target
3.9

By 2030, substantially reduce the number of deaths
and illnesses from hazardous chemicals and air, waterand soil pollution and contamination

Quantitative
indicator
CO2 emission
reductions

Unit

JCM ProjecttCO2

RE projects,
Transportation
related projects

By using the qualitative indicator (Table 4) to evaluate JCM project contributions to SDGs, RE projects
in countries with severe air pollution can contribute to Target 3.9 of the SDGs. Environmentally soundtechnologies (EST) refer to technologies that protect the environment, use all resources in a sustainable mannerwith less pollution, reuse more waste and products, and handle residual waste using methods that are
preferable to alternative technologies 10. Using these technologies can reduce environmental pollutants andhealth damages of employees from hazardous substances.
Table 4. Qualitative indicators for the JCM to measure its contribution to Goal 3
3.9

Goal and Target
By 2030, substantially reduce the number of deaths
and illnesses from hazardous chemicals and air,water and soil pollution and contamination

9 UN Statistics https://unstats.un.org/sdgs/report/2019/Goal-03/

Qualitative indicator
Using environmentallysound technologies (EST)10 UN Sustainable Development, Agenda 21 https://sustainabledevelopment.un.org/content/documents/Agenda21.pdf

JCM Project
RE projects,
Transportation
related projects

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Goal 4. Quality Education“Inclusive and equitable quality education and promotion of lifelong learning opportunities for all is
key to levelling up socioeconomic status and escaping from poverty”11. Worldwide, 58% of children andadolescents in primary and lower secondary school are not achieving the minimum proficiency in reading andmathematics 11. Learning opportunities for all ages should be increased and diversified, using different type oftraining modalities, so that all adults can acquire work-relevant knowledge and technical skills for decent work.
The JCM has been conducting training for local project participants and relevant stakeholders in the partnercountries in order to improve their technical knowledge, which is also important for the operation of the JCM
scheme itself and for each project.
According to the quantitative indicator of JCM contributions to Goal 4 (Table 5) it can be said the JCM
has contributed to achieving Target 4.4 in the partner countries. Since 2013 the JCM in general has conducted
a total of 1,125 hours of technical training and seminars covering climate change mitigation, carbon market,
and GHG emission reduction methodology for relevant stakeholders, and for third party entities on how tovalidate projects and verify issued credits (Figure 1).

1,125
0

200

400

600 Hours

800

1000

1200

FY2013
FY2014FY2015FY2016FY2017FY2018FY2019Figure 1. The hours of training conducted in the partner countries by the JCM related organisations 12
Table 5. Quantitative indicators for the JCM to measure its contribution to Goal 4
Goal and Target
4.4

By 2030, substantially increase the number of youth
and adults who have relevant skills, including technicaland vocational skills, for employment, decent jobs andentrepreneurship

Quantitative
indicator
Hours of trainingthat relevant
stakeholders haveundertaken

Unit

JCM Project

Hours

JCM scheme

Based on the qualitative indicator (Table 6), the JCM has provided support to increase the number ofadults who have technical and vocational skills by offering different training sessions on operation andmonitoring of RE and EE projects. In particular, RE projects and advanced high-efficiency equipment require
technical knowledge to operate power stations and conduct regular maintenance of machines in factories. To
build this type of capacity, project partners from Japan frequently organise training seminars for the local
partners. Monitoring of GHG emissions reduction from the JCM projects is a requirement for the local project
participants. To meet this requirement, during the monitoring period they receive online guidance as well as
onsite training on how to carry out monitoring.
Table 6. Qualitative indicators for the JCM to measure its contribution to Goal 4

4.4

Goal and Target
By 2030, substantially increase the number ofyouth and adults who have relevant skills,

11 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-06/

Qualitative indicator
Offering technical andvocational guidance and

12 The data from IGES, Global Environment Centre (GEC) and Overseas Environmental Cooperation Center (OECC)

JCM Project
RE and EE
projects

9including technical and vocational skills, foremployment, decent jobs and entrepreneurshiptraining programmes to
employees

Goal 6. Clean Water and Sanitation“Ensuring the availability and sustainable management of water and sanitation for all will save millions
of people”13, which makes Goal 6 one of the most important priorities in a country’s public infrastructuredevelopment. In 2017, approximately 90% of the world’s population had access to a basic drinking water service,while only 45% had access to safely managed sanitation, and 60% could access basic hand washing facilities 13.
While donor countries have increased their aid and support to the water sector, there are billions of people
who lack access to clean drinking water and sanitation. The JCM is supporting safe drinking water andsanitation by upgrading water treatment in the partner countries and improving water efficiency in public
infrastructure.
Based on our quantitative indicators (Table 7), the JCM water utility projects have contributed toTargets 6.1, 6.3 and 6.4 by introducing high-efficiency water pumps in drinking water treatment facilities.
Increasing the water services in a city through the JCM project implementation has positive impacts for Target
6.1, which is achieving equitable access to safe drinking water for all. Since the water pumps are advanced
technology, the projects can contribute to reducing pollution, which is linked to Target 6.3. This can be achievedby minimising the negative impacts on water quality and increasing the amount of treated water, so that lesswaste is generated and hazardous chemicals are not released into the environment. In addition, these energy
efficient JCM projects improve water performance in water treatment, which has a direct link to increased
water-use efficiency across all sectors, as stated in Target 6.4.
Table 7. Quantitative indicators for the JCM to measure its contribution to Goal 6

6.1
6.3

6.4

Goal and Target
By 2030, achieve universal and equitable
access to safe and affordable drinking water
for all
By 2030, improve water quality by reducing
pollution, eliminating dumping andminimizing release of hazardous chemicals
and materials, halving the proportion of
untreated wastewater and substantially
increasing recycling and safe reuse globally
By 2030, substantially increase water-use
efficiency across all sectors and ensuresustainable withdrawals and supply offreshwater to address water scarcity andsubstantially reduce the number of people
suffering from water scarcity

13 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-06/

Qualitative indicator
Increasing water service
coverage in the area
Increasing volume of waterthat is treated by project
Minimising negative impact
on water quality through the
project
Improving water performanceand efficiency

JCM Project
Water utility
relatedprojects
Water utility
related projects
Water utility
related projects
Water utility
related projects

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Goal 7. Affordable and Clean Energy“Ensuring access to affordable, reliable, sustainable and modern energy for all by 2030 will open a newworld of opportunities for billions of people” 14 . The proportion of the global population with access toelectricity is steadily increasing. However, about 1.1 billion people are still without access to electricity.
Renewable energy (RE) in the electricity sector has advanced rapidly and in 2018, electricity generated using
renewable sources increased by 450 terawatt-hours (TWh) compared to the previous year 15. In addition, energy
efficiency continues to improve, which is offsetting carbon dioxide emissions, and reducing energy demand.
However, energy intensity needs to improve at an annual rate of 2.7% over the period 2016-2030 16. According
to the International Energy Agency, in order to provide electricity for all people by 2030, USD 40 billion isnecessary to invest in small solar photovoltaics (PV) stations and decentralised solutions 17. The JCM aims toincrease RE-sourced electricity in the partner countries and improve EE in different industries, which arecommitted to meeting Goal 7 and its Targets.
The JCM has generated 75,300 MW electricity by implementing solar PV projects and rooftop solar PV
power generations in the partner countries since 2013 18 (Figure 2). Based on the quantitative indicator of JCM
contributions to Goal 7 (Table 8), these projects are contributing to increase the share of renewable energy inthe global energy mix, which is achieving Target 7.1. In order to achieve energy efficiency target in Target 7.3(to double the global rate of improvement in energy efficiency by 2030) the JCM has been introducing
advanced low-carbon and zero emission technologies in the partner countries across different sectors, such as
the textile industry, cement industry, energy sector and manufacturing industry. Since 2013, a total of 81
energy-efficiency projects have been adopted under the JCM scheme.
35,00030,000MW

25,00020,00015,00010,000
5,000
0

2013

2014

2015

2016

2017

2018

2019

Figure 2. Annual electricity generated by the JCM RE projects
Table 8. Quantitative indicators for the JCM to measure its contribution to Goal 7
7.2
7.3

Goal and Target
By 2030, increase substantially the shareof renewable energy in the global energymix
By 2030, double the global rate of
improvement in energy efficiency

Quantitative indicator
Amount of renewableenergy generated
electricity
Number of adopted EE
projects

Unit
MW

JCM Project
RE projects

Numbers

EE projects

In a qualitative assessment of JCM contributions to Goal 7 (Table 9), the JCM projects have contributed
to all five targets, which shows a significant impact on Goal 7 achievement. To invest and develop renewable

14 UN Statistics

https://unstats.un.org/sdgs/report/2018/Goal-07/

15 World Energy Outlook book 2019 https://www.iea.org/reports/world-energy-outlook-2019/renewables#abstract

16 2018 HLPF Review of SDGs implementation: SDG 7 https://sustainabledevelopment.un.org/content/documents/195532018_background_notes_SDG_7Final1.pdf
17 International Energy Agency https://www.iea.org/reports/sdg7-data-and-projections/access-to-electricity
18 Calculated by the JCM project monitoring plan on the JCM website https://www.jcm.go.jp/

11energy projects and introduce energy efficiency technologies, the JCM RE, EE and energy transmission projects
are directly linked to Targets 7.1, 7.2, 7.3, 7.a and 7.b (Table 9).
Upgrading technologies through the JCM in the partner countries would improve energy efficiency
and reduce energy consumption, which is directly linked to doubling the global rate of improvement in energy
efficiency, Target 7.3 of the SDGs. Disseminating clean technology in energy infrastructure sector by
introducing high efficiency transmission and developing solar PV projects is an important area of public
infrastructure development in the partner countries.
Table 9. Qualitative indicators for the JCM to measure its contribution to Goal 7
Goal and Target
By 2030, ensure universal access to affordable,
reliable and modern energy services

Qualitative indicator
Investing in clean
energy technologies

7.2

By 2030, increase substantially the share of
renewable energy in the global energy mix

7.3

By 2030, double the global rate of improvement
in energy efficiency

Investing in andpromoting initiatives on
renewable energy
Improvement of energy
efficiency
Energy reduction
Participatinginternational
cooperation to
introduce renewableenergy and low-carbon
technology
Expanding business inenergy infrastructure
sector in developing
countries

7.1

7.a

By 2030, enhance international cooperation tofacilitate access to clean energy research andtechnology, including renewable energy, energy
efficiency and advanced and cleaner fossil-fueltechnology, and promote investment in energy
infrastructure and clean energy technology
By 2030, expand infrastructure and upgrade
technology for supplying modern andsustainable energy services for all in developing
countries, in particular least developed countries,
small island developing States and landlocked
developing countries, in accordance with theirrespective programmes of support

7.b

JCM Project
RE projects,
Energytransmission
projects
RE projects
EE projects
EE projects
RE and EE projects

RE projects, Energy
transmission
projects

Goal 8. Decent Work and Economic
Growth“Inclusive and sustainable economic growth brings full and productive employment and decent work
for all” . Since the global recession of 2009, labour productivity has been improving, and in 2018, it increasedby 2.1% globally. However, there are wide disparities between different regions. Whereas there was a 4.8%
increase in Central and Southern Asia, the increase in Sub-Saharan Africa was just 0.3% 19. The percentage of
informal employment, the gender pay gap, and youth unemployment remain high. To achieve economic
growth targets in developing countries, safe and decent work environments need to be provided for all workers.
By introducing energy-saving equipment to factories, the JCM supports establishing a sustainable production
system, which creates a better working environment and provides workers with more decent jobs.
19

According to the qualitative indicator (Table 10) to evaluate JCM contributions to Goal 8, it can be seenthat the JCM projects meet Target 8.2. Out of the 42 registered EE projects, a total of 33 projects were to installenergy efficiency equipment into industry sector. The development of high efficiency equipment and machines
19 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-08/

12
in manufacturing not only reduces energy consumption, but also contributes to industry innovation in thepartner countries. There are also positive impacts on improving the working environment, with many projects
reporting that newly installed equipment reduced noise in factories.
Table 10. Qualitative indicators for the JCM to measure its contribution to Goal 8
Goal and Target
Achieve higher levels of economic productivity
through diversification, technological upgrading
and innovation, including through a focus on
high-value added and labour-intensive sectors

8.2

Qualitative indicator
Helping to upgrade
technology in factories
in developing countries

JCM Project
EE projects in factories

Goal 9. Industry, Innovation andInfrastructure“Building resilient infrastructure, promoting inclusive and sustainable industrialization and fostering
innovation” 20 can ensure a dynamic and competitive economy that results in increased employment andincome. Introducing and promoting new technologies and enabling the efficient use of natural resources are
key components for sustainable industrialisation. However, some countries, in particular the least developed
countries, need to accelerate the development of their manufacturing sector in order to achieve Agenda 2030
targets. The JCM has been implementing energy efficiency technologies and equipment in factories as well as
improving partner countries’ energy distribution system in order to reduce energy loss.
According to the quantitative indicators of JCM contributions to Goal 9 (Table 11), the JCM scheme
has contributed to achieving Target 9.4 by issuing 81,887 tCO2 of credits through the JCM projects (Figure 3).
These include environmentally sound technologies (EST) installed in the industry sector to improve energy
efficiency and reduce power consumption in the partner countries. The issued JCM credits were measured andverified based on GHG emission reductions from the projects. This is directly linked to the reduction of carbon
intensity in the manufacturing sector, which is critical for developing sustainable industrialisation. By
developing RE projects in energy infrastructure, the JCM has scaled up clean energy in the partner countries,
where fossil fuels, especially coal, are predominantly utilised.
2016

81,8870

10,00020,00030,00040,00050,000tCO260,00070,00080,00090,000

2017
2018
2019
2020

Figure 3. The issued credits from the JCM RE and EE projects
Table 11. Quantitative indicators for the JCM to measure its contribution to Goal 99.4

Goal and Target
By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, withincreased resource-use efficiency andgreater
adoption
of
clean
and
environmentally sound technologies andindustrial processes, with all countries taking
action in accordance with their respective
capabilities

20 UN Statistics https://unstats.un.org/sdgs/report/2019/Goal-03/

Quantitative indicator

Unit

JCM ProjectCO2 emission
reductions

tCO2

RE and EE projects

Issued credits based on
tracking and reporting
the amount of GHG
emission reductions

tonnesRE and EE projects

13
Based on the qualitative indicators of JCM contributions to Goal 9 (Table 12), the JCM energy
transmission projects and water utility projects have taken measures to reduce environmental impacts whilethese projects were being developed. These JCM projects have a positive impact on the development of reliable
and sustainable infrastructure in the partner countries.
In addition, by upgrading the technology for public and energy infrastructure, the JCM projects haveincreased investment in infrastructure development and technical support for the partner countries, thereby
eventually contributing to Targets 9.4 and 9.a (Table 12). Through project development in public infrastructure,resource efficiency can be increased due to EST. Furthermore, financial and technical support can be expanded
especially in African countries, Least Developed Countries (LDCs), and Landlocked Developing Countries(LLDCs).
Table 12. Qualitative indicators for the JCM to measure its contribution to Goal 9

9.1

9.4

9.a

Goal and Target
Develop quality, reliable, sustainable andresilient infrastructure, including regional andtransborder infrastructure, to support
economic development and human well-being,with a focus on affordable and equitable accessfor all
By 2030, upgrade infrastructure and retrofit
industries to make them sustainable, withincreased resource-use efficiency and greater
adoption of clean and environmentally soundtechnologies and industrial processes, with allcountries taking action in accordance with theirrespective capabilities

Qualitative indicator
Taking precautionary
measures to reduce
environmental impacts
when developing andretrofitting
infrastructure
Upgradinginfrastructure andretrofitting industries
through investment ininfrastructuredevelopment

JCM Project
Energytransmission
projects,
Water utility
relatedprojects
RE projects,
Energytransmission
projects,
Water utility
relatedprojects

Facilitate sustainable and resilient infrastructuredevelopment in developing countries throughenhanced financial, technological and technicalsupport to African countries, least developed
countries, landlocked developing countries andsmall island developing States

Supporting sustainableinfrastructuredevelopment indeveloping countries(with financial andtechnical support)

RE projects,
Energytransmission
projects,
Water utility
relatedprojects

Goal 12. Responsible Consumption and
Production“Ensuring sustainable consumption and production patterns is necessary for economic growth andsustainable development” 21. Wasting resources is a significant barrier to sustainable development. Material
footprint—which refers to the total amount of raw materials used to meet final consumption demand—increased by no less than 113% between 1990 and 2017, from 43 billion tonnes to 92 billion tonnes. In addition,
the process from resource extraction to product manufacture accounts for approximately 50% of global GHG
emissions 22. Given the economic growth of emerging countries and the rise of the middle class, it is clear that
resource demand will continue to rise in the future, which leads to environmental impacts such as climatechange. Sustainable consumption and production means that better quality goods are made with fewer
resources. It requires improvements in resource efficiency, reductions in waste, and mainstreaming ofsustainability in all sectors involved in economic activity. The JCM aims to achieve responsible industrial
21 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-12/

22 UNEP IRP (2019) “Global Resources Outlook 2019” https://www.resourcepanel.org/reports/global-resources-outlook

14development, by reducing the use of fossil fuel combustion and disseminating advanced low-carbon
technologies and equipment to use natural resources more effectively.
Based on the quantitative indicators (Table 13) to evaluate JCM contributions to Goal 12, the JCM
projects in the renewable energy, transportation, recycling waste, and water utility sectors have contributed toTarget 12.4. Monitoring and reporting on GHG emissions from project activities encourages responsible
management and consumption of natural resources. By 2019, as a result of these projects, 118,446 tCO2 ofemissions were reduced and 35,641 tonnes of credits were issued.
Table 13. Quantitative indicators for the JCM to measure its contribution to Goal 12
12.4

Goal and Target
By 2020, achieve the environmentallysound management of chemicals andall wastes throughout their life cycle,
inaccordancewithagreedinternationalframeworks,
andsignificantly reduce their release toair, water and soil in order tominimize their adverse impacts onhuman health and the environment

Quantitative indicator
CO2 emission
reductions

Unit
tCO2

Issued credits basedontracking
andreporting the amountof GHG emission
reductions

tonnesJCM Project
RE projects, Transportation
related projects, Waste
recycling related projects,
Water utility related
projects
RE projects, Transportation
related projects, Waste
recycling related projects,
Water utility related
projects

Based on the qualitative indicators, the JCM projects have contributed to Targets 12.2, 12.5, 12.7 and12.a (Table 14). The use of environmentally sound technologies (EST) is essential for the effective use of natural
resources. Using and supplying electricity generated from renewable energy reduces fossil fuel consumption.
Energy efficiency projects contribute to the effective use of natural resources by improving energy efficiency
and reducing energy consumption. For example, installing a high-efficiency pump in a water treatment plant
reduces CO2 emissions and energy consumption which contributes to the effective use of water resources.
Installing an energy-efficient waste paper processing system into a packaging factory to prepare raw materials
from used corrugated cardboard has also led to a reduction of solid waste through the use of renewable raw
materials.
The JCM has supported four projects in Viet Nam to introduce amorphous high-efficiency transformers.
These projects successfully demonstrated the energy efficiency effects of high efficiency transformers, which
resulted in the local energy company changing its regulations on equipment procurement standards. In
cooperation with the local government, the JCM contributed to making Viet Nam’s procurement standards
more sustainable. The JCM currently aims to expand similar projects into other partner countries.
Finally, achieving Goal 12 requires a shift to sustainable production and consumption in all countries.
Through its project development and implementation, the JCM is helping to build the necessary capacity ofthe partner countries for such a transition.
Table 14. Qualitative indicators for the JCM to measure its contribution to Goal 12
12.2

Goal and Target
By 2030, achieve the sustainable
management and efficient use ofnatural resources

Qualitative indicator
Using or supplying RE
generated electricity
Using environmentally soundtechnologies (EST)
Improving energy efficiency
Energy Reduction
Using renewable materials

JCM Project
RE projects
RE projects and EE projects
EE projects
EE projects
Waste recycling related
projects

15
12.5
12.7

12.a

By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse
Promotepublicprocurement
practices that are sustainable, in
accordance with national policies
and priorities
Support developing countries tostrengthen their scientific andtechnological capacity to movetowards more sustainable patternsof consumption and production

Recycling material or
increasing recycling material

Waste recycling related
projects

Working with governments toimprove sustainable principles
in the public procurement
directives
Supporting developing
countries to increase theircapacity to transfer into
sustainable production andconsumption

Energy transmission
projects (only in Viet Nam)
RE projects and EE projects

Goal 13. Climate Action“Taking urgent action to combat climate change and its impacts is the defining issue of our time andthe greatest challenge to sustainable development” 23. The concentrations of CO2 in the atmosphere hit a record
level of 407.8 parts per million in 2018 and continued to rise in 2019 due to human activities. The World
Meteorological Organization report says that “the global average temperature in 2019 (January to October)
was about 1.1 degrees Celsius above the pre-industrial period” 24. The negative impacts of climate change,
extreme weather events such as floods, hurricanes, droughts, wild fires, and heat waves are evident all over theworld. To avoid catastrophic consequences, 189 Parties ratified the Paris Agreement and 186 Parties (including
the European Union as one Party) communicated their first NDCs to the UNFCCC 25. Currently many countries
are working on updating their NDCs and developing targets that are more ambitious for limiting global
warming to 1.5°C. The JCM is committed to contribute to climate action, Goal 13 of the SDGs, and aims to
reduce CO2 emissions by introducing low-carbon and zero emission technologies.
As in the quantitative indicators of JCM contributions to Goal 13 (Table 15), the JCM renewable energy
projects are directly linked to Target 13.1 by reducing emissions by 75,356 tCO2 emissions. Reducing GHG
emissions through developing RE projects, the JCM increases partner countries’ resilience to climate change
and their capacity to adapt to climate disasters. Combining the RE and EE projects, under the JCM a total of
387,855 tCO2 was reduced. The number of JCM partner countries has increased over the years and now it hasreached 17 countries. The JCM is supporting improvements to public awareness of climate change in thesecountries by developing and implementing the RE and EE projects.
Access to finance in order to develop mitigation actions is important for developing countries to fightagainst climate change and Target 13.a mentions that developed country parties should address the needs ofdeveloping countries’ mitigation actions. The JCM has supported partner countries by investing a part of theinitial cost to install advanced low-carbon and zero emission technologies, as well as implementing RE projects,
which the amount of financial support reached a record high approximately USD 10 million in 2019 26 (Figure4). The JCM has been supporting Least Developed Countries (LDCs) as well as Land-Locked Developing
Countries (LLDCs) financially to increase their resilience and adaptive capacity to climate change.

23 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-13/

24 WMO Provisional Statement on the State of the Global Climate in 2019 https://library.wmo.int/index.php?lvl=notice_display&id=21626#.XmCcJagzY2w
25 UNFCCC NDC official website https://www4.unfccc.int/sites/NDCStaging/Pages/All.aspx
26 Ministry of Environment Japan https://www.env.go.jp/guide/budget/index.html

16

US $ (thousand)

120,000
100,000
80,00060,00040,00020,0000FY2013

FY2014FY2015FY2016FY2017FY2018FY2019Figure 4. The amount of financial support through the JCM
Table 15. Quantitative indicators for the JCM to measure its contribution to Goal 13
Goal and Target
13.1
13.3
13.a

Strengthen resilience and adaptive capacity to climaterelated hazards and natural disasters in all countries
Improve education, awareness-raising and human andinstitutional capacity on climate change mitigation,
adaptation, impact reduction and early warning
Implement the commitment undertaken by developedcountry parties to the United Nations Framework
Convention on Climate Change to a goal of mobilizing
jointly $100 billion annually by 2020 from all sources toaddress the needs of developing countries in thecontext of meaningful mitigation actions andtransparency on implementation and fully
operationalize the Green Climate Fund through its
capitalization as soon as possible

Quantitative
indicator
CO2 emission
reductions
Number of JCM
partnercountries
The amount offinancialsupport onenvironmentally
soundtechnology
(EST)

Unit

JCM
Project
RE projects

tCO2
Numberofcountries
USD

JCM
schemeJCM
schemeAccording to the qualitative indicators (Table 16), it can be said that the JCM projects have contributed
to Targets 13.1, 13.2, and 13.3. The agriculture projects under the JCM has supported the partner country not
only to mitigate climate change but also to adapt to climate-related hazards and natural disasters. In addition,
through the JCM project implementation, the partner countries can scale up climate actions and policies toachieve their NDC targets. For instance, Mongolia’s first NDC 27 mentions increasing the share of renewableelectricity capacity up to 30% by 2030, with the aim to install 145MW solar PV power facilities. More than 50%
of current solar PV power generation has been introduced by the JCM. The project participants have increased
awareness of employees with regards to climate change and global warming, and they have actively attended
knowledge-sharing network events and seminars that were organised by the JCM-relevant stakeholders. Thisshows a direct linkage between JCM project implementation and achievement of Target 13.3.
Table 16. Qualitative indicators for the JCM to measure its contribution to Goal 13
13.1

13.2

Goal and Target
Strengthen resilience and adaptive capacity
to climate-related hazards and natural
disasters in all countries
Integrate climate change measures into
national policies, strategies and planning

Qualitative indicator
Helping developing
countries to introduce
climate mitigation andadaptation technologies
Collaborating with governments
on ambitious policy solutions forclimate change and scaling up
climate actions

27 Mongolia’s first NDC, UNFCC NDC Registry website https://www4.unfccc.int/sites/NDCStaging/Pages/All.aspx

JCM Project
Agriculture
projects
JCM scheme

17
13.3

Improve education, awareness-raising andhuman and institutional capacity on climatechange mitigation, adaptation, impact
reduction and early warning

Raising the awareness of
employees on climate change
Collaborating with public and/or
private actors to promoteknowledge networks in climatechangeRE and EE
projects
JCM scheme

Goal 17. Partnerships for the Goals“Strengthening the means of implementation and revitalising the Global Partnership for sustainable
development are essential for achieving the SDGs”28. Goal 17 is categorised into seven sub-themes: “Finance”,“Technology”, “Capacity-Building”, “Trade”, “Policy and Institutional coherence”, “Multi-stakeholder
partnerships” and “Data, monitoring and accountability” 28. Global partnership is a key concept of the JCM. Fiveout of seven sub-themes are particularly relevant to the JCM: “Finance”, “Technology”, “Capacity-Building”,“Trade”, “Policy and Institutional coherence” and “Multi-stakeholder partnerships”. The following section
describes how the JCM is addressing these five sub-themes.
Based on the quantitative indicator of JCM contributions to Goal 17 (Table 17), the JCM has positive
impacts on Targets 17.6 and 17.7, which are related to the sub-theme: “Technology”. Under the JCM, 63 RE
projects and 84 EE projects were adopted between fiscal year 2013 and 2019 (Figure 5). The JCM is a frameworkaligned with a bilateral agreement between Japan and the partner county. Adopted projects under the JCM
are required to be implemented and managed based on this agreement. Technology transfer through the JCM
projects development can strengthen cross-border regional and international cooperative relations. Based on
mutual understanding to transfer technologies can contribute to Goal 17.
RE

FY2013
FY2014FY2015FY2016FY2017FY2018FY2019

63

EE

84
0

20

40

60

80

100

Figure 5. Number of RE and EE projects under the JCM since 2013
Table 17. Quantitative indicators for the JCM to measure its contribution to Goal 17
Goal and Target
17.6[Technology]
Enhance North-South, South-South and triangularregional and international cooperation on and accessto science, technology and innovation and enhanceknowledge sharing on mutually agreed terms,
including through improved coordination among
existing mechanisms, in particular at the United
Nations level, and through a global technology
facilitation mechanism

28 UN Statistics https://unstats.un.org/sdgs/report/2019/goal-17/

Quantitative
indicator

Unit

JCM Project

Number offinancing RE
and EE
projects

Numbers

RE and EE
projects

18
17.7[Technology]
Promote the development, transfer, dissemination anddiffusion of environmentally sound technologies todeveloping countries on favourable terms, including on
concessional and preferential terms, as mutuallyagreedNumber offinancing RE
and EE
projects

Numbers

RE and EE
projects

In qualitative assessment to measure JCM contributions to Goal 17 by using the indicators (Table 18)
the JCM scheme itself has contributed to four sub-themes with six Targets of Goal 17. Target 17.3 is about
finance. The JCM supports a part of the initial investment cost of introducing advanced low-emission and zero
emission technologies. This stimulates expanding private-sector business beyond borders and leads to themobilisation of private capital.
Target 17.9 is related to support for capacity building. The Japanese side organises conferences,seminars and workshops related to the JCM both in Japan and overseas. Different stakeholders such as
government officials and private sectors join these events, which enhances public-private dialogue. Moreover,
the JCM scheme strengthens local businesses in the partner countries through direct investment and training
done by technical expertise. Providing these opportunities through the JCM can support the capacity building
necessary to achieve the SDGs.
Targets 17.14 and 17.15 are related to policy and institutional coherence. The JCM is supported bymany different stakeholders including both Japanese and partner governments, consultants, and third-party
entities. Having sufficient communication among the stakeholders is essential for coherence of the JCM. To
keep this coherence, the JCM scheme needs to fit each country’s unique situation. Rules and guidelines of theJCM have been designed to respect and consider the partner countries’ will and perspective. For example,
Indonesia and Mongolia have integrated the SDGs into their national policies; therefore, they have included
this SDGs aspect in the JCM guidelines. The project participants are required to follow these guidelines andexplain whether the project has negative impacts on the environment and how it contributes to the SDGs andits targets. These efforts ensure consistency of the JCM in their national policies by respecting policy space andleadership of partner countries.
Targets 17.16 and 17.17 are about goals for multi-stakeholder partnerships. Under the JCM
technologies, finance, and capacity building consist of different stakeholders, and this can strengthen
partnership among stakeholders beyond borders and achieve the SDGs and their Targets.
Table 18. Qualitative indicators for the JCM to measure its contribution to Goal 17
17.3

17.9

17.14

Goal and Target[Finance]
Mobilize additional financial resources
for developing countries from multiple
sources[Capacity-building]
Enhance international support for
implementing effective and targeted
capacity- building in developing
countries to support national plans to
implement all the Sustainable
Development Goals, including throughNorth- South, South-South andtriangular cooperation[Policy and Institutional coherence]
Enhance policy coherence forsustainable development

Qualitative indicator
Mobilising private capital towards
supporting sustainable development
in developing countries

JCM Project
JCM scheme

Engaging in the dialogue between
governments and other private sector
actors to share technology andexpertise

JCM scheme

Strengthening local business inpartner countries through direct
investment and providing in-housecapacity

JCM scheme

Supporting sustainable development
policies through working together
with other stakeholders

JCM scheme

19
17.15

17.16

17.17

[Policy and Institutional coherence]
Respect each country’s policy space andleadership to establish and implement
policies for poverty eradication andsustainable development[Multi-stakeholder partnerships]
Enhance the Global Partnership for
Sustainable Development,complemented by multi-stakeholder
partnerships that mobilize and shareknowledge, expertise, technology andfinancial resources, to support theachievement of the Sustainable
Development Goals in all countries, inparticular developing countries[Multi-stakeholder partnerships]
Encourage and promote effective
public, public-private and civil society
partnerships, building on the experienceand resourcing strategies ofpartnerships

Working together with host country
government and following theguideline made by JC meetings

JCM scheme

Supporting joint development
projects with governments, civilsociety and international organisation

JCM scheme

Participating in international
cooperative mechanisms withdifferent stakeholders to diffuse
environmentally sound technologies(EST)

JCM scheme

Providing the full depth of resources,
expertise and technologicalinnovation to different stakeholders

JCM scheme

20

5. Case Studies

Viet Nam: Introduction of High Efficiency Water Pumps in Da Nang City

Yokohama City and Da Nang City have been promoting technical cooperation on infrastructuredevelopment and environmental measures through “City-to-City Cooperation”. The two cities have a longstanding partnership and this kick-started the project. Yokohama Water Co., Ltd. replaced existing
conventional water pumps with Japanese higher efficiency ones in two water pump stations of the water
treatment plant owned by Da Nang Water Supply One-member Limited Company (DAWACO). The newlyintroduced pumps reduced CO2 emissions by reducing power consumption, and have contributed to solving
environmental problems through water utility service.

Da Nang Water Supply One-member
Limited Company (DAWACO)

Installing high efficiency water pumps in ourwater treatment facilities contributes to theachievement of Da Nang City’s “Environmental Cityby 2020” goal. According to a feasibility study carriedout in 2015, upgrading the water pumps would be
the most suitable action for the further developmentof JCM projects in Da Nang City.
The population of Da Nang is estimated toincrease to over 2 million by 2025; therefore, for us,a more stable water supply has become a highpriority. Improving the efficiency of water pumps has
led to increasing water supply capacity to meet thecity's growing water demand.
We supply about 80% of the total water
consumption in Da Nang City. In 2018, we treatedand supplied 72 million tonnes of water to the city.
The installed high efficiency water pumps
contributed to increasing the amount of water by 50
thousand tonnes per day, and the energy efficiency
was improved by around 20%, which led to reducing
electricity consumption in the treatment facility.
Moreover, the new equipment is much quieter, so
our working environment has improved. Technicaltraining was conducted for local employees andengineers, providing instructions for operation andmaintenance of energy-saving pumps.
We expect that the success of this project will
increase the introduction of energy efficiency andhigh performance equipment in water utility business
in Viet Nam.

©Yokohama Water Co., Ltd

Yokohama Water Co., Ltd.

The project was implemented under technicalcooperation in water infrastructure. We applied for
the JCM with DAWACO because we have a long
business relationship with DAWACO and think thatthey are a reliable business partner for this project.
Since the initial investment cost is expensive for
improving energy efficiency of water supply system,
the projects could not be implemented without theJCM. The monitoring period is long for the JCM but
we think of this as “an opportunity to maintain arelationship with the local company” and hope that
it will lead to new business.
Horizontal business networks in Viet Nam havebeen progressing thanks to this project. Currently weare working with Build Own Operate company toinstall inverters for its drinking water treatment
facility in Ho Chi Minh City through the JCM. We did
not have any prior connections with the business
partner for the Ho Chi Minh City project but this Da
Nang project has led to the development of new
customers.

Participation in the JCM has given us a new
viewpoint: “contribution from an environmental
perspective to our water utility business.” Taking
advantage of this experience, we would like toimplement similar projects in other JCM partnercountries to supply safe and secure water to more
people.

21

Mongolia: Installation of 12.7 MW Solar Power Plant for Power Supply In
Ulaanbaatar Suburbs
Farmdo Co., Ltd and Everyday Farm LLC introduced a large-scale Solar Farm® in the suburbs of Ulaanbaatar
to contribute to solving air pollution and improve the quality of vegetables in the city. The Solar PV at thefarm can reduce fossil fuel consumption in Mongolia, thereby decreasing CO2 emissions. In addition, thegenerated electricity is sold to the national grid. In November 2018, the 6th Joint Committee between
Mongolia and Japan decided to issue JCM credits equivalent to 8,880 tCO2 under this project.

Everyday Farm LLC

Under the JCM, the Japanese government
covers a part of its initial investment, which allowed
us to introduce solar PV in Mongolia requiring highinvestment. In addition, through the JCM, we havebuilt a good partnership with Farmdo Co., Ltd, whichenables further business cooperation.
Total electricity production since operations
started comes to 40,139,379 kWh and the amount ofelectricity sold is 38,163,056 kWh (as of 31 December2019).
In 2019, we produced 27 tonnes ofvegetables, and the revenue from the solar PV
project provided us with support to increase
investment in introducing Japanese agricultural
technologies, as well as enabling stable employment
at the farm site.
Through the JCM, not only did we transfer
technology but we also organised technical training
programmes for the local engineers on solar PV
power plant operations. Currently they are working
onsite under online
guidance from the
manufacturer’s engineers. We have conducted study
tours in Japan in order to build local farmers’
capacity on farming techniques that are necessary at
Solar Farm®.
In addition, we attended national andinternational seminars related to the JCM in
Mongolia. Our commitment to solve air pollution
and food insecurity by introducing solar PV in the
agricultural sector was greatly appreciated as aninnovative solution by the Government of Mongolia,
and we have received several awards such as the“Green Certificate” and the “Silk Road Award”.

Farmdo Co., Ltd

We first started operating the farming
photovoltaic system, a combination of solar PV
power generation with agriculture, in Japan. The
Great East Japan Earthquake made us realise theimportance of renewable energy. And then, when wethought about the severe labour shortage facing the
agricultural industry in Japan, we came up with theidea of supporting this unstable sector by utilising
the revenue from sales of electricity generated fromsolar PV power plants. This is how the Solar Farm wasborn. We have always been devoted to improving
Mongolian agriculture, so our company introduced
the Solar Farm through the JCM.
The JCM provided us with support to invest in
agriculture, a highly volatile sector. Of course,
expanding a business overseas comes with somepotential risks. However, the JCM is a bilateralagreement between two countries’ government so it
is very reassuring to have this support from the
Ministry of the Environment Japan.
By participating in the JCM, we have received
many opportunities to attend and give presentations
at both national and international events related toagriculture, environment and climate change. Due tothese activities, we have seen a large increase in thenumber of people who visit the Solar Farm resulting
in new business chances. We plan to expand Solar
Farms to 10 countries including JCM partnercountries by using our business experience andknowledge in Mongolia.

©Farmdo Co., Ltd©Everyday Farm LLC

22

Bangladesh: Installation of High Efficiency Loom at Weaving Factory

Toyota Tsusho Corporation introduced a Japanese high-efficiency air-jet loom into a weaving factory in
Dhaka, Bangladesh. The newly-installed technology has improved energy efficiency, speed, and productivity
compared with existing weaving technology. This project was started based on a proposal carried out by
Japanese companies who were exploring potential JCM projects in Bangladesh. A feasibility study was
conducted for this project before it was actually financed as a JCM project.

Toyota Tsusho Corporation

Toyota Tsusho was established in 1948, and four
years later in 1952, we opened our office in Dhaka.
Since then, we have been strengthening business in
Bangladesh especially introducing Japanese highefficiency-weaving machines into the textile industry.
In general, high-efficiency air-jet looms are
difficult to introduce because the initial cost,
including incidental equipment and technicaltraining for employees, is a high hurdle forcompanies. In addition, the textile industry is easily
influenced by fashion trends and demand isunstable; therefore, it is necessary to be cautious onwhich technology to introduce.
We have a longstanding, trustworthy business
relationship with the local manufacturer who isdeveloping this project with us. The factory wasusing outdated weaving machines and the owner
was considering replacing the machines. They also
were putting focus on low-carbon technologies andenvironmental issues, and were in support of theJCM concept, so decided to apply for the scheme.
The Japanese air-jet loom is much faster andsaves more energy compared to the old machine,
thereby boosting productivity for textile weaving.
Regular maintenance is required in order to maintaincapacity and performance so that the machine canbe used over the long-term. The local factory
conducts inspections on a daily, weekly, and monthly
basis and ensures a working environment for theemployees to be able to work efficiently following
the outlined plan. This would eventually link todevelopment of the labour force.

©Toyota Tsusho Corporation

Since the project began, we have received a lotof support from the Japanese side as well as
Bangladesh side. In 2016, just after the project was
launched, there was a terrorist attack in Bangladesh
and visiting the local factory was impossible at thattime. We were concerned about the lack ofcommunication with the local authorities and ourbusiness partner. However, with support from MOEJ,
officials from Bangladesh government were able tovisit Japan, giving us an opportunity to discuss the
project’s background and the progress being madeby the factory.

In 2018, looking to solve social issues centeredon the SDGs, we formulated “CSR Materiality(Material Issues)” and decided to make it a main
pillar of our management strategy. We are now
engaged in business activities with awareness ofmateriality. Through the JCM we have learned what
the impact is of our business - introducing advanced
technology - in the context of Environmental, Social,and Governance (ESG) and SDGs.
High efficiency machinery in a factory aims to
support and encourage automation in labourintense sectors such as the textile industry. Currently
we are operating several other JCM projects. In the
JCM partner countries, we not only support energy
efficiency in factories but also consider contributing
to industry revolution and development in terms of“jobs that only people can do.”23

Indonesia: Reduction of Energy Consumption by Introducing an EnergyEfficient Waste Paper Processing System into a Packaging Paper Factory

Kanematsu Corporation and PT Fajar Surya Wisesa Tbk. introduced a highly efficient, Japanese system intoa packaging paper factory for its Old Corrugated Cartons (OCC) process. This project began with a feasibility
study conducted by Nomura Research Institute and Aikawa Iron Works Co., Ltd. Following this, Kanematsu
Corporation became the representative company to implement the project with Aikawa Iron Works and PT
Fajar Surya Wisesa Tbk., with their long business connection. In January 2020, the Joint Committee between
Mongolia and Japan decided to issue JCM credits equivalent to 16,177 tonnes of CO2 under this project.

PT Fajar Surya Wisesa Tbk.

We were in the process of expanding ourfactory to increase its capacity, so it was perfecttiming for us to apply for the JCM because we had
previously participated in the Clean Development
Mechanism (CDM), administered by UNFCCC, andwe are constantly adopting new energy saving
technology
tosupportoursustainable
manufacturing business. We are also interested in
JCM credits, which are issued based on emission
reductions under the JCM project. In addition, we
had support from the Japanese side on
methodology development to calculate GHG
emission reductions.

Through the JCM, energy efficiency was
improved by 10% and the amount of processed
waste paper in a day increased from 3,200 tonnes to
4,200 tonnes compared to the old technology. In ourfactory, we now recycle 1 tonne of waste carton
boxes and produce 860-880 kg of new paper per
day, which is made from 100% recycled paper,
primarily used cartons. We received technicaltraining from the manufacturer of the installed
technology and also got guidance on how tomaintain the low-carbon technology after its
installation.
By participating in the JCM, we have attended
several JCM related seminars and events inIndonesia. We gave a presentation about the JCM
programme and energy efficiency technology at theseminar of Paper Industry Association in 2018. We
also closely work with the JCM Secretariat ofIndonesia, including participation at relevant JCM
seminars. We would welcome the chance to makeuse of the experience gained on JCM and participate
in international cooperation in the future.

Kanematsu Corporation

This project was successfully developed throughthe cooperation of different business players,
including consulting company, manufacturers and a
trading company. The most important aspect of the
JCM is transferring Japanese advanced technology
overseas and contributing to the environment. The
old style of trading company, which is buying andselling, is outdated. We now need to look at how we
can provide added-value to business. Most
international and domestic companies are making“environment” as one of important strategies into
their business operations. Therefore, we are also
shifting our business to be more environmentallyfriendly.
The JCM focuses on private sector businesscooperation, making it different from the existing
Official Development Assistance (ODA) which iscurrently dominant in development aid. Somedeveloping countries are no longer eligible for theJapanese ODA, but they still find it difficult to transfer
Japanese advanced technology. Therefore, we think
more private companies will enter and participate in
the JCM. We have been receiving business proposals
from different companies regarding JCM project
development in developing countries and we can saythat interest in the JCM has increased in recent years.
For this project, we participated as arepresentative company in the JCM. This gave us
opportunities to attend JCM related seminars and toshare the business experiences on several occasions
which led to increasing our network with JCM
participant companies as well as the companies thatare interested in the mechanism.

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6. Summary
Indicators for the JCM have assessed its contributions to the SDGs both qualitatively and quantitatively.
We analysed 57 registered JCM projects (15 RE and 42 EE projects) including the JCM scheme. The results of
the assessment showed that the JCM can contribute to 10 Goals of the SDGs: Zero Hunger (Goal 2), Good
Health and Well-Being (Goal 3), Quality Education (Goal 4), Clean Water and Sanitation (Goal 6), Affordable
and Clean Energy (Goal 7), Decent Work and Economic Growth (Goal 8), Industry, Innovation and Infrastructure(Goal 9), Responsible Consumption and Production (Goal 12), Climate Actions (Goal 13), and Partnerships for
the Goals (Goal 17). This proves that the JCM has significant impact on Agenda 2030 and huge potential tocontribute to the SDGs achievement in the partner countries.
Based on the assessment, it can be seen that the JCM is linked to not only environment and energyrelated Goals but also the social dimensions of the SDGs, namely Goals 2, 3, 4, and 8. This is because under theJCM, many different types of projects are being developed and implemented. In this way, the projects bring
benefits to reduce air pollution, increase sustainable food production, build technical and vocational skills for
local project participants, and improve the work environment in factories. The most significant contributions
to the SDGs through the JCM project implementation are for Goals 7, 9, 12, 13, and 17. The JCM introduces
many renewable energy projects and various energy efficiency equipment in the manufacturing sector. It
largely has positive effects on increasing electricity generated from renewable sources, development ofsustainable industry and infrastructure, responsible production, combating against climate change andstrengthening partnerships to achieve the SDGs.
Section 5 outlined the case studies based on the interviews and online surveys from the JCM project
participants. This proves that development and implementation of one JCM project can contribute to several
Goals of the SDGs at the same time. For instance, RE projects in the agriculture sector in Mongolia contributes
to both GHG emission reductions (Goal 13) and development of sustainable agriculture systems (Goal 2). In
developing countries including the partner countries, water infrastructure is becoming an important priority
due to rapid urbanisation and a growing population. The JCM project which introduced high-efficiency water
pumps in a water treatment facility in Da Nang City, Viet Nam, contributed to efficient water distribution (Goal
6) and sustainable water infrastructure (Goal 9). The introduction of high-efficiency equipment in a paper
processing factory in Indonesia can contribute to reducing waste and recycling materials (Goal 12) and
improving energy efficiency (Goal 7). The textile sector is one of the most labour intensive sectors. A project
introducing energy efficiency air-jet looms in a fabric factory in Bangladesh can provide a decent work
environment to employees (Goal 8) while at the same time, reducing energy consumption (Goal 7).
After 2020, when the Parties move towards implementation of the Paris Agreement, we think thatdevelopment of the JCM projects and mitigation action needs from the partner countries will increase.
Therefore, we believe that there will be many potential JCM projects from the SDGs perspective, which cancontribute to solving environmental and social problems. For instance, developing renewable energy
generation in an irrigation system would link to Zero Hunger (Goal 2), Affordable and Clean Energy (Goal 7)
and Clean Water and Sanitation (Goal 6). From the viewpoint of public health and environment, projects related
to wastewater treatment will contribute to Sustainable and Resilient Cities (Goal 11), Industry, Innovation andInfrastructure (Goal 9) and Clean Water and Sanitation (Goal 6). In addition, solid waste and plastic recycling
treatment projects can have huge impacts on Life below Water (Goal 14), Responsible Consumption and
Production (Goal 12), leading to a solution to the issue of plastic pollution in the oceans.
The SDGs are universal goals, and provide guidance on how we should live and how business should
be developed from now on. The SDGs are closely and deeply connected to the government, private sector, andpeople’s everyday lives, so this connection will continue to deepen in every sector. Since many privatecompanies integrate the SDGs into their business strategy, we think that the importance of SDGs in the private
sector will further increase going forward. Countries are also including a component of the SDGs in theirnational policies and climate mitigation actions. The JCM partner countries are developing national sustainable
development plans in order to achieve Agenda 2030. We believe that the JCM can be a potential option forboth private and public sectors to contribute to the SDGs.

Ministry of the Environment, Government of Japan
Office of Market Mechanisms, Climate Change
Policy Division, Global Environment Bureau
1-2-2 Kasumigaseki Chiyoda-ku, Tokyo, 100-8975, Japan
URL: Carbon Market Express https://www.carbon-markets.go.jp/

Institute for Global Environmental Strategies
2108-11 Kamiyamaguchi, Hayama, Kanagawa, 240-0115, Japan
Tel: +81-46-855-3700
Fax: +81-46-855-3709
E-mail: iges@iges.or.jp
URL: https://www.iges.or.jp/en