Article 6 decision andcarbon market mechanism including
the Joint Crediting Mechanism (JCM)
India-Japan Environmental Week
12 th January 2023
kazuhisa KOAKUTSU
Ministry of the Environment, Japan

Potential of Article 6
Gaps in emissions
If fully implementing countries’ conditional NDCs, Global GHG emissions can be reduced by

各国の条件付NDCを完全に導入した場合、現行政策シナリオと比較して温室効果ガス排出量を10%
10 per cent compared to BAU, but in order to achieve 2.0°C and 1.5°C, 30
and 45 per※1 。
削減できるが、2℃/1.5℃シナリオ達成のためには30%又は45%の削減が必要
cent of reduction is respectively needed ※1.
Expected impacts of the Article 6 implementation
Experts have estimated that implementing
Article 6 could reduce additional

4 – 12 billion tCO2

※2emission per yearby 2030.

This corresponds to

10% - 40% of

global CO2 emissions in 2018.

Implementing Article 6 canstimulate global carbon market aswell as private investment, which
simultaneously contribute to global
emission reduction and countries’
economic growth.
Size of carbon markets willreach US$300-400
billion※３ in 2030.

※1 • UNEP. 2022. Emissions Gap Report 2022.
※2 • J. Edmonds et al. 2021. How much could article 6 enhance nationally determined contribution ambition toward Paris
Agreement goals through economic efficiency? (P.18), Climate Change Economics• UNEP and UNEP DTU. 2021. Emissions Gap Report 2021. (P.59)• TSVCM. 2021. TASKFORCE ON SCALING VOLUNTARY CARBON MARKETS Final Report (P.13)※3 • UNEP and UNEP DTU. 2021. Emissions Gap Report 2021 (P.60)• IETA (2021) The Carbon Markets Role of Article 6 Compatible Carbon Markets in Reaching Net-Zero (P.13)

2Article 6 Outcomes from COP27
Guidance on Cooperative
Approaches (6.2)
Adopted:
1. Reporting

Initial Report (outline)
Annual Information (AgreedElectric Format）

Regular Information (outline)

2. Recording and tracking

Guidance to registries
Guidance to international
Registry
Guidance to CARP
Guidance to A6 database

3. Review

Guidelines for A6 TER(technical expert Review)
A6 TER Report (outline)
Training programme

Work Programme (SBSTA)：Workshops/submissions on reporting
Additional functionalities onregistries/international registry
Capacity building

Mechanism（6.4）
Adopted:

1. Rules of procedure of theSupervisory Body
2. Operation of the mechanism
registry
3. Processes for share of proceeds(SOP) (admin/adaptation)
4. Processes overall mitigation in
global emissions (OMGE)
5. Processes for transition of CDM
projects to 6.4 Mechanism
6. Processes for transfer/use ofCERs
7. Reporting by host Parties
Work Programme (SBSTSA/SB)

Avoidance, connection of mechanism
registry, authorization statement
Recommendation on methodologies
including removals
procedures on transfer of CDM
projects and ERs, interoperability ofregistries etc.
Capacity building

Non-MarketApproaches（6.8）
Adopted:1. Schedule for
implementing
the work
programme
activities
2. UNFCCC webbased platform
3. Additional
focus areas
4. Enhanced
networkingandcollaboration
5. Cross-cuttingmatters3

Paris Agreement Article 6 Implementation Partnership
Towards High Integrity Carbon Markets
Overview
Promote international collaboration for capacity building related to Article 6 of the Paris Agreement,
including by sharing good practices and supporting the implementation of Article 6.

Partnership Website :https://A6partnership.org

Participants
47 countries・25 international organizations (As of January 5)
Countries

Organizations

Andorra, Armenia, Australia, Bangladesh,Belize, Bhutan, Brazil, Burundi, Cambodia,Canada, Chile, Costa Rica, Côte d'Ivoire,
Launchevent Estonia, Ethiopia, Fiji,Dominican
Republic,Finland, France, Germany, Ghana, Greece,India, Italy, Kenya, Maldives, Mexico,
Moldova, Mongolia, Morocco, Namibia,Nepal, New Zealand, Palau, Philippines,
Singapore, Sudan, Sweden, Switzerland,Thailand, Timor Leste, Uganda, UAE, UK,
US, Zambia, Zimbabwe

ADB, AfDB, Climate
Focus, Eastern African
Alliance, EBRD, ERCST,GGGI, Gold Standard,ICAT, IETA, IGES,
Perspectives, UNDP,UNEP, UNFCCC,UNIDO, UNU-IAS, WB,West African Alliance,WRI, etc.

Launch event

Signature for collaboration

Date November 16, 2022

Letter of Intent signed on November
16, 2022, between Mr. Nishimura,
Minister of Environment, and Mr.
Stiell, Executive Secretary of theUNFCCC, on collaboration under thispartnership.

Venue COP27 Japan Pavilion
Main participants (Ministerial level)
Japan, US, Germany, Italy, NZ, Singapore,
Sweden, Estonia, UNFCCC secretariat,
World Bank, IETA

4

Basic Concept of the JCM
Facilitate diffusion of leading decarbonizing technologies and infrastructure, etc., throughinvestment by Japanese entities, thereby contributing to GHG emission reductions or removals
and sustainable development in partner countries.
Contribute to the achievement of both countries’ NDCs while ensuring the avoidance of double
counting through corresponding adjustments.
Implement the JCM consistent with the guidance on cooperative approaches, referred to inArticle 6, paragraph 2 of the Paris Agreement.

UNFCCC, Article 6 of the Paris Agreement
Reporting and Corresponding Adjustments

JAPANJCM

PartnerCountry

Leading decarbonizing technologies, etc.,
and implementation of mitigation actions

Operation and management bythe Joint Committee which consists ofrepresentatives from the both sides

Used to achieve
Japan’s NDC

JCM Credits

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

5

JCM Partner Countries (25 countries)

Mongolia
Jan. 8, 2013（Ulaanbaatar）

Ethiopia
Bangladesh
Mar. 19, 2013 (Dhaka) May. 27, 2013 (Addis Ababa)KenyaJun. 12, 2013 (Nairobi)

Maldives
Jun. 29, 2013 (Okinawa)

photo at the time ofViet Nam *The
extension in Oct 2021.
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)

Myanmar
Sep. 16, 2015 (Nay Pyi Taw)

ThailandNov. 19, 2015 (Tokyo)

Philippines
Jan. 12, 2017 (Manila)

SenegalAug. 25, 2022 (Dakar)

TunisiaAug. 26, 2022 (Tunis)

Azerbaijan
Sept. 5, 2022 (Baku)

Moldova
Sept. 6, 2022 (Chisinau)

Georgia
Sept. 13, 2022 (Tbilisi)

Sri Lanka
Oct. 10, 2022 (Colombo)

Uzbekistan
Oct. 25, 2022 (Tashkent)

Papua New Guinea
Nov. 18, 2022 (Sharm-el-Sheikh)6Projects supported by the JCM financing programmes
Renewable Energy

Solar power, FARMLAND Co.,
Ltd., Chile

Floating Solar PV,TSB Co.,
Ltd.,Thailand

Hydro Power Plant, Toyo
Energy Farm Co., Ltd.,
Indonesia

Biomass Co-Generation
System, Fuji-Foods Coporation,
ThailandEnergy efficiency [Consumer sector]

High-efficiency refrigerator,
Mayekawa MFG, Indonesia

Energy saving atconvenience stores,
Panasonic, Indonesia

Energy efficiency [Urban sector]

LED street lighting systemwith wireless network control,
MinebeaMitsumi, Cambodia

Amorphous transformers inpower distribution, Hitachi
Materials, Vietnam

Binary Power Generation Projectat Geothermal Power Plant, MHI,
Ltd., Philippines

Energy efficiency [Industrial sector]

Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia

High-efficiency airconditioning system,
Hitachi, Daikin, Vietnam

Waste

Power Generation withMethane Gas Recovery
System, NTTDATA, Mexico

Waste to Energy Plant,
JFE engineering, Myanmar

Energy-saving of mobile
communications basetransceiver stations,KDDI Corp. Indonesia

Transport

CNG-Diesel Hybrid
Public Bus, HokusanCo., Ltd., Indonesia

7JCM Financing Programme by MOEJ (FY2013～2022) as of December, 20228

Technologies Transferred through JCM (FY2013-2022)
Total of 238 JCM Projects being developed in 25 partner countries (December, 2022)
36% for energy efficiency, 54% for renewable energy, 4% for Effective use ofEnergy, Transport, Waste to energy, F-gas Recovery and Destruction and REDD+project shares
Waste (4) 2%• Waste to Energy• Power Generationwith Methane Gas

Effective Use ofEnergy (10) 4%• Waste Heat Recovery• Gas Co-generation

Energy efficiency (87)36%• Boiler• Air Conditioning• Refrigerating/Chiller• Looms• Transformer• LED Lighting

Transport (3) 1%

REDD+ (2) 1%• Digital Tachographs• Modal Shift• CNG-Diesel Hybrid• Controlling slush
and burn

2%

1%

1%

December,2022

F-gas (4) 2%

2%

4%• Recovery &Destruction

36%

54%

Renewable energy(128) 54%
• Solar(&Storage battery)• Micro hydro• Wind• Biomass• Geothermal9Thank you for your kind attention