JCM_MN_JC02_Mtg Rep

Date of meeting: 20 February 2014
Place of meeting: Ulaanbaatar, Mongolia

Joint Committee of the Joint Crediting Mechanism between Mongolia and Japan
Second Meeting
Meeting report

Agenda item 1. Opening
The Co-Chair from the Mongolian side, Dr. Dagvadorj, Chairman of the Climate Change
Coordination Office, Ministry of Environment and Green Development of Mongolia opened
the second meeting of the Joint Committee (JC) of the Joint Crediting Mechanism (JCM), andgave opening remarks.
The Co-Chair from the Japanese side, Mr. Tamura, Director of the Climate Change Division,
International Cooperation Bureau, Ministry of Foreign Affairs of Japan gave opening
remarks.
Table: Attendance
JC Members from Mongolian side
Mr. Dagvadorj D

Ministry of Environment and Green Development

Ms. Gereltsetseg B (alternate)

Ministry of Foreign Affairs

Mr. Altantsetseg B

Ministry of Industry and Agriculture

Mr. Gan-Ochir S (alternate)

Ministry of Mining

Mr. Battulga N

Ministry of Road and Transportation

Ms. Dorjpagma(alternate)

Ministry of Construction and Urban Development

Mr. Bekhbat S

Ministry of Economic Development

Mr. Tumenjargal M (alternate)

Ministry of Energy

Mr. Galimbek Kh

Air Quality Agency of the Capital CityJC Members from Japanese side
Mr. Masami TAMURA

Ministry of Foreign Affairs

Mr. Yoshikazu HASUNUMA (alternate)

Ministry of Economy, Trade and Industry

Mr. Naoki TORII (alternate)

Ministry of the Environment

Mr. Hiroshi FUKASAWA

Embassy of Japan in Mongolia* The names of members present at the meeting are in bold print above.

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Agenda item 2. Organizational matters
Agenda item 2.1 Adoption of the agenda

The JC adopted the agenda of the meeting.
Agenda item 2.2 Attendance

The JC members, other representatives and observers from the Mongolian side and theJapanese side introduced themselves. The JC approved attendance of observers at this JCmeeting.

Agenda item 3. Methodologies
Agenda item 3.1 Proposed Methodologies

The JC considered the proposed methodology “Installation of energy-saving transmission
lines in the Mongolian Grid” and public inputs received to the proposed methodology.
In response to the points raised by the public inputs, the JC concluded as following:i.

Historical data on transmission loss in Mongolia is not readily available. While theemission reductions are proportionate to the project transmission loss in the proposedmethodology, manipulation of project transmission loss is not expected due tocontinuous monitoring by power meters installed at both ends of the transmission line.
Further, intentional increase of the transmission loss will not occur without setting themaximum cap since it results in economic losses.

ii.

The proposed methodology has eligibility criteria which define technical aspects ofconductors. In line with the "Joint Crediting Mechanism Guidelines for Validation andVerification", the third party entities determine whether a project meets those eligibility
criteria not only in the validation but also in the verification stage. Regarding projects towhich this proposed methodology is applied, storage and disposal associated withreplacement of conductors is not expected to cause emissions. Therefore, treatment ofreplaced conductors does not need to be included in the eligibility criteria of thisproposed methodology.

iii. CO2 emission factor of Central Electricity System (CES) in Mongolia has been
calculated and made publicly available by Ministry of Environment and GreenDevelopment.
Based on the consideration, the JC approved the proposed methodology with revisions, as
contained in the Annex 1 to this meeting report.

Agenda item 4. Other matters
Agenda item 4.1 Progress and current status of feasibility and planning studies, model and2

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demonstration projects implemented in FY 2013

The Japanese side introduced the progress and current status of feasibility and planningstudies, model and demonstration projects implemented in FY2013. The JC noted that thereports of the studies in English will be available after April 2014.
Agenda item 4.2 Potential JCM methodologies in Mongolia

The JC discussed the potential JCM methodology on replacement and installation ofhigh-efficient heat only boilers (HOBs) for hot water supply systems in Mongolia. The JC
noted the importance of the replacement of HOBs in Mongolia including its expectedco-benefit effects to reduce air pollution. The JC concluded to continue its discussion on themethodology at a future JC meeting.
Agenda item 4.3 Financing schemes of JCM projects

The JC noted planned financing schemes for the JCM projects. The JC concluded to continue
its discussion at a future JC meeting.
Agenda item 4.4 Technical/advisory panel under the Joint Committee

Both sides noted the necessity of technical assistances for the JC in performing its functions,i.a. possible establishment of ad-hoc panel on methodologies. Both sides also noted that thecapacity building programmes implemented by the Japanese side can contribute to address
such needs. The JC concluded to continue its discussion at a future JC meeting.
Agenda item 4.5 Way forward including the plan for JFY2014

The Japanese side introduced the plan for the JFY 2014. The JC noted the importance offurther involvement of Mongolian companies in the JCM projects and the necessity of
information dissemination of potential project participants of both Mongolia and Japan. The
JC concluded to continue discussion on potential JCM projects at a future JC meeting.

Agenda item 6. Conclusion of the meeting
The Co-Chairs gave closing remarks and closed the meeting.

Annexes to the report
Annex 1 MN_AM001 “Installation of energy-saving transmission lines in the Mongolian
Grid”

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