JCM_TN_RoI_ver01.0

Rules of Implementation ofthe Joint Crediting Mechanism (JCM)
The Joint Committee of the JCM, mentioned in “Memorandum of Cooperation on the Joint
Crediting Mechanism between the Government of Japan and the Government of the Republic ofTunisia”, hereby establishes the rules of implementation of the JCM as follows:A.
1.

Purpose of the JCM

The JCM aims to facilitate diffusion of, among others, leading decarbonizing

technologies, products, systems, services and infrastructure as well as implementation ofmitigation actions, thereby contributing to greenhouse gas (hereinafter referred to as “GHG”)
emissions reductions or removals and sustainable development in Tunisia.
2.

The JCM also aims to appropriately evaluate GHG emission reductions or removals ina quantitative manner and contribute to the achievement of nationally determined contributionsof Japan and Tunisia under the Paris Agreement.
B.
3.

GHGs

are

Scope

carbon dioxide (CO2),methane (CH4),

nitrous oxide(N2O),

hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen
trifluoride (NF3).
4.

Credits under the JCM (hereinafter referred to as “JCM credits”) are issued based on

quantified amount of GHG emission reductions or removals achieved by project participants in
the implementation of GHG emission reductions or removals project activities under the JCM(hereinafter referred to as “JCM projects”).
5.

The applicable period for issuance of JCM credits covers GHG emission reductions orremovals from JCM projects realized after 1st January 2021 until 31st December 2030. The Joint
Committee may decide to extend the applicable period for issuance of JCM credits.
6.

Each JCM project selects the crediting period which is either a fixed period of 10 years,

or a renewable period of five (5) years which may be renewed twice at the maximum. JCM credits
are issued based on GHG emission reductions or removals realized during the crediting period1

JCM_TN_RoI_ver01.0

within the applicable period for issuance of JCM credits referred to in paragraph 5.
C.
7.

Joint Committee

The Joint Committee develops or modifies this Rules of Implementation, rules andguidelines, forms and necessary documents for the implementation of the JCM, including, but notlimited to:(a)Rules of Procedures of the Joint Committee(b)

Project Cycle Procedure(c)Guidelines for Developing Proposed Methodology(d)Guidelines for Developing Project Design Document and Monitoring Report(e)Guidelines for Developing Sustainable Development Implementation Plan andReport(f)Guidelines for Designation as a Third-Party Entity(g)Guidelines for Validation and Verification(h)Common Specifications of a JCM registry

8.

The Joint Committee designates third-party entities as referred to in paragraph 18.

9.

On the basis of a Project Idea Note (hereinafter referred to as “PIN”) submitted byproject participants, the Joint Committee decides to object or not to object to the planned projectdescribed in the PIN.
10.

On the basis of a request for registration of a JCM project submitted by project

participants, the Joint Committee decides to register the JCM project, which was validated by athird-party entity, and adopts the percentage of JCM credit allocation for the JCM project.
11.

On the basis of a request for notification to each government of issuance of JCM credits

submitted by project participants, the Joint Committee notifies each government to issue the JCM
credits, which were verified by a third-party entity.
12.

The Joint Committee develops, where necessary, reports on the status of implementationof the JCM, and discusses issues related to the operation and management of the JCM.
13.

The Joint Committee establishes its secretariat for the implementation of the JCM.

2

JCM_TN_RoI_ver01.0

D.
14.

Each Government

Each government, based on the rules and guidelines to be developed by the Joint

Committee and in accordance with relevant domestic laws and regulations in respective countries
to the implementation of the JCM:(a)

Establishes and maintains a registry in line with the Common Specifications ofthe JCM Registry;(b)

On the basis of notification for issuance of JCM credits by the Joint Committee,issues the notified amount of JCM credits to their respective registries.

15.

Each government promptly informs the other government of the issuance of JCM credits.

16.

Each government takes necessary measures to ensure transparency in theimplementation of the JCM.
17.

Neither government uses any JCM projects for the purpose of any other international

climate mitigation mechanisms, in order to avoid double counting.
E.
18.

Third-party Entities

A third-party entity that is designated by the Joint Committee:(a)On the basis of requests from project participants, validates the project as
described in a Project Design Document (hereinafter referred to as “PDD”)
prepared by the project participants, in line with the Guidelines for Validation andVerification and informs the project participants of the validation result;(b)

On the basis of requests from project participants, verifies GHG emission
reductions or removals achieved by the JCM project as described in themonitoring report prepared by the project participants, in line with the Guidelines
for Validation and Verification, records the verification result in a verification
report and sends the report to the project participants.
F.

19.

Project Participants

Project participants:(a)

Prepare a PIN and submit it to the Joint Committee for its decision;(b)

Prepare a draft methodology and submit it to the Joint Committee for its approval;

3

JCM_TN_RoI_ver01.0(c)Prepare a draft PDD and submit it to a third-party entity for validation and to theJoint Committee for public inputs;(d)Prepare a Sustainable Development Implementation Plan (hereinafter referred to as“SDIP”) and submit it to the JCM secretariat for review;(e)Submit the PDD that was validated by the third-party entity and the percentageof JCM credit allocation and positively reviewed SDIP, to the Joint Committee
for its registration of the JCM project;(f)

Implement the JCM project and conduct monitoring in line with the PDD;

(g)

Prepare a project implementation report and submit it to the Joint Committee
annually until the end of the operational lifetime of the JCM project or the end ofthe crediting period, whichever comes first;(h)Prepare a monitoring report and send the report to a third-party entity forverification;(i)

Prepare a Sustainable Development Implementation Report (hereinafter referred toas “SDIR”) and submit it to the Joint Committee for an evaluation(j)

Submit a verification report prepared by the third-party entity to the Joint
Committee and request notification to each government for issuance of JCM
credits.
G.

20.

Submission of Project Idea Note

The project participants prepare a PIN and submit it to the Joint Committee. Those

planned projects described in the PINs to which the Joint Committee decides not to object may
proceed to the request for registration of project.
H.
21.

Development of Methodologies

Project participant prepares a draft methodology and submits it to the Joint Committee.

The submitted draft methodology, after its completeness being checked, goes through public
inputs process.
22.

The Joint Committee determines either to approve or reject the draft methodology,

taking into consideration, among other things, inputs received and notifies the result to project
participant, as applicable. The Joint Committee makes publicly available the relevant informationon the approved methodologies through a website.

4

JCM_TN_RoI_ver01.0I.
23.

Designation of Third-party Entities

Upon receiving an application for designation as a third-party entity submitted by acandidate, the Joint Committee designates a third-party entity in line with the Guidelines for
Designation as a Third-Party Entity, and makes publicly available the relevant information on thedesignated third-party entity through a website.
24.

The Joint Committee may suspend or withdraw the designation of a third-party entity if

it has found fraud, malfeasance or incompetence of the entity.
J.
25.

Validation

Validation is the process of independent evaluation of a proposed JCM project by athird-party entity against the Guidelines for Validation and Verification.
26.

Project participants develop a PDD by filling in the form and request a third-party entity

to validate the proposed JCM project.
27.

The third-party entity, in line with the Guidelines for Validation and Verification,validates the proposed JCM project as described in the PDD and notifies the result of thevalidation to the project participants.
K.
28.

Registration

Registration is the formal acceptance by the Joint Committee of a validated project as a

JCM project.
29.

Project participants of a JCM project consult among themselves and with bothgovernments the percentage of JCM credit allocation among the project participants of Japan, theproject participants of Tunisia, the Government of Japan and the Government of the Republic ofTunisia respectively, taking into consideration their respective contribution to GHG emission
reductions or removals by the JCM project.
30.

Project participants submit the PDD, which was validated by the third-party entity, thepercentage of JCM credit allocation and positively reviewed SDIP, to the Joint Committee andrequest for their registration.

5JCM_TN_RoI_ver01.0

31.

Upon receiving a request for registration from project participants, the Joint Committee

decides the percentage of JCM credit allocation, registers as the JCM project, notifies eachgovernment of the registration, and makes publicly available the relevant information on the JCM
project through a website.
MonitoringL.
32.

Project participants implement a JCM project and monitor GHG emission reductions or

removals by the JCM project based on the PDD.
M.
33.

Verification

Verification is the periodic independent review and ex post determination of monitoredGHG emissions reductions or removals for a specific monitoring period of a registered JCM
project conducted by a third-party entity.
34.

Project participants prepare a monitoring report and request a third-party entity forverification.
35.

The third-party entity, in line with the Guidelines for Validation and Verification, verifies

the amount of GHG emission reductions or removals on the basis of the monitoring reportsubmitted by the project participants, prepares a verification report and sends the report to theproject participants which requested verification.
N.
36.

Issuance of JCM Credits

Each government establishes a registry to record and use JCM credits, measured inmetric tonnes of carbon dioxide equivalent (tCO2eq) in line with the methodologies and metrics
assessed by the Intergovernmental Panel on Climate Change.
37.

Project participants request the Joint Committee to notify each government to issue JCM

credits to its respective account in the registry on the basis of the verification report and evaluatedSDIR, in line with the percentage of JCM credit allocation decided in paragraph 31.
38.

Upon receiving the request for issuance of JCM credits from project participants, the6JCM_TN_RoI_ver01.0

Joint Committee notifies each government of issuance of JCM credits
39.

The Joint Committee makes publicly available the relevant information on the issuanceof JCM credits through a website.
O.
40.

Use of JCM Credits

JCM credits issued from emission reductions and removals may be used towards theachievement of Japan’s nationally determined contribution and the rest of the said JCM credits
may contribute to the achievement of Tunisia’s nationally determined contribution, while ensuringthat double counting is avoided on the basis of corresponding adjustments.
41.

JCM credits are issued in the JCM registry of Japan and the JCM registry of Tunisia

respectively with the avoidance of double counting. JCM credits issued by each government aretradable within its respective country.
42.

JCM credits may not be traded between the JCM registry of Japan and the JCM registryof Tunisia unless each government establishes necessary arrangements for the trade.
43.

Each governments authorize the JCM credits issued in the JCM registry of Japan for theuse toward the achievement of Japan’s nationally determined contribution as internationallytransferred mitigation outcomes, consistent with the guidance on cooperative approaches, referred
to in Article 6, paragraph 2 of the Paris Agreement (hereinafter referred to as “the guidance”).
44.

Each government may authorize part of JCM credits for use for other international

mitigation purposes, as appropriate, consistent with the guidance.
45.

The Government of the Republic of Tunisia applies a corresponding adjustment to theJCM credits issued in the JCM registry of the Japan as well as the JCM credits issued in the JCM
registry of Tunisia and authorized for the use toward other international mitigation purposes,consistent with the guidance.

46.

Each government checks the status of the issuance and use of JCM credits and makes

sure that double counting is avoided as described in paragraphs 17 and 40.

7