Japan’s Activities

for Technology Transfer

25th April 2017

Yusuke TERAOKA(MOE)

Topics to be IntroducedRegarding low-carbon technology development and transfer

in the region

1. Workshop for CTCN Support

2. Training Programme on Developing Project Proposals

on Climate Change Mitigation

3. Japan's Assistance Initiatives to address Climate

Change

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1. CTCN Support

5. Workshop for CTCN Support

MOEJ has held regional workshops on Low Carbon Technology Transfer and Diffusion to strengthen the activities of CTCN three times so far.

The activities in the workshops:• to learn how to prepare requests to be submitted to CTCN;• to share knowledge and experiences on utilizing various climate

financing schemes (ADB, JICA and etc);• to discuss possible application of advanced low-carbon technologies

in different contexts and conditions

Regional Workshop on Low-carbon Technology Transfer and Diffusion @Bangkok in 2015, 2016 / @Manila in 2017

Overview

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1. To share knowledge on project development process

2. To enhance understanding of advanced low carbon technologies presented by

Japanese private companies

3. To facilitate internal / international cooperation for low carbon technology

The workshop was held by MOE, ADB, DENR & GEC.

Date: 6th and 7th February 2017

Venue: ADB Headquarter in Manila, Philippines

Participants: 62 persons

• NDEs & NDAs in Asia Pacific Region

• International/ Regional Institutions (AIT, CCA, CTCN, IGES, TERI, UNEP)

• Japanese Private Companies

• Stakeholders in Philippines

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5. Regional Workshop for Low-Carbon Technology Development and Transfer 2017

Overview

Objectives

We discussed issues on:

application to local condition, strategies for diffusion, enabling environments,private sector’s involvement, access to multilateral & bilateral finance, etc..

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2. Training Programme on Developing Project

Proposals on Climate Change Mitigation

Training Programme on Developing Project Proposals on Climate Change Mitigation

The 10 key aspects relating to Green Climate Fund

1. GCF Governance

2. GCF Revenues and capitalization

3. Accredited entities to the GCF

4. Investment Framework

5. Project Approval Process

6. Financial Instruments offered by the GCF

7. Project Pipeline

8. Results Management Framework

9. Concept note development

10.Project Preparation Facility

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Five Project Ideas developed by work groups:

1. [Bangladesh/India] -Promotion of Solar pumps at Individual level for irrigation needs

2. [Indonesia] -Smart Street Lighting Initiative (SLLI)

3. [Philippines] -Renewable Energy (RE) Hybrid System Investment Program

4. [Thailand] -Wind Power Plant

5. [Vietnam] -Energy Efficiency of Industrial Enterprises Project

Beginner’s Guide to Climate Change Mitigation Funding

Features major International Financial Institutions – ADB, CIF, GEF, and GCF

Designed for a wide range of readers

Provides an overview of the operational modalities and key features of various IFIs

Aimed to help its readers, individuals and organisations, in choosing a suitable option to fund their projects

Booklet

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3. Japan's Assistance Initiatives to address

Climate Change

7. Japan's Assistance Initiatives to address Climate Change

• In Nov. 2016, Japan announced the initiative collated the information on the Japan’s major supports for policies and measures in the developing countries to address climate change.

• Japan will continue to undertake its support activities based on the initiatives in accordance with various needs of developing countries, while taking advantage of Japan’s strengths.

Outline

【１】Mitigation：Diffusion of superior low-carbon-emission technology

【２】Adaptation：Sharing of Japan’s experiences and cases

【３】Transparency: Human resource developmentfor inventory enhancement

【４】Measures against fluorocarbons：Comprehensive measures for controlling emission of fluorocarbons

【５】SDGs：Support for sustainable societies

Main Areas of Japanese Contribution

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Thank you for your attention!

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1. Subsidy Programme for Innovation of Low-carbon Technologies for Developing Countries

The MOEJ provides Japanese companies with subsidies to cover the partial project expenses.Those projects should demonstrate innovational modification (renovation) of advanced low-carbon technologies to meet the requirement of host countries such as environmental regulations and system, cultural practices and restriction of energy resources.

JapaneseCompany

Return

Development of low-carbon technology and demonstration

Renovation(Innovational Modification)

FinancialSupport

MOEJ

Other developingcountries

Developingcountries

Social Infrastructure Energy saving devicesRenewable energy & distributed

energy Low-carbon public

transportation systemOptimized OM system of

water facilitiesWaste management

technologiesDistrict cooling system

High-efficiency motor with inverter control

High-efficiency air conditioner and chiller

High-efficiency air compressor system

Electric power generation, heat generation, and/or cogeneration with the use of renewable resources

Self-reliant or distributed low-carbon energy system

Heat pump system

Contents

Innovationfor developing countries

Examples of low-carbon technologies

Market deployment and dissemination

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1. Subsidy Programme for Innovation of Low-carbon Technologies for Developing Countries

Expanded Diffusion

Reduction of CO2 Emission by improvement and diffusion of E-Trike “Pecolo” Company: prozza

In Laos, air pollution caused by tuk-tuks tends to spread.

From both aspects of energy and environment, the government is trying to facilitate electric vehicles, which are well balanced both in price and quality.

However, there are many kinds/styles of electric trikessuch as buses, taxis and cargos in various countries.This is of a hindrance for diffusion.

Given that situation, the common platform has been invented so that the specification can conform with the regulations in each country.

At present , 10,000 vehicles are running in Lao.The change from old-typed vehicles is expected in the future.

Points of renovation and prospect of diffusion

OutcomeLao PDR

©2015 Google

● Luang Phabang

●Pakse

The Capital of Lao PDR is Viang chan , where the number of cars is increasing.Luang Phabang has the increasing number of trikes..Especially Luang Phabang is a world heritage site so that environmental preservation is valued.

In 2015, the pilot project was launched.The next prototypal vehicle is going to be developed for improvement.

1. Subsidy Programme for Innovation of Low-carbon Technologies for Developing Countries

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2. JCM

JAPANPartner Country

Leading low carbon technologies, etc, and implementation of mitigation

actions

Facilitating diffusion of leading low carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions, and contributing to sustainable development of developing countries.

Appropriately evaluating contributions from Japan to GHG emission reductions or removals in a quantitative manner and use them to achieve Japan’s emission reduction target.

Contributing to the ultimate objective of the UNFCCC by facilitating global actions for GHG emission reductions or removals.

Basic Concept of the JCM

JCMProjects

GHG emission reductions/

removals

Operation and management by the Joint Committee

which consists of representatives from the

both sides

Used to achieve Japan’s

emission reduction target

Credits

MRV*

*measurement, reporting and verification 15

<Objectives>

Mongolia Jan. 8, 2013（Ulaanbaatar）

BangladeshMar. 19, 2013(Dhaka)

EthiopiaMay 27, 2013(Addis Ababa)

Kenya Jun. 12,2013 (Nairobi)

MaldivesJun. 29, 2013(Okinawa)

Viet Nam Jul. 2, 2013 (Hanoi)

JCM Partner Countries

Japan has held consultations for the JCM with developing countries since 2011 and has established the JCM with Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet

Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand and the Philippines.

Lao PDR Aug. 7, 2013(Vientiane)

Indonesia Aug. 26, 2013(Jakarta)

Costa Rica Dec. 9, 2013(Tokyo)

Palau Jan. 13, 2014(Ngerulmud)

CambodiaApr. 11, 2014(Phnom Penh)

MexicoJul. 25, 2014(Mexico City)

Saudi Arabia May 13, 2015

ChileMay 26, 2015(Santiago)

MyanmarSep. 16, 2015(Nay Pyi Taw)

ThailandNov. 19, 2015(Tokyo)

the PhilippinesJan. 12, 2017(Manila) 16

Emission reduction potential by JCM projects

Phase 1(Started operation)

Phase 2(in preparation）

Phase 3（in planning）

Phase 1 (started operation)Installed 1,618 transformers

Potential emission reductions 632 tCO2/y

Phase 2 (in preparation)Plan to install 4,834 transformers

Potential emission reduction 4,360 tCO2/y

Phase 3 (in planning stage)Plant to install transformers in Northern Viet Nam

Installation of energy efficient transformers with amorphous metal core Installation of energy efficient transformers in a power distribution grid to reduce no-load

losses by transformers by 60%

Actual project

Potentials

In Mongolia, the similar project is planned in cooperation with Asia

Development Bank

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平成25年度予算○○百万円

JPY 1 billion (approx. USD 10 million) ※JPY 1.2 billion in 2016, and 1.8 billion in 2015 and 2014

respectively

Draft Budget for FY2017

To provide the financial incentives for the adoption of advanced low-carbon technologies

which are superior in GHG emission reduction but expensive in ADB(Asian Development

Bank)-financed projects

Scheme

To develop ADB projects with sustainable and low-carbon transition perspective by introducing advanced low-

carbon technologies as well as to acquire JCM credits

Purpose

MOEJ

ADB

JFJCM(Trust Fund)

ADB source（OCR1/ADF2)

JCM Credits

Grant (Sovereign)

Loan/Grant etc.

Project

Additional costs from advanced

low-carbon technologies

Mitigation through conventional technologies

(Selection from ADB pipeline)

MRV

Co-Financing partners(Other financial

institutions and funds)Loan/Grant etc.

Co-financin

g

GHG reduction

Contribution

Interest Buy-down(Non-sovereign)

1 Ordinary Capital Resources are from: (1) Paid-in capital provided by shareholders, (2) Funds borrowed from capital markets and private placements, (3) Accumulated retained income (reserves). OCR loans are provided to middle-income countries at a quasi-market rate.

2 Asian Development Fund offers concessional loan and grant to low-income countries.

ADB Trust Fund: Japan Fund for Joint Crediting Mechanism (JFJCM)

※Budget will be fixed after approval by the Parliament(1 USD = 100 JPY)

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Cooperation with MDBs

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3. City-to-City Collaboration

Feasibility study for JCM project by city to city collaboration

-The feasibility study supports foreign cities’ effort to create the low carbonized, resilient and sustainable society by

means of the sufficient experience and knowledge that Japanese cities have.

-The goals are to establish JCM projects and develop continuously the JCM projects to the other areas

Planning the implementation policy

Phase 1

FS implementation

Describing the study detail

Local survey

Phase 2

Phase 3

Phase 4

Project establishment

Effect of city to city collaboration

-Japanese cities support to establish the master plan for low carbon society

-Partner cities provide the local information and request to select candidate projects.

-Selection of the suitable location for the study by partner cities’ cooperation.-Local data can be provided.

-Permission procedure is supported by partner cities. -Local vendor’s information can be provided by partner cities

Project creating flow

Outline

Japanese cities can give the advise during the selection and

evaluation of suitable technology and the project

management

Capacity building

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Japan’s City involved in C to C

・Hokkaido Prefecture

・Kawasaki City

・Yokohama City

・Kitakyushu City etc…

JCM projects established from city to city collaboration

Vietnam:

Digital Tachographs for eco driving in Ho chi minh

Solar PV in Shopping Mall in Ho chi minh

Air-conditioning Control System in Ho chi minh

Water Pumps in Da nang

Malaysia:

Solar PV in Iskandar

Myanmar:

Waste to Energy Plant in Yangon

Brewing Systems to Beer Factory in Yanogn

Once-through Boiler in Instant Noodle Factory in Yangon

Rice Husk Power Generation in Ayeyarwady Region

Indonesia:

Centrifugal Chiller in Shopping Mall Slabaya

Smart LED Street Lighting System in Bandung

Air-conditioning Utility System in Airport in Batam

Thailand:

Waste Heat Recovery in Cement Plant in Rayong

Solar PV and EMS in Paint Factory in Bangkok

Cambodia:

Solar PV & Centrifugal Chiller in Phnom Penh

Project in 2014Project in 2015Project in 2016

The following map shows the areas of JCM projects developed from city to city collaboration study

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4. Co-Benefit Approach

• A co-benefit approach is a strategy for the purpose of achieving reduction both of air pollutants and GHG emissions in a single policy or measure.

• MOEJ has been supporting a cooperative research, feasibility study, training and seminar in order to lead to a JCM project.

4. Co-Benefit Approach

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Issues to be addressed in water quality managementIndonesia has processed marine products factories scattered, many of which don’t manage waste water properly and release it into rivers and sea, ending up making the environment worse.

2015：Investigation of the technology of waste water treatment; survey of the location of facility to be settled; Training seminar & workshop

2016：Detailed design; settlement of equipment; on-site workshop

2017：Test working; training in Japan; on-site workshop

2018：Monitoring; calculation & evaluation of impact; policy proposal

201720162015

SurveyOperation monitoring

DesignTest

working

seminar, reporting

Implementation plan

Location

Example: Waste Water Management in Marine Product Industry in Indonesia

Co-benefits

○ to comply with the effluent standard ○ to reduce GHGs by recovering methane

gas

2018

Balijakarta

Denpasar

Jembrana

Indonesia

summary

Anaerobic Treatment＋Energy recovery

Inflow Tank

Degradation of Oil

Aeration Tank

Setting Tank

sludge

excesssludge

To river

Dry

Water Quality

Climate Change