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The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan

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Page 1: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

TheJointCreditingMechanismandArticle6

KazuhisaKOAKUTSUMinistryoftheEnvironment,Japan

Page 2: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

JAPANPartner CountryLeading low carbon technologies,

etc, and implementation of mitigation actions

Ø Facilitatingdiffusionofleadinglowcarbontechnologies,products,systems,services,andinfrastructureaswellasimplementationofmitigationactions,andcontributingtosustainabledevelopmentofdevelopingcountries.

Ø AppropriatelyevaluatingcontributionsfromJapan toGHGemissionreductionsorremovalsinaquantitativemannerandusethemtoachieveJapan’semissionreductiontarget.

Ø ContributingtotheultimateobjectiveoftheUNFCCCbyfacilitatingglobalactionsforGHGemissionreductionsorremovals.

BasicConceptoftheJCM

2

JCMProjects

GHG emission reductions/

removals

Operation and management by the Joint Committee which consists of representatives from

the both sidesUsed to achieve Japan’s emission reduction target Credits

*measurement, reporting and verification

MRV*

Page 3: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

JCM

ProjectCycleoftheJCMandtheCDM

SubmissionofProposed

Methodology

ApprovalofProposed

Methodology

DevelopmentofPDD

Validation

Registration

Monitoring

Verification

Issuanceofcredits

CDM

Project Participant / Each GovernmentJoint Committee

Joint Committee

Project Participant

Third Party Entities

Joint Committee

Project Participant

Third Party Entities

Joint Committee decides the amountEach Government issues the credit

Project Participant

CDM Executive Board

Project Participant

Project Participant

Designated Operational Entities(DOEs)

CDM Executive Board

DOEs

CDM Executive Board

<Main actors at each process>

3Can

be

cond

ucte

d by

the

sam

e TP

EC

an b

e co

nduc

ted

sim

ulta

neou

sly

Page 4: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

MongoliaJan.8,2013(Ulaanbaatar)

BangladeshMar.19,2013(Dhaka)

EthiopiaMay27,2013(AddisAbaba)

KenyaJun.12,2013(Nairobi)

MaldivesJun.29,2013(Okinawa)

VietNamJul.2,2013(Hanoi)

JCMPartnerCountriesØ JapanhasheldconsultationsfortheJCMwithdevelopingcountriessince2011andhasestablished

theJCMwithMongolia,Bangladesh,Ethiopia,Kenya,Maldives,VietNam,LaoPDR,Indonesia,CostaRica,Palau,Cambodia,Mexico,SaudiArabia,Chile,Myanmar,ThailandandthePhilippines.

LaoPDRAug.7,2013(Vientiane)

4

IndonesiaAug.26,2013(Jakarta)

CostaRicaDec. 9,2013(Tokyo)

PalauJan. 13,2014(Ngerulmud)

CambodiaApr. 11,2014(PhnomPenh)

MexicoJul. 25,2014(MexicoCity)

SaudiArabiaMay13,2015

ChileMay26,2015(Santiago)

MyanmarSep.16,2015(NayPyi Taw)

ThailandNov.19,2015(Tokyo)

thePhilippinesJan.12,2017(Manila)

http://japan.kantei.go.jp/

Page 5: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

ProgressoftheJCMineachpartnercountryasofJuly232018

5

Partnercountries Start from No.ofJC No. ofregistered

projectsNo.ofapprovedmethodologies

Pipeline(JCMFinancingProgramme &DemonstrationProjectsinFY2013-2018)

Mongolia Jan2013 5 5 3 8Bangladesh Mar2013 4 1 3 5Ethiopia May 2013 3 3 2Kenya Jun2013 3 3 3

Maldives Jun2013 3 1 1 2Viet Nam Jul2013 6 5 9 21Lao PDR Aug2013 3 1 1 4Indonesia Aug2013 8 13 16 33CostaRica Dec2013 2 3 2Palau Apr2014 5 3 1 4

Cambodia Apr2014 4 1 2 6Mexico Jul2014 2 1 5

SaudiArabia May 2015 2 1 1Chile May2015 2 1 1

Myanmar Sep2015 2 1 6Thailand Nov2015 4 4 7 26Philippines Jan 2017 1 8

Total 17 59 34 56 137

Page 6: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

IssuanceofJCMCredits

uTotalof15projectsissuedcreditsundertheJCMuTotalamountofcreditsissuedare11,469t-CO2

Country Notificationdate

Amountsofcreditsissued(tCO2)

Total Japanese

governmentJapanesecompany

Partnergovernment

Partnercompany

Indonesia 2016/05/122018/07/10 745 380 70 279 16

Mongolia 2016/09/292017/10/24 9,104 6,372 911 1,821 0

Vietnam 2017/10/10 439 277 29 45 88

Palau 2016/12/192018/01/30 881 659 0 222 0

Thailand 2018/04/20 300 151 0 0 149

Page 7: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

TheParisAgreementArticle6andtheJCM

7

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8

Ø Useofmarketmechanisms,includingtheJCM,isarticulatedunderArticle6whichprescribesfortheuseofemissionreductionsrealizedoverseestowardsnationalemissionreductiontargets.

Ø TheamountofemissionreductionsandremovalsacquiredbyJapanundertheJCMwillbeappropriatelycountedasJapan’sreductioninaccordancewiththeParisAgreement.

Ø ThedevelopmentoftheguidanceforrobustaccountingincludingforavoidanceofdoublecountingtobeadoptedbytheCMA*.

*theConferenceofthePartiesservingasthemeetingofthePartiestotheParisAgreement

TheJCMrelatedArticlesintheParisAgreement

2.Partiesshall,whereengagingonavoluntarybasisincooperativeapproachesthatinvolvetheuseofinternationallytransferredmitigationoutcomestowardsnationallydeterminedcontributions,promotesustainabledevelopmentandensureenvironmentalintegrityandtransparency,includingingovernance,andshallapplyrobustaccountingtoensure,interalia,theavoidanceofdoublecounting,consistentwithguidanceadoptedbytheConferenceofthePartiesservingasthemeetingofthePartiestotheParisAgreement.

3.TheuseofinternationallytransferredmitigationoutcomestoachievenationallydeterminedcontributionsunderthisAgreementshallbevoluntaryandauthorizedbyparticipatingParties.

Article6oftheAgreement

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9

BilateralDocumentbetweenJapanandeachJCMpartnercountry1.TheJapanesesideandthe[NameofPartnerCountry]side(hereinafterreferredtoas“bothsides”),inpursuitoftheultimateobjectiveoftheUnitedNationsFrameworkConventiononClimateChange(hereinafterreferredtoasthe“Convention”)asstatedinitsArticle2andofachievingsustainabledevelopment,andinordertocontinuetoaddressclimatechangeincooperationbeyond2012,promotetheLowCarbonGrowthPartnershipasfollows.RuleofimplementationfortheJCM1.PurposeoftheJCMTheJCMhasthefollowingpurposes:(a)Tofacilitatediffusionofleadinglowcarbontechnologies,products,systems,services,andinfrastructureaswellasimplementationofmitigationactions,andcontributingtosustainabledevelopment of[NameofPartnerCountry];

TheJCM,SD,EnvironmentalIntegrity,Governance

2.Partiesshall,whereengagingonavoluntarybasisincooperativeapproachesthatinvolvetheuseofinternationallytransferredmitigationoutcomestowardsnationallydeterminedcontributions,promotesustainabledevelopmentandensureenvironmentalintegrityandtransparency,includingingovernance,andshallapplyrobustaccountingtoensure,interalia,theavoidanceofdoublecounting,consistentwithguidanceadoptedbytheConferenceofthePartiesservingasthemeetingofthePartiestotheParisAgreement.

Article6oftheAgreement

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10

SDGuidelinesimplementedinIndonesiaandJapan

No. Items Questions1 EIA Does the proposed project require official/legal process of EIA?2

Pollution Control(No need to answer if EIA is

required)

Does the proposed project emit air pollutants?

3 Does the proposed project discharge water pollutants or substances which influence BOD, COD or ph, etc.?

4 Does the proposed project generate waste?

5 Does the proposed project increase noise and/or vibration from the current level?

6 Does the proposed project cause ground subsidence?7 Does the proposed project cause odor?

8 Safety and health Does the proposed project create dangerous condition for local communities as well as individuals involved in the project, during either its construction or its operation?

9

Natural Environment and biodiversity

Is the proposed project site located in protected areas designated by national laws or international treaties and conventions?

10 Does the proposed project change land use of the community and protected habitats for endangered species designated by national laws or international treaties and conventions?

11 Does the proposed project bring foreign species?

12 Does the proposed project include construction activities considered to affect natural environment and biodiversity (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)?

13 Does the proposed project use surface water, ground water and/or deep ground water?14 Economy Does the proposed project have negative impact on local workforce capacity?15 Does the proposed project have negative impact on local community’s welfare?16

Social Environment and Community Participation

Does the proposed project cause any resettlement or other types of conflict?

17Does the proposed project fail to involve activities to respond to, and follow up, comments and complaints that have been received from local communities, particularly from the public consultation?

18 Do the project participants violate any laws and/or ordinances associated with the working conditions of local communities which the project participants should observe in the project?

19

Technology

Does the proposed project fail to involve activities to build capacity of human resources through technology transfer and technical assistance?

20Does the proposed project fail to describe information of technology specification that consists of manual book and ways to overcome the problems that may occur when being operated on the site, at least in English and in Bahasa Indonesia as applicable?

u“Guidelines for Developing Sustainable Development Implementation Plan and Report” (SD guidelines) uAt the time of requesting registration, project participant submits Sustainable Development

Implementation Plan (SDIP), which includes answers and action plansuAt the time of requesting credit issuance, project participant submit Sustainable Development

Implementation Report (SDIR) which includes the implementation of projects and corrective actions for the identified impact and is evaluated by the Joint Committee.

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11

JCMandEnvironmentalIntegrity

ThetransferanduseofITMOsmustnotresultinanincreaseinglobalemissions.Inordertoachievethis,theJCMmethodologyrequirestosetconservativereferenceemissions,whichwillbecalculatedbelowbusiness-as-usual(BaU)emissions.Thisapproachwillensurethattradingofcredits/units,canrealizerealglobalemissionreductions.

NetEmissionReductions

AlltheJCMrelateddecisionsincludingrulesandguidelines,methodologies,registeredprojects,andissuanceofcredits,arepublishedinthepubliclyaccessibleJCMwebsiteforpublicscrutiny.Localstakeholderconsultationisalsorequiredanddocumentedintheprojectdesigndocument,whichwillbealsopostedintheJCMwebsiteforpubliccomments.

Transparency

TheJCMhasdevelopeditsownrulesandprocedures,toavoiddoubleregistrationofproject,doubleissuanceofcreditanddoubleusageofalreadyissuedcreditsorallocatedallowances.ItisimportanttodefinearobustaccountingruletoavoiddoubleclaimingofcreditundertheParisAgreement.

AvoidanceofDoubleCounting

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A.Thereferenceemissionsarecalculatedbelowbusiness-as-usual(BaU)emissions.

B.Theamountofprojectemissionscanbecalculatedlargerbyusinghigherdefaultvalues.

12

AchievingnetemissionreductionsundertheJCM

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Japan PartnerCountry•Notifiesissuanceofcredits

• IssuanceofcreditsGovernment

•Reportsissuanceofcredits

•Notifiesissuanceofcredits

•Reportsissuanceofcredits

• IssuanceofcreditsGovernment

GovernanceSchemeoftheJCM

•Development/revisionoftherules,guidelinesandmethodologies

•Registrationofprojects•DiscussestheimplementationofJCM

JointCommittee(Secretariat)

Conductpolicyconsultations

•Requestregistrationofprojects

•Validationofprojects

•VerificationofamountofGHGemissionreductionsorremovals

Thirdpartyentities

• Informresultsofvalidation/verification

•Requestissuanceofcredits

•Requestregistrationofprojects

•SubmitPDD/monitoringreport

• Informresultsofvalidation/verification

ProjectParticipants• Implementation&monitoringofprojects

•SubmitPDD/monitoringreport ProjectParticipants

• Implementation&monitoringofprojects

•Requestissuanceofcredits

13

Page 14: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

ContributiontoNDCthroughtheJCM

14

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“Plan for Global Warming Countermeasures (Cabinet Decision, May 2016)”

• Apart from contributions achieved through private-sector based projects, accumulated emission reductions or removals by FY 2030 through governmental JCM programs to be undertaken within the government’s annual budget are estimated to be ranging from 50 to 100 million t-CO2.

• The JCM is not included as a basis of the bottom-up calculation of Japan’s emission reduction target, but the amount of emission reductions and removals acquired by Japan under the JCM will be appropriately counted as Japan’s reduction.

Ø Japanwillachievethetargetof26%reductionthroughdomesticemissionreductionsandremovalswithoutusinginternationalcreditswhiletheamountofcreditsacquiredbyJapanundertheJCMwillbeappropriatelycountedasJapan'sreduction.

Ø10milliontCO2isexpectedtoberealizedby2030fromthepipelineprojects.Ø ImplementationofJCMprojectsistobescaled-upthroughfurthermobilizationofprivatesectorfinance.

JCM

26%

Higher ambition

Japan’sNDC

Japan’s emission reduction target and the JCM

15

Page 16: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

Ø JCM‘sconservativeemissionreductioncalculation (referenceemissionsbelowBaU emissions)willensureanetdecreaseand/oravoidanceofGHGemissions.

Ø ThispartofemissionreductionswillautomaticallycontributetotheachievementofNDC.

JCM’sContributiontoNDC

16Time

GHGem

issions

ReferenceEmissionsundertheJCM

Projectemissions

ConservativeEmission

Reductions

Startofprojectoperation

Businessasusualemissions(BaselineemissionsundertheCDM)

Net Emission Reductions

Japan

PartnerCountry

Contribution toPartner Country NDC

Contribution toJapan’s NDC

Page 17: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

The Case of JCM's Contribution to NDC (Mongolia)• Emission reduction of 14% is aimed to be realized by 2030 in total national GHG emissions, compared to the

projected emissions under BAU scenario.• In energy sector, the share of renewable electricity capacity to be increased up to 30% of total electricity

generation capacity by 2030, from 7.62% in 2014.75% of solar PV power facilities so far have been installed by the JCM as of June 2018

17

JCM Projects Other Projects

Darkhan 20MW DSEDN

Monnaran 2.1MW Everyday FarmMonnaran 8.3MW Everyday Farm

New Airport 15MW Tenun Gerel

Choir 10MW PV

Ulaanbaatar

Chandmani 20MW Solar Chandmani Energy

75.4MW,75%JCM

Projects

25MW,25%other

financed 100.4MW

Pojectsite

Adopted as JCM project newly

ü Private Investment + GCF*Status: Finance Approval from GCF

(AE: Xac Bank, Mongolia)

ü 100% Private Investment

Zaminuud 15MW PV SPI

*JCM related Contribution for NDC in Mongolia: 75 MW *Private Investment PV Project by the trigger of successful JCM projects: 25MW

Darkhan 10MW SPI

Page 18: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

SupportSchemebytheMinistryoftheEnvironment

(MOE)

18

Page 19: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

Contributions from Japan

Incentivize selecting low-carbon technologies by the financial support

to initial cost

GH

G em

issions

Conventional equipment & facility

Initial cost

GH

Gem

issions

Initial cost

Japanese government

& entities

Credits

Financial support

Select

Japan will acquire a part of JCM credits

(in return to the financial support)

Partner Country

19

Emissionreductions

Low-carbon equipment & facility

Page 20: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

GovernmentofJapan

Internationalconsortiums(whichincludeJapaneseentities)

ThebudgetforprojectsstartingfromFY2018is6.9billionJPY(approx.USD69million)intotalbyFY2020

Ø Scopeofthefinancing:facilities,equipment,vehicles,etc.whichreduceCO2 fromfossilfuelcombustionaswellasconstructioncostforinstallingthosefacilities,etc.

Ø EligibleProjects:startinginstallationaftertheadoptionofthefinancingandfinishinginstallationwithinthreeyears.

JCMModelProjectsbyMOE

※IncludescollaborationwithprojectssupportedbyJICAandothergovernmental-affiliatedfinancialinstitute.

20

(1USD=100JPY)

Financepartofaninvestmentcost(lessthanhalf)

ConductMRVandexpectedtodeliveratleasthalfofJCMcreditsissued

Page 21: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

Ø FacilitatingdiffusionofleadinglowcarbontechnologiesthroughcontributionsfromJapanandevaluatingrealizedGHGemissionreductionsorremovalsinaquantitativemannertousethemforachievingJapan’semissionreductiontarget.

Ø Japanwilladdressthehighinitialcostbarrierofintroducingadvancedlow-carbontechnologiesinthePartnercountries(17countries)throughtheJCM(GoJ implementsseveralsupportingschemes)

The JCM Model Projects

Waste heat recovery in Cement Industry, JFE engineering, Indonesia

Eco-driving with Digital Tachographs, NITTSU, Vietnam

High-efficiency Heat only Boilers, Suuri-Keikaku, Mongolia

Amorphous transformers in power distribution, Hitachi Materials, Vietnam

Upgrading air-saving loom at textile factory, TORAY etc., Indonesia, Thai, Bangladesh

Regenerative Burners in industries, ToyotsuMachinery, Indonesia

High efficiency air-conditioning and process cooling, Ebara refrigeration equipment & systems, Indonesia

Energy saving at convenience stores, Panasonic, Indonesia

Waste to Energy Plant, JFE engineering, Myanmar

Solar PV System at Salt Factory, PCKK, Kenya

Co-generation system at factory, Toyota, Nippon Steel & SumikinEngineering, Indonesia, Thai

High efficient refrigerator, MayekawaMFG, Indonesia

High efficiency air-conditioning system, Hitachi, Daikin, Vietnam

Installing solar PV system, PCKK, Palau Maldives

LED street lighting system with wireless network control, MinebeaMitsumi、Cambodia 21

Page 22: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

Mongolia:7 projects○Heat Only Boiler (HOB)** ○2.1MW Solar PV in Farm* ○10MW Solar PV*○8.3MW Solar PV in Farm 〇15MW Solar PV ○20MW Solar PV○21MW Solar PV

Palau:4 projects○370kW Solar PV for Commercial Facilities*○150kW Solar PV for School*○440kW Solar PV for Commercial Facilities Ⅱ*○0.4MW Solar PV for Supermarket

Thailand:26 projects○Energy Saving at Convenience Store ○1.0MW Solar PV on Factory Rooftop*○Upgrading Air-saving Loom ○Centrifugal Chiller & Compressor○Co-generation in Motorcycle Factory ○Centrifugal Chiller in Tire Factory○Air Conditioning System & Chiller ○Refrigeration System○Ion Exchange Membrane Electrolyzer ○Chilled Water Supply System○LED Lighting to Sales Stores ○12MW Waste Heat Recovery in Cement Plant○Co-generation System ○Refrigerator and Evaporator○1.5MW Solar PV and EMS in Paint Factory ○3.4MW Solar PV○Heat Recovery Heat Pump ○5MW Floating Solar PV ○27MW Solar PV○Boiler System in Rubber Belt Plant ○Air-conditioning Control System○Biomass Co-generation System ○Energy Saving Equipment in Port○Co-generation in Textile Factory ○25MWSolar PV in Industrial Park ○3.4MW Solar PV

Laos:3 projects●REDD+ through controlling slush-and-burn〇Amorphous transformers〇14MW Floating Solar PV

Ethiopia:1 projects○Biomass CHP Plant

JCM Financing programme by MOEJ (FY2013~2018) as of June 25, 2018

Saudi Arabia:1 projects○Electorolyzer in Chlorine

Production Plant

Bangladesh:5 projects○Centrifugal Chiller ○Loom at Weaving Factory○320kW PV-diesel Hybrid System ○50MW Solar PV Power Plant○Centrifugal Chiller*

Viet Nam:18 projects○Digital Tachographs* ○Amorphous transformers*○Air-conditioning in Hotel* ○Air-conditioning in Lens Factory○Container Formation Facility ○320kW Solar PV in Shopping Mall○Amorphous transformers 2 ○Air-conditioning Control System○Electricity Kiln ○High Efficiency Water Pumps○Energy saving Equipment in Lens Factory ○Amorphous transformers 3○Energy Saving Equipment in Wire Production Factory○Amorphous transformers 4○Energy Saving Equipment in Brewery Factory ○High Efficiency Chiller○Modal Shift with Reefer Container ○Inverters for Raw Water Intake Pumps

Underlined projects have started operation (68 projects, including 1 partially started projects)Projects with * have been registered as JCM projects (25 projects)

Chile:1 project○1MW Rooftop Solar PV

Indonesia:30 projects○Centrifugal Chiller at Textile Factory* ○Energy Saving at Convenience Store*○Refrigerants to Cold Chain Industry** ○Double Bundle-type Heat Pump*○Centrifugal Chiller at Textile Factory 2* ○30MW Waste Heat Recovery in Cement Industry○20kW Solar Power Hybrid System ○Regenerative Burners○Centrifugal Chiller at Textile Factory 3* ○Old Corrugated Cartons Process*○Upgrading to Air-saving Loom ○Centrifugal Chiller in Shopping Mall*○Smart LED Street Lighting System ○Once-through Boiler System in Film Factory○Gas Co-generation System ○Once-through Boiler in Golf Ball Factory○1.6MW Solar PV in Jakabaring Sport City ●REDD+ through controlling slush-and burn○10MW Hydro Power Plant ○Looms in Weaving Mill○LED Lighting to Sales Stores ○Industrial Wastewater Treatment System ○0.5MW Solar PV○Gas Co-generation system ○Absorption Chiller ○10MW Hydro Power Plant○2.8MW Solar PV ○High Efficiency Autoclave○CNG-Diesel Hybrid Public Bus ○Centrifugal Chiller and Air-conditioning Control System

Myanmar:6 projects○700kW Waste to Energy Plant○Brewing Systems to Brewery Factory○Once-through Boiler in Instant Noodle Factory○1.8MW Rice Husk Power Generation○Refrigeration System in Logistics Center○8.8MW Waste Heat Recovery in Cement Plant

○ Model Project in FY 2013 (7 projects in 3 countries)○ Model Project in FY 2014 (12 projects in 5 countries)■ ADB Project in FY 2014 (1 project in 1 country)○ Model Project in FY 2015 (33 projects in 10 countries)○ Model Project in FY 2016 (35 projects in 10 countries) ● REDD+ Model Project (2 projects in 2 countries)○ Model Project in FY 2017 (19 projects in 8 countries) ■ ADB Project in FY 2017 (1 Project in 1 country)○ Model Project in FY2018 (17 Projects in 9 countries)* Other 1 project in Malaysia

Total 127 projects in 17 partner countries

Cambodia:6 projects○LED Street Lighting ○200kW Solar PV at International School*○Solar PV & Centrifugal Chiller ○Inverters for Distribution Pumps■Battambang Wastewater Treatment Project ○1.5MW Solar PV

Costa Rica:2 projects○5MW Solar PV○Chiller and Heat Recovery System

Phillipines:8 projects○15MW Hydro Power Plant ○4MW Hydro Power Plant○1.53MW Rooftop Solar PV ○1MW Rooftop Solar PV○1.2MW Rooftop Solar PV ○2.5MW Rice Husk Power Generation○4MW Solar PV ○0.16MW Micro Hydro Power Plant

Kenya:2 projects○6MW Hydropower Generation○1MW Solar PV at Salt Factory

Mexico:5 projects○4.8MW Power Generation with Methane Gas

Recovery System○Once-through Boiler and Fuel Switching○64MW Wind Farm ○20MW Solar PV○30MW Solar PV

Maldives:2 projects○190kW Solar Power on School Rooftop■Smart Micro-Grid System

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TechnologiesTransferredthroughJCM(FY2013-2018)

u Totalof127JCMModelProjectsbeingdevelopedin17partnercountriesu 55%areenergyefficiencyand34%arerenewableenergywhile7%areco-generationsystemu Transport,wastetoenergyandREDD+projectshares4%

23

TransportDigital Tachographs

ModalShift

CNG-DieselHybrid

Renewable EnergySolar

Microhydro

Biomass

Wind

Renewable Energy/EnergyEfficiency

Co-generationSystem

REDD+Controlling Slushandburn

As of June 25, 2018

EnergyEfficiency,

55%

RenewableEnergy,34%

RenewableEnergy/EnergyEfficiency,…

Transport,2%

Waste,1%

REDD+, 1%

Energy efficiencyLooms

Equipment

Boiler

Burner

Electrolysistank

LED

Productionline

Optimization

Pump

Heatpump/Waterheater

Air-conditioning

Refrigerating

Transmission/Transformer

LEDStreetlights

SmartGrid

WasteWastetoEnergy

Page 24: The Joint Crediting Mechanism and Article 6 · 1/1/2019  · The Joint Crediting Mechanism and Article 6 Kazuhisa KOAKUTSU Ministry of the Environment, Japan. JAPAN Partner ... Mongolia

JCMmodelproject

Demonstrationofenergyefficiencyeffects

Establishstandards&institutionalarrangements

Businessdevelopmentinothercountries,sectors

・Regulations・Standards・Taxes

Ø CompanysucceededtoimplementleadinglowcarbontechnologiesthroughtheJCMØ Usingtheprojectasashowcase,theirbusinesswasdevelopedinASEANcountriesØ Furtherbusinessdevelopmentisexpectedthroughtheestablishmentofenergyefficiency

standardsandrelevantinstitutionalarrangements

Business Model Case①:Replicating through Standard & Institutional Arrangement

Chillers/Refrigerator

Thailand:7 projects (2015,2016)

Indonesia:6 projects (2013-2017)

Viet Nam:3 projects (2016,2017)

Myanmar:2 JCM model projects (2016)

24

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Disseminationintoothercountries

JCM modelprojects

Specificationsincludedinprocurementstandard

Disseminationoftechnologydomesticallyandinternationally

Demonstrationofenergyefficiencyeffects

Sustainablebusinessdevelopment

1st:1,618 units

2nd:4,843 units

3rd:4,965 units

4th:2,145 units

Ø CompanysucceededtointroduceamorphoushighefficiencytransformersalloverVietNamthroughtheJCM

Ø Localenergydistributioncompanyincludedspecificationsforhiringthetechnologyinitsprocurementstandardbasedonunderstandingonitseffectiveness

Ø Furtherbusinessdevelopmentishappeninginothercountries(e.g.LaoPDR)

Business Model Case②:Replicating through specific actions

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