Session 4 presentation from the 4th Strategic Dialogue of the Carbon Market, 15-16 May 2019

1. Experience of implementing the Joint
Crediting Mechanism (JCM) and way
forward
2019 Strategic Dialogue of the Carbon
Market Platform
May 15, 2019
The Ministry of the Environment, Japan

2. JAPAN
Partner
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
2
JCM
Projects
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
*measurement, reporting and verification
MRV*

3. Mongolia
Jan. 8, 2013
（Ulaanbaatar）
Bangladesh
Mar. 19, 2013
(Dhaka)
Ethiopia
May 27, 2013
(Addis Ababa)
Kenya
Jun. 12,2013
(Nairobi)
Maldives
Jun. 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)
3
Indonesia
Aug. 26, 2013
(Jakarta)
Costa Rica
Dec. 9, 2013
(Tokyo)
Palau
Jan. 13, 2014
(Ngerulmud)
Cambodia
Apr. 11, 2014
(Phnom Penh)
Mexico
Jul. 25, 2014
(Mexico City)
Saudi Arabia
May 13, 2015
Chile
May 26, 2015
(Santiago)
Myanmar
Sep. 16, 2015
(Nay Pyi Taw)
Thailand
Nov. 19, 2015
(Tokyo)
the Philippines
Jan. 12, 2017
(Manila)
http://japan.kantei.go.jp/

4. Progress of the JCM in each partner country as of May 10 2019
4
Partner
countries
Start from No. of JC
No. of registered
projects
No. of approved
methodologies
Pipeline (JCM Financing
Programme & Demonstration
Projects in FY 2013-2018)
Mongolia Jan 2013 6 5 3 9
Bangladesh Mar 2013 4 3 3 6
Ethiopia May 2013 3 3 1
Kenya Jun 2013 3 3 3
Maldives Jun 2013 3 1 1 2
Viet Nam Jul 2013 7 9 14 22
Lao PDR Aug 2013 4 1 3 5
Indonesia Aug 2013 8 17 19 34
Costa Rica Dec 2013 2 3 2
Palau Apr 2014 5 3 1 4
Cambodia Apr 2014 4 1 2 5
Mexico Jul 2014 2 1 6
Saudi Arabia May 2015 2 1 1 1
Chile May 2015 2 1 2
Myanmar Sep 2015 2 1 7
Thailand Nov 2015 4 5 9 29
Philippines Jan 2017 1 8
Total 17 62 46 68 146

5. Issuance of JCM Credits
Total of 19 projects issued credits under the JCM
Total amount of credits issued are 22,021 t-CO2
Country
Notification
date
Amounts of credits issued（tCO2）
Total
Japanese
government
Japanese
company
Partner
government
Partner
company
Indonesia
2016/05/12
2018/07/10
745 380 70 279 16
Mongolia
2016/09/29
2017/10/24
2018/11/6
18,310 12,814 1,833 3,663 0
Vietnam
2017/10/10
2018/8/15
1,578 1,143 29 160 246
Palau
2016/12/19
2018/01/30
881 659 0 222 0
Thailand 2018/04/20 300 151 0 0 149
Laos 2019/1/18 207 174 0 33 0
5

6. Conservative Emission
Reductions(Partner Country )
Net Emission
Reductions
 JCM‘s conservative emission reduction calculation (reference
emissions below BaU emissions) will ensure a net decrease and/or
avoidance of GHG emissions.
 This part of emission reductions will automatically contribute to the
achievement of NDC.
JCM’s Contribution to NDC
Time
GHG
emissions
Reference Emissions
under the JCM
Project emissions
Start of
project operation
Business as usual emissions(BaU)
(Baseline emissions under the CDM)
Contribution to
Japan’s NDC
Credits
Credits
Contribution to
Partner Country
NDC
Conservative Emission
Reductions(Japan )
6

7. 7
Yuko Keiso
EVN SPC
EVN HCMC
EVN Danang
EVN HANOI
KHPC
DON NAI PC
EDL
EVN CPC
Lao PDR Japan Vietnam
Primary Participant
Vietnam Partner
Participants
JC 事務局
JC 事務局 環境省
GEC Financial Support
Lao PDR Partner
Participant
GH Credit GHG Credit
JCM Expansion Example①：High efficiency amorphous transformers from Vietnam to Lao PDR
★Transformers in Vietnam are being replaced with amorphous high efficiency transformers from 2015 through 2020.
★Succeeded in developing the same product and technology in Lao PDR since 2018. Preparing for expansion to other countries.
★Providing excellent amorphous alloy low carbon technology. A total of 10,000 transformers introduced throughout Vietnam.
Lao PDR
EVN SPC
EVN HCMC
EVN Danang
EVN HANOI
KHPC
DON NAI PC
EVN CPC
EDL
Vietnam
Expanding to
other JCM
partner countries
High efficiency amorphous
transformer
TIBIDI (Manufacturers in Vietnam)
Made by
Hitachi Metals
Amorphous alloy
Amount of amorphous transformer introduced
（as of JAN2019)
1,197 tCO2/year
1,526 tCO2/year
2,966 tCO2/year
653 tCO2/year
398 tCO2/year
966 tCO2/year
405 tCO2/year
2097 tCO2/year
International Consortium
Amorphous
Core
ベトナム FY2015 FY2016 FY2017 FY2018 Total
EVN SPC 1,618 2,686 2,507 6,811
EVN HCMC 552 340 892
EVN CPC 981 981
EVN Danang 282 282
EVN HANOI 121 65 186
KHPC 111 305 30 446
DON NAI PC 168 580 207 955
Total 1,618 4,901 3,797 237 10,553
ラオス FY2015 FY2016 FY2017 FY2018 Total
EDL 465 465
Power plant High voltage
transformer
Steel
tower
Transmission
substation
house
Distribution
substation
transformer

8. OCIC Chroy Changvar
APSARA (Angkor Wat)
December 2016
Received Minister of the Environment
Award in Cambodia OCIC Diamond Island
Siem Reap Provincial Hall (SRPH)
Actual number installed in Cambodia
GEC
LED street light management system
★70% energy saving is achieved by LED street light in emerging city and world heritage .
★Commenced joint study with local partners to build smart city environment by wireless network environment deployment.
★LED street light of 5,600 installed in Cambodia such as Phnom Penh and Angkor Wat (total installation area is 120㎢ in total).
70% energy
saving achieved
Deploying various IOT sensors and wireless
networking environments will enable the
Smart City environmental infrastructure.
Japan Cambodia
Joint Committee
International Consortium
LED street
light
Node
Gateway
Cloud
Serverﾞ
Iwasaki
Electric
Co., Ltd.
MinebeaMitsumi
Co., Ltd.
NTT comm
JCM Expansion Example②：Expansion into smart city environment from LED street light network in Cambodia
8
Consortium
No. of
Introduction
APSARA 1,670
Siem Reap 1,948
Consortium No. of
Introduction
OCIC 2,054
APSARA
Site
Siem Reap
Site
Primary Representative
Secondary Representative
The total footprint of the LED
street light is 1.5 times that of
Manhattan Island (120㎢)
MinebeaMitsumi
Co., Ltd.
Financial Support
Siem Reap
Phnom penh

9. Distribution Pumps Intake Pumps Monitoring
Total Water
Processed in 2018
for Danang City
Pumps installed through the JCM project
process major part of Danang water demand.
Other pumps
Pumps installed through the JCM
project
★Yokohama City and Da Nang City signed a Memorandum of Understanding on Technical Cooperation for Sustainable Urban Development.
★Representative participant utilized JCM Model Project to Danang municipal water supply corporation, introduced high efficiency pumps
and conducted monitoring.
★About 80% of the water treatment volume of Da Nang City is treated by JCM introduction pump.
JCM Expansion Example③：Basic infrastructure of water business in Vietnam
High efficiency pumps
(Da Nang City Water Corporation)
Introduction of high efficiency pump to Danang municipal water supply corporation (representative Participant: Yokohama Water Co., Ltd.)
Vietnam
[Danang City Water
Corporation]
Explained the effectiveness of
JCM Model Project and high
efficiency pump at the ceremony
Thu Duc Water B.O.O Co.
(Ho Chi Minh City Water
Purification Plant)
Danang City Water
Corporation
[Ho Chi Minh City
Water Treatment
Plant]
Using the ceremony as
an opportunity, JCM
Model Project was
utilized implementation
of inverter of water
intake pump (project
ongoing)
Yokohama Water Co., Ltd.
Danang City
Water
Corporation
Thu Duc Water
B.O.O Co.
Japan Vietnam
Partner Representative
Joint Committee
MOEJ
GEC
GHG Credit
International Consortium
Primary Representative
Project
Introduction
Primary Representative
Partner Representative
Financial Support
International Consortium
9
79%
(75,228,480 m3)
21%
95,042,222 m3
Distribution Pumps

10.  The representative participant aims to realize a stable supply of basic infrastructure by participating in and investing in
power generation and water supply against the unstable infrastructure of Butuan City.
 Small/micro hydropower generation and biomass power generation are implementing by three JCM Model
Projects.
 Partnering with local leading partners, developing three projects. Supply 10% of peak demand in Northern
Agusan.
JCM Expansion Example④：Basic Infrastructure of Regional Development in the Philippines
Taguibo River Small Hydroelectric Power Project / Taguibo River Water Treatment Plant Micro Hydro Power Project / Butuan
City Rhinoceros Power Generation Project (Representative Participant: CHODAI CO.,LTD.)
2019 JCM Model Project (Implementing)
Low carbon
type
Industrial
park Dev. PJT
(Not covered
Rice mill Rice polishing machine
2019 JCM Model PJT (Implementing)
Rice cultivation area
Luzon
Manila
Mindanao
T G
Rice
husk
Rice husk biomass IPP
IPP
Water purification plant
(30,000tons / day) as part of
the In-house power Usage (0.16
MW)
◀ intake dam
Micro
hydraulic
generator
Captive
① Taguibo 4MW small hydropower
generation PJT
③ Taguibo River WTP
Micro hydro power generation PJT
Water supply PJT
(Not covered by JCM)
Philippines
10
2017 JCM Model PJT (Implementing)
Butuan City, Caraga Region,
Agusan del Norte
② Butuan City 2.5 MW rice husk power
generation PJT
CHODAI CO., LTD.
① WGEC
Japan Philippines
Joint Committee
MOEJ
GEC
GHG
Credit
Int. Consotium
③ TASC
Philippines
Partner
Representative
Partnering with local leading partners
Utilizing JCM Model Projects with consulting, construction
and O & M, develop renewable energy business as basic
infrastructure of regional development
② CBPC
: Partnership
①②③ EPCC (Construction contractor) .etc
Philippines Partner Representative
Int. Consotium
Int. Consotium
Primary Representative
boiler
Financial Support
Conduit
Intake dam
Water turbine
generator
Small hydro IPP
IPP
Overview
Primary Representative Primary Representative
Philippines
Partner
Representative
Philippines
Partner
Representative
Regional Demand: 57 MW (peak)
Both IPPs to supply 11% power
for Agusan del Norte region
Other sources
Capacity (①+②)
6.5 MW (11%)

11. 11
Darkhan 20MW DSEDN
Monnaran 2.1MW Everyday Farm
Monnaran 8.3MW Everyday Farm
Ulaanbaatar
 100% Private Investment
Zaminuud 15MW PV SPI
Darkhan 10MW SPI
131
MW
76MW,
58%
JCM
project
55MW,
42%
Other
financed
JCM Expansion Example⑤：Large-scale photovoltaic power generation projects in Mongolia
Choir 10MW PV
 Private Investment + GCF
2018
2018
Sainshand 30MW PV
New Airport 15MW Tenun Gerel
GEC
Japan
Joint Committee
International Consotium
Primary Representative Partner Representative
Bayanchandmani 21MW Solar Energy Chandmani
Mongolia
MOEJ
GHG Credit
Firm Do Everyday Firm
Sharp
Energy
Solution
SPI
DSEDN
Tenun Gerel
Solar Energy
Chandmani
2015
2015
2016
2017
2017
201x : Project start year
JCM model Projects
Other projects
Financial Support
 Private Investment
+ EBRD and other loan
★Implemented six large-scale solar power project using Japanese superior technologies in various places in Mongolia from 2015 to
2018. Promoted new private investments triggered by introduction in JCM.
★Sharp Energy Solutions has implemented four projects (currently operating at two locations and introducing at two locations).
★Firm Do has implemented a new model by combining agriculture and PV power generation at Monnaran.

12. Project development Commercialization
GHG
emission
reduction
“PaSTI”
Total support for JCM by MOEJ and more
ADB
Project development/
Capacity Building
Consultation Equipment installation
Support
Monitoring
MOEJ
Partner
Country
Japan
Collaboration
“City-city cooperation”
 MOEJ provides total support for the JCM project from idea to
action and implementation.
MRV
Issuance
Financial
support
for JCM model project Support
“Co-innovation”
JCM
12

13. Summary of Progress and Way Forward
Overall Progress in the JCM
 Rapidly progressing in terms of numbers, scale and impacts.
Contribution to the NDC
 Both Japan and host country started to closely cooperate how
the JCM can be implemented to contribute to the achievement of
NDC in support of government policy and measures.
Article 6 and the JCM
 The JCM is the real and concrete example of cooperative
approaches being implemented under the Article 6 of the Paris
Agreement and basic accounting rule have been decided under
the transparency framework (Article 13, paragraph 77 (d)).
13

14. Partnership to Strengthen Transparency for co-Innovation
Concept
 Nationally Determined
Contribution
 National development
strategy
 Business strategy
 Institutional investors
 Marketing strategy
(Consumer’s point of view)
 Incentive mechanisms
 Building internal capacity
 Regular monitoring and
reporting
 Standardized guideline
 MRV system
 Common reporting format
 Regional activities
14

15. To support the
development and use of
critical tools including
guidelines and
methodologies;
To reinforce the initiative
of compatible MRV
systems and enhance
cooperative climate
actions across the AMS.
15
02 Non-state actor
engagement
03
National
Development
strategy
01
Guideline and
Methodology
04 Compatible MRV
strategies
PaSTI: Proposed actions

16. Taking actions in two tracks
16
Bilateral activities
In September 2018, MOEJ and the National
Development Planning Ministry, Indonesia
(BAPPENAS) have signed the Letter of Intent
ASEAN member states
Brunei, Cambodia, Indonesia, Lao PDR, Malaysia
Myanmar, Philippines, Singapore, Thailand,
Viet Nam
Proposed PaSTI-JAIF project
“Development and Implementation of
Facility/Company Level Monitoring, Reporting
and Verification (MRV) Systems for Greenhouse
Gas (GHG) Emissions in ASEAN Member States
(AMS)”
• Study on national actions to understand existing
MRV guidelines and tools
• Study on reporting activities in non-state actors
• Technical training in Japan
• Design of pilot project for future actions on MRV
development
AWGCC
ASEAN Working Group on Climate Change
Understanding of the
Transparency
Framework with a view
to private sector
Capacity building
In line Ministry and
relevant stakeholders
Implementation
scheme
Evaluation and
Integrate annual
development plan
Multilateral activities
Proposed actions
Design reporting platform /
guidelines
Synergies and linkage between the
private sector activities and national
implementation
Sharing experiences in Japan
ASEAN Senior Officials on the Environment
supported Japan’s collaboration with AWGCC
in 2018.
The first bilateral action
with Indonesia