Joint Crediting Mechanism or JCM is a new scheme for bilateral carbon trading. This presentation is describing the role of the project participant in JCM.

1. Project Participant’s Role in the JCM

2. Basic concept of the JCM
•TheJointCreditingMechanismasaG-to-GschemewhichencouragesprivatesectororganizationstoinvestinLowCarbonDevelopmentactivitiesinIndonesiathroughincentivefromtheGovernmentofJapan.
•BilateralCooperationontheJointCreditingMechanismfortheLowCarbonGrowthPartnershipbetweentheRepublicofIndonesiaandJapanhasbeensignedbytheCoordinatingMinisterforEconomicAffairsofIndonesiaandMinisterforForeignAffairsofJapan.
•ObjectivesoftheJCM:
1.Facillitatediffusionofleadinglowcarbontechnologies,products,systems,services,andinfrastructureaswellasimplementationofmitigationactions,andcontributingtosustainabledevelopmentofdevelopingcountries.
2.EvaluatecontributionstoGHGemissionreductions/removalsfromdevelopedcountriesinaquantitativemanner,throughmitigationactionsimplementedindevelopingcountriesandusethoseemissionreductionsorremovalstoachieveemissionreductiontargetsofthedevelopedcountries.
3.ContributetotheultimateobjectiveoftheUNFCCCbyfacilitatingglobalactionsforemissionreductionsorremovals.
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3. •Joint Committee (JC): Representatives from the Japanese side and the Indonesian side. The members are from related ministries at director level.
•JCM Secretariat: Each side establishes its respective secretariat and both secretariats jointly serve as the JCM secretariat through mutual communication for the JC.
•Third-party entity (TPE):An entity designated by the JC, which is qualified to validate proposed JCM projects as well as verify GHG emission reductions or removals.
•Project participant: A government, private entity, and/or public entity involvedin a JCM project.
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Key Stakeholders in the JCM

4. Indonesia
Implementation & monitoring of projects
Japanese Side
JCM Scheme
Secretariat
Indonesian Side
communication
Project Participants
Implementation & monitoring of projects
Project Participants
•Validate projects
•Verify amount of GHG emission reduction or removal
Third Party Entities
Request issuance of credits
Request registration of projects
Submit PDD / monitoring report
Inform results of validation / verification
Request registration of projects
Request issuance of credits
Submit PDD / monitoring report
Inform results of validation / verification
Japan
Government
Issuance of credit
Government
Issuance of credit
Implement project together
May contact TPE and Secretariat through one Contact Entity
Notifies registration of projects
Report issuance of credits
Notifies registration of projects
Report issuance of credits
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Joint Committee

5. Steps inthe JCM
Submission of Proposed Methodology
Approval of Proposed Methodology
Development
of PDD
Validation
Registration
Monitoring
Verification
Issuance
of credits
Project Participant / Each Government
Joint Committee
Joint Committee
Project Participant
Third Party Entities
Joint Committee
Project Participant
Third Party Entities
Joint Committeedecides the amount
Each Government issues the credit
Can be conducted by the same TPE
Can be conducted simultaneously
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*PDD: Project Design Document
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6. Start of project (i.e design, procurement, etc)
Technology Implementation
Verification by TPE
Credit issuance
JCM Project In Practice : Start of Project
Secretariat may: “Monitor the development of JCM related programs and implementation of JCM projects, taking into account sustainable development criteria and environmental integrity.” (JCM Rule of Implementation Para 14 point (a) article (iii))
Through:
•Hearing
oTheEmbassyofJapanandIndonesiaJCMSecretariatwillarrangeindividualmeetingwithprojectparticipantsfrombothsides.
oTheschedulewillbearrangedinaccordancewithJapaneseparticipant’svisitingschedule.
•JCMSecretariatinvolvement(ifneeded)
oIfrequested,orwhenobstaclesoccur(suchaslocationfindingorrelatedtogovernmentsystems,theSecretariatshouldbeinformed).
Submission & validation of PDD
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7. Start of project (i.e design, procurement, etc)
Technology Implementation
Verification by TPE
Credit issuance
•ProjectValidation
Project participants: “Prepare a draft PDD and submit the draft to a third-party entity for validation and notify the Joint Committee through the JCM secretariat“
(JCM Rule of Implementation Para 19 Point (b))
(note: PDD = Project Design Document)
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JCM Project in Practice: Submission of PDD
Submission & Validation of PDD
Project Participant(PP)
-TPE validate PDD-TPE receive and check the completeness of implementation plan
Indonesia JCM Secretariat
Indonesia Joint Committe
Submit PDD for public input
Submission of validation reportby PP
Inform of public input

8. Start of project (i.e design, procurement, etc)
Technology Impementation
Verification by TPE
Credit issuance
JCM Project in Practice: Technology Implementation
•Sitevisitafterprojectoperation
“Monitor the development of JCM related programs and implementation of JCM projects, taking into account sustainable development criteria and environmental integrity.” (JCM Rule of Implementation Para 14 point (a) article (iii))
oAtleastonesitevisitbytheIndonesiaJCMSecretariat(ifpossible,alsobytheJapaneseside).
oThepurposeofsitevisitistoreceivefeedbacksfromtheIndonesiansideandtowitnessandconfirmthetechnologyimplementation.
oIfneeded,moresitevisitmaybeconducted(asagreedbyprojectparticipant(s)andgovernmentside)
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Submission & validation of PDD

9. Start of project (i.e design, procurement, etc)
Technology Implementation
Verification by TPE
Credit issuance
JCM Project in Practice: Verification by TPE
JCM Rule of Implementation Para 31 to 33
“The TPE describes all documentation supporting verification and makes such documentation available to the Joint Committee upon request.” (JCM Guidelines for Verification and Validation Para 128)
•AllofdataobtainedbyTPEwhichsupportverificationprocessmaybesharedtoJointCommittee
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Submission & validation of PDD
Project participants
Conduct monitoring
Prepare a monitoring report
*PDD Monitoring and Guidelines
*Monitoring Report Sheet
TPE
Verify emission reduction
Prepare a verification report
* Validation and Verification guidelines
* Verification report form
1.Submit to TPE
2.Submit report to project participants
3.Next step: request for credit issuance to Secretariat
Secretariat

10. Start of project (i.e design, procurement, etc)
Technology Implementation
Verification by TPE
Credit issuance
JCM Project in Practice: Credit issuance
•Requestissuanceofcredits
“On the basis of a request for notification to each side for issuance of credits submitted by projectparticipants, the Joint Committee notifies both sides to issue the credits which were verifiedby the third-party entities.” (JCM Rule of Implementation Para 10)
Government
Issuance of credits
Project Participants
Determine allocation of credits
Complete a credit issuance request form
* Credit issuance request form
Request for notification for issuance
Completeness check [7 days] (secretariat)
Notifythe amount of credits to be issued
Notifythe result
Notifythe issuance
Decision on notification of amount of credits to be issued
Notifythe receipt of the request
Secretariat
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Joint Committee
Submission & validation of PDD