This document summarizes information about the Joint Crediting Mechanism (JCM) between Japan and Mongolia. The JCM facilitates greenhouse gas emissions reduction projects by companies and cities in Mongolia. These projects generate JCM credits that can be used by Japan to achieve its emissions targets and potentially by Mongolia as well. There are currently 15 registered projects across several countries and technologies. The document provides details on the JCM project cycle, eligibility criteria for financial support, and recommends steps for Mongolian enterprises to develop JCM projects with Japanese partners.

1. Kazuhisa Koakutsu
Leader, Climate and Energy Area
Institute for Global Environmental Strategies (IGES)
The Japan-Mongolia Cooperation
on the Joint Crediting Mechanism
and Recommendations for Mongolian Enterprises

2. 2Institute for Global Environmental Strategies
IGES conducts practical and solution-
oriented research focusing on the Asia-
Pacific region to develop innovative
policy approaches and propose
environmental policies to achieve
sustainable development in the region.
IGES Climate and Energy Area
conducts strategic research activities
to contribute to global efforts to
combat climate change, covering:
• Future climate regime
• Sustainable energy
• Climate mitigation
• Climate finance
• Asia low carbon strategy
• Market mechanisms,
including CDM and JCM

3. 3Institute for Global Environmental Strategies
The Joint Crediting Mechanism (JCM)
Cooperation between Government of Japan and Mongolia
Facilitates greenhouse gas emissions reduction/removal projects by
companies, cities, etc. in Mongolia
As a result of emission reductions, “JCM credits” will be utilized to achieve
Japan’s emission reduction target and may be utilized to achieve
Mongolia’s target.
At present, JCM credits are not tradable.
JCM Financial Support from Japanese government is available.
Utilized in
partner country
accordingly
Credits
to Japan
Credits
to partner
country
corresponding
Used to achieve
Japan’s emission
reduction target
JCM
Credits
dividing
Partner
country’s
share
JCM project
JCM Financial
Support
Scheme
“Contribution”
Japan Partner country (e.g. Mongolia)

4. 4Institute for Global Environmental Strategies
JCM established in 16 countries since 2013
JCM in Mongolia started from January 8h, 2013
JCM Mongolia secretariat: Ministry of Environment and Tourism
http://www.jcm-mongolia.com/

5. 5Institute for Global Environmental Strategies
15 projects already registered by governments
Country Technology Type Location
Mongolia Heat Only Boilers
118th School of
Ulaanbaatar
Mongolia Heat Only Boilers
Bornuur soum public
facilities
Indonesia
Cooling system
(refrigerator, freezer)
Frozen Food Processing
Plant
Indonesia
Cooling system
(refrigerator, freezer)
Food Industry Cold
Storage
Indonesia Centrifugal Chiller Textile factory
Indonesia Centrifugal Chiller Textile factory
Indonesia Centrifugal Chiller Textile factory
Indonesia
AC System, LED Lighting,
Fridge/Freezer
Convenience store
Vietnam Tachograph Trucks, trailers
Vietnam
Inverter-type room air
conditioners
Hospitals
Vietnam Amorphous transformers Electricity grid
Vietnam
Boiler, heat pump, LED
lighting
Hotel
Palau Small-scale Solar PV School rooftop
Palau Small-scale Solar PV Building rooftop
Palau Small-scale Solar PV Building rooftop
JCM credits issued
to Japanese and
Indonesian side
https://www.jcm.go.jp/projects/registers
Japan: Suuri-Keikaku
Mongolia: Anu-Service

6. 6Institute for Global Environmental Strategies
97 projects already selected for financing,
various technologies are implemented
High Efficiency LED
Lighting, Cambodia
High-efficiency Heat Only
Boilers, Mongolia
Power Generation by Waste-
heat Recovery in Cement
Industry, Indonesia
Double Bundle-type
Heat Pump, Indonesia
Energy Savings at Convenience
Stores, Indonesia
10 MW Solar Power Project in
Darkhan City, Mongolia
JCM project list: http://gec.jp/jcm/projects/index.html
Amorphous High Efficiency
Transformers in Power Grids, Vietnam
LED lighting, co-generation, waste management, water management,
hydropower, transportation, biomass, forestry, etc.
5 projects
selected in
Mongolia:
Solar PV (3)
Boiler (2)

7. 7Institute for Global Environmental Strategies
• Finances up to the half of an investment cost for
facilities, equipment, vehicles, etc. which reduce
CO2 from fossil fuel combustion.
• Includes projects in collaboration with JICA and
other government-affiliated financial institute.
JCM Model
Project
• Finances part of project cost for REDD+ projects.
• At least half or ratio of financial support to project
cost of JCM credits issued are expected to be
delivered to the government of Japan except the
amount which is allocated to the partner country
based on its legislation.
JCM REDD+
Model Project
• Grant for incremental cost of technologies for
projects under public and state-owned entities.
• Interest subsidy to ADB-financed loans for non-
government projects, to private sector borrowers
and financial institutions.
ADB Trust Fund
(Japan Fund for
JCM)
JCM Financing Programme
Mongolian companies can jointly propose projects with Japanese
companies
ADB: https://www.adb.org/site/funds/funds/japan-fund-for-joint-crediting-mechanism
jfjcm@adb.org

8. 8Institute for Global Environmental Strategies
Application is Now Open
for JCM Model Project and REDD+ Model Project Financing
Starting date of call for request 5 September 2016
Deadline of application Friday, 2 December 2016 (12:00 JST)
Announcement of selected Model Projects 1- 2 months after the deadline
Apply: http://gec.jp/jcm/kobo/mp160905.html
Sample of required documents:
• Application Form
• Declaration by Representative Participant
• Project Implementation Plan
• Project Idea Note
• Budget
• Company information (e.g. brochure) and certificate of incorporation
• Audited financial statements
• Draft international consortium agreement
• Agreement on the Allocation of JCM Credits
• Other supporting documents

9. 9Institute for Global Environmental Strategies
Criteria for selecting the JCM Model Project
http://gec.jp/jcm/kobo/mp160905.html
Robustness of the project implementation 40 points
Amount of emission reductions of energy-related CO2
and cost-effectiveness of emission reductions (JPY/tCO2)
40 points
Potential of the dissemination of the technology 10 points
Concept and status of JCM methodology development 10 points
• Projects installations start after the adoption of the funding and must
be completed within 3 years.
• Finance will be paid based on the verified cost actually spent for
implementation of the project.

10. 10Institute for Global Environmental Strategies
Financial support for JCM Model Project
Number of already selected projects using a
similar technology in each partner country
% of financial support for new project
application
No project (0) Up to 50% (determined by participants)
1-3 projects Up to 40% (determined by participants)
More than 3 projects Up to 30% (determined by participants)
Covers main construction, ancillary work, machinery and
appliances, survey and test, facilities, administrative work, etc.
In Mongolia, new solar PV and boiler projects will be eligible for up to 40% of financial
support. Other technologies will be eligible for up to 50% of financial support.
Maximum Percentage of Financial Support determined based on the
number of already selected JCM Model Projects using a similar technology
in each country.

11. 11Institute for Global Environmental Strategies
Develop
business
idea
Find Japanese
partner
Develop
consortium
(joint venture
etc.)
Apply JCM
financing
programme
and develop
methodology
Sample document of “Agreement on
International Consortium (Example)”
Recommended steps to develop
JCM projects
• Secure financial sources for the rest of initial cost
• Consult about project with JCM Mongolia secretariat
• Work with Business Council Mongolia and IGES
on business matchmaking and project development
• Business forums, trade associations, websites e.g. http://ibo.jcci.or.jp/
Japanese entity submits
application (in Japanese)

12. 12Institute for Global Environmental Strategies
1212
Thank You
IGES Climate and Energy Area
Market Mechanisms
2108-11 Kamiyamaguchi, Hayama, Kanagawa,
240-0115 Japan
Tel: +81-46-826-9592
Fax: +81-46-855-3809
E-mail: mm-info@iges.or.jp
JCM Mongolia secretariat
http://www.jcm-mongolia.com/

13. 13Institute for Global Environmental Strategies
Company
matching
Application to
JCM Financing
Programme
Methodology
development
PDD
development
Measurement,
reporting and
verification
Credit
Issuance
Validation
(by TPE)
Creation of
International
Consortium
(for JCM Model
Projects)
Technical support from MOEJ, IGES, the host country JCM
Secretariat and (optional) a consultant
Verification
(by TPE)
Overview of JCM Project Development
Project
approval,
start of funding
and operations
Methodology
approval
(by the Joint
Committee)
JCM Project
registration
(by the Joint
Committee)
 Validation report
 Verification report
Before project beginning
From project beginning to official
registration as JCM project
Continuous measurement,
reporting and verification of GHG
emissions for credit issuance
Monitoring
report*
By project
participants
*Support for
monitoring report
first time only
Technical support from OECC and
IGES

14. 14Institute for Global Environmental Strategies
14Percentage of Financial Support: White: 0 project = Up to 50% | Yellow: 1-3 project(s) = Up to 40% |
Orange: more than 4 projects = Up to 30%
Yellow
Orange
Sector Technology
Mong
olia
Bangla
desh
Ethiopi
a
Kenya
Maldiv
es
Viet
Nam
Lao
PDR
Indon
esia
Costa
Rica
Palau
Camb
odia
Mexic
o
Saudi
Arabia
Chile
Myan
mar
Thaila
nd
Malay
sia Total
Energy
efficiency
Boiler 1 2 2 5
Regenerative Burners 1 1
Gas Fired Furnace 1 1
Electric Furnace 1 1
Air Conditioning System 2 1 1 4
Chiller 2 1 4 1 1 3 12
Refrigerator 1 1 3 5
Absorption Chiller Using Waste
Heat
1 1
2
Swirling Induction Type Air
conditioning System
1
1
Air Conditioning Control System 1 1 2
Heat Pump 1 1 2
Fridge and Freezer Showcase 1 1 2
Compressor 1 1
Loom 1 2 1 4
Old Corrugated Cartons Process 1 1
Battery Case Forming Device 1 1
Electrolyzer in Chlorine Production 1 1 2
Transformer 3 3
LED lighting 2 1 3
LED Street Lighting with Dimming
System
1 1
2
Pump 1 1
Aeration System 1 1
Water Heater Using Exhaust Heat 1 1
Exhaust Heat Recovery 1 1
Wire Stranding Machines 1 1
Evaporator with Mechanical Vapor
Recompression
1
1
Energy
industries
(renewable-
/non
renewable
sources)
Solar Power Plant 3 2 1 1 1 1 1 3 3 3 1 20
Solar Power Plant with Battery 1 1 2
Small Hydropower Plan 1 1 2
Power Generation by Waste Heat
Recovery
1 1 1
3
Gas Co-generation 1 2 3
Biomass Co-generation 1 1
Waste
handling
and disposal
Waste to Energy Plant 1 1
Power Generation by Methane
Recovery
1
1
Transportation Digital Tachograph System 1 1
4 6 1 3 1 16 0 24 3 3 5 1 1 0 5 21 1 95
Maximum percentage of financial support by applied technology type and
number of JCM model project by each country 29/08/2016