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Memorandum of cooperation between the World Bank and the Ministry of the Environment of Japan on collaboration for scaling-up of the Joint Crediting Mechanism (JCM)

August 27, 2019

1.Overview

・A Memorandum of Cooperation (MoC) was signed between the World Bank and the Ministry of the Environment of Japan (MOEJ) to scale up the Joint Crediting Mechanism (JCM) projects under Article 6 of the Paris Agreement.
・The MOEJ continues to contribute the development of appropriate framework to utilize the market mechanism under Article 6 of the Paris Agreement by developing the JCM through collaboration with the World Bank's various initiatives and programs.

2.General Information

Based on the MoC, the MOEJ will develop the JCM by utilizing various World Bank's initiatives and programs below:

(1)Piloting Article 6 of the Paris Agreement

The World Bank and the Ministry of the Environment, Japan will explore an opportunity to cooperate for piloting Article 6, scaling up the JCM projects, and utilizing the Measurement, Reporting and Verification (MRV) methodologies under the JCM to the World Bank's programs.

(2)Partnership for Market Readiness (PMR)

The PMR is the fund of World Bank to provide the support in capacity building to introduce the market mechanism for developing countries. In terms of providing experts and leveraging opportunities for scaling-up the JCM related projects, the MOEJ will explore the possibility to scale up the JCM projects under the PMR and successor program.

(3)Innovate 4 Climate (I4C)

I4C is the World Bank Group's annual flagship event on the state and trends in climate finance, investment and markets. The MOEJ participate in I4C and transmit the information of the JCM.

(4)Carbon Pricing Leadership Coalition (CPLC)

CPLC aims to bring together decision makers in the public and private sector to discuss and advocate for carbon pricing. The MOEJ continues to contribute to the program through showcasing its initiatives for carbon pricing to move the discussion forward.

At the Asia-Pacific Climate Week, which will be held in Bangkok from September 2nd to 6th, the MOEJ will organize the side event to introduce the latest progress of the JCM, including this memorandum.

*Joint Crediting Mechanism (JCM)

 Facilitating diffusion of leading low carbon technologies, products, systems, services, and infrastructure 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 those to achieve Japan's emission reduction target.

 Japan 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(17 countries).

 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.

**Overseas Development Strategy (Environment) (June, 2018)

 Based on various needs of foreign countries, support for the energy transition in foreign countries will be implemented in terms of development of infrastructures and human resources. In particular, it is important to build a strong public-private partnership system that can lead the world and fight against it, based on low carbon infrastructure.

 Utilizing the JCM, dissemination and development of Japan's advanced low carbon technology, and promotion of overseas development of infrastructure that Japan has a comparative advantage, such as renewable energy that is resistant to disasters will be implemented.

For Japanese

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