Press Release
December 14, 2023
- Global Environment
Approval of grant financing from the Japan Fund for the Joint Crediting Mechanism to the Disaster Resilient Clean Energy Financing (DRCEF) Project in Palau by the Asian Development Bank
The Ministry of the Environment (MOE), Japan, provided financial contributions to establish the Japan Fund for the Joint Crediting Mechanism (JFJCM) as a trust fund within the Asian Development Bank (ADB) in FY2014. Since then, the JFJCM has been promoting the development of Joint Crediting Mechanism (JCM) projects in order to promote the diffusion of leading decarbonization technologies in JCM partner countries in Asia and the Pacific.
On December 11, 2023, ADB approved grant financing from the JFJCM to the Disaster Resilient Clean Energy Financing (DRCEF) Project in Palau.
On December 11, 2023, ADB approved grant financing from the JFJCM to the Disaster Resilient Clean Energy Financing (DRCEF) Project in Palau.
■ Background
MOE Japan has funded the JFJCM, established in ADB in FY2014, in order to promote the diffusion of leading decarbonizing technologies, among others, using the ADB’s portfolio. By reducing additional costs of leading decarbonizing technologies, MOE Japan contributes to the diffusion/expansion of these technologies in developing countries in Asia and the Pacific, and promotes the development of JCM projects.
In this project, the National Development Bank of Palau (NDBP) will provide low-interest loans based on JFJCM grants provided by the ADB, which are expected to promote the introduction of advanced low-carbon technologies by micro, small, and medium enterprises in Palau and achieve long-term reductions in energy-related CO2 emissions.
This project is the first case of using the JFJCM in Palau.
In this project, the National Development Bank of Palau (NDBP) will provide low-interest loans based on JFJCM grants provided by the ADB, which are expected to promote the introduction of advanced low-carbon technologies by micro, small, and medium enterprises in Palau and achieve long-term reductions in energy-related CO2 emissions.
This project is the first case of using the JFJCM in Palau.
■ Overview of the Case Selected
| (1) Country/region where the project will be implemented | ・Republic of Palau |
| (2) Overview of technologies to be introduced |
・Solar Photovoltaic (PV) together with battery energy storage systems (BESS) and energy management system (EMS) for micro, small and medium enterprises
・Other low-carbon technologies such as renewable energy, energy conservation, and clean transportation systems
|
| (3) Expected amount of emission reductions | ・Approx. 4,100 tCO2-equivalent per year |
【Reference】 Joint Crediting Mechanism (JCM)
The Joint Crediting Mechanism (JCM) was established in order to quantitatively evaluate contributions of Japan to greenhouse gas emission reductions and removals, which are achieved through the diffusion of, among others, leading decarbonizing technologies, products, systems, services, and infrastructures, as well as through the implementation of measures in developing countries and others, and in order to use such contributions to achieve Japan’s NDC. At present, Japan implements the JCM with 28 countries (Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, Papua New Guinea, the United Arab Emirates, Kyrgyz and Kazakhstan).
■ Future
MOE Japan and ADB will work together with the Government of Palau to support the project to be registered as a JCM project.