Press Release

MOEJ selected 11 projects for JCM Model Projects of Joint Crediting Mechanism (JCM) financing support programme FY 2021

June 29, 2021

(June 29, 2021, Tokyo) Ministry of the Environment, Japan (MOEJ), selected 11 projects for JCM Model Projects of Joint Crediting Mechanism (JCM) financing support programme in fiscal year 2021. The cumulative reduction of greenhouse gas (GHG) emissions by 2030 is expected to be approximately 20 million tons. MOEJ is still accepting applications for the second round of selection (the deadline for the second round is July 16). MOEJ will continue to strongly promote the overseas expansion of environmental infrastructure through the JCM, based on the MOEJ Initiative for Decarbonized Infrastructure.

MOEJ received many applications and selected a wide variety of projects related to renewable energy (such as solar, biomass, and geothermal) and waste infrastructure, which are priority areas for the MOEJ Initiative for Decarbonized Infrastructure.

Minister Koizumi declared:

MOEJ selected 11 projects, 7 of which are related to renewable energy, an area of focus for MOEJ. In addition, a large-scale commercial waste-to-energy project was selected for the first time as JCM. MOEJ will continue to establish JCM partnerships with Pacific island countries among others, and will also team up with Australia to demonstrate the use of green hydrogen in Pacific island countries. Through these efforts, MOEJ will contribute to the decarbonization of the Indo-Pacific region.

The 11 projects selected for the JCM:

No. Partner Country Project Name Representative Participant

Estimated

GHG Reduction

(tCO2/year
1 Vietnam Waste to Energy project in Bac Ninh Province JFE Engineering Corporation 41,805
2 Vietnam 10MW Rice Husk Power Plant Project in Hau Giang Province Electric Power Development Co., Ltd. 22,315
3 Vietnam

Introduction of 9MW Rooftop Solar Power System to Factories

Sharp Energy Solution Corporation 3,618
4 Vietnam Introduction of High Efficiency LED Lighting with Dimming and Tunable Function to Office Building in Ho Chi Minh City ENDO Lighting Corporation 196
5 Indonesia Introduction of 3.3MW Rooftop Solar Power System in Woodworking Factories Sumitomo Forestry Co., Ltd. 2,396
6 Indonesia Introduction of High-Efficiency Thermal Oil Heater System in Chemical Factory FUMAKILLA LIMITED 1,942
7 Mexico 20MW Solar Power Project in Guanajuato Sharp Energy Solution Corporation 20,023
8 Thailand Introduction of High Efficiency Once Through Boiler to Garment Factory Osaka Gas Co., Ltd. 2,665
9 Thailand Installation of High Efficient Chiller System and PV System for On-Site Energy Supply in Motorcycle Factory NIPPON STEEL ENGINEERING CO., LTD. 1,144
10 Philippines 60MW Solar Power Project in Cordon, Isabela MITSUI & CO., LTD. 44,860
11 Philippines Tanawon 20MW Flash Geothermal Power Plant Project Mizuho-Toshiba Leasing Company Ltd. 38,312

The JCM aims to reduce GHG emissions in developing countries by utilizing advanced decarbonized technologies. This programme provides financial support of up to 1/2 of the initial investment cost for projects performing measurement, reporting, and verification (MRV). The purpose of the JCM is to contribute to the reduction of GHG emissions in developing countries, as well as to the achievement of Japan's GHG emission reduction targets through the project. In addition, this programme is expected to contribute to global decarbonization by disseminating and deploying advanced decarbonized technologies, upon deep understanding of the needs of partner countries. These activities are in accordance with the "Strategy for Overseas Expansion in the Environmental Field," based on "MOEJ Initiative for Decarbonized Infrastructure," the "Strategy for Overseas Expansion of Infrastructure Systems 2025," and the "Strategy for Expansion Infrastructure Systems (revised in FY 2017, decided by the Economic Cooperation Infrastructure Strategy Council) ".

The Global Environment Centre Foundation (GEC), an implementing organization of the "Financing Programme for Joint Crediting Mechanism (JCM) Model Projects," has been accepting applications from Japanese private companies from April 7, 2021 to October 29, 2021. In its first round of the selection process, MOEJ selected 11 projects, based on the results of an initial document screening, secondary review through interviews, and acceptance/rejection review.

MOEJ has formulated the "Initiative for Decarbonized Infrastructure" to further promote the overseas expansion of environmental infrastructure through the JCM. Through the JCM, MOEJ aims to achieve a cumulative GHG emission reduction of 100 million tons through a public-private partnership by FY2030 (with a maximum project size of approximately 1 trillion yen through public-private partnerships by accelerating the implementation of the project through a diversification of funds).

Outline of the Joint Crediting Mechanism (JCM):

The JCM provides advanced decarbonized technologies, products, systems, services, and infrastructure to developing countries, and evaluates the amount of GHG emission reduction and absorption achieved. This ultimately contributes to the achievement of reduction targets in partner countries and Japan. JCM's current 17 partner countries are Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, and the Philippines.

Reference: https://www.carbon-markets.go.jp/eng/index.html

"2025 Strategy for Overseas Expansion of Infrastructure Systems" (decided by the Economic Cooperation Infrastructure Strategy Council, in December, 2020):

In order to lead the global decarbonization , "2025 Strategy for Overseas Expansion of Infrastructure Systems" is based on the basic policy to support a variety of option for CO2 reduction, including renewable energies such as wind, solar, and geothermal, hydrogen, energy management technologies, and CCUS/carbon recycling. It also aims to support formulation of a long-term strategy for the decarbonization towards the achievement of the Paris Agreement, upon a deep understanding of partner countries' needs.

Reference (Japanese): https://www.kantei.go.jp/jp/singi/keikyou/dai49/siryou2.pdf

"Strategy for Overseas Expansion in the Environmental Field" (decided by MOEJ, June, 2018):

Utilizing Japan's wide range of technologies and experiences, MOEJ supports the energy transition of partner countries by facilitating the implementation of infrastructures and capacity-building. It is important for Japan to establish strong public-private partnerships to lead the world in the field of renewable energy, hydrogen, energy conservation, and other low-carbon infrastructure technologies. MOEJ will disseminate and expand Japan's advanced decarbonized technologies including disaster-resistant renewable energy through the JCM.

Reference (Japanese): http://www.env.go.jp/press/105573.html

Contact information:

HORIKAWA Ryosuke, Office of Market Mechanisms,

Climate Change Policy Division, Global Environmental Bureau

Phone: +81-3-5521-8246

Introduction of 3.3MW Rooftop Solar Power System in Woodworking Factories

For Japanese

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