Press Release

July 01, 2022
  • Global Environment

MOE Japan Selected 16 Projects for JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2022 (First Round)

On 1st July, the Ministry of the Environment (MOE), Japan, announced 16 new selected projects for JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2022 (first round). The number of selected JCM Model Projects has reached 203, and the cumulative reduction of greenhouse gas (GHG) emissions by FY2030 is expected to be approximately 19 million tons.

MOE Japan has received a variety of JCM Model Projects applications for this first round and selected 16 projects related to energy conservation and renewable energy, such as solar, biomass, and geothermal power generation. MOE Japan will continue to strongly promote the overseas expansion of decarbonizing infrastructure through the JCM, based on the "Plan for Global Warming Countermeasures (Cabinet decision in October 2021)," etc.

The Second Round for the applications for JCM Model Projects selection in FY2022 is open until 29th July.

1. JCM Outline

Since 2013, Japan has established the JCM with 17 partner countries and over 200 projects have been selected. The 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.

The JCM aims to reduce GHG emissions in developing countries by utilizing advanced decarbonized technologies. Under the JCM scheme, in line with Article 6 of the Paris Agreement, Japan is facilitating diffusion of leading decarbonizing technologies and infrastructure, etc. as well as implementation of mitigation actions in partner countries. The JCM contributes to the achievement of both countries' NDCs while ensuring the avoidance of double counting through corresponding adjustments.
 
JCM Model projects of MOE Japan provide financial support of up to 1/2 of the initial investment cost for projects, performing measurement, reporting, and verification (MRV). In addition, this financing support 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 JCM activities are in accordance with the "Plan for Global Warming Countermeasures (Cabinet decision in October 2021)," the "MOE Japan Policy for Implementing Article 6 of the Paris Agreement after COP26 (November 2021)", and the "Grand Design and Action Plan for a New Form of Capitalism and Follow-up (Cabinet decision in June 2022)."
 
(For further information of the JCM: https://www.jcm.go.jp/)

2. Outline of the Selected 16 Projects for MOE Japan's JCM Model Projects

Applications for the "JCM Model Projects of JCM Financing Support Programme" in FY2022 by the Global Environment Centre Foundation (GEC, an implementing organization) are open from 6th April to 30th November, 2022.

 

In its first round of the selection process in FY2022, MOE Japan selected 16 new projects, based on the results of an initial document screening, secondary review through interviews, and acceptance/rejection review. MOE Japan proceeds with the procedures for the decided financial support, and the procedures for the implementation of the JCM with partner countries.
 
 
< Projects selected in the first round >
No. Partner Country Project Name Representative
Participant
Estimated
GHG Reduction
(tCO2/year)
1 Kenya Introduction of 3.1MW Rooftop Solar Power System to Food Processing Facilities AAIC Japan Co., Ltd. 2,454
2 Kenya Introduction of 2.3MW Rooftop Solar Power System to Hatchery, Meat Processing and Battery Facilities AAIC Japan Co., Ltd. 1,735
3 Vietnam 20MW Biomass Power Plant Project in Hau Giang Province eREX Co.,Ltd. 36,814
4 Vietnam 16MW Mini Hydro Power Plant Project in Binh Thuan Province Kanematsu KGK Corp. 16,910
5 Vietnam Energy Supply Project by 7.9MW Rooftop Solar Power System to Automotive and Garment Factories The Kansai Electric Power Company, Incorporated 2,634
6 Vietnam Introduction of 0.4MW Rooftop Solar Power System to Aluminum Wheel Manufacturing Factory (JCM Eco Lease Scheme) Sumitomo Mitsui Trust Panasonic Finance Co., Ltd. 156
7 Indonesia Introduction of High-efficiency Once-through Boiler System to Chemical Factory DIC Corporation 1,652
8 Thailand Introduction of Gas Co-generation System and 22MW Rooftop Solar Power System to Tire Factory The Kansai Electric Power Company, Incorporated 31,652
9 Thailand Introduction of ORC Waste Heat Recovery Power Generation System to Flat Glass Factory AGC Inc. 7,845
10 Thailand Energy Supply Project by 4.3MW Rooftop Solar Power System to Parts and Tools Factories The Kansai Electric Power Company, Incorporated 1,926
11 Thailand Energy Supply Project by 2.9MW Rooftop Solar Power System to Metal Factories and Refrigerating Warehouse Osaka Gas Co., Ltd. 1,150
12 Thailand Energy Supply Project by 1MW Rooftop Solar Power System to Metal Recycling and Automotive Parts Factories Marubeni Corporation 403
13 Philippines 28MW Binary Power Generation Project at Mahanagdong Geothermal Power Plant JGC CORPORATION 76,220
14 Philippines 14.5MW Mini Hydro Power Plant Project in Siguil River in Mindanao Toyota Tsusho Corporation 47,349
15 Philippines Energy Supply Project by 9MW Solar Power System to Ceramic Factory and Cement Plant Marubeni Corporation 5,957
16 Philippines Introduction of 0.8MW Solar Power System to Aluminum Products, Packaging Materials and Automotive Parts Factories (JCM Eco Lease Scheme) Tokyo Century Corporation 544
 

[Reference 1] Positioning of the JCM in the Plan for Global Warming Countermeasures (Cabinet decision, October 2021)

http://www.env.go.jp/earth/ondanka/keikaku/211022.html (Available in Japanese)
 
The JCM provides advanced decarbonized technologies, products, systems, services, and infrastructure to developing countries, and evaluates Japan’s contribution through the amount of GHG emission reduction and absorption achieved. Japan will develop and implement the JCM in a manner to utilize the outcomes also for achieving its Nationally Determined Contribution (NDC). Through public-private collaboration in the JCM, Japan aims to achieve the cumulative reduction and absorption of GHG emissions of around 100 million t-CO2 by 2030.

[Reference 2] MOE Japan Policy for Implementing Article 6 of the Paris Agreement after COP26 (November 2021)

https://www.env.go.jp/annai/kaiken/files/r04/cop26%206jou.pdf (Available in Japanese)
 
At COP26, the Rulebook for Article 6 (market mechanisms) of the Paris Agreement was concluded, paving the way for utilizing market mechanisms to reduce global emissions.
Leading Article 6 negotiations and being a frontrunner with the experience of the Joint Crediting Mechanism (JCM), Japan will take the following three actions to contribute to global decarbonization.

< Three actions >
1. Expand JCM partner countries and strengthen project development and implementation in collaboration with international organizations
2. Scale up the JCM by mobilizing further private finance
3. Contribute to the global operationalization of market mechanisms
 

[Reference 3] Grand Design and Action Plan for a New Form of Capitalism and Follow-up (Cabinet decision, June 2022)

https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/pdf/fu2022.pdf (Available in Japanese)
 
For achieving the target of the JCM, accelerating consultations to expand partner countries up to approximately 30 countries worldwide by around 2025 from the current 17 countries.