Press Release

November 18, 2022
  • Global Environment

Japan and the Independent State of Papua New Guinea sign the Memorandum of Cooperation for Establishing the JCM

1.On November 18, 2022, NISHIMURA Akihiro, Minister of the Environment, Japan, and H.E. Mr. Simo Kilepa, Minister for Environment, Conservation and Climate Change of the Independent State of Papua New Guinea signed the Memorandum of Cooperation on the Joint Crediting Mechanism (JCM) in Egypt, the Presidency of the 27th Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change (UNFCCC). As a result, the JCM will be officially launched in Papua New Guinea, becoming the twenty-fifth partner country along with 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, and Uzbekistan.

2.Going forward, under the JCM with Papua New Guinea, Japan will contribute to the achievement of the NDC (nationally determined contribution) of both countries by leading decarbonizing technologies and infrastructure, etc. in Papua New Guinea. In addition, Japan will contribute to global decarbonization, by implementing the JCM as a market mechanism under Article 6 of the Paris Agreement, promoting greenhouse gas emission reductions and removals on a global scale, and promoting sustainable development. 

【Outline of the Memorandum of Cooperation】

  • In order to pursue the Paris Agreement's 2°C target and 1.5°C effort target, and to address climate change, the Government of Japan and the Government of Papua New Guinea (hereinafter referred to individually as the "government" and collectively as "both governments") establish and implement the Joint Crediting Mechanism (JCM). Also, both governments establish the Joint Committee consisting of representatives from each government to implement the JCM.
  • Both governments mutually recognize that part of the JCM credits issued from emission reductions and removals under the JCM may be used towards the achievement of Japan's NDC as internationally transferred mitigation outcomes in accordance with the guidance on cooperative approaches referred to in Article 6.2 of the Paris Agreement (hereinafter referred to as the "guidance").
  • Both governments ensure the transparency and environmental integrity of the JCM and maintain it simple and practical.

【Reference 1】Positioning of the JCM in the Plan for Global Warming Countermeasures (Cabinet decision, October 2021) (Available in Japanese)
  • Japan will establish and implement the JCM 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. By doing so, through public-private collaborations, Japan aims to secure accumulated emission reductions and removals at the level of approximately 100 million t-CO2 by fiscal year 2030. Japan will appropriately count the acquired credits to achieve its NDC.
【Reference 2】Grand Design and Action Plan for a New Form of Capitalism and Follow-up (Cabinet decision, June 2022) (Available in Japanese)
  • “For the expansion of the JCM, the government of Japan accelerates consultations with relevant countries, aiming to increase the JCM partner countries up to around 30 by 2025.”