Press Release

August 17, 2023
  • Global Environment

MOE Japan Selects four New JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2023 (First Round)

On August 17, 2023, Ministry of the Environment (MOE), Japan, announced four new projects selected for the JCM Model Projects of the Joint Crediting Mechanism (JCM) Financing Support Programme for FY2023 (first round). The total number of supported JCM Model Projects has reached 219, and the cumulative reduction of greenhouse gas (GHG) emissions by FY2030 is expected to be approximately 20 million tons-CO2.

MOE Japan received a variety of applications for the JCM Model Projects for this first round and selected four projects related to effective use of energy and renewable energy, such as solar 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)" and others.

1. JCM Outline

-  Since 2013, Japan has established the JCM with 27 partner countries and over 200 projects have been selected. The JCM's 27 current partner countries are: Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, Papua New Guinea, United Arab Emirates and Kyrgyz Republic.
- The JCM aims to reduce GHG emissions in developing countries and others by utilizing advanced decarbonizing technologies. Under the JCM scheme, in line with Article 6 of the Paris Agreement, Japan is facilitating the diffusion of leading decarbonizing technologies and infrastructure, etc. as well as the implementation of mitigation actions in partner countries. The JCM contributes to the achievement of Japan’s and partner countries' NDCs while ensuring the avoidance of double counting through corresponding adjustments.
- The JCM Model Projects of MOE Japan provide financial support of up to 1/2 of the initial investment cost for projects. Representative participants in the JCM Model Projects shall conduct measurement, reporting, and verification (MRV) of GHG emission reductions. In addition, this financing support programme is expected to contribute to global decarbonization by disseminating and deploying advanced decarbonizing technologies while ascertaining in detail 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 on the JCM:

2. Outline of Four Newly Selected JCM Model Projects

-  Applications for the "JCM Model Projects of JCM Financing Support Programme" in FY2023 by the Global Environment Centre Foundation (GEC, an implementing organization) are open from April 6 to November 30, 2023. 
- In the first round of the selection process in FY2023, MOE Japan selected four new projects based on the results of an initial document screening, secondary review through interviews, acceptance/rejection review and confirming that there is ‘no objection’ raised by the Joint Committee of respective partner countries. MOE Japan will carry out 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 (August 17, 2023) >
No. Partner Country Project Name Representative Participant Estimated GHG Reduction (tCO2/year)
1 Mexico Introduction of 0.5MW Rooftop Solar Power System to Automotive Parts Factory (JCM Eco Lease Scheme) BOT Lease Co., Ltd. 392
2 Philippines Introduction of 6MW Power Generation System by Waste Heat Recovery for Cement Plant Global Engineering Co., Ltd. 21,245
3 Philippines 27MW Solar Power Project in Dagohoy, Bohol Island Kyuden International Corporation 20,395
4 Philippines Introduction of 1.2MW Rooftop Solar Power System to Electronic Equipment Assembly Factory (JCM Eco Lease Scheme) Tokyo Century Corporation 697

[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 GHG 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.

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