MOE Japan Selects Two New JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2023 (Fifth Round) and Three New Projects for FY2024　(First Round)

- Since 2013, Japan has established the JCM with 29 partner countries, and over 250 projects have been selected. The JCM's 29 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, Kyrgyz Republic, Kazakhstan, and Ukraine.

- The JCM aims to reduce greenhouse gas (GHG) emissions in developing countries and others by utilizing advanced decarbonizing technologies. Under the JCM scheme, 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 consistent with Article 6 of the Paris Agreement.

- 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: https://www.jcm.go.jp/)

- 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. 

- Applications for the "JCM Model Projects of JCM Financing Support Programme" in FY2024 by the Global Environment Centre Foundation (GEC, an implementing organization) are open from April 5 to November 29, 2024. 

- In the first round of the selection process in FY2024, MOE Japan selected three 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. Prior to the selection in FY2024, MOE Japan also selected two new projects in the fifth round of the selection process in FY2023. 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 fifth round for FY2023 >

No.	Partner Country	Project Name	Representative Participant	Estimated GHG Reduction  (t-CO2/year)
23	Sri Lanka	26MW ground mount solar power plants in Hambantota	Sharp Energy Solutions Corporation	12,906
	[Outline of the project] 26 MW ground mount solar power plants will be installed in Hambanthota. This project contributes to reduction in GHG emissions by selling the generated electricity to the national electricity company, as well as strengthening power generation capacity in Sri Lanka which faces serious electricity shortage.
24	Sri Lanka	10MW Solar Project in Mahiyanganaya	Asian Gateway Corporation	5,879
	[Outline of the project] A 10MW solar power plant will be installed in Mahiyanganaya. This project contributes to reduction in GHG emissions by selling the generated electricity to the national electricity company, as well as strengthening power generation capacity in Sri Lanka which faces serious electricity shortage.

< Projects selected in the first round for FY2024>

No.	Partner Country	Project Name	Representative Participant	Estimated GHG Reduction  (t-CO2/year)
1	Chile	12MW Solar Power and 41MWh Storage Battery Project in Rancagua City	Farmland Co., Ltd.	9,682
	[Outline of the project] The primary objective of this project is to promote the widespread adoption of dispatchable renewable energy in Chile and contribute to emission reduction targets of Chile and Japan. This will be achieved through the implementation of one photovoltaic plant with a combined capacity of 12MW Solar Power, as well as a 41MWh battery energy storage system (BESS), maximizing the project's environmental and economic benefits. The proposed facility will be located in Libertador General Bernardo O'Higgins Region of Chile.
2	Thailand	Introduction of Biomass Co-generation System to Chemical Factory	NIPPON STEEL ENGINEERING CO., LTD.	48,429
	[Outline of the project] The objective of this project is installation of biomass co-generation facility in order to reduce CO2 emission by replacing grid electricity and steam produced by natural gas boiler. Biomass co-generation facility will be composed of stoker boiler, steam turbine and a material handling facility for biomass fuel management.
3	Thailand	Productivity Improvement of Aluminium Ingots Using High Efficiency Furnace System	Daiki Aluminium Industry Co., Ltd.	4,009
	[Outline of the project] This project is to introduce the furnaces that dramatically reduce CO2 emissions in the production of aluminium ingots. A new building is being constructed on the site of the existing factory in Rayong Province, Thailand, and the facility will be installed there. The features of the melting process introduced in this project make the aluminium ingot production process more efficient and productive compared to conventional methods.

https://www.env.go.jp/earth/ondanka/keikaku/211022.html (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.

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 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

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.