Third Meeting of the JCM Promotion and Utilization Council and Authorization of JCM as a Cooperative Approach in accordance with Article 6 of the Paris Agreement

March 31, 2025

Electronic means

<Purpose of and reasons for the decision>
　The main contents stipulated in the "Guidelines for the Implementation of the Joint Crediting Mechanism (JCM) in Japan” will be implemented under the Laws and Orders, which will be take effect on April 1, 2025. Such Laws and Orders are the revised Act on Promotion of Global Warming Countermeasures (Act No. 117 of October 9, 1998), Order for Enforcement of the Act on Promotion of Global Warming Countermeasures (Cabinet Order No. 143 of 1999), and related Ministerial Orders. Therefore, the Guidelines will be abolished.

<Purpose of and reasons for the decision>
　The revision reflects the abolishment of the “Guidelines for the Implementation of the Joint Crediting Mechanism (JCM) in Japan” and the implementation of authorization in accordance with the revised Act on Promotion of Global Warming Countermeasures (Act No. 117 of October 9, 1998) and CMA Decisions relating the guidance on the cooperative approach under Article 6.2 of the Paris Agreement.

<Purpose of and reasons for the decision>
　This revision reflects the abolishment of the “Guidelines for the Implementation of the Joint Crediting Mechanism (JCM) in Japan.”

<Purpose of and reasons for the decision>
　The CMA^*1 Decision relating the guidance on the cooperative approach under Article 6.2 of the Paris Agreement requires three authorization elements; authorization of the cooperative approach, authorization of internationally transferred mitigation outcomes (“ITMOs^*2”), and authorization of entities. The said authorization is for the authorization of the cooperative approach.
　*1　CMA: Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA)
　*2　ITMOs: Internationally transferred mitigation outcomes
　The authorization of JCM credits as ITMOs in accordance with Article 6 of the Paris Agreement and the authorization of entities will be, in principle, made at the time of registration of the project, and the specific amount of JCM credits to be transferred will be confirmed at the time of the issuance of credits. This intends to authorize at an earlier stage, which is the authorization at project registration stage, rather than the authorization at the credit issuance stage for the first time, in order to encourage entities to participate in JCM projects and mobilize finance by ensuring predictability at the earliest possible stage.

<Purpose of and reasons for the decision>
　This revision reflects the abolishment of the “Guidelines for the Implementation of the Joint Crediting Mechanism (JCM) in Japan” and the changes of members.

　Japan has implemented an initiative called the Joint Crediting Mechanism (JCM), which is aligned with Article 6 of the Paris Agreement. The JCM is a mechanism in which Japanese companies and the Government of Japan cooperate with partner countries in the Global South and other areas in terms of technology and funding to implement measures, and the additional greenhouse gas reduction and removal outcomes are evaluated in a quantitative manner in line with Article 6 of the Paris Agreement and shared between the partner country and Japan.

 　It is expected to contribute to the Nationally Determined Contributions (NDCs) of both Japan and partner countries, and to revitalize the economies of both countries through the participation of private companies. Furthermore, it is also expected to contribute to sustainable development in partner countries by solving various social, economic and environmental issues.

　Since the first JCM agreement was signed with Mongolia in 2013, JCM agreements have been established with 29 countries* to date, and more than 250 projects are currently underway.
 
*Mongolia, People's Republic of Bangladesh, Federal Democratic Republic of Ethiopia, Republic of Kenya, Republic of Maldives, Socialist Republic of Vietnam, Lao People's Democratic Republic, Republic of Indonesia, Republic of Costa Rica, Republic of Palau, Kingdom of Cambodia, United Mexican States, Kingdom of Saudi Arabia, Republic of Chile, Republic of the Union of Myanmar, Kingdom of Thailand, Republic of the Philippines, Republic of Senegal, Republic of Tunisia, Republic of Azerbaijan, Republic of Moldova, Georgia, Democratic Socialist Republic of Sri Lanka, Republic of Uzbekistan, Independent State of Papua New Guinea, United Arab Emirates, Kyrgyz Republic, Republic of Kazakhstan, and Ukraine. In total, 29 countries.

　In order to implement the Joint Crediting Mechanism (JCM) in Japan in line with the Paris Agreement and decisions, Ministry of the Environment, Ministry of Economy, Trade and Industry, Ministry of Foreign Affairs, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism established the JCM Promotion and Utilization Council, based on the Plan for Global Warming Countermeasures (Cabinet Decision on October 22, 2021).  
　This Council carries out duties relating to the authorization of JCM credits as a Party to the Paris Agreement, the determination of a method to apply a corresponding adjustment to prevent double counting and others.

[Reference site]
Japan JCM Registry website
https://www.jcmregistry.go.jp/