the japan- mongolia cooperation on the joint crediting mechanism
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Kazuhisa KoakutsuLeader, Climate and Energy AreaInstitute for Global Environmental Strategies (IGES)
The Japan-Mongolia Cooperation on the Joint Crediting Mechanismand Recommendations for Mongolian Enterprises
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IGES conducts practical and solution-oriented research focusing on the Asia-Pacific region to develop innovativepolicy approaches and proposeenvironmental policies to achievesustainable development in the region.
IGES Climate and Energy Areaconducts strategic research activitiesto contribute to global efforts tocombat climate change, covering:• Future climate regime• Sustainable energy • Climate mitigation• Climate finance• Asia low carbon strategy• Market mechanisms,
including CDM and JCM
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The Joint Crediting Mechanism (JCM) Cooperation between Government of Japan and Mongolia
Facilitates greenhouse gas emissions reduction/removal projects bycompanies, cities, etc. in MongoliaAs a result of emission reductions, “JCM credits” will be utilized to achieveJapan’s emission reduction target and may be utilized to achieveMongolia’s target.At present, JCM credits are not tradable.JCM Financial Support from Japanese government is available.
Utilized in partner country
accordingly
Creditsto Japan
Creditsto partner
country
corresponding
Used to achieve Japan’s emission reduction target
JCM Credits
dividing
Partnercountry’s
share
JCM projectJCM Financial
Support Scheme
“Contribution”
Japan Partner country (e.g. Mongolia)
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JCM established in 16 countries since 2013
JCM in Mongolia started from January 8h, 2013JCM Mongolia secretariat: Ministry of Environment and Tourism
http://www.jcm-mongolia.com/
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15 projects already registered by governmentsCountry Technology Type Location
Mongolia Heat Only Boilers 118th School of Ulaanbaatar
Mongolia Heat Only Boilers Bornuur soum publicfacilities
Indonesia Cooling system(refrigerator, freezer)
Frozen Food Processing Plant
Indonesia Cooling system(refrigerator, freezer)
Food Industry Cold Storage
Indonesia Centrifugal Chiller Textile factoryIndonesia Centrifugal Chiller Textile factoryIndonesia Centrifugal Chiller Textile factory
Indonesia AC System, LED Lighting, Fridge/Freezer Convenience store
Vietnam Tachograph Trucks, trailers
Vietnam Inverter-type room air conditioners Hospitals
Vietnam Amorphous transformers Electricity grid
Vietnam Boiler, heat pump, LED lighting Hotel
Palau Small-scale Solar PV School rooftopPalau Small-scale Solar PV Building rooftopPalau Small-scale Solar PV Building rooftop
JCM credits issuedto Japanese and Indonesian side
https://www.jcm.go.jp/projects/registers
Japan: Suuri-KeikakuMongolia: Anu-Service
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97 projects already selected for financing, various technologies are implemented
High Efficiency LED Lighting, Cambodia
High-efficiency Heat Only Boilers, Mongolia
Power Generation by Waste-heat Recovery in Cement Industry, Indonesia
Double Bundle-type Heat Pump, Indonesia
Energy Savings at Convenience Stores, Indonesia
10 MW Solar Power Project in Darkhan City, Mongolia
JCM project list: http://gec.jp/jcm/projects/index.html
Amorphous High Efficiency Transformers in Power Grids, Vietnam
LED lighting, co-generation, waste management, water management,hydropower, transportation, biomass, forestry, etc.
5 projects selected in Mongolia:
Solar PV (3)Boiler (2)
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• Finances up to the half of an investment cost for facilities, equipment, vehicles, etc. which reduce CO2 from fossil fuel combustion.
• Includes projects in collaboration with JICA and other government-affiliated financial institute.
JCM Model Project
• Finances part of project cost for REDD+ projects.• At least half or ratio of financial support to project
cost of JCM credits issued are expected to be delivered to the government of Japan except the amount which is allocated to the partner country based on its legislation.
JCM REDD+ Model Project
• Grant for incremental cost of technologies for projects under public and state-owned entities.
• Interest subsidy to ADB-financed loans for non-government projects, to private sector borrowers and financial institutions.
ADB Trust Fund (Japan Fund for
JCM)
JCM Financing Programme
Mongolian companies can jointly propose projects with Japanese companies
ADB: https://www.adb.org/site/funds/funds/[email protected]
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Application is Now Open for JCM Model Project and REDD+ Model Project Financing
Starting date of call for request 5 September 2016
Deadline of application Friday, 2 December 2016 (12:00 JST)
Announcement of selected Model Projects 1- 2 months after the deadline
Apply: http://gec.jp/jcm/kobo/mp160905.html
Sample of required documents:• Application Form• Declaration by Representative Participant • Project Implementation Plan• Project Idea Note• Budget • Company information (e.g. brochure) and certificate of incorporation• Audited financial statements• Draft international consortium agreement• Agreement on the Allocation of JCM Credits• Other supporting documents
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Criteria for selecting the JCM Model Project
http://gec.jp/jcm/kobo/mp160905.html
Robustness of the project implementation 40 points
Amount of emission reductions of energy-related CO2and cost-effectiveness of emission reductions (JPY/tCO2)
40 points
Potential of the dissemination of the technology 10 points
Concept and status of JCM methodology development 10 points
• Projects installations start after the adoption of the funding and mustbe completed within 3 years.
• Finance will be paid based on the verified cost actually spent forimplementation of the project.
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Financial support for JCM Model Project
Number of already selected projects using a similar technology in each partner country
% of financial support for new project application
No project (0) Up to 50% (determined by participants)1-3 projects Up to 40% (determined by participants)More than 3 projects Up to 30% (determined by participants)
Covers main construction, ancillary work, machinery andappliances, survey and test, facilities, administrative work, etc.
In Mongolia, new solar PV and boiler projects will be eligible for up to 40% of financialsupport. Other technologies will be eligible for up to 50% of financial support.
Maximum Percentage of Financial Support determined based on thenumber of already selected JCM Model Projects using a similar technologyin each country.
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Develop business idea
Find Japanese partner
Develop consortium (joint venture etc.)
Apply JCM financing programme and develop methodology
Sample document of “Agreement on International Consortium (Example)”
Recommended steps to develop JCM projects
• Secure financial sources for the rest of initial cost• Consult about project with JCM Mongolia secretariat
• Work with Business Council Mongolia and IGESon business matchmaking and project development
• Business forums, trade associations, websites e.g. http://ibo.jcci.or.jp/
Japanese entity submits application (in Japanese)
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Thank You
IGES Climate and Energy AreaMarket Mechanisms
2108-11 Kamiyamaguchi, Hayama, Kanagawa, 240-0115 JapanTel: +81-46-826-9592Fax: +81-46-855-3809E-mail: [email protected]
JCM Mongolia secretariathttp://www.jcm-mongolia.com/
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Company matching
Application to JCM Financing
ProgrammeMethodology development
PDD development
Measurement, reporting and
verificationCredit
Issuance
Validation
(by TPE)
Creation of International Consortium(for JCM Model Projects)
Technical support from MOEJ, IGES, the host country JCM Secretariat and (optional) a consultant
Verification
(by TPE)
Overview of JCM Project Development
Project approval,start of funding and operations
Methodology approval (by the Joint Committee)
JCM Project registration (by the Joint Committee)
Validation report
Verification report
Before project beginningFrom project beginning to official registration as JCM projectContinuous measurement, reporting and verification of GHG emissions for credit issuance
Monitoring report*
By project participants
*Support for monitoring report first time only
Technical support from OECC and IGES
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14Percentage of Financial Support: White: 0 project = Up to 50% | Yellow: 1-3 project(s) = Up to 40% |Orange: more than 4 projects = Up to 30%
YellowOrange
Sector TechnologyMongolia
Bangladesh
Ethiopia Kenya Maldiv
esViet Nam
Lao PDR
Indonesia
Costa Rica Palau Camb
odiaMexic
oSaudi
Arabia Chile Myanmar
Thailand
Malaysia Total
Energy efficiency
Boiler 1 2 2 5Regenerative Burners 1 1Gas Fired Furnace 1 1Electric Furnace 1 1Air Conditioning System 2 1 1 4Chiller 2 1 4 1 1 3 12Refrigerator 1 1 3 5Absorption Chiller Using Waste Heat 1 1 2Swirling Induction Type Air conditioning System 1 1Air Conditioning Control System 1 1 2Heat Pump 1 1 2Fridge and Freezer Showcase 1 1 2Compressor 1 1Loom 1 2 1 4Old Corrugated Cartons Process 1 1Battery Case Forming Device 1 1Electrolyzer in Chlorine Production 1 1 2Transformer 3 3LED lighting 2 1 3LED Street Lighting with Dimming System 1 1 2Pump 1 1Aeration System 1 1Water Heater Using Exhaust Heat 1 1Exhaust Heat Recovery 1 1Wire Stranding Machines 1 1Evaporator with Mechanical VaporRecompression 1 1
Energyindustries (renewable-/non renewablesources)
Solar Power Plant 3 2 1 1 1 1 1 3 3 3 1 20Solar Power Plant with Battery 1 1 2Small Hydropower Plan 1 1 2Power Generation by Waste Heat Recovery 1 1 1 3Gas Co-generation 1 2 3Biomass Co-generation 1 1
Waste handlingand disposal
Waste to Energy Plant 1 1Power Generation by MethaneRecovery 1 1
Transportation Digital Tachograph System 1 14 6 1 3 1 16 0 24 3 3 5 1 1 0 5 21 1 95
Maximum percentage of financial support by applied technology type and number of JCM model project by each country 29/08/2016