Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Lao PDR, Indonesia,
Costa Rica, Palau, Cambodia, Mexico, Chile, Saudi Arabia, Myanmar, and
Thailand. The JCM promotes the use of advanced technologies and measure, report,
and verify emissions reduced by the technologies.
7.2 The JCM Overview
The JCM was initially designed to complement the CDM. Some of its main
differences with the Kyoto Protocol mechanism are its decentralized governance,
simple and practical MRV system, and the credits its projects generate, up to the
time of writing, are internationally non-tradable.
The JCM is ‘decentralized’ as it is implemented under bilateral cooperation
between Japanese and partner countries government. The measurement, reporting,
and verification (MRV) of the JCM are based on projects using the JCM MRV
methodologies as the tool, which is developed under ‘simplified’ and ‘practical’
principles using clear technology-based eligibility criteria, list of default values,
and ready-to-use monitoring templates. As depicted in Fig. 7.1, the Joint Committee between each partner country and Japan develops and approves the technologybased MRV methodologies to be used by projects to procure the greenhouse gas
emission reductions/removals. Verified reductions/removals will be issued by each
government as JCM credits. These credits are not financially valued and cannot be
traded internationally. However, the JCM agreements do not rule out the possibility
of domestic trade in line with partner country policy.
Instead of buying credits from partner countries, the Japanese government offers
project developers upfront financial incentives for installing the advanced technologies. These incentives are expected to contribute to resolving the burden of high
capital investments that have been hindering the development and utilization of
advanced technologies in developing countries.
1 Currently, incentives to support
projects implementation throughout their cycle are available from the Ministry of
the Environment Japan (MOEJ), Ministry of Economy, Trade, and Industry Japan
(METIJ), Asian Development Bank (ADB, through Japan Fund for JCM with
contributions from MOEJ), and Japan International Cooperation Agency (JICA,
in cooperation with MOEJ).
Technology installation is supported by either full grant (under long-term
entrustment), partial subsidy (direct subsidy up to 50 % of project investment
cost), loan, or loan interest subsidy. Development of methodology, project design
document (PDD), monitoring, reporting, and verification (only the first time) are
1 Mitchell, C., et al., in IPCC, 2011. Special Report on Renewable Energy Sources and Climate
Change Mitigation (SRREN). Cambridge: University Press, Cambridge, United Kingdom; Metz
et al., in IPCC, 2000. Methodological and Technological Issues in Technology Transfer. Cambridge: Cambridge University Press, UK.
112
A. Amellina
Costa Rica, Palau, Cambodia, Mexico, Chile, Saudi Arabia, Myanmar, and
Thailand. The JCM promotes the use of advanced technologies and measure, report,
and verify emissions reduced by the technologies.
7.2 The JCM Overview
The JCM was initially designed to complement the CDM. Some of its main
differences with the Kyoto Protocol mechanism are its decentralized governance,
simple and practical MRV system, and the credits its projects generate, up to the
time of writing, are internationally non-tradable.
The JCM is ‘decentralized’ as it is implemented under bilateral cooperation
between Japanese and partner countries government. The measurement, reporting,
and verification (MRV) of the JCM are based on projects using the JCM MRV
methodologies as the tool, which is developed under ‘simplified’ and ‘practical’
principles using clear technology-based eligibility criteria, list of default values,
and ready-to-use monitoring templates. As depicted in Fig. 7.1, the Joint Committee between each partner country and Japan develops and approves the technologybased MRV methodologies to be used by projects to procure the greenhouse gas
emission reductions/removals. Verified reductions/removals will be issued by each
government as JCM credits. These credits are not financially valued and cannot be
traded internationally. However, the JCM agreements do not rule out the possibility
of domestic trade in line with partner country policy.
Instead of buying credits from partner countries, the Japanese government offers
project developers upfront financial incentives for installing the advanced technologies. These incentives are expected to contribute to resolving the burden of high
capital investments that have been hindering the development and utilization of
advanced technologies in developing countries.
1 Currently, incentives to support
projects implementation throughout their cycle are available from the Ministry of
the Environment Japan (MOEJ), Ministry of Economy, Trade, and Industry Japan
(METIJ), Asian Development Bank (ADB, through Japan Fund for JCM with
contributions from MOEJ), and Japan International Cooperation Agency (JICA,
in cooperation with MOEJ).
Technology installation is supported by either full grant (under long-term
entrustment), partial subsidy (direct subsidy up to 50 % of project investment
cost), loan, or loan interest subsidy. Development of methodology, project design
document (PDD), monitoring, reporting, and verification (only the first time) are
1 Mitchell, C., et al., in IPCC, 2011. Special Report on Renewable Energy Sources and Climate
Change Mitigation (SRREN). Cambridge: University Press, Cambridge, United Kingdom; Metz
et al., in IPCC, 2000. Methodological and Technological Issues in Technology Transfer. Cambridge: Cambridge University Press, UK.
112
A. Amellina