of the JCM. Not only to support general management, the secretariat could push
forward projects that meet the need of country stakeholders by gathering project
proposals, review projects contribution to sustainable development, ensure additional features of projects, and enhance capacity building of local entities. Cooperation for capacity building between secretariats and other organizations including
through international support not only from the Japanese government is very
important. Despite its status as a bilateral partnership, acknowledgment of the
JCM contribution in achieving the international goal is inevitable, not different
with other regional or national market-based initiatives that are increasingly being
developed. Furthermore, the sources or providers of advanced low-carbon technologies to be supported by the JCM are not limited. This opens the door for various
countries, companies, and international organizations to be involved and cooperate.
To encourage this, transparency and timely information should be enhanced especially on project approval process and financial aspects.
Another important aspect in governance is credit sharing. The existing rule that
needs to be clarified is the general term of credits allocation between participants
(or countries) to be based on consultations among participants ‘on a pro rata
basis’.
10 At the same time, the JCM Model Project are requested to deliver at
least half of issued credits to the Japanese government, regardless of the finance
rate.
11
As the JCM clearly mentions, the credits need to be recorded in a registry
system. An online JCM registry system (https://www.jcmregistry.go.jp/) is already
operational, which also provides the space for partner countries to manage their
registry. However, partner countries prefer to run its own registry system and thus
the set of common specifications and rules of registry system were agreed beforehand. Both governments also agreed to request projects in Indonesia to allocate at
least 10 % of issued credits to the Indonesian government. In May 2016, credits
were issued from two projects in Indonesia to the registries of Japan and Indonesia.
The information on issuance are available on JCM websites of Japan and Indonesia.
From the first project, Japan side received 23 tCO credits (20 tCO allocated to the
government and 3 tCO to the project participant) and Indonesia side received 6 tCO
credits (3 tCO allocated to the government and the project participant each). From
the second project, Japan side received 8 tCO credits (7 tCO allocated to the
government and 1 tCO to the project participant) and Indonesia side received
3 tCO credits (2 tCO allocated to government and 1 tCO allocated to the project
participant).
Towards and beyond 2020, it is crucial for the partner countries to consider how
the JCM emissions reductions will be accounted in their national report to the
10 Joint Crediting Mechanism Project Cycle Procedure in partner countries except Costa Rica
(describes that ‘part of the credits is allocated to the project participants from the developed
country taking into consideration their contribution to GHG emission reductions or removals
through the JCM project’), Chile, Myanmar, and Thailand (information not available).
11 Recent Development of the Joint Crediting Mechanism (JCM), September 2015, GEC.
7 Enhancing the Joint Crediting Mechanism MRV to Contribute to Sustainable. . .
117
forward projects that meet the need of country stakeholders by gathering project
proposals, review projects contribution to sustainable development, ensure additional features of projects, and enhance capacity building of local entities. Cooperation for capacity building between secretariats and other organizations including
through international support not only from the Japanese government is very
important. Despite its status as a bilateral partnership, acknowledgment of the
JCM contribution in achieving the international goal is inevitable, not different
with other regional or national market-based initiatives that are increasingly being
developed. Furthermore, the sources or providers of advanced low-carbon technologies to be supported by the JCM are not limited. This opens the door for various
countries, companies, and international organizations to be involved and cooperate.
To encourage this, transparency and timely information should be enhanced especially on project approval process and financial aspects.
Another important aspect in governance is credit sharing. The existing rule that
needs to be clarified is the general term of credits allocation between participants
(or countries) to be based on consultations among participants ‘on a pro rata
basis’.
10 At the same time, the JCM Model Project are requested to deliver at
least half of issued credits to the Japanese government, regardless of the finance
rate.
11
As the JCM clearly mentions, the credits need to be recorded in a registry
system. An online JCM registry system (https://www.jcmregistry.go.jp/) is already
operational, which also provides the space for partner countries to manage their
registry. However, partner countries prefer to run its own registry system and thus
the set of common specifications and rules of registry system were agreed beforehand. Both governments also agreed to request projects in Indonesia to allocate at
least 10 % of issued credits to the Indonesian government. In May 2016, credits
were issued from two projects in Indonesia to the registries of Japan and Indonesia.
The information on issuance are available on JCM websites of Japan and Indonesia.
From the first project, Japan side received 23 tCO credits (20 tCO allocated to the
government and 3 tCO to the project participant) and Indonesia side received 6 tCO
credits (3 tCO allocated to the government and the project participant each). From
the second project, Japan side received 8 tCO credits (7 tCO allocated to the
government and 1 tCO to the project participant) and Indonesia side received
3 tCO credits (2 tCO allocated to government and 1 tCO allocated to the project
participant).
Towards and beyond 2020, it is crucial for the partner countries to consider how
the JCM emissions reductions will be accounted in their national report to the
10 Joint Crediting Mechanism Project Cycle Procedure in partner countries except Costa Rica
(describes that ‘part of the credits is allocated to the project participants from the developed
country taking into consideration their contribution to GHG emission reductions or removals
through the JCM project’), Chile, Myanmar, and Thailand (information not available).
11 Recent Development of the Joint Crediting Mechanism (JCM), September 2015, GEC.
7 Enhancing the Joint Crediting Mechanism MRV to Contribute to Sustainable. . .
117