TPE auditors that perform the future verification should be fully accountable for
all their activities.
16 Since the JCM TPEs must be certified under CDM Designated
National Authority or ISO 14064, their accountability should be high enough.
Moreover, the Joint Committee and accreditation organizations have the authority
to suspend or withdraw them in case of non-performance.
However, as next verification process is not financially supported, there is a need
for a clear incentive for projects to verify emissions reductions and issue credits in
the future, especially in 2021 and 2030, since the JCM credits are so far
non-tradable and there has not been any indication of making it otherwise. Currently, the Japanese government supports the cost of first verification achieved at
the end of first year of project. After the first request, participants may request
issuance of the JCM credits for emission reductions achieved during several years
in one time, but they shall request issuance of the JCM credits for emission
reductions achieved by 2020 by the end of 2021.
17 The projects participants
(especially from partner countries without any agreement with their government)
who may not have enough budget for verification may be reluctant to continuously
monitor and verify their achievements by the end of the project period, which is
13 years in average among registered projects.
18
The pathway to transform the JCM into tradable scheme, if there is any plan, is
important not only for the participants but also for partner countries. While Japan
requires verification at the end of 2020 in the project financing rules, it is important
for partner countries to take measures for the future use of credits owned by partner
country participants.
7.4.4 Project Development and Capacity Building
Since the first batch of selected projects for funding in 2013, the JCM have
registered eight projects, all in the Asia and Pacific region (Indonesia, Mongolia,
Vietnam, and Palau). In total, 89 projects have been selected for funding and
currently in the implementation pipeline as of January 2016.
19 They are concentrated in Indonesia and Vietnam and to a lesser extent in Bangladesh and Mongolia.
The “standard” project proposal procedure starts from submission by a project
consortium to the Japanese government during call for request period, usually two
to three times a year for 1 month. A consortium includes Japanese company and
16 Stockholm Environment Institute (SEI). 2015. Has Joint Implementation reduced GHG emissions? Lessons learned for the design of carbon market mechanisms. Seattle: Stockholm Environment Institute.
17 MOEJ, 2015. JCM Financing Programme for JCM Model Projects Public Offering Guidelines
(tentative translation).
18 IGES JCM Database, January 2016.
19 IGES JCM Database, January 2016.
7 Enhancing the Joint Crediting Mechanism MRV to Contribute to Sustainable. . .
121
all their activities.
16 Since the JCM TPEs must be certified under CDM Designated
National Authority or ISO 14064, their accountability should be high enough.
Moreover, the Joint Committee and accreditation organizations have the authority
to suspend or withdraw them in case of non-performance.
However, as next verification process is not financially supported, there is a need
for a clear incentive for projects to verify emissions reductions and issue credits in
the future, especially in 2021 and 2030, since the JCM credits are so far
non-tradable and there has not been any indication of making it otherwise. Currently, the Japanese government supports the cost of first verification achieved at
the end of first year of project. After the first request, participants may request
issuance of the JCM credits for emission reductions achieved during several years
in one time, but they shall request issuance of the JCM credits for emission
reductions achieved by 2020 by the end of 2021.
17 The projects participants
(especially from partner countries without any agreement with their government)
who may not have enough budget for verification may be reluctant to continuously
monitor and verify their achievements by the end of the project period, which is
13 years in average among registered projects.
18
The pathway to transform the JCM into tradable scheme, if there is any plan, is
important not only for the participants but also for partner countries. While Japan
requires verification at the end of 2020 in the project financing rules, it is important
for partner countries to take measures for the future use of credits owned by partner
country participants.
7.4.4 Project Development and Capacity Building
Since the first batch of selected projects for funding in 2013, the JCM have
registered eight projects, all in the Asia and Pacific region (Indonesia, Mongolia,
Vietnam, and Palau). In total, 89 projects have been selected for funding and
currently in the implementation pipeline as of January 2016.
19 They are concentrated in Indonesia and Vietnam and to a lesser extent in Bangladesh and Mongolia.
The “standard” project proposal procedure starts from submission by a project
consortium to the Japanese government during call for request period, usually two
to three times a year for 1 month. A consortium includes Japanese company and
16 Stockholm Environment Institute (SEI). 2015. Has Joint Implementation reduced GHG emissions? Lessons learned for the design of carbon market mechanisms. Seattle: Stockholm Environment Institute.
17 MOEJ, 2015. JCM Financing Programme for JCM Model Projects Public Offering Guidelines
(tentative translation).
18 IGES JCM Database, January 2016.
19 IGES JCM Database, January 2016.
7 Enhancing the Joint Crediting Mechanism MRV to Contribute to Sustainable. . .
121