Recent Development of The Joint Crediting Mechanism (JCM) / Bilateral Offset Credit Mechanism (BOCM)
Recent Development of The Joint Crediting Mechanism (JCM) / Bilateral Offset Credit Mechanism (BOCM)
Recent Development of The Joint Crediting Mechanism (JCM) / Bilateral Offset Credit Mechanism (BOCM)
March 2013
Government of Japan
All ideas are subject to further consideration and discussion with host countries
Low-Carbon Growth
In order to effectively address the issue of climate change, it is necessary
for both developed and developing countries to achieve low-carbon growth
all around the world by fully mobilizing technology, markets and finance.
Widespread use of advanced low-carbon technologies and products in
various fields including renewable energy, highly efficient power generation,
home electronics, low-emission vehicles, and energy-savings in factories
must be accelerated.
Realizing a low carbon society by combining these technologies and
products with appropriate systems, services, and infrastructure is also
crucial.
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Basic Concept of the JCM
Facilitating diffusion of leading low carbon technologies, products, systems,
services, and infrastructure as well as implementation of mitigation actions, and
contributing to sustainable development of developing countries.
Appropriately evaluating contributions to GHG emission reductions or removals
from Japan in a quantitative manner, by applying measurement, reporting and
verification (MRV) methodologies, and use them to achieve Japan’s emission
reduction target.
Contributing to the ultimate objective of the UNFCCC by facilitating global actions
for GHG emission reductions or removals, complementing the CDM.
Host
JAPAN Leading low carbon technologies,
etc, and implementation of Country
mitigation actions
JCM
Projects
MRV Methodologies
will be developed MRV
by the Joint Committee
Used to achieve GHG emission
Japan’s emission
reduction target
Credits reductions/
removals
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Scheme of the JCM
4
The role of the Joint Committee and each Government
The Joint Committee (JC) consists of representatives from
both Governments.
The JC develops rules and guidelines necessary for the
implementation of the JCM.
The JC determines either to approve or reject the proposed
methodologies, as well as develops JCM methodologies.
The JC designates the third-party entities (TPEs).
The JC decides on whether to register JCM projects which
have been validated by the TPEs.
Each Government establishes and maintains a registry.
On the basis of notification for issuance of credits by the JC,
each Government issues the notified amount of credits to
its registry.
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Approaches of the JCM
(4) The JCM covers the period until a possible coming into
effect of a new international framework under the
UNFCCC. 7
Project Cycle of the JCM and the CDM
JCM <Main actors at each process> CDM
Submission of
Project Participant / Each Government Proposed Project Participant
Joint Committee can develop by itself Methodology
Approval of
Joint Committee Proposed CDM Executive Board
Methodology
Can be conducted by the same TPE
Can be conducted simultaneously
JCM CDM
Governance - “de-centralized” structure -“centralized” structure
(Each Government, Joint (CMP, CDM Executive Board)
Committee)
Sector/project - Broader coverage - Specific projects are difficult to
Coverage implement in practice
(e.g. USC coal-fired power generation)
Validation of - In addition to DOEs, ISO14065 - Only DOEs can conduct
projects certification bodies can conduct - Assessment of additionality of each
- Checking whether a proposed proposed project against hypothetical
project fits eligibility criteria scenarios
which can be examined
objectively
Calculation of - Spreadsheet are provided - Various formulas are listed
Emission - Default values can be used in - Strict requirements for measurement of
Reductions conservative manner when parameters
monitored parameters are
limited.
Verification of - The entity which validated the - In principle, the entity which validated
projects project can conduct verification the project can not conduct verification
- Validation & verification can be - Validation & verification must be
conducted simultaneously conducted separately
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Roadmap for the JCM
JFY2011 JFY2012 JFY2013
Feasibility Studies
Explore potential JCM projects/activities
Study feasibilities
Develop MRV methodologies
Capacity Building
UN negotiations on Framework for Various Approaches
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Governmental Consultations
Japan has held consultations for the JCM with developing countries
(e.g. Mongolia, Bangladesh, Indonesia, Vietnam) since 2011 and made
similar briefing to interested countries as well. Japan will continue
consultations/briefing with any countries which are interested in the JCM.
Japan and Mongolia signed the bilateral Document for the JCM.
(first case of signature of the bilateral document for the JCM)
On January 8, 2013, H.E, Mr. Takenori Shimizu, Ambassador Extraordinary and Plenipotentiary of Japan
to Mongolia and H.E, Ms. Sanjaasuren Oyun, Minister for Environment and Green Development of
Mongolia signed the bilateral document for the JCM in Ulaanbaatar. 11
Technical Details Currently Considered for the JCM
(Subject to further consideration and discussion with host countries)
12
Necessary documents for the JCM
(Subject to further consideration and discussion with host countries)
13
Methodology Development Procedure of the JCM
(Subject to further consideration and discussion with host countries)
Project Participant Government
(Methodology Proponent) (Methodology Proponent)
Joint Committee
Prepare a proposed Prepare a proposed Develop a proposed
methodology methodology methodology under
* Methodology guidelines * Methodology guidelines the initiative of the
Submission of * Proposed methodology * Proposed methodology Joint Committee
Proposed form form
* Proposed Methodology * Proposed Methodology
Methodology Spreadsheet Spreadsheet
Assessment of the
proposed
methodology [60
Approval of days or up to 90
Proposed days]
Methodology
Approval of the
Notify the outcome of consideration
proposed
methodology
Note: Asterisk ( * ) indicates documentation relevant for each step of the procedure 14
Project Cycle Procedure of the JCM (1/2)
(Subject to further consideration and discussion with host countries)
Project Participant Third-Party Entity Joint Committee Government
Complete a PDD and
develop a monitoring
plan
* PDD form and Approved
Development Methodology Spreadsheet Submit the PDD and MoC, and request for validation and public inputs
* PDD and monitoring
guidelines
of PDD Complete an MoC
* Form for the “Modalities
of communication
statement”
Notify the receipt of the submission
Public inputs[30 days]
Validation Validate a project (secretariat)
Validation and Prepare a validation
verification can report
be conducted * Validation and verification
simultaneously guidelines
or separately. * Validation report form
Submit the validation report,
and the validated PDD and MoC
Complete a
registration request Request for registration
form
* Registration request form
Registration Notify the receipt of the request Completeness check
Notify the conclusion [7 days] (secretariat)
Notify the registration Registration Notify the registration
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Project Cycle Procedure of the JCM (2/2)
(Subject to further consideration and discussion with host countries)
Project Participant Third-Party Entity Joint Committee Government
Conduct monitoring
Prepare a monitoring Submit the monitoring
Monitoring report report for verification
* PDD and monitoring
guidelines
* Monitoring report form
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Basic Concept for Crediting under the JCM
(Subject to further consideration and discussion with host countries)
Reference Emissions
project
Emission
Reductions
(credits)
Project emissions
Time 18
Crediting Threshold
(Subject to further consideration and discussion with host countries)
Emission
Reductions
project
(credits)
Calculated project emissions
Real project emissions
Time 20
JCM Methodology
Key Features of the JCM methodology
The JCM methodologies are designed in such a way that project participants can
use them easily and verifiers can verify the data easily.
In order to reduce monitoring burden, default values are widely used in a
conservative manner.
Eligibility criteria clearly defined in the methodology can reduce the risks of
rejection of the projects proposed by project participants.
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Basic concept of Eligibility criteria in JCM methodology
(Subject to further consideration and discussion with host countries)
Monitoring
period
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JCM Feasibility Studies (FSs) by METI in FY2010
30 projects were selected (13 countries)
India: China:
•Highly efficient coal power plant (Ultra super critical) •Introduction of highly efficient motor system
•Introduction of energy efficient technologies at iron and •Energy saving housing (eco-friendly house)
steel plant
Vietnam/Laos/Malaysia/ China:
Maldives: •Trial introduction of digital tachograph
• Energy consumption reduction of air
conditioners by using deep seawater Laos/Myanmar:
• Introduction of energy efficient
technologies at cement plant
Mexico:
• Promotion of highly efficient light and
Laos: energy saving of home product
•REDD+
Brazil:
•REDD+
Vietnam:
Malaysia: •Introduction of Nuclear power
•Introduction of air-conditioning control system •Promotion of highly efficient home electric appliance
• Introduction of energy efficient technologies at •Highly efficient coal power plant
cement plant (Ultra super critical)
• Reduce power transmission loss by using highly
Malaysia/Indonesia: efficient transformer
•Reducing N2O emission by using coating fertilizer
Philippines:
Indonesia: • Introduction of energy efficient technologies at iron Peru:
•CCS (Carbon dioxide Capture and Storage) and steel plant •REDD+
•Introduction of steam tube drying system at low rank coal power plant •Geothermal power
•Introduction of energy efficient technologies at cement plant
•Highly efficient coal power plant (Ultra super critical) Thailand:
•Geothermal power • Introduction of CHP facility and privately-owned electrical power facility
•Optimum control of plant equipment (by IT) •Eco-friendly driving using digital tachograph
•REDD+ •Optimum control of plant equipment (by IT) 30
JCM Feasibility Studies (FSs) by METI & NEDO in FY2011
• (Black) → METI’s FSs for Policy Recommendation (10 projects)
50 projects were selected (18 countries) • (Yellow) → NEDO’s FSs for Project Exploration /Development(40 projects)
Maldives:
•Air conditioners by using Vietnam/Thailand:
deep sea water
Thailand: •Green Convenience Stores
•Next-generation (zero-emission)
air conditioning system utilizing Vietnam/Laos/Malaysia/ China:
Mozambique : solar heat •Trial introduction of digital tachograph
•BDF (Bio Diesel Bangladesh:
Fuel) &PV •Newly-constructed Indonesia:
(Photovoltaic) CCGT power generation •Highly efficient solar cells in un-electrified areas
Hybrid Power Malaysia: •REDD+ (3 project)
Generation Cambodia: •Home Solar Power •Introduction of energy efficient technologies at cement plant
System •REDD+ Generation System •Newly-constructed geothermal power generation
•Introduction of steam tube drying system at low rank coal power plant
Kenya: Malaysia/Indonesia: •SNG project (Substitute Natural Gas)
•Utilization of Solar energy at hotel lodge •Reducing N2O emission by using •Biomass Boiler Power Generation Project
coating fertilizer •CCS (Carbon dioxide Capture and Storage)
Djibouti, Ethiopia, Rwanda: •Small Hydroelectric Generation
•Geothermal power generation Vietnam/ Indonesia / •Eco-shipping for Coastal Cement Tanker
South Africa : •Flash and Binary Geothermal Power Generation Plants
South Africa: •Introduction of highly-efficient •Energy Consumption Optimization at Facilities using IT
•Energy Efficient Technologies for steel plant Distribution Transformer •Optimum control of plant equipment (by IT)
• Highly efficient gas turbine introduction •Hydro power project renovation 31
JCM Feasibility Studies (FSs) by METI & NEDO in FY2012
• (Black) → METI’s FSs for Policy Recommendation (33 projects)
54 projects were selected (19 countries) • (Yellow) → NEDO’s FSs for Project Exploration /Development (21 projects)
●
●
■ REDD+ through Revegetation at Denuded Lands &
●
Woody Biomass-based Power Generation in Son La
● Province ●
●
Management ★ Development of MRT Systems in Hanoi & Ho Chi Minh Colombia:
Malaysia : ▲ Geothermal Power
● Energy Generation by Waste Generation
Cambodia :
●
Management Activities ■ REDD+ in Prey Long Area
Brazil :
South Africa : Indonesia :
■ REDD+ in Acre State
△ Integrated EE Activities ● Energy Application of Wastes & Wastewater Originated in
at Beer/Beverage Processing of Agricultural Products
Factories ■ REDD+ in Central Kalimantan Province
■ REDD+ and Bio-Fuel Production & Utilisation NOTE :
■ Avoidance of Peat Aerobic Digestion & Rice Husk-based EE= Energy Efficiency
Angola :
Power Generation MRT= Mass Rapid Transit
■ REDD+ through
★ Development of MRT Systems in Jakarta BEMS= Building & Energy
Revegetation & Fuelisation
of Woody Biomass Chiips
Management Systems
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MRV Model Projects and Feasibility Studies by MOEJ in FY2012
Mongolia:
Bhutan:
◆ Replacement of Coal-Fired Boiler by Geo-
■ Rural Electrification through Expansion of ◆-- MRV Demonstration Study (DS)
Thermal Heat Pump for Heating
Electric Grid mainly composed of Hydropower ◇-- JCM Feasibility Study (FS)
◆ Upgrading and Installation of High-Efficient
■-- CDM Feasibility Study (FS)
Heat Only Boilers (HOBs)
Myanmar:
India:
■ Landfill Gas (LFG) Recovery and
◆ Bagasse-based Power Generation
Utilisation for Electric Power Generation
including Waste Heat Utilisation
Moldova:
◆ Biomass Boiler Heating using
Agricultural Waste as Fuel Thailand:
●
● ◆ Bagasse-based Cogeneration at Sugar Mill
◆ Transport Modal Shift through Construction of Mexico:
Nepal: MRT System ◆ Small-scale Wind Power
■ Programme to Reduce Non-Renewable ◆ Energy Savings through Building Energy Generation with Remote
Biomass Consumptions through ●
Management System (BEMS) Monitoring System
●
Introduction of High-Efficient Cook Stoves ●
◆ Waste Heat Recovery System with Cogeneration
● ●
Bangladesh:
●
● ◇ Introduction of Electronic Gate to International
■ Programme for Integrated Energy Efficiency
●
Trade Port to Improve Port-related Traffic Jam
●
●
Viet Nam ●
Sri Lanka:
◆ Integrated EE Improvement at Beer Factory
◆ Biomass-based Thermal Energy
● ◇ Biogas-based Cogeneration with Digestion of Methane from
Generation to Displace Fossil Fuels Colombia:
Food/Beverage Factory Wastewater
Lao PDR: ◇ Improvement of Vehicle Fuel Efficiency through Introduction of ◇ Geothermal Power
◆ Transportation Improvement through introduction of Eco-Drive Management System Generation in a Country with
Efficient Buses and Provision of Good Services ◇ REDD+ through Forest Management Scheme, and Biomass- Suppressed Demand
◇ Introduction of Mechanical Biological Treatment based Power Generation using Timber Industry Waste
(MBT) of Municipal Solid Waste, and Landfill Gas Viet Nam, and Indonesia
(LFG) Capture, Flaring and Utilisation ◇ Promotion of Modal Shift from Road-based Transport to MRT
System
Indonesia:
◇ Solar-Diesel Hybrid Power Generation to Stabilise
Photovoltaic Power Generation Cambodia:
◇ Prevention of Peat Degradation through Groundwater ◆ Methane Recovery and Utilisation from
Management, and Rice Husk-based Power Generation Livestock Manure by using Bio-digesters
◇ REDD+ for Conservation of Peat Swamp Forest, and ◇ Small-scale Biomass Power Generation with NOTE: EE= Energy Efficiency
Biomass-based Power Generation using Timber Mill Waste Stirling Engine MRT= Mass Rapid Transit
to Process Indigenous Trees derived from Conserved Forest ◇ REDD+ in Tropical Lowland Forest
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Capacity building
Capacity building is an important component of JCM.
Capacity building for JCM will be useful not just for JCM alone, but also for
improving CDM, and developing NAMAs.
(Example)
Indonesia
Support for establishing the MRV agency by JICA
Zambia/Bhutan
Support for simplified CDM methodologies for Rural Electrification by JICA
Mekong countries
Policy dialogue and enhanced briefing on JCM for government officials in charge of
climate change of five Mekong countries(Cambodia, Lao PDR, Myanmar, Thailand,
Viet Nam)
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Capacity Building Activities by METI
METI engages in a variety of capacity building activities, such as seminars, expert dispatches,
technical experts invitations, joint researches on MRV methodologies, and government-
private sector dialogues:
(Purposes)
To provide technical know-how necessary to implement GHG emissions reduction projects under the JCM
To establish MRV methodologies for the JCM
To train experts on MRV methodologies for the JCM
To train entities to act as third-party verifiers for the JCM
To deepen understanding on the institutional and technical aspects of the JCM both at government and private
sectors.
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