Minister of Environment of the State of Japan

12/02/2022 | Press release | Distributed by Public on 12/02/2022 01:28

MOE Japan Selects Four New Projects for JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2022 (Fourth Round)

December 02, 2022
  • Global Environment

MOE Japan Selects Four New Projects for JCM Model Projects of Joint Crediting Mechanism (JCM) Financing Support Programme for FY2022 (Fourth Round)

On December 2, 2022, the Ministry of the Environment (MOE), Japan, announced four new projects selected for the JCM Model Projects of the Joint Crediting Mechanism (JCM) Financing Support Programme for FY2022 (fourth round) in addition to the 16 projects selected in the first round (July 1, 2022), the four projects selected in the second round (August 9, 2022) and the five projects selected in the third round (September 29, 2022). The total number of selected JCM Model Projects has reached 215, and the cumulative reduction of greenhouse gas (GHG) emissions by FY2030 is expected to be approximately 20 million tons-CO2.

MOE Japan received a variety of applications for the JCM Model Projects for this fourth round, and selected four projects related to energy efficiency and renewable energy such as solar, offshore wind, and geothermal power generation. MOE Japan will continue to strongly promote the overseas expansion of decarbonizing infrastructure through the JCM, based on the "Plan for Global Warming Countermeasures (Cabinet decision in October 2021)" and others.

1. JCM Outline

Since 2013, Japan has established the JCM with 25 partner countries and over 200 projects have been selected. The JCM's 25 current partner countries are: Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, and Papua New Guinea
The JCM aims to reduce GHG emissions in developing countries by utilizing advanced decarbonizing technologies. Under the JCM scheme, in line with Article 6 of the Paris Agreement, Japan is facilitating diffusion of leading decarbonizing technologies and infrastructure, etc. as well as implementation of mitigation actions in partner countries. The JCM contributes to the achievement of both countries' NDCs while ensuring the avoidance of double counting through corresponding adjustments.
The JCM Model Projects of MOE Japan provide financial support of up to 1/2 of the initial investment cost for projects. Representative participants in the JCM Model Projects shall conduct measurement, reporting and verification (MRV) of GHG emission reductions. In addition, this financing support programme is expected to contribute to global decarbonization by disseminating and deploying advanced decarbonizing technologies while deeply understanding the needs of partner countries.
These JCM activities are in accordance with the "Plan for Global Warming Countermeasures (Cabinet decision in October 2021)," the "MOE Japan Policy for Implementing Article 6 of the Paris Agreement after COP26 (November 2021)", and the "Grand Design and Action Plan for a New Form of Capitalism and Follow-up (Cabinet decision in June 2022)."
(For further information of the JCM: https://www.jcm.go.jp/)

2. Outline of the Four New Projects Selected for the MOE Japan's JCM Model Projects

Applications for the "JCM Model Projects of JCM Financing Support Programme" in FY2022 by the Global Environment Centre Foundation (GEC, an implementing organization) were open from April 6 to November 30, 2022.

In the fourth round of the selection process in FY2022, MOE Japan selected four new projects in addition to the 16 projects selected in the first round that were announced on July 1, 2022, ,the four projects selected in the second round that were announced on August 9 and the five projects selected in the third round that were announced on September 29, 2022, based on the results of an initial document screening, secondary review through interviews, and acceptance/rejection review. MOE Japan will carry out the procedures for the decided financial support and the procedures for the implementation of the JCM with partner countries.

< Projects selected in the fourth round (November 29, 2022) >

No. Partner Country Project Name Representative
Participant
Estimated
GHG Reduction (tCO2/year)
26 Vietnam 48MW Offshore Wind Power Generation Project in Duyen Hai District, Tra Vinh Province Shizen Energy Inc. 36,597
27 Vietnam Energy Supply Project by 1.8MW Rooftop Solar Power System to Automotive Parts Factory and Construction Materials Factory The Kansai Electric Power Company, Incorporated 815
28 Laos Introduction of Amorphous High Efficiency Transformers in Power Grid II Yuko-Keiso Co., Ltd. 2,121
29 Philippines 5.6MW Geothermal Binary Power Generation Project in Northern Negros JGC Corporation 9,728

[Reference 1] Projects selected in the first round (July 1, 2022)

https://www.env.go.jp/en/press/press_00053.html
No. Partner Country Project Name Representative
Participant
Estimated
GHG Reduction
(tCO2/year)
1 Kenya Introduction of 3.1MW Rooftop Solar Power System to Food Processing Facilities AAIC Japan Co., Ltd. 2,454
2 Kenya Introduction of 2.3MW Rooftop Solar Power System to Hatchery, Meat Processing and Battery Facilities AAIC Japan Co., Ltd. 1,735
3 Vietnam 20MW Biomass Power Plant Project in Hau Giang Province eREX Co.,Ltd. 36,814
4 Vietnam 16MW Mini Hydro Power Plant Project in Binh Thuan Province Kanematsu KGK Corp. 16,910
5 Vietnam Energy Supply Project by 7.9MW Rooftop Solar Power System to Automotive and Garment Factories The Kansai Electric Power Company, Incorporated 2,634
6 Vietnam Introduction of 0.4MW Rooftop Solar Power System to Aluminum Wheel Manufacturing Factory (JCM Eco Lease Scheme) Sumitomo Mitsui Trust Panasonic Finance Co., Ltd. 156
7 Indonesia Introduction of High-efficiency Once-through Boiler System to Chemical Factory DIC Corporation 1,652
8 Thailand Introduction of Gas Co-generation System and 22MW Rooftop Solar Power System to Tire Factory The Kansai Electric Power Company, Incorporated 31,652
9 Thailand Introduction of ORC Waste Heat Recovery Power Generation System to Flat Glass Factory AGC Inc. 7,845
10 Thailand Energy Supply Project by 4.3MW Rooftop Solar Power System to Parts and Tools Factories The Kansai Electric Power Company, Incorporated 1,926
11 Thailand Energy Supply Project by 2.9MW Rooftop Solar Power System to Metal Factories and Refrigerating Warehouse Osaka Gas Co., Ltd. 1,150
12 Thailand Energy Supply Project by 1MW Rooftop Solar Power System to Metal Recycling and Automotive Parts Factories Marubeni Corporation 403
13 Philippines 28MW Binary Power Generation Project at Mahanagdong Geothermal Power Plant JGC CORPORATION 76,220
14 Philippines 14.5MW Mini Hydro Power Plant Project in Siguil River in Mindanao Toyota Tsusho Corporation 47,349
15 Philippines Energy Supply Project by 9MW Solar Power System to Ceramic Factory and Cement Plant Marubeni Corporation 5,957
16 Philippines Introduction of 0.8MW Solar Power System to Aluminum Products, Packaging Materials and Automotive Parts Factories (JCM Eco Lease Scheme) Tokyo Century Corporation 544

[Reference 2] Projects selected in the second round (August 9, 2022)

https://www.env.go.jp/en/press/press_00372.html
No. Partner Country Project Name Representative
Participant
Estimated
GHG Reduction
(tCO2/year)
17 Indonesia Introduction of 5MW Solar Power System to Vehicle and Engine Plants TOYOTA MOTOR CORPORATION 3,788
18 Chile 6MW Solar Power Project Utilizing Farmland in Maule and Nuble Region Farmland Co., Ltd. 4,400
19 Thailand Thermal Energy Supply and Methane Avoidance Project Utilizing Biomass mixed with Biogas from Wastewater in Fruit Processing Factory Dole Japan Inc. 43,343
20 Thailand Introduction of 1.6MW Solar Power System to Plastic Bottles and Cosmetics Factories (JCM Eco Lease Scheme) Tokyo Century Corporation 595

[Reference 3] Projects selected in the third round (September 29, 2022)

https://www.env.go.jp/en/press/press_00600.html
No. Partner Country Project Name Representative
Participant
Estimated
GHG Reduction (tCO2/year)
21 Vietnam Introduction of 5.7MW Rooftop Solar Power System to Fastener and Aluminum Factories Marubeni Corporation 1,416
22 Indonesia Introduction of 3.1MW Rooftop Solar Power System to Fast-Moving Consumer Goods and Printing Factories in Java Island Alamport Inc. 2,658
23 Indonesia Introduction of 2.1MW Solar Power System to Steel Wire Products and Aluminum Factories Tokyo Century Corporation 1,747
24 Chile 9MW Second Solar Power Project in Yungay, Biobio Region Eurus Energy Holdings Corporation 8,342
25 Chile 9MW Solar Power Project in Teno, Maule Region Eurus Energy Holdings Corporation 8,239

[Reference 4] Positioning of the JCM in the Plan for Global Warming Countermeasures (Cabinet decision, October 2021)

http://www.env.go.jp/earth/ondanka/keikaku/211022.html (Available in Japanese)

Japan will establish and implement the JCM in order to quantitatively evaluate contributions of Japan to GHG emission reductions and removals, which are achieved through the diffusion of, among others, leading decarbonizing technologies, products, systems, services and infrastructures as well as through the implementation of measures in developing countries and others, and in order to use such contributions to achieve Japan's NDC. By doing so, through public-private collaborations, Japan aims to secure accumulated emission reductions and removals at the level of approximately 100 million t-CO2 by fiscal year 2030.

[Reference 5] MOE Japan Policy for Implementing Article 6 of the Paris Agreement after COP26 (November 2021)

https://www.env.go.jp/annai/kaiken/files/r04/cop26%206jou.pdf (Available in Japanese)

At COP26, the Rulebook for Article 6 (market mechanisms) of the Paris Agreement was concluded, paving the way for utilizing market mechanisms to reduce global emissions. Leading Article 6 negotiations and being a frontrunner with the experience of the JCM, Japan will take the following three actions to contribute to global decarbonization.

< Three actions >
  1. Expand JCM partner countries and strengthen project development and implementation in collaboration with international organizations
  2. Scale up the JCM by mobilizing further private finance
  3. Contribute to the global operationalization of market mechanisms

[Reference 6] Grand Design and Action Plan for a New Form of Capitalism and Follow-up (Cabinet decision, June 2022)

https://www.cas.go.jp/jp/seisaku/atarashii_sihonsyugi/pdf/fu2022.pdf (Available in Japanese)

For achieving the target of the JCM, accelerating consultations to expand partner countries up to approximately 30 countries worldwide by around 2025.