March 28, 2023
To further promote the Joint Crediting Mechanism (JCM), the Ministry of Economy, Trade and Industry (METI), the Ministry of the Environment (MOE), and the Ministry of Foreign Affairs (MOFA) are going to release a document titled “Guidance for the Development of Private-Sector JCM Projects,” aimed at private companies.
- Japan establishes and implements the Joint Crediting Mechanism (JCM) in order both to appropriately evaluate contributions from Japan to GHG emission reductions or removals in a quantitative manner achieved through diffusion of decarbonizing technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions in developing and other countries, and to use them to achieve Japan’s emission reduction target.
- More than 200 projects have been implemented with financial support from the Japanese government. However, in addition to projects that are funded this way, the JCM can now be expected to expand even further by also developing more private-sector JCM projects—i.e., ones that will be mainly funded by the private sector, rather than being premised on government funding.
- In order to promote the development of private-sector JCM projects with increasing the business foreseeability, the government reviewed the guidance summarizing the new processes to be introduced and matters that require particular care in FY2022. It then compiled the results into a document titled “Guidance for the Development of Private-Sector JCM Projects.” This guidance explains the necessary procedures and items of note when pursuing a private-sector JCM project, examples being the advance inquiry processes with the partner countries and the concept of credit allocation. Using this guidance effectively can be expected to promote the development of private-sector JCM projects, while also giving private companies a business foreseeability for an implementation.
- In addition to releasing the guidance, the government will continue to support the development and implementation of private-sector JCM projects, progressively constructing a concrete system including a consultation service for private-sector JCM projects in FY2023.