Introduc tion to the Joint Cre diting Me c ha nism (JCM) JCM Wor kshop: Polic y on L ow Car bon E c onomy an the Role of Bilate r al Me c hanism in T hailand Ba ng ko k, T ha ila nd 25 Ja nua ry 2016 Ale xis R. Roc amor a Po lic y Re se a rc he r Clima te a nd E ne rg y Are a I nstitute fo r Glo b a l E nviro nme nta l Stra te g ie s ro c a mo ra @ ig e s.o r.jp
Pr e se ntation the me s JCM in b rie f JCM Me tho do lo g ie s a nd Re g iste re d Pro je c ts JCM F ina nc ing Pro g ra mme T e c hnic a l suppo rt a nd F urthe r info rma tio n 2 2
T he Joint Cr e diting Me c hanism (JCM) I mple me nt jo intly b y b o th c o untry Pro mo te to diffuse le a ding lo w c a rb o n te c hno lo g ie s, pro duc ts, e tc . E va lua ting GHG e missio n re duc tio ns b y me a sure me nt, re po rting a nd ve rific a tio n (MRV) 3 3
Sc he me of the JCM 4 4
JCM Pr ogr e ss to date • JCM Par tne r Countr ie s (16 Countr ie s) – Mo ng o lia , Ba ng la de sh, E thio pia , K e nya , Ma ldive s, Vie t Na m, L a o PDR, I ndo ne sia , Co sta Ric a , Pa la u, Ca mb o dia , Me xic o , Sa udi Ara b ia , Chile , Mya nma r a nd T ha ila nd! • 8 Re giste r e d Pr oje c ts – E ne rg y e ffic ie nc y (4), Re ne wa b le e ne rg y (1), T ra nspo rt (1) – I ndo ne sia (3), Mo ng o lia (2), Pa la u (1), a nd Vie t Na m (2) • 19 Appr ove d Me thodologie s – E ne rg y e ffic ie nc y (16), Re ne wa b le e ne rg y (1), T ra nspo rt (1), Wa ste to e ne rg y (1) – I ndo ne sia (11), Mo ng o lia (2) , Pa la u (1) , Ma ldive s (1), Vie tna m (4) • E stablishme nt of JCM we bsite – https:/ / www.jc m.g o .jp/ • E stablishme nt of JCM r e gistr y – I ssua nc e o f JCM c re dits 5 5
JCM Par tne r Countr ie s 1 2013 1. Mongolia 2. Banglade sh 7 13 12 2 3. E thiopia 3 15 6 9 4. Ke nya 2014 10 16 5. Maldive s 11 10. Palau 6. Vie t Nam 4 8 5 11. Cambodia 7. L ao PDR 12. Me xic o 8. Indone sia 9. Costa Ric a 14 2015 13. Saudi Arabia 14. Chile 15. Myanmar 16. T hailand 6 6
JCM Ope r ation to date • E stablishme nt & Ope r ation of the Joint Committe e (JC) – 13 c ountrie s have organize d the JC and adopte d rule s and guide line s, approve d me thodology, re giste re d proje c ts • E stablishme nt & Ope r ation of the we bsite – JCM we b pa g e ha s la unc he d a nd ope ra te d (https:/ / www.jc m.g o .jp/ ) – Some partne r c ountrie s have e stablishe d its own we bsite (Indone sia, Vie tnam, Banglade sh, e tc .) • E stablishme nt & Ope r ation of the r e gistr y – https:/ / www.jc mre g istry.g o .jp/ – Ope ration sinc e last Nov. 7 7
Conc e pt of the JCM me thodology • E missio n re duc tio ns = re fe re nc e e missio ns - pro je c t e missio ns Re fe re nc e e missio ns: c a lc ula te d b e lo w b usine ss ‐ a s ‐ usua l (Ba U) • • Ba U e missio ns: e missio ns tha t wo uld like ly b e e mitte d b y c o nsta nt o pe ra tio n o f insta lla tio ns witho ut the pro po se d JCM pro je c t. E nsur e s a ne t de c r e ase or avoidanc e of GHG e missions. So urc e : Go ve rnme nt o f Ja pa n (2015) Re c e nt De ve lo pme nt o f the Jo int Cre diting Me c ha nism (JCM), No v. 2015 8 8
T ypic a l Se c tors for JCM Proje c ts • Re ne wa b le E ne rg y • E ne rg y Sa ving (E ne rg y E ffic ie nc y) • Wa ste Ha ndling & Dispo sa l • T ra nspo rt 9 9
F e atur e s of the JCM Me thodology 1. T he JCM me tho do lo g ie s a re de sig ne d in suc h a wa y tha t pro je c t pa rtic ipa nts c a n use the m e a sily a nd ve rifie rs c a n ve rify the da ta e a sily. 2. I n o rde r to re duc e mo nito ring b urde n, de fa ult va lue s a re wide ly use d in a c o nse rva tive ma nne r. 3. E lig ib ility c rite ria c le a rly de fine d in the me tho do lo g y c a n re duc e risks o f re je c tio n o f the pro je c ts pro po se d b y pro je c t pa rtic ipa nts. • A “c he c k list” will a llo w e a sy de te rmina tio n o f e lig ib ility o f a pro po se d E lig ib ility c rite ria pro je c t unde r the JCM a nd a pplic a b ility o f JCM me tho do lo g ie s to the pro je c t. • L ist o f pa ra me te rs will a llo w pro je c t pa rtic ipa nts to de te rmine wha t da ta is ne c e ssa ry to c a lc ula te GHG e missio n re duc tio ns/ re mo va ls with JCM Da ta (pa ra me te r) me tho do lo g ie s. • De fa ult va lue s fo r spe c ific c o untry a nd se c to r a re pro vide d b e fo re ha nd. • Pre ma de spre a dshe e ts will a llo w GHG e missio n re duc tio ns/ re mo va ls to Ca lc ula tio n b e c a lc ula te d a uto ma tic a lly b y inputting re le va nt va lue s fo r pa ra me te rs, in a c c o rda nc e with me tho do lo g ie s. 10 10
E xample of Re giste r e d JCM pr oje c ts Pr oje c t E Rs Re gistr ation Pr oje c t T ittle Countr y T ype (t- CO2/ y) Date E ne rg y E ne rg y Sa ving fo r Air-Co nditio ning a nd Pro c e ss Co o ling b y 114 31-Oc t-14 I ndo ne sia E ffic ie nc y I ntro duc ing Hig h-e ffic ie nc y Ce ntrifug a l Chille r E ne rg y Pro je c t o f I ntro duc ing Hig h E ffic ie nc y Re frig e ra to r to a 120 29-Ma r-15 I ndo ne sia E ffic ie nc y F ro ze n F o o d Pro c e ssing Pla nt in I ndo ne sia E ne rg y Pro je c t o f I ntro duc ing Hig h E ffic ie nc y Re frig e ra to r to a F o o d 21 29-Ma r-15 I ndo ne sia E ffic ie nc y I ndustry Co ld Sto ra g e in I ndo ne sia E ne rg y Pro mo tio n o f g re e n ho spita ls b y impro ving e ffic ie nc y / 515 30-No v-15 Vie tna m E ffic ie nc y e nviro nme nt in na tio na l ho spita ls in Vie tna m L e ft: Hig h-e ffic ie nc y Ce trifug a l Chile r, Middle a nd Rig ht : Hig h E ffic ie nc y Re frig e ra to r 11 11
E xample of Re giste r e d JCM pr oje c ts Pr oje c t E Rs (t- Re gistr ati Pr oje c t T ittle Countr y T ype CO2/ y) on Date E ne rg y Ce ntra liza tio n o f he a t supply syste m b y insta lla tio n o f hig h- 92 30-Jun-15 Mo ng o lia E ffic ie nc y e ffic ie nc y He a t Only Bo ile rs in Bo rnuur so um Pro je c t E ne rg y I nsta lla tio n o f hig h-e ffic ie nc y He a t Only Bo ile rs in 118th Sc ho o l 206 30-Jun-15 Mo ng o lia E ffic ie nc y o f Ula a nb a a ta r City Pro je c t Re ne wa b l Sma ll sc a le so la r po we r pla nts fo r c o mme rc ia l fa c ilitie s in 227 21-Apr-15 Pa la u e e ne rg y isla nd sta te s T ra nspo rt E c o -Driving b y Utilizing Dig ita l T a c ho g ra ph Syste m 296 4-Aug -15 Vie tna m L e ft: Hig h-e ffic ie nc y He a t Only Bo ile rs, Middle : So la r Po we r Pla nts a nd Rig ht : Dig ita l T a c ho g ra ph Syste m 12 12
Appr ove d JCM Me thodologie s T YPE OF T E CHNOL OGIE S COVE RE D BY T HE 19 APPROVE D ME T HODOL OGIE S Wa ste g a s/ he a t T ra nspo rta tio n, 1 (5%) utiliza tio n, 1 (5%) Bio g a s, 1 (5%) Re ne wa b le e ne rg yie s, 2 (11%) E ne rg y E ffic ie nc y 14 (74%) So urc e : IGE S JCM Pro je c t Da ta b a se 13 13
F inanc ing oppor tunitie s fr om the JCM L e ading low- c ar bon te c hnologie s: Re duc e GHG e missio ns • Re duc e o pe ra ting c o sts c o mpa re d to c o nve ntio na l te c hno lo g ie s • Ha ve hig h initia l inve stme nt c o sts. • T he JCM financ ing pr ogr amme s: • F und pa rt o f initia l inve stme nt c o sts (up to 50%) to fa c ilita te disse mina tio n o f lo w-c a rb o n te c hno lo g ie s in de ve lo ping c o untrie s • Co ve r the c o sts o f: ma in c o nstruc tio n wo rk, a nc illa ry wo rk, ma c hine ry a nd a pplia nc e s, surve ying a nd te sting , fa c ilitie s a nd a dministra tive wo rk. So urc e : JCM Mo de l Pro je c ts Pub lic Offe ring Guide line s te nta tive tra nsla tio n (GE C we b site ) 14 14
JCM F inanc ing Pr ogr amme s JCM Mode l Pr oje c t • Budg e t (F Y2015): 2.4 b illio n JPY/ye ar (USD18 millio n) until F Y2017 • Ob je c tive : to fina nc e pro je c ts (up to the ha lf o f inve stme nt c o sts) with hig h e ffic ie nc y in re duc ing GHG e missio ns Collabor ative F inanc ing Pr ogr amme • Budg e t (F Y2015): 1.8 b illio n JPY/ye ar (USD18 millio n) until F Y2018 • Ob je c tive : to fina nc e pro je c ts (up to the ha lf o f inve stme nt c o sts) with hig h e ffic ie nc y in re duc ing GHG e missio ns in c o lla b o ra tio n with pro je c ts suppo rte d b y JI CA a nd o the r g o ve rnme nt fina nc ia l institute s. ADB T r ust F und • Budg e t (F Y2015): 1.8 b illio n JPY (USD18 millio n) • Ob je c tive : to pro vide fina nc ia l inc e ntive s fo r the a do ptio n o f lo w- c a rb o n te c hno lo g ie s with a dva nc e d GHG e missio n re duc tio n c a pa b ilitie s b ut e xpe nsive in ADB- fina nc e d pro je c ts. 15 15
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