Keywords

JCM: Joint Crediting Mechanism

Japan has proposed and implemented the JCM to contribute to global reduction of greenhouse gas (GHG) emissions. The JCM is a system to cooperate with developing countries for reducing greenhouse gas emissions, in which the result of reduction is assessed as contribution by both partner countries and Japan. As of March 2017, Japan is implementing the JCM with 17 countries (Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Laos PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, and Philippines).

Many Japanese companies have been implementing projects in developing countries utilizing the JCM Financing Programmes offered by the Japanese government and have been contributing to sustainable development through overseas development of advanced low carbon technologies while reducing burden on the developing countries. Approximately 4.6 million tons of CO2 in total is expected to be reduced by 2030.

When formulating a JCM project, contributions from Japan to the developing countries will be appropriately evaluated and utilized to achieve Japan’s target for GHG emissions reduction. For example, as for projects formulated by utilizing the JCM Financing Programmes offered by the Japanese government, Japan will acquire JCM credits according to the contributions in the form of financial support.

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