Promoting the Joint Crediting Mechanism

The OECC provides information on JCM and international carbon market mechanisms and assists companies in forming JCM projects in JCM partner countries.

Through the implementation of the Joint Crediting Mechanism (JCM), the Government of Japan promotes the expansion of its advanced decarbonization technologies and the implementation of climate change mitigation activities in JCM partner countries, thereby contributing to sustainable development. The GHG emission reductions and absorption achieved through JCM contributes to achieving the emission reduction goals of Japan and partner countries.

Roles of the OECC

Since around 2013 – the early days of JCM – the OECC has been promoting JCM and supporting the development of its projects under a project commissioned by the Ministry of the Environment, Japan (MOEJ). Carbon Markets Express, which is an MOEJ website operated by the OECC, serves as a comprehensive information platform for JCM, providing general information and the latest trends of the carbon market mechanism as a comprehensive repository. Utilizing our knowledge of decarbonization technologies and carbon credits as well as our connections with local governments mainly in Asia and the Caucasus region, we provide research and advisory services to support companies and others engaged in JCM.

Our Business

Collection and Dissemination of Information on

The OECC has been disseminating JCM-related information released by relevant ministries, agencies and organizations through the Carbon Market Express website, social media services and email newsletters. We also collect and disseminate the latest information on international market mechanisms as described in Article 6 of the Paris Agreement and in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). We have also hosted the side events on the theme of JCM at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP) and provided consultation services on JCM and market mechanisms through our consultation desk.

Support for JCM Project Formation

The OECC provides comprehensive support to companies and other parties interested in the use of JCM, including upstream support with organizing relevant policies in partner countries. OECC further provides downstream support with researching applicable decarbonization technologies, sales and marketing to local companies considering the introduction of equipment, matching with Japanese companies, establishing commercial distribution for project implementation, developing methodologies for calculating GHG emission reductions, other business development activities and applying for JCM financial support projects. The OECC has supported 26 JCM projects (over 10 % of all JCM equipment subsidies as of May 2024), mainly in Asia.

Support for Validation and Verification of JCM Credits

We support third-party reviews (validation and verification) which are required when companies and other entities implementing JCM projects register their projects and issue JCM credits.

Topics

Amorphous Transformer

The OECC contributed to the phased dissemination of amorphous transformers in Vietnam and Laos in cooperation with Hitachi Metals, Ltd. This began with the formation of an export scheme for amorphous ribbons and a local manufacturing scheme for amorphous transformers. By sharing information on the benefits to local electric power utilities, the project was established as a JCM equipment subsidy project. As of July 2024, over 10,000 amorphous transformers have been installed. Although the transformers were initially introduced with JCM equipment subsidies, they were designated as a standard, leading go-to technology by the local electric power utilities. Due in part to the effect on local production, amorphous transformers are now being widely used without subsidies.

Projects we were engaged in:

Introduction of Amorphous High Efficiency Transformers in Southern and Central Power Grids Ⅱ (Vietnam, 2015-2016）

Agriculture × Solar

The OECC has contributed to the dissemination of the Farmdo Group’s proprietary solar-sharing system to Mongolia. The system enables simultaneous implementation of agriculture and solar power generation in an agrivoltaics project (12.7 MW solar power generation project at Monnaran Farm) on 28 ha of land. The project was financed by the Japan Bank for International Cooperation (JBIC) and was also selected as a JCM equipment subsidy project (2015-2016). In accordance with Mongolia’s National Renewable Energy Plan and NDC strengthening policy, the agrivoltaics have been in full operation since 2017. The project is currently reducing CO2 emissions by 12,500 tons/year and is also making a significant contribution to improving the living standards of local residents by creating jobs at the Monnaran farm and realizing dual income from agriculture and electricity sales profits.