10th Strategic Dialogue of the Carbon Market Platform - Kentaro Takahashi

Presentation from the 10th Strategic Dialogue of the Carbon Market Platform

1. Progress of the Joint Crediting Mechanism
(JCM)
Kentaro Takahashi
Deputy Director, Office of the JCM and International Carbon Market,
Ministry of the Environment, Japan
22 October2025

2. 2
1. Overview of Joint Crediting Mechanism
(JCM)

3. Overview of Joint Crediting Mechanism (JCM)
●JCM is a carbon market toolwhere Japanese companies and government cooperate
with mitigation activities in partner countries(31 as of September).
●Among total mitigation outcomes, both governments conservatively calculate,
authorize and share JCM creditsbetween the companies/countries in proportion to their
contributions, in line with Article 6 of Paris Agreement.
●JCM incentivizes Japan’s investmentin decarbonization projects bringing various
benefits including achievement of NDC and sustainable development.
3
project
Both governments
co-organize
•Measurement
•Reporting
•Verification
•Authorization
Partner
Country
Japan
Count toward
NDC of partner
county
Count
toward NDC
of Japan
Can be used as
offset in GX-ETS
Mitigation outcome and its transfer
Decarbonization projects
invested by Japan
Renewable
Waste
Agriculture
※
CCS
※
Forestry
Transfer
Corresponding Adjustment
(Will not count them toward NDC
of partner county)
Energy Saving
※under development phase

4. 1
2
5
6
8
10
15
16
17
23
24
25
27
28
31
20
21
22
29
3
4
18
30
19
13
26
14
12
9
7
11
JCM 31 Partner Countries
Total 286 Projects
as of September 31, 2025
Saudi Arabia3projects13
UAE26
12projectsMongolia1
Bangladesh6projects2
Maldives4projects5
Viet Nam51projects6
Laos7projects7
Indonesia61projects8
Palau7projects10
Cambodia8projects11
Myanmar8projects15
Thailand57projects16
Philippines21projects17
Sri Lanka3projects23
Uzbekistan24
Papua New Guinea1project25
Kyrgyz1project27
Kazakhstan28
India31 Chile16projects14
Mexico5projects12
Costa Rica2projects9
Ethiopia3
Kenya6projects4
Senegal2projects18
Tunisia4projects19
Tanzania30
Azerbaijan20
Georgia1project22
Ukraine29
Moldova21
*Numbers indicates the order of signatures

5. More than 280 JCM projects
with over 3 billion USD of investment all over the world
5
Renewable Energy
Floating Solar PV,TSB Co.,
Ltd.,Thailand
Hydro Power Plant, Toyo
Energy Farm Co., Ltd.,
Indonesia
Solar power, FARMLAND Co.,
Ltd., Chile
Binary Power Generation Project
at Geothermal Power Plant, MHI,
Ltd., Philippines
Energy efficiency [Consumer sector]
Energy saving at
convenience stores,
Panasonic, Indonesia
High-efficiency refrigerator,
Mayekawa MFG, Indonesia
Energy efficiency [Industrial sector]
Energy-saving of mobile
communications base
transceiver stations,
KDDI Corp. Indonesia
Optimization in petroleum
refining plant, Yokogawa
Electric Corp. Indonesia
Energy efficiency [Urban sector]
LED street lighting system
with wireless network control,
MinebeaMitsumi, Cambodia
Amorphous transformers in
power distribution, Yuko-
Keiso, Vietnam
Transport
CNG-Diesel Hybrid
Public Bus, Hokusan
Co., Ltd., Indonesia
Waste
Power Generation with
Methane Gas Recovery
System, NTTDATA, Mexico
Waste to Energy Plant,
JFE engineering, Myanmar
Effective Use of Energy
Gas Co-generation System and
Absorption Chiller, Kansai
Electric Power, Thailand
Biogas Power Generation,
ITOCHU Corporation, Philippines

6. JCM projects without subsidy: 100 pipeline projects
●As of February 2025, we have approximately 100 consultations as follows.
●Quite a few projects are to reduce GHG from non-fossil fuel sources.
6
Energy Efficiency
(21) 22%
•Boiler
•LED etc.
Renewable Energy
(13) 14%
•Solar Power Generation etc.
Green Carbon (3) 3%
•REDD+ etc.
Transport (10) 10%
•Optimization of shuttle bus
•EV etc.
Fluorocarbon (3) 3%
•Fluorocarbon recovery
and destruction
14%
22%
10%
3%3%
23%
25%
Others(24)25%
Rice Paddy fields
(22) 23%
•AWD etc.

7. 7
2. JCM consistent with Article 6
of the Paris Agreement

8. JCM is consistent with the Paris Agreement
●JCM is consistent with Article 6 of the Paris Agreement
8
1.Conservative calculation of credits using reference
emissions below BaUemissions
2.Both countries authorize international transfer and use of
JCM credits
3.Avoid double counting by corresponding adjustments
4.Evaluate contribution to sustainable development
5.Reporting to UNFCCC（Initial Report submission)

9. JCM's Project Process
9
Drafting PDD **
（３．）
Validation
（３．）
Third Party Entities
(TPEs)
Registration (3.)
Monitoring (4.)
Verification (4.)
Issuance of
JCM credit (4.)
Confirmation of
objections
（１．）
Submitting PIN *
（１．）
Project participant
(Company)
Joint Committee
(Both governments)
* PIN (Project Idea Note): Explainsthe outline of the project.
** PDD (Project Design Document): Includes monitoring methods and estimated emission reductions. Required for project registration.
Project
participant
Joint
Committee
Project
participant
Third Party Entities
(TPEs)
Joint
Committee
Project
participant
Project Implementation
Project
participant
Issuance decision
application
Project
Registration
No Objection
Drafting
methodo
logy
(2.)
Methodol
ogy
approval
（２．）
*Approval of
methodology is
required by PDD
submission
＜Per Project＞
Project
participant
Joint
Committee
＜Per project＞

10. [reference] Authorization of JCM credits can be simple
●“Authorization” is an act by both governments of authorizing the use of ITMOs from a
cooperative approach(e.g., JCM) as stipulated in the Paris Agreement.
●Japan proposes efficient authorization arrangementsto enhance foreseeability for
private companies as JCM cycle covers careful examination enough for A6
authorization
10
Project Participant
(PP)
Joint Committee
(JC)
PIN
Methodology
PDD
Monitoring
Issuance of
credits
1. Authorization of JCM as a cooperative approach
What Authorization of JCM, incl authorization process
When At the time of signing of MoC
ReportCopy of authorization attached to an initial report
2a. Authorization of estimated ITMOs from each project
What the expected quantity of ITMOs, entities, etc.
When At the time of project registration
ReportAttachment to the 1. authorization
2b. Authorization of final quantity of ITMOs
What Confirmation of final quantity of ITMOs and period already
authorized at 2a. Authorization
When At the time of issuance of JCM credits
ReportAttachment to the 1. authorization
Initiation of the JCM
(bilateral agreement)
1.
2a
2b
No objection
Approval
Registration
Issuance

11. Initial report submission
●Japan submitted additional initial report on 14 October 2025.
●6 JCM partner countriessubmitted their initial reports with technical support by A6IP.
●Article 6 technical expert review week will be scheduled at the mid of December 2025.
11
CA0007 Japan-Thailand (IR submitted)
CA0008 Japan-Mongolia(IR submitted)
CA0012 Japan-Maldives (IR submitted)
CA0014 Japan-Palau (IR submitted)
CA0015 Japan-Tunisia (IR submitted)
CA0017 Japan-Bangladesh
CA0018 Japan-Ethiopia
CA0019 Japan-Kenya
CA0020 Japan-Viet Nam
CA0021 Japan-Lao
CA0022 Japan-Indonesia
CA0023 Japan-Costa Rica
CA0024 Japan-Cambodia
CA0025 Japan-Mexico
CA0026 Japan-Chile
CA0027 Japan-Philippines
CA0028 Japan-Senegal
CA0029 Japan-Azerbaijan
CA0030 Japan-Moldova
CA0031 Japan-Georgia
CA0032 Japan-Sri Lanka(IR submitted)
CA0033 Japan-Uzbekistan
CA0034 Japan-Papua New Guinea
CA0035 Japan-United Arab Emirates
CA0036 Japan-Kyrgyz Republic
CA0037 Japan-Kazakhstan
CA0038 Japan-Ukraine
CA0039 Japan-Tanzania
Source: UNFCCC
(https://unfccc.int/process-and-meetings/the-paris-agreement/article-6/article-62/carp/cooperative-approaches)

12. Thank you for your kind attention!