Page - (000130) - in Evaluating Climate Change Action for Sustainable Development

Mongolia,Bangladesh,Ethiopia,Kenya,Maldives,Vietnam,LaoPDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Chile, Saudi Arabia, Myanmar, and Thailand.TheJCMpromotestheuseofadvancedtechnologiesandmeasure, report, andverify emissions reducedby the technologies. 7.2 TheJCMOverview The JCM was initially designed to complement the CDM. Some of its main differenceswith theKyoto Protocolmechanism are its decentralized governance, simple and practicalMRV system, and the credits its projects generate, up to the timeofwriting, are internationally non-tradable. The JCM is ‘decentralized’ as it is implemented under bilateral cooperation between Japanese andpartner countries government.Themeasurement, reporting, and verification (MRV) of the JCM are based on projects using the JCMMRV methodologies as the tool, which is developed under ‘simplified’ and ‘practical’ principles using clear technology-based eligibility criteria, list of default values, and ready-to-usemonitoring templates.Asdepicted inFig. 7.1, the JointCommit- teebetweeneachpartnercountryandJapandevelopsandapproves the technology- basedMRVmethodologies to be used by projects to procure the greenhouse gas emission reductions/removals.Verified reductions/removalswill be issuedbyeach government asJCMcredits. These credits arenotfinanciallyvaluedandcannot be traded internationally.However, theJCMagreementsdonot ruleout thepossibility of domestic trade in linewithpartner country policy. Insteadofbuyingcredits frompartnercountries, theJapanesegovernmentoffers project developers upfrontfinancial incentives for installing the advanced technol- ogies. These incentives are expected to contribute to resolving the burden of high capital investments that have been hindering the development and utilization of advanced technologies in developing countries.1 Currently, incentives to support projects implementation throughout their cycle are available from theMinistry of theEnvironment Japan (MOEJ),Ministry ofEconomy,Trade, and Industry Japan (METIJ), Asian Development Bank (ADB, through Japan Fund for JCM with contributions fromMOEJ), and Japan International Cooperation Agency (JICA, in cooperationwithMOEJ). Technology installation is supported by either full grant (under long-term entrustment), partial subsidy (direct subsidy up to 50% of project investment cost), loan, or loan interest subsidy.Development ofmethodology, project design document (PDD), monitoring, reporting, and verification (only the first time) are 1Mitchell, C., et al., in IPCC, 2011. Special Report on Renewable Energy Sources andClimate ChangeMitigation (SRREN). Cambridge: University Press, Cambridge, UnitedKingdom;Metz et al., in IPCC, 2000.Methodological and Technological Issues in Technology Transfer. Cam- bridge:CambridgeUniversityPress,UK. 112 A.Amellina