Page - (000135) - in Evaluating Climate Change Action for Sustainable Development

of the JCM.Not only to support general management, the secretariat could push forward projects that meet the need of country stakeholders by gathering project proposals, review projects contribution to sustainable development, ensure addi- tional featuresofprojects, andenhancecapacitybuildingof local entities.Cooper- ation for capacity building between secretariats and other organizations including through international support not only from the Japanese government is very important. Despite its status as a bilateral partnership, acknowledgment of the JCM contribution in achieving the international goal is inevitable, not different with other regional or nationalmarket-based initiatives that are increasingly being developed.Furthermore, the sourcesorprovidersof advanced low-carbon technol- ogies to be supported by the JCMare not limited. This opens the door for various countries,companies,and internationalorganizations tobe involvedandcooperate. To encourage this, transparency and timely information should be enhanced espe- cially onproject approval process andfinancial aspects. Another important aspect ingovernance is credit sharing.Theexisting rule that needs to be clarified is the general termof credits allocation between participants (or countries) to be based on consultations among participants ‘on a pro rata basis’.10 At the same time, the JCMModel Project are requested to deliver at least half of issued credits to the Japanese government, regardless of the finance rate.11 As the JCM clearly mentions, the credits need to be recorded in a registry system.Anonline JCMregistry system(https://www.jcmregistry.go.jp/) is already operational, which also provides the space for partner countries to manage their registry.However, partner countries prefer to run its own registry systemand thus the set of common specifications and rules of registry systemwere agreed before- hand.Both governments also agreed to request projects in Indonesia to allocate at least 10% of issued credits to the Indonesian government. InMay 2016, credits were issued fromtwoprojects in Indonesia to the registriesof JapanandIndonesia. TheinformationonissuanceareavailableonJCMwebsitesofJapanandIndonesia. From thefirst project, Japan side received23 tCOcredits (20 tCOallocated to the governmentand3tCOtotheprojectparticipant)andIndonesiasidereceived6tCO credits (3 tCOallocated to thegovernment and theproject participant each). From the second project, Japan side received 8 tCO credits (7 tCO allocated to the government and 1 tCO to the project participant) and Indonesia side received 3 tCO credits (2 tCO allocated to government and 1 tCO allocated to the project participant). Towardsandbeyond2020, it is crucial for thepartnercountries toconsiderhow the JCM emissions reductions will be accounted in their national report to the 10Joint Crediting Mechanism Project Cycle Procedure in partner countries except Costa Rica (describes that ‘part of the credits is allocated to the project participants from the developed country taking into consideration their contribution to GHG emission reductions or removals through the JCMproject’),Chile,Myanmar, andThailand (informationnot available). 11RecentDevelopment of the JointCreditingMechanism (JCM),September 2015,GEC. 7 Enhancing the JointCreditingMechanismMRVtoContribute toSustainable. . . 117