Page - (000139) - in Evaluating Climate Change Action for Sustainable Development

TPEauditors thatperformthe futureverificationshouldbefullyaccountable for all their activities.16Since theJCMTPEsmustbecertifiedunderCDMDesignated National Authority or ISO 14064, their accountability should be high enough. Moreover, the JointCommittee and accreditation organizations have the authority to suspendorwithdraw them in case of non-performance. However,asnextverificationprocess isnotfinanciallysupported, there isaneed for a clear incentive for projects toverify emissions reductions and issuecredits in the future, especially in 2021 and 2030, since the JCM credits are so far non-tradable and there has not been any indication of making it otherwise. Cur- rently, the Japanese government supports the cost of first verification achieved at the end of first year of project. After the first request, participants may request issuance of the JCMcredits for emission reductions achievedduring several years in one time, but they shall request issuance of the JCM credits for emission reductions achieved by 2020 by the end of 2021.17 The projects participants (especially from partner countries without any agreementwith their government) whomaynothaveenoughbudget forverificationmaybe reluctant tocontinuously monitor and verify their achievements by the end of the project period, which is 13years in average among registeredprojects.18 Thepathway to transform the JCMinto tradable scheme, if there is anyplan, is important not only for the participants but also for partner countries.While Japan requiresverificationat theendof2020 in theprojectfinancing rules, it is important forpartnercountries to takemeasures for thefutureuseofcreditsownedbypartner country participants. 7.4.4 ProjectDevelopment andCapacityBuilding Since the first batch of selected projects for funding in 2013, the JCM have registered eight projects, all in theAsia and Pacific region (Indonesia,Mongolia, Vietnam, and Palau). In total, 89 projects have been selected for funding and currently in the implementation pipeline as of January 2016.19 They are concen- trated inIndonesiaandVietnamandtoa lesserextent inBangladeshandMongolia. The “standard” project proposal procedure starts from submission by a project consortium to the Japanese government during call for request period, usually two to three times a year for 1month. A consortium includes Japanese company and 16StockholmEnvironment Institute (SEI). 2015.Has Joint Implementation reducedGHGemis- sions?Lessons learned for thedesignof carbonmarketmechanisms. Seattle:StockholmEnviron- ment Institute. 17MOEJ, 2015. JCMFinancingProgramme for JCMModel Projects PublicOfferingGuidelines (tentative translation). 18IGES JCMDatabase, January2016. 19IGES JCMDatabase, January2016. 7 Enhancing the JointCreditingMechanismMRVtoContribute toSustainable. . . 121