Offset Credit (J-VER) Scheme. Office of Market Mechanisms Climate Change Policy Division Ministry of the Environment, JAPAN May 2011
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1 Offset Credit (J-VER) Scheme Office of Market Mechanisms Climate Change Policy Division Ministry of the Environment, JAPAN May 2011
2 Offset Credit (J-VER) Scheme - J-VER Scheme, established by MOEJ in November 2008, is a verification scheme for credits generated through the reduction/removal by sinks of greenhouse gases carried out via domestic projects. - By utilizing the J-VER scheme, funds for carbon offsetting by individuals, businesses, local governments and others can be directed to domestic project propone ts in forest management or local industries. J-VER is a new mechanism to promote the domestic Green New Deal program through a global warming prevention campaign, expansion of job opportunities, and economic measures by using private-sector capital. Project Implementing Body (Examples of applicable Reduction/sink project) (2) Application Forestry Biomass Submit a project planning report J-VER scheme is designed according to ISO. Submit a project starting form and a written oath Accredited Validater (3) Public comment (4) Validation Offset Credit(J-VER) Executive Body For Certificiation (MOEJ) Submit the latest planning report and a validation report Confirmation (1) Design and announce a methodologies Project planning Project implementation (6) Monitoring Accredited Verifier Submit a monitoring report Forestry Management Submit a request of the project registration Registration advice (7) Verification Submit a request for a project certification Certification notice (5) Certificiation Submit a monitoring report and verification report (8) Certification (9) Credit issuance Submit a request for a credit issue Money Companies emitting GHGs Use J-VER for carbon offsetting and similar purposes Hold J-VERs in the registry Acquire J-VERs In the registry J-VER registry Account Account J-VER J-VER 2
3 Target Project Types for the J-VER Scheme The J-VER Certification and Steering Committee (MOEJ) identifies project types that should be promoted under the scheme. These projects which would not be implemented without this scheme are added to a list of target project types for the J-VER scheme. <Emission Reduction> As of January 31, 2011 E001 E002 E003 E004 E005 E006 E007 E008 woody biomass fuels for a boiler woody pellet fuels for a boiler Fuel switch from fossil fuels using woody pellet heater stoves biodiesel fuels (waste cooking oil base) used in vehicles and others solid biomass fuels (sewage sludge based) Recovery and utilization of waste heat woody biomass (firewood) for a firewood stove Reduction of fuel consumption by improving transport efficiency, utilizing IT technology E009 E010 E011 E012 E013 E014 E015 E016 E017 Reduction of fuel consumption by monitoring vehicles, utilizing IT technology Renewal of lighting facilities Renewal of boilers Renewal of compressor in air conditioning facilities Energy efficiency improvement of air conditioning by introducing free-cooling and introducing fresh air Renewal of iron equipment Substitution of grid electricity for small hydroelectric power generation Introduction of co-generation equipment Renewal of fan and pump or introduction of inverter and controlling equipment E018 E019 E020 E021 E022 E023 E024 L001 Fuel switching from fossil fuels to waste based biogas for supply of heat and electricity Introduction of heat pump Production and use of Refuse Paper & plastic Fuels (RPF) Conversion and utilization of waste plastic to oil or gas as fuels by thermal decomposition Recovery and utilization of waste heat for waste treatment facilities Transportation Energy Efficiency Activities by installing digital tachograph systems for commercial vehicles Substitution of grid electricity for solar power generation Abatement of N2O emission from pig excreta disposal by utilizing low-protein feed <Forest Sink> R001 R002 R003 Forest Management Project (Thinning) Forest Management Project (Sustainable Forest Management) Afforestation Project 3
4 Offset Credit(J-VER) Scheme Certification and Registration In February 2010, 86 projects are registered in the J-VER scheme. From these projects, 35 projects receive certification of Offset Credit(J-VER).The amount of total certified credit is41,502t-co2. In addition, over 100 projects are expected to be registered and to receive certification of J-VER within FY2010. <Flow Chart of J-VER Scheme> <Registered Projects by Type> Project Developers J-VER Steering Committee Designing Project Lists Emission Reduction 30 Forest Sink 56 Project Plan Total: 28 Validation <Registered Projects by region> Monitoring of reduction or sink Apply for J-VER Certification Verification Registration Total: 86 J-VER Certification Total: 35 Multiple areas 3 Shikoku 9 Kyusyu 8 Chugoku 6 Kinki 10 Chubu 9 Hokkaido 18 Tohoku 13 Kanto 5 4
5 J-VER and Prefectural J-VER are handled equally in the J-VER Registry 5 Prefectural J-VER Program Certification In the Offsetting Credit (J-VER) Scheme, Prefectural J-VER Program Certification Scheme has been established. That is if J-VER Certification and Steering Committee certifies original Prefectural Scheme which certifies and issues GHG emission and removal as credit to match mother scheme, it is put up on Program Certification List. (Ref Chap.2 Implementation Rule, Offsetting Credit J-VER Scheme) Credit (Prefectural J-VER) issued by Prefectural J-VER Program is registered in the J-VER registry as same as J-VER credit. Prefecture Niigata and Kouchi are certified as of Feb, Offsetting Credit (J-VER) Scheme MOEJ (Secretariat: Certification Center on Climate Change, Japan (4CJ)) Offsetting Credit (J-VER) Registry Prefectural J-VER Program Certification Prefectural J-VER Program (Credit Certification Scheme Operated by Prefecture) Prefecture Project Application J-VER Certification Credit Issuance Prefectural J-VER Registration Project Application Prefectural J-VER Certification / Credit Issuance Project Planner Project Planner
6 Offsetting Credit (J-VER) Scheme Project No. 1: Wood Biomass Utilization Project in Kochi This project certifies reduced GHG emissions as equivalent credits by replacing fossil fuels used in cement factory boilers with unused trees in the forest. (Date of application: December 3, 2008, certified on March 10, Estimated emissions reduction: 1,039t, from April to September 2008) <Boiler> <Crusher> <Transport by truck> <Thinned wood> Forestry cooperative Sumitomo Osaka Cement) Reduction of GHG emissions by replacing fossil fuels with woody biomass fuels Wood chipboard, etc. Use of unused thinned woods left in the forest Contract to use thinned wood Kochi Prefecture Application Certification Money Credit J-VER 6
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