Joint Crediting Mechanism (JCM) in Japan s INDC

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1 Joint Crediting Mechanism (JCM) in Japan s INDC The 42nd session of the Subsidiary Body for Scientific and Technological Advice Side Event, Jointly organized by IGES and TERI 4th June, 2015

2 The Joint Crediting Mechanism (JCM) Implement jointly by two countries Promote advanced low carbon technologies and products Require measurement, reporting and verification (MRV) for GHG emission reduction activities Japan Used to achieve Japan s emission reduction target Advanced low carbon technologies and implementation of mitigation actions Measurement, reporting and verification methodologies will be developed Credits Host country JCM projects MRV GHG emission reductions 2

3 Draft Outline of Japan s INDC* Emission Reduction Target % reduction by 2030 (compared to FY2013) % reduction by 2030 (compared to FY2005) Base year(s) - Both FY2013 and FY2005 Target year - FY2030 (from April 1., 2030 to March 31, 2031) - Implementation period (FY2021 to FY2030) Coverage - All sectors (Energy, Transport, Fugitive emissions, industrial processes, Agriculture, LULUCF, and Waste) - CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3-100% emissions The Joint Crediting Mechanism - Emission reductions and removals acquired by Japan will be appropriately counted as Japan s reduction target *Based on a draft presented at the 7th session of the Joint Experts Meeting of the Central Environment Council and the Industrial Structure Council held on 30 April

4 JCM Contribution to Japan s INDC* Role of the JCM in INDC To appropriately evaluate contributions from Japan to GHG emission reductions or removals through the diffusion of leading low carbon technologies, products, systems, services and infrastructure To implement mitigation actions in developing countries To use for achieving Japan s domestic emission reduction target Contribution Target from the JCM Accumulated ERs or removals of Mt-CO2 by FY2030 through government programs within the government s budget *Based on a draft presented at the 7th session of the Joint Experts Meeting of the Central Environment Council and the Industrial Structure Council held on 30 April

5 The JCM in Japan s INDC* 1,600 Japan GHG Emissions 2030 Target 1,400 1,408 (FY2013) 26% Reduction by 2030 Mt CO2e 1,200 1, ,042 <1042 Additional Mt CO2 with the JCM *IGES own analysis based on the draft outline of Japan s INDC 5

6 International Market Mechanism in other INDCs Mexico Mexico s unconditional INDC commitment will be met regardless of such mechanisms, although these would assist cost-effective implementation. Achieving our conditional goal will require fully functional bilateral, regional and international market mechanisms. Canada Canada may also use international mechanisms to achieve the target, subject to robust systems that deliver real and verified emissions reductions. Norway (in the case of collective delivery with EU), there will be no use of international market credits towards the target. Norway does, however, support inclusion of market based mechanisms in the 2015 agreement, and the opportunity to continue using units accruing from the CDM and JI. (In the case of an individual commitment), (.) Norway will continue to use market based mechanisms under the UNFCCC. Switzerland Switzerland will realize its INDC mainly domestically and will partly use carbon credits from international mechanisms. ( ) Switzerland will use carbon credits from international mechanisms that deliver real, permanent, additional and verified mitigation outcomes( ). Original documents available at: 6

7 JCM in Biennial Update Report (BUR) - Case of Vietnam - To strengthen bilateral cooperation on climate change and contribute to the target to limit global average temperature increase to less than 2 by the end of this century, Japan and Viet Nam signed a Memorandum of Cooperation on lowcarbon growth in July (cited from Viet Nam s most recent BUR) Current JCM status in Viet Nam (cited from Viet Nam s most recent BUR) 28 projects (reduction potential of 10 million tco2e/year) in the feasibility study phase: 18 energy ; 4 transport ; 3 waste ; and 3 forestry projects. Of which 4 projects were selected for development and implementation during the pilot phase: 1. Improving the general efficiency of energy use in a brewery; 2. Using heat pump technology to improve energy efficiency in fisheries processing factories; 3. Application of the energy management system to reduce emissions in hotels; 4. Building a Green Hospital through efficient energy use. 7

8 Summary We need to support more and more mitigation actions implemented on the ground. Market Mechanism could play an important role in enhancing the level of ambition in INDCs. JCM is one concrete example of utilizing the market mechanism to contribute to the ultimate objective of the UNFCCC. For the market to be fully functional, the accounting rule needs to be further developed under the UNFCCC. 8