Global Environment Centre Foundation (GEC)as the Secretariat of the JCM Financing Programme

Open SeminarCity-to-City Collaboration and JCM Projects for Low Carbon Development

in Asian Cities Monday 23, January 2017

Tokyo

Financing Programme for JCM Model Projects by MOEJ

Mongolia (4 projects) :○Heat Only Boiler (HOB)** ○2.1MW Solar PV in Farm○10MW Solar PV ○8.3MW Solar PV in Farm

Palau (3 projects) :○370kW Solar PV for Commercial

Facilities*○150kW Solar PV for School*○440kW Solar PV for Commercial

Facilities Ⅱ*

Maldives (2 projects) :○190kW Solar Power on School Rooftop■Smart Micro-Grid System

Kenya (2 projects) :○6MW Hydropower Generation○1MW Solar PV at Salt Factory

Thailand (21 projects) :○Energy Saving at Convenience Store ○1.0MW Solar PV on Factory Rooftop○Upgrading Air-saving Loom ○Centrifugal Chiller & Compressor○Co-Generation in Motorcycle Factory ○Centrifugal Chiller in Tire Factory○Air Conditioning System & Chiller ○Refrigeration System○Ion Exchange Membrane Electrolyzer ○Chilled Water Supply System○LED Lighting to Sales Stores ○12MW Waste Heat Recovery in Cement Plant○Co-generation System ○Refrigerator and Evaporator○1.5MW Solar PV and EMS in Paint Factory ○3.4MW Solar PV○Heat Recovery Heat Pump ○5MW Floating Solar PV ○27MW Solar PV○Boiler System in Rubber Belt Plant ○Air-conditioning Control System

Cambodia (5 projects) :○LED Street Lighting○200kW Solar PV at International School○Solar PV & Centrifugal Chiller○800kW Solar PV at International School○Inverters for Distribution Pumps

Laos (1 project) :●REDD+ through controlling

slush-and-burn

Ethiopia (1 project) :○Biomass CHP Plant

JCM Financing programme by MOEJ (FY2013～2016) as of January 12, 2017

Saudi Arabia (1 project) :○Electorolyzer in Chlorine

Production Plant

Mexico (2 projects) :○4.8MW Power Generation with Methane

Gas Recovery System○Once-through Boiler and Fuel Switching

Costa Rica (2 projects) :○5MW Solar PV○Chiller and Exhaust Heat

Recovery System

Bangladesh (6 projects) :○Centrifugal Chiller ○Loom at Weaving Factory○320kW PV-diesel Hybrid System ○50MW Solar PV Power Plant○Centrifugal Chiller ○Air-conditioning system

Viet Nam (13 projects) :○Digital Tachographs* ○Amorphous transformers*○Air-conditioning in Hotel ○Air-conditioning in Lens Factory○Container Formation Facility ○320kW Solar PV in Shopping Mall○Amorphous transformers 2 ○Air-conditioning Control System○Electricity Kiln ○High Efficiency Water Pumps ○Energy saving Equipment in Lens Factory ○Amorphous transformers 3○Energy Saving Equipment in Wire Production Factory

Underlined projects have started operation (34 projects, including 7 partially started projects)Projects with * have been registered as JCM projects (13 projects)

○ Model Project in FY 2013 (7 projects in 3 countries)○ Model Project in FY 2014 (13 projects in 6 countries)■ ADB Project in FY 2014 (1 project in 1 country)○ Model Project in FY 2015 (33 projects in 10 countries)○ Model Project in FY 2016 (38 projects in 10 countries) ● REDD+ Model Project (2 projects in 2 countries)

Total 93 projects in 16 partner countries

Malaysia (1 project) :○140kW Solar PV

Chile (1 project) :○1MW Rooftop Solar PV

Indonesia (24 projects) :○Centrifugal Chiller at Textile Factory* ○Energy Saving at Convenience Store*○Refrigerants to Cold Chain Industry** ○Double Bundle-type Heat Pump○Centrifugal Chiller at Textile Factory 2*○30MW Waste Heat Recovery in Cement Industry○20kW Solar Power Hybrid System ○Regenerative Burners○Centrifugal Chiller at Textile Factory 3*○Old Corrugated Cartons Process○Upgrading to Air-saving Loom ○Centrifugal Chiller in Shopping Mall○Smart LED Street Lighting System ○Once-through Boiler System in Film Factory○Gas Co-generation System ○Once-through Boiler in Golf Ball Factory○1.6MW Solar PV in Jakabaring Sport City ●REDD+ through controlling slush-and burn○10MW Hydro Power Plant ○Looms in Weaving Mill○LED Lighting to Sales Stores ○Industrial Wastewater Treatment System○Air-conditioning Utility System in Airport ○0.5MW Solar PV

Myanmar (5 projects) :○700kW Waste to Energy Plant○Brewing Systems to Beer Factory○Once-through Boiler in Instant Noodle Factory○1.8MW Rice Husk Power Generation○Refrigeration System in Logistics Center

Government of Japan

International consortiums (which include Japanese entities)

Finance part of an investment cost (less than half)

Conduct MRV and expected to deliver at least half of JCM credits issued

Scope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 from fossil fuel combustion as well as construction cost for installing those facilities, etc. Eligible Projects : starting installation after the adoption of the financing and finishing

installation within three years.

Financing Programme for JCM Model Projects by MOEJ

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Budget for projects starting from FY 2017 is 6.0 billion JPY in total by FY 2019.

*Includes collaboration with projects supported by JICA and other governmental-affiliated financial institute

Call for Proposals for JCM Model Projects in FY2017 (1)

SheduleCall for Proposal : early in April 2017Deadline for submitting Proposals mid. of May 2017Publication of selected model projects late in June 2017

* 2nd call depends on the selection of model projects. It will start fromSeptember and end in December 2017. However it will end before Decemberwhen total amounts of financial support reach the amounts of budget.

Maximum Percentage of Financial Support (plan)

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Number of already selected project(s) using asimilar technology in each partner country

Percentage of financial support

None (0) Up to 50%Up to 3 (1 – 3) Up to 40%

More than 3 (>3) Up to 30%

Categorization by applied technology type, Number. of JCM model project by each country

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Percentage of Financial Support : White 0 project = Up to 50% Yellow 1-3 project(s) = Up to 40% Orange more than 4 projects = Up to 30%

Mongolia Bangladesh Ethiopia Kenya MaldivesVietNam

Lao PDR IndonesiaCostaRica

Palau Cambodia MexicoSaudiArabia

Chile Myanmar Thailand Philippine Malaysia

MN BD ET KE MV VN LA ID CR PW KH MX SA CL MM TH PH MYBoiler MN_AM002 1 2 1 2 1 7Regenerative Burners ID_AM009 1 1Gas Fired Furnace 1 1

Air Conditioning SystemVN_AM006ID_AM004

2 1 1 4

ChillerBD_AM001ID_AM002

2 1 4 1 1 3 12

Refrigerator ID_AM003 1 2 3 6Absorption Chiller Using WasteHeat

1 1 2

Swirling Induction Type Air-conditioning System

1 1

Air Conditioning Control System 1 1 1 3

Double Bundle-type Heat Pump ID_AM010 1 1 1 3Fridge and Freezer Showcase ID_AM008 1 1 2Air Compressor TH_AM002 1 1Loom 1 2 1 4

Old Corrugated Cartons Process 1 1

Battery Case Forming Device 1 1Electrolyzer in ChlorineProduction

1 1 2

Transformer VN_AM005 3 3LED Lighting ID_AM005 2 1 3LED Street Lighting withDimming System

KH_AM001 1 1 2

Pump 1 1Freaquency Inverter for Pump 1 1Aeration System 1 1

Water Heater Using Exhaust Heat 1 1

Exhaust Heat Recovery System 1 1Wire Stranding Machines 1 1Evaporator with MechanicalVapor Recompression

1 1

Solar Power Plant

MN_AM003MV_AM001PW_AM001TH_AM001

3 2 1 1 1 2 1 3 3 1 5 1 24

Solar Power Plant with Battery 1 1Small Hydropower Plant 1 1 2Power Generation by Waste HeatRecovery

ID_AM001 1 1 2

Biomass Power Plant 1 1Gas Co-generation 1 2 3Biomass Co-generation 1 1Waste-to-Energy Plant 1 1

Power Generation by MethaneRecovery

1 1

4. Transportation Digital Tachograph System VN_AM001 1 1

Total 4 6 1 2 1 14 0 25 3 3 6 2 1 1 7 26 0 1 103

2. Energy industries(renewable-/nonrenewable sources)

3. Waste handlingand disposal

Number of technology ： 36

JCMMethodology

TechnologySector Total

1. Energyefficiency

No. of country: 17Top 3:Thailand 26 tech.Indonesia 25 tech.Viet Nam 14 tech.

No. of technologytype: 36Top 3Solar Power Plant24 projects

(12 Countries)Chiller12 projects

(6 Countries)Boiler

7 projects(6 Countries)

*If one JCM model project applies several technologies, the numbers are counted for each technology

Call for Proposals for JCM Model Projects in FY2017 (2)

Countries of PriorityThe model project shall prioritize the following countries that have already established or decided to establish the JCM (as of 13 January2017):Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand and Philippines (*If other countries establishes JCM subsequently, they shall be included.)

Cost-effectiveness of emission reductions of GHG* is desirable to satisfy the standard below;• 4,000JPY/tCO2e

Payback period is desirable for longer than 3 years.6

Amount of financial support[JPY]Emission reductions of GHG [tCO2e/y]×legal durable years[y]*=

Call for Proposals for JCM Model Projects in FY2017 (3)

Project registration• The application for the registration shall be conducted within 1 year

from the start of the operation of the facilities introduced by the project in principle.

Monitoring• Participants shall conduct monitoring to quantitate the effects of the

facilities on GHG reductions, and report the results to MOEJ each fiscal year until the end of legal durable years of the facilities as stipulated by the Japanese law.

Request for Issuance of JCM credits• Based on the monitoring results mentioned above, participants shall

request for the issuance of the JCM credits. Deliver the Issued JCM credits

• Participants shall deliver at least fifty percent of the issued JCM credits to the Japanese government.

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Projects eligible for the financingThe projects eligible for the financing programme shall satisfy the requirements (a) to (d) listed below:

(a)Projects that reduce energy-related CO2 emissions in developing countries with which Japan has signed or has been consulting to sign bilateral document on the JCM, and that are expected to contribute to achieving Japan’s emission reduction target through the JCM

(b)Implementation of projects will not adversely affect the environment and society of countries where projects are implemented

(c)Reduction of GHG emissions achieved by the projects can be quantitatively calculated and verified

(d)Facilities installed by the projects do not receive any other subsidy by the Government of Japan.

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Representative Participant（Shall be Japanese entity）

Main Role : Overall project management

Manufacturer

Order Supply

Contractor

Order Construction

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Partner Participant(s)(At least one local entity shall be a partner)

Main Role : Installation and management of facilities

Joint Implementation

Example of International Consortium

Responsibilities of the representative participant

i. Applying for the model project,ii. Managing the progress in the project, developing the project

implementation plan, and acting as the contact entity for accounting and other administrative work related to the project,

iii. Introducing the leading low carbon technology,iv. Purchasing, installing and commissioning of the facilities

during the construction period, and managing the facilities to be utilized according to the purpose of the model project for the legal durable years of the facilities as stipulated by the Japanese law,

v. Return of the finance resulting from violations of the Financing Regulations by any of the partner participants.

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i. To cooperate with JCM methodology developers by providing information required todevelop a methodology applicable to the project for GHG emissions reduction;

ii. To cooperate with TPEs by providing materials and information required to efficientlyconduct validation of the abovementioned project and verification of GHG emissionreduction at the project site;

iii. To reduce, monitor and calculate GHG emissions utilizing the facilities;iv. To estimate the GHG emission reductions by the project, and to report it to GEC or

MOEJ annually until the end of the legal durable years of the facilities as stipulated by the Japanese law, which is unique to each project;

v. To request the Joint Committee to issue credits and take necessary actions such as application for the project registration by the Joint Committee set up or to be set up by the Governments of Japan and JCM partner- country;

vi. To deliver at least fifty percent of the JCM credits of GHG issued corresponding toemission reduction achieved by the project for the abovementioned legal durable years to the Japanese government;

vii. To manage the facilities with due care of a prudent manager for their legal durable years as stipulated by the Japanese law in order to realize their efficient operation inaccordance with the purpose of the financial support even after the completion of themodel project.

viii. To report to GEC in case that a constituent member is changed and to continue theabove obligations from i. to vii.

Responsibilities ofall members of an international consortium

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Project type (1)Manufacturer sells facilities to local entity

Representative participant sells self-made facilities to local entity.

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Representative Participant

(Japanese entity)manufacturer

Local entity（Partner country）

Userfacilities

In Indonesia, humidity control is indispensable for the textile industry to maintain product quality and massive energy output, which is required for the adjustment of factory air conditioning. The target factory replaces old-fashioned chillers (230USRt and 250USRt) with high-efficiency chillers (500USRt), in order to save energy and mitigate CO2emissions.

Energy Saving for Air-conditioning and Process Cooling at Textile FactoryPP: (Japan) Ebara Refrigeration Equipment & Systems and Nippon Koei Co., Ltd. PP：(Indonesia) PT. Primatexco and PT. Ebara Indonesia

JCM Model Project Host Country: Indonesia

Project 1: 117 tCO2/yearProject 2: 152 tCO2/year

Outline of GHG Mitigation Activity

Expected GHG Emission ReductionsBatang, Central Java, IndonesiaSites of JCM Model Project

High-efficiency chillers adopt a high-performance economizer cycle and a super-cooling refrigerant cycle in order to save energy. Also, the chillers use low-pressure refrigerant (HFC-245fa) with zero ODP(Ozone Depletion Potential).

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The objective of this project is to build and operatea waste-to-energy plant that (1) generates electricity, some of which will be supplied to a power company, resulting in reduction of fossil fuel consumption at the power plant, (2) mitigates electricity shortage, (3) reduces CH4 emissions from landfill disposal, and (4) improvement of waste management in Yangon City.This is a pilot project conducted by Yangon City for promotion of waste-to-energy, with relatively small capacity (60t of waste per day). Groundbreaking is scheduled in October, 2015.

Introduction of Waste to Energy Plant in Yangon CityPP(Japan): JFE Engineering Corporation, PP(Myanmar): Yangon City Development Committee

JCM Model Project Host Country: Myanmar

4,732tCO2/year(2,358tCO2 accounts for the energy-originated CO2)- The calculation is based on the condition of 60t of waste treated per day and operation of 310days per year, 24 hours per day (operating ratio: 85%).

- The emission factor refers to the latest CDM project in Myanmar (0.8tCO2/MWh).

Outline of GHG Mitigation Activity

Expected GHG Emission Reductions Sites of JCM Model Project

Near Hlawga Lake, 35km north from central area of Yangon City

Landfill site

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Project type (2)Trading/Engineering company

sells facilities to local entityRepresentative participant buys facilities from manufacturer and sells them to local entity, or intermediate between manufacturer and local entity.

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Representative Participant

(Japanese entity)Trading/Intermediation

Local entity（Partner country）

Userfacilities

Manufacturerfacilitiesfacilities

This project aims to achieve electricity usage reduction per ton produced (by about 10 %) by introducing a Japanese high-efficient system to the OCC line for Fajar Paper, thereby contributing to CO2 reduction.The OCC line is a process to prepare clean raw materials containing dissolved paper fibers by mixing used corrugated board into water for defiberization and removing foreign substances. Since a large amount of material (water) is used, electricity is significantly consumed to power motors.

Introduction of high efficient Old Corrugated Cartons Process at Paper FactoryPP: (Japan) KANEMATSU CORPORATON, PP(Indonesia) PT Fajar Surya Wisesa Tbk.

JCM Model Project Host Country: Indonesia

14,884.6 tCO2/year← Reference Emission （REy） － Project Emission （PEy）

＝Emission Reduction （ERy）

← ・ Reference Emission : 83,938.6 tCO2e/year・ Project Emission : 69,054.0 tCO2/year・ Emission Reduction : 14,884.6 tCO2/year

Outline of GHG Emission Reduction Activity

Expected GHG Reductions Sites of Project

OCC line

Low consistencyPulping System

High consistencyCleaner

Coarse ScreenSystem

Fine Screen

High consistency Refiner System

Low consistency Refiner System

Bekasi, Indonesia

Finished stock(Under-Top)

Finished stock (Back-Layer)

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This project introduces “Air conditioning control system" to air conditioners in six component factories in Vietnam. The system constantly monitors operation status of the compressor equipped in the air conditioner outdoor unit by measuring an electric current at the optimum programmed timing. Controlling the compressor once or twice in thirty minutes and the system reduces energy consumption and CO2 emissions. This system can be introduced to existing facilities and realizes energy-saving by preventing excessive cooling without impairing comfortableness.

Energy Saving in Factories with Air-Conditioning Control SystemPP (Japan): YUKO-KEISO Co., Ltd. PP (Vietnam): Nidec Vietnam Co., Nidec SERVO Co., Nidec TOSOK Co.,

Nidec COPAL Co., Nidec SANKYO Co., Nidec SEIMITSU Co.

JCM Model Project Host Country: Vietnam

Outline of GHG Mitigation Activity

Sites of JCM Model Project4,681tCO2/year

(RCac1 × Tac.y1 × ERr × CEF) + (RCac2 × Tac.y2 ×ERr × CEF) + ・・・・・ + (RCacn × Tac.yn × ERr× CEF)RCac1, 2･･n: AC CapacityTac.y1, 2,･･n: Operation Hoursn: 540 (sets)ERr: Eower reduction rate (17.6％)CEF: Emission factor of electricity (0.5605tCO2/MWh)

A/C Control systemContinuous compressor monitoring

Energy saving controlling

Measurement data

Outdoor unit Measurement data

Saigon High-Tech Park

Tan Thuan Export Processing Zone

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Expected GHG Emission Reductions

Project type(3)Establish a special-purpose company

Representative participant and partner participant establish a new SPC（special-purpose company） and invest in it. SPC installs facilities and implements project.

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Representative Participant

(Japanese entity)investor

SPC（Partner country）

user

Partner Participant

（Partner country）investor

investment

ManufacturerManufacturing/selling

facilities

The project aims to reduce CO2 emissions by constructing a 10MW Solar Power Generation Plant beside the 110kV substation in Darkhan City, which locates approximately 230 km North of the capital city Ulaanbaatar, and supplying the generated electricity through the power transmission network.The power plant employs crystalline solar modules of maximum output of 310W per panel and module conversion efficiency of 15.9%. Approximately 32,000 numbers (72 series) of these modules and peripheral systems are installed on a land of 36 ha.

10MW Solar Power Project in Darkhan CityPP (Japan): Sharp Corporation, PP (Mongolia): Solar Power International LLC (SPI)

JCM Model Project Host Country: Mongolia

Outline of GHG Mitigation Activity

Expected GHG Emission Reductions Sites of JCM Model Project14,746tCO2/year

Reference Emissions = EGPE×Efgrid = 15,034Project Emissions = EGAUX×Efgrid = 288Emission Reduction = RE－PE

= 15,034－288= 14,746（tCO2/y）

EGPE : Electricity generated by the project （MWh）EGAUX: Grid electricity consumption for auxiliaryequipment （MWh）EFgrid : CO2 Emission factor（=1.0601tCO2/MWh）

110kV Substation

Measure temperatureMeasure irradiation

10MW Solar Power Generation Plant

Measure power generation

Generation

Site located approx. 10km south of Darkhan cityDarkhan city

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Main points to be confirmed for project implementation (1)

Structure for project

implementation

Fix representative participant early

Confirm decision-making and management of local

participant(s)

Conclude international consortium agreement

General consensus on MRV implementation

Finance

Budget approval of local participant on purchase and

installation of facilities

Commitment of financing with financial institution if

necessary

Profitability Profitability analysis

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Main points to be confirmed for project implementation (2)

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Schedule

Plan schedule for purchase, installation and financial

support (needs special care if bidding required)

Agreement by relevant participants on organizing SPC

and its schedule (in the case of Project type (3))

Relevant laws, permits and

licenses

Confirm related laws and regulations (ex. FIT, bidding) and

understand its practical operation

Recognize necessary period for getting relevant permits

and licenses

All of the above points need to be confirmed with relevant documents and evidence

Reference: Outlines of each JCM Model Project and feasibility study are summarized

at GEC website on JCM <http://gec.jp/jcm/>.

Thank you !