Joint Crediting Mechanism: An Emerging Bilateral Crediting Mechanism
Business Guide | December 2016
The Joint Crediting Mechanism is a project-based bilateral offset crediting mechanism initiated by the Government of Japan to facilitate the diffusion of low-carbon technologies.
The diffusion of leading low-carbon technologies and the resulting mitigation of greenhouse gas emissions contributes to the sustainable development of developing countries. So far, 16 countries including 10 in Asia and the Pacific region have launched the Joint Crediting Mechanism (JCM), with 15 registered projects. Financial support under the JCM is provided through the Government of Japan, affiliated organizations, and ADB.
This publication describes the framework and key features of the JCM to assist stakeholders in developing a deeper understanding of this new bilateral mechanism. It provides background information on how bilateral mechanisms evolved in relation to the international climate change negotiations, and it lays emphasis on apprising its readers on technical aspects of the JCM including its various stakeholders, project cycle, eligible projects, and recent developments related to the JCM. This publication also presents information on the possible financing options that can be availed by potential project developers in developing JCM projects in the region.
About the Japan Fund for the Joint Crediting Mechanism (JFJCM)
The Japan Fund for the Joint Crediting Mechanism (JFJCM) is one of ADB’s trust funds that provide financial incentives for the adoption of advanced low-carbon technology to projects that are financed by the ADB. The JFJCM provides support in the form of grant and technical assistance to projects in ADB’s developing member countries which have signed bilateral agreements for the JCM with Japan. Both sovereign (public sector) and nonsovereign (private sector) projects are eligible for support under the JFJCM.
- Joint Crediting Mechanism
- Joint Crediting Mechanism Project Development
- Financing Options for the Joint Crediting Mechanism