Abstract
Large scale uptake of low-carbon energy systems need upfront financing. Leveraging the carbon markets is one strategy to realise the emission goals is one strategy to generate much needed funds. The Joint Credit Mechanism (JCM) that Government of Japan has been advancing jointly with partnering developing country government is a mechanism for implementing projects that deliver additional greenhouse gas emission reduction in partner countries through assistance to low carbon energy technologies such as renewable energy utilization, energy efficiency equipment, which require high initial capital investments. This is a similar mechanism to the Carbon Development Mechanism (CDM), however, there is a big different in the modality of carbon trading. Carbon trade through this mechanism could be mobilized bilateral basis unlike CDM, which should be traded carbon in international carbon market. Currently, the Government of Japan mobilizes JCM projects to support private sectors to implement low carbon projects in developing world. This JCM mechanism could not only support the CDM but also significantly stipulate regional cooperation towards the development of low carbon and sustainable society in efficient and effective manner. However, there are many hurdles and challenges in implementation of this JCM scheme through public-private partnership (PPP). This chapter looks into potential solutions in mobilize this scheme.
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Notes
- 1.
Brunei, Indonesia, Cambodia, Lao PDR, Myanmar, Malaysia, Philippines, Singapore, Thai, Vietnam, Australia, China, India, Korea, New Zealand, Russia, US.
- 2.
Total CER: 1,627,345,311 tCO2.
- 3.
The country which concludes agreement for JCM.
- 4.
This approach sees city as a package of low carbon projects. Comparing to the conventional approach, this approach includes a wide range of new infrastructure development projects.
- 5.
In order to embody “Japan’s Vision and Actions toward Low-Carbon Growth and a Climate-Resilient World” in EAS Region which becoming the world's economic growth centre, as well as the largest GHG emissions area (63 % of the global emission) as indicated in Sect. 10.1, Japan advocates East Asia Low Carbon Growth Partnership under the framework of EAS. The partnership aims to establish models for low-carbon growth, which serve both economic growth and challenges against global warming by sharing member countries’ efforts, experience and environmental technology through promoting regional cooperation.
- 6.
authors conducted interview survey with various actors which were involved in the international projects.
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Ogihara, A., Anbumozhi, V. (2016). Aiding the Transition: Innovations with Japan’s Bilateral Offset Mechanisms. In: Anbumozhi, V., Kalirajan, K., Kimura, F., Yao, X. (eds) Investing on Low-Carbon Energy Systems. Springer, Singapore. https://doi.org/10.1007/978-981-10-0761-3_10
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