Project development tips

For the “JCM Model Project” Financing Programme

by the Ministry of the Environment, Japan

A r y a n i e A m e l l i n a

I n s t i t u te f o r G l o ba l En v i ro n m e n t a l St r a te g i e s

S e m i na r on t h e J C M i n I nd one s i a , F E B R U A RY 2 0 1 9

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General selection criteria for JCM Model Project Financing Programme (excerpt)

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Technology superiority and

inadequate utilization in Indonesia

Apply as international consortium

(participants from Japan and Indonesia)

Contributes to sustainable

development

Not receive other financial grant from the Government of

Japan

Robustness of project implementation

(40%)

Emission reductions amount and cost-

effectiveness (40%)

Potential of technology

dissemination (10%)

Concept for developing JCM

methodology and monitoring (10%)

More information: http://gec.jp/jcm/jp/wp-content/uploads/2018/08/tentative2018_Guidelines_for_Submitting_Proposals_2nd_Call.pdf

• Grants up to 50% initial investment costs

• Projects that reduce energy-related CO2 emissions

• Budget for financing is approx. USD 99 million in total for 2019-2021

• Project can collaborate with JICA or other government-affiliated financial institute

JCM Model Project

Selected projects will also receive technical support throughout project cycle

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Project development and

consultations

Application for financial support

Methodology development

Project Design Document

+ Sustainable Development

Implementation Plan

Validation

Verification

+ Sustainable Development

Implementation Report

Credit Issuance

Governments Companies

MRV: Monitoring, Reporting, Verification

IGES supports participants of selected projects to develop methodologies, project design document, monitoring reports, issuance of credits

Technologies applied by JCM Model Projects

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Source: MOEJ, as of 3 December 2018

（26）

Energy efficiency52%• Boiler

• Air Conditioning

• Refrigeration

• Chiller

• Looms

• Transformer

• Gas Co-generation

• LED Lighting

Renewable energy40%• Solar

• Micro hydro

• Wind

• Biomass

REDD+ 2%

• Controlling slash and burn

Transport 2%

• Digital Tachographs

• Modal Shift

• CNG-Diesel Hybrid

Waste 2%

• Waste to Energy

F-gas 2%

• Recovery & Destruction

Indonesia remains as a top choice for investment

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While ensuring transparency and community engagement

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Local stakeholders consultation and use of

mass media

Projects are open for public comments through

JCM website

Joint Committee decisions are published on JCM

websites

JCM Registry system is adopted by Japan and Indonesia

Issued credits are shown on JCM website

Q&A

tCO2

And contributing to sustainable development

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• Private sector will mobilize direct financial investments to Indonesia for the installation, dissemination, and operation of an environmentally sound technology promoted by the project.

• Private investments will benefit from public funding support under the JCM public-private partnership, which can contribute to SDG 17 particularly its Target 17.3, 17.7, and 17.17.

Example: Contribution from solar power project to sustainable development measured by SDG targets

• Sustainable Development Implementation Plan and Report sets out a plan, andachievement of the plan, of the JCM project to contribute to sustainabledevelopment.

• JCM projects also contribute to SDGs.

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ConditionEligible JCM financial support

(% of investment cost)Example projects

New projectNo project using similar technology are already selected in Indonesia

Up to 50%

Air compressor, wind power, waste-to-energy, amorphous

transformers, etc. (open for proposal)

1-3 projects using similar technology are already selected in Indonesia

Up to 40%

Boiler, biomass power plant, LED street lighting, hydropower, solar power plant with battery,

etc.

More than 3 projects using similar technology are already selected in Indonesia

Up to 30% Solar power plant, chiller.

New types of project in Indonesia can get more support

New types of project in Indonesia can get more support

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LED street lighting system with wireless network control (e.g. MinebeaMitsumi)

Solar power and storage battery system for commercial facility(e.g. Itochu, AEON Mall, etc.)

Amorphous transformers(e.g. Hitachi Materials, Yuko-Keiso)

Wind Farm(e.g. Kyuden International Corporation)

Documents to be prepared for proposal

Project Idea Note

Bidding Application Form

Declaration by Representative Participant

Company information (e.g. brochure) and certificate of incorporation

Project Implementation Plan

Budget

Audited financial statements

Draft international consortium agreement

Agreement on the Allocation of JCM Credits

Other supporting documents

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Tips

Aim for new type of technologies to get more benefits

Contact Japanese companies based in Indonesia

Focus on cost-effectiveness (cost per tCO2 reduced)

Suggested size of a JCM model project is USD 500,000 – 20 million in financial support

Consult with Indonesia JCM Secretariat onon domestic procedures

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Invest in sustainable future

Call for Proposal on the GEC website: http://gec.jp/jcm/kobo/