Jakarta – The governments of Indonesia and Japan agreed to cooperate in a number of climate change mitigation projects through the Joint Crediting Mechanism (JCM) funding scheme. This collaboration utilises technological facilitation, funding and capacity building from the Government of Japan which was initiated in 2013 and recently extended to 2030.
JCM implementation is carried out under the coordination of the Coordinating Ministry for the Economy by involving relevant ministries/agencies, aiming to encourage cooperation in the implementation of low-carbon technologies as part of climate change mitigation. In addition, it is also to facilitate the dissemination of low-carbon technologies, products, systems, services and infrastructure, as well as increasing positive contributions to sustainable development.
“The successful implementation of the JCM project has encouraged the replication of various low-carbon technologies in Indonesia,” said Assistant Deputy for Multilateral Economic Cooperation at the Coordinating Ministry for Economic Affairs Ferry Ardiyanto in a written statement at the media briefing on JCM Implementation in Indonesia in 2022, this week.
Ardiyanto said that there are 52 JCM projects in Indonesia consisting of 48 Model Projects, 3 Demonstration Projects, and one Japan Fund for JCM (JFJCM) project. The JCM sector includes chillers, boilers, Solar PV, biomass generators, waste heat recovery, LED, and geothermal.
At the same occasion, Hiroshi Nishimoto as the First Secretary for Energy and Natural Resources at the Japanese Embassy said that Japan has partnered with 25 countries in JCM project cooperation. Among them are Indonesia, Vietnam, Mongolia, Mexico, Saudi Arabia, Chile, Senegal, Tunisia, Azerbaijan, Moldova, Georgia and Uzbekistan. In addition, there are 227 projects spread across various parts of the world, where Indonesia is the country that implements the most JCM projects.
The implementation of JCM in Indonesia is carried out jointly between the Indonesian and Japanese parties by applying the principles of measurement, reporting and verification as the basis for project implementation. The reduction in greenhouse gas emissions resulting from the JCM project is shared between the two countries which can be used to meet their respective emission reduction targets.
The JCM funding scheme itself includes a project model in the form of funding support from the Ministry of Environment Japan (MOEJ) up to 50% of the total project investment. Then the Demonstration Project which is funding support from the Ministry of Economic, Trade and Industry (METI) Japan which can achieve more than 50% of the total project investment, and JFJCM which is a trust fund managed by the Asian Development Bank (ADB) with funding from the Government of Japan.
In order to encourage low-carbon growth at the city level, JCM also provides support through cooperation schemes between cities in Indonesia and Japan. To date, 5 cities in Indonesia have joined and collaborated with 4 cities in Japan in the feasibility study, namely Surabaya with Kitakyushu, Bandung with Kawasaki, Batam with Yokohama, Semarang with Toyama, and Jakarta with Kawasaki. (Hartatik)