Japan Fund for the Joint Crediting Mechanism (JFJCM)

Project implementation, supervision, and monitoring will be conducted by user departments following ADB’s standard policies, procedures, and guidelines.

The fund Technical Advisory Group (TAG) reviews all applications submitted by ADB User Departments.  The Climate Change Steering Committee (CCSC)   endorses the recommendations by the TAG on funding from the JFJCM. For nonsovereign investment projects only, the TAG neither reviews applications nor make recommendations, and the CCSC authorizes the Blended Finance
Committee (BFC)  to review and endorse applications through the Final BFC Meeting on its behalf.

The Government of Japan reviews applications from ADB and approve the JFJCM grant amount for each application.

All ADB DMCs that have signed bilateral agreements with the Government of Japan under the JCM are eligible to receive support from the fund. As of May 2023, ADB DMCs with bilateral JCM agreements include Azerbaijan, Bangladesh, Cambodia, Georgia, Indonesia, the Lao People’s Democratic Republic, Maldives, Mongolia, Palau, Papua New Guinea, the Philippines, Sri Lanka, Thailand, Uzbekistan, and Viet Nam.

Projects should meet the following criteria for eligibility:

JCM requirements:

• Defining the JCM methodology.
• Preparation of the project design documents (PDDs).
• Validation by third party entities (TPEs).
• Registration of the project as a JCM project.
• Monitoring and verification of greenhouse gas (GHG) emission reduction.
• Application for issuance of JCM credits and delivery of issued credits to both governments.

Eligible recipients are:For sovereign investment projects – governments of eligible ADB DMCs, that have signed a bilateral agreement with the Government of Japan for the development of the JCM at the time of financing.For non-sovereign investment projects – borrowers/clients of projects to be implemented in eligible DMCs. For TA projects – those included in (1) and ADB DMCs that have initiated discussions with the Government of Japan on the signing of a bilateral agreement for the development of the JCM.