Japan to offer subsidies for five Article 6 projects in Indonesia, Cambodia, Philippines

Japan's Ministry of the Environment has shortlisted five carbon projects in Indonesia, Cambodia and the Philippines to offer special subsidies under the country's Article 6 Joint Crediting Mechanism (JCM), the MOE said in a statement late March 14.

Japan's JCM is one of the earliest and most influential Article 6 collaboration frameworks. Through the JCM, Japan is expected to invest in decarbonization projects globally and leverage these projects to meet its Nationally Determined Contributions (NDCs), namely climate targets committed under the UN's Paris Agreement.

Shortlisted projects, known as JCM Model Projects, would receive financial support of up to 50% of their initial investment costs under the ministry's special subsidy scheme, according to the statement.

The MOE said it received a variety of applications for the JCM Model Projects and selected five projects during the fourth and fifth rounds of reviews for subsidies under the fiscal year 2024-2025 (April-March) budget.

The ministry said the projects were selected through an initial document screening, a secondary review with interviews and a final acceptance/rejection review, adding that it will then proceed with the procedures to support the project's implementation with partner countries.

MOE data showed that since 2013, Japan has established the JCM with 29 partner countries and has selected over 250 projects for financial support.

The JCM's 29 current partner countries are Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, Thailand, Philippines, Senegal, Tunisia, Azerbaijan, Moldova, Georgia, Sri Lanka, Uzbekistan, Papua New Guinea, the UAE, Kyrgyzstan, Kazakhstan and Ukraine.

Details on shortlisted JCM projects

Source: Japan's Ministry of the Environment