The Joint Crediting Mechanism (JCM) is an emerging project-based bilateral offset crediting mechanism initiated by the Government of Japan to facilitate implementation of advanced low-carbon technologies for mitigating greenhouse gas (GHG) emissions in host countries. The Government of Japan has signed bilateral agreements with 16 countries for implementing JCM projects, including 10 developing member countries of the Asian Development Bank. As of September 2016, four of 15 projects registered as JCM projects have been issued JCM credits. JCM credits may be used to meet respective GHG emission reduction targets of relevant governments and project participants. This handbook provides project participants and stakeholders the procedural steps of JCM project development cycle leading up to the issuance of JCM credits.

About the Japan Fund for the Joint Crediting Mechanism (JFJCM)

The Japan Fund for the Joint Crediting Mechanism (JFJCM) is one of ADB’s trust funds that provide financial incentives for the adoption of advanced low-carbon technology to projects that are financed by the ADB. The JFJCM provides support in the form of grant and technical assistance to projects in ADB’s developing member countries (DMCs) which have signed bilateral agreements for the JCM with Japan. Both sovereign and nonsovereign projects are eligible for support under the JFJCM.