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Joint Press Release with the Ministry of Foreign Affairs and the Ministry of the EnvironmentJapan and Saudi Arabia Establish a Joint Crediting Mechanism- The Kingdom of Saudi Arabia Becomes the 13th JCM Signatory Country, and the First Signatory Country in the Middle East-

On May 13 (same date local time), 2015, H.E. Mr. Norihiro Okuda, Ambassador Extraordinary and Plenipotentiary of Japan to the Kingdom of Saudi Arabia and His Royal Highness Prince Abdulaziz Bin Salman Bin Abdulaziz, Vice Minister of Petroleum and Mineral Resources and Chairman of the National Committee for the Clean Development Mechanism, establish a Joint Crediting Mechanism (hereinafter referred to as “JCM”) in Saudi Arabia.
The year 2015 marks the 60th anniversary of the establishment of diplomatic relations between Japan and Saudi Arabia. In this commemorative year, Saudi Arabia became the first JCM signatory country in the Middle East and the 13th country overall. Through the JCM, Japan and Saudi Arabia will further strengthen their cooperation on environmental and energy related issues.

1. Japan and Saudi Arabia establish JCM

On May 13 (same date local time), 2015, Ambassador Okuda and HRH Prince Abdulaziz establish the JCM in the Kingdom of Saudi Arabia.

Concerning JCM, both countries will establish a joint committee to operate the JCM. Under this mechanism, Japan will implement various projects that will reduce greenhouse gas emissions in Saudi Arabia, utilizing leading low-carbon technologies. Through the mechanism, Japan will contribute not only to Saudi Arabia’s environment and economic growth but also to international efforts to prevent global warming.

2. Outline of the bilateral document

The outline of the bilateral document is as follows: (for the original text, see the Appendix)

  • To drive the partnership for “Green Growth” between Japan and Saudi Arabia, both sides will establish the JCM and set up a joint committee to operate it.
  • Both sides mutually recognize that verified emission reductions or removals by the mitigation projects under the JCM can be used as a part of Japan’s internationally pledged greenhouse gas mitigation efforts and Cambodia’s nationally appropriate mitigation actions.
  • Both sides ensure transparency and the environmental integrity of the JCM and that neither side will use any mitigation projects registered under the JCM for the purpose of any other international climate mitigation mechanisms.

Reference: Joint Crediting Mechanism
The Joint Crediting Mechanism (JCM) is a program in which Japan’s contribution to the reduction and removal of greenhouse gas emissions in partner countries through transferring Japan’s excellent low-carbon technology and products is calculated and evaluated as credits for contribution.
Currently, the Ministry of Foreign Affairs (MOFA), the Ministry of Economy, Trade and Industry (METI), and the Ministry of the Environment (MOE) are jointly proceeding with bilateral negotiations with nations that are interested in the mechanism. This Japan-Saudi Arabia partnership is the 13th partnership signed by Japan for this purpose, following partnerships signed with Mongolia, Bangladesh, Ethiopia, Kenya, the Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, and Mexico.

For more information, visit the following website:
http://www.meti.go.jp/english/policy/energy_environment/global_warming/challenges.html

Appendix:

Note 1: The Saudi-Japan Forum for 60 years Anniversary, an official commemorative event organized by the Government of Saudi Arabia to celebrate the 60th anniversary (as of 2015) of diplomatic relations between Japan and Saudi Arabia. It will be held in Tokyo, from Monday, May 18 through Friday, May 22. This announcement is published as a press release in association with the forum.

Note2: The name of the program has been changed from the “Bilateral Offset Credit Mechanism” to the “Joint Crediting Mechanism” so as to describe it in simpler terms.

Release date

May 18, 2015

Division in Charge

Global Environmental Partnership Office, Industrial Science and Technology Policy and Environment Bureau

Ministry of Economy, Trade and Industry
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