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Joint Press Release with the Ministry of Foreign Affairs and the Ministry of the EnvironmentJapan and Republic of Chile Establish Joint Crediting Mechanism- The Republic of Chile Becomes the First Signatory Country in South America -

On May 26, 2015, Mr. Naoto Nikai, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Chile, and H.E. Mr. Heraldo Muñoz, Minister of Foreign Affairs of the Republic of Chile, established a Joint Crediting Mechanism (hereinafter referred to as “JCM”) and signed a bilateral document to operate the JCM in the Republic of Chile.

At the time of Prime Minister Shinzo Abe’s visit to Chile in July 2014, both countries announced that they would conduct bilateral talks concerning the establishment of a JCM with the Republic of Chile. Since then, two countries have held discussions. The Republic of Chile became the first JCM signatory country in South America. Through the JCM, Japan and the Republic of Chile will strengthen their cooperation on environment- and energy-related issues.

1. Japan and Republic of Chile establish JCM

On May 26, 2015, Mr. Naoto Nikai, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Chile, and H.E. Mr. Heraldo Muñoz, Minister of Foreign Affairs, signed the bilateral document related to the JCM in the Republic of Chile.

Both countries will establish a joint committee to operate the JCM. Under this mechanism, Japan will implement various projects using advanced low-carbon technologies to reduce greenhouse gas emissions in Chile. Leveraging this mechanism, Japan will contribute not only to the resolution of environment- and energy-related issues and to economic growth in Chile but also to international actions 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.)

  • ž To promote the partnership for low-carbon growth between Japan and Chile, both sides establish the JCM and the Joint Committee to operate it.
  • Both sides mutually recognize that verified emission reductions and removals from the mitigation projects under the JCM can be used as a part of their own pledged greenhouse gas mitigation efforts.
  • Both sides ensure the transparency and environmental integrity of the JCM, and neither side uses any mitigation projects registered under the JCM for the purposes of any other international climate mitigation mechanisms.

Reference: Joint Crediting Mechanism

The Joint Crediting Mechanism (JCM) appropriately evaluates Japan’s contribution to greenhouse gas emission reductions and removals in partner countries achieved through transferring advanced low-carbon technologies and products.
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 consultations with nations that are interested in the mechanism. This Japan-Chile partnership is the 14th 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, Mexico, and Saudi Arabia.

For more information, visit the following website:
http://www.meti.go.jp/policy/energy_environment/global_warming/global.html (in Japanese)

Appendix:

Note: 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 27, 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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