Japan is expanding its financial aid for overseas projects that cut emissions, hoping to secure even more credits from reducing CO2 volumes via bilateral agreements.
The government has increased this year’s funding for the Joint Crediting Mechanism (JCM) by close to a fifth to around ¥13.5 billion. The Mechanism allows Japan to support renewable energy and power conservation projects conducted by its companies in JCM-participating nations and claim part of the CO2 reduction as its own.
The scheme has gained in importance in recent years as Japan has set more aggressive emission reduction targets for this decade to align with the pledges of other advanced economies.
According to Japan NRG calculations, the JCM scheme alone could account for a fifth to a quarter of the CO2 volumes the nation has vowed to eliminate by 2030. JCM also plays the role in supporting Japanese government’s commitment to help developing Asian and other economies move towards net-zero.