Japan GHG Reduction Fund
JCF
Ｊｕｌｙ，２００５
o Kyot
京都
１．Summary (1) Objective: To purchase CERs and ERUs （ERs） issued for the crediting period until 2012 from CDM/JI Projects (2) Fund Pool: Called “Japan GHG Reduction Fund (JGRF)”, which JCF can utilize to purchase ERs (3) Committed Fund Amount: Approx. USD 140 million (4) Establishment: December 1, 2004 (5) Location: Tokyo, Japan 2
(6) Fund Providers: Major Japanese Private Enterprises & Policy-lending Institutions JCF was established by some of Major Fund Providers including Japanese Policy-lending Institutions Sector Utility
Fund Providers Chubu Electric Power Co., Inc., Tohoku Electric Power Co., Inc., Tokyo Electric Power Co., Inc., The Chugoku Electric Power Co., Inc., Electric Power Development Co., Ltd. (J-Power), Hokkaido Electric Power Co., Inc., Hokuriku Electric Company, Kansai Electric Power Co., Ltd., Kyushu Electric Co., Inc., Shikoku Electric Power Co., Inc., The Okinawa Electric Power Co., Inc., Tokyo Gas Co., Ltd. 3
Sector Fund Providers Nippon Oil Corp., Idemitsu Kosan Co. Ltd., Oil & Manufacturing Japan Energy Corp., Kyushu Oil Corp., Sony
Corp., Toshiba Corp., Sharp Corp., Fuji Xerox Co., Ltd., The Japan Iron and Steel Federation, Taiheiyo Cement Corp., Toyota Motor Corp., Terumo Corp.
Trading
Mitsubishi Corp., Mitsui & Co., Ltd., Sumitomo Corp., Itochu Corp., Marubeni Corp., Sojitz Corp.
Engineering JGC Corp. Policy-lending Japan Bank for International Cooperation (JBIC), Development Bank of Japan (DBJ) Institution 4
(7) Project Development Cost (PDD Preparation, Validation, etc.): To be borne by JCF in principle with a certain ceiling (8) Timing of Payment : Payment on Delivery in principle (9) Purchase Price: To be decided on project-byproject basis through Project Selection Process (10) Project Information Notes (PINs) : Submission of PINs to JCF are welcome in any time & any form (JCF PIN form is on www.jcarbon.co.jp You can e-mail PIN to the address:
[email protected] /
[email protected])
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(11) Project Screening Criteria: Inclusive of Fulfillment of Kyoto Rules, Additionality, Environmental & Social Safeguard Requirements, Project Feasibility, Contribution to Sustainable Development of Host Country, Portfolio Guideline, etc. Portfolio Guideline;
ERs to be purchased from: a Single Project a Single Host Country a Single Sector *
approx. in USD, million Up to 25 Up to 37 Up to 41
*Sector: “Sectoral Scopes” listed in UNFCCC web site which include A) Renewable Energy, B) Waste Handling and Disposal, C) Manufacturing Industries (Energy Efficiency, Fuel Switching, etc.), D) Fugitive Emissions, E) Chemical Industries, F) Agriculture, etc. 6
ERs Purchase Structure Relationship between JCF & JGRF
Payment
CDM/JI Project Entities (ERs Seller)
Emission Reduction Purchase Agreements (ERPAs) ERs
JCF Japan Carbon Finance, Ltd. (ERs Buyer)
Payment
Emission Reduction Resale Agreement
Japan GHG Reduction Fund (Fund Pool)
ERs
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2. Advantages for Projects (1) Additional Cash Flow: Project Viability to be
improved by Cash Inflow in USD under ERPA (2) Development Function: JCF will provide assistance and orientation to develop CDM/JI projects. (3) Possibility of Co-purchase: Fund Providers for JGRF may purchase a part or all of the remaining ERs after the purchase by JCF. 8
(4) Collaboration with and Support from JBIC & DBJ: At present approx.50 projects ¾
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are, on a pre-screening list, gained through JBIC/DBJ networks Strong ties with Japanese Government issuing Written Approvals for CDM/JI Projects Cooperation and strong ties with Host Governments and Development Financial Institutions Underlying Financing from JBIC, such as;
A) Export Loan, B) Overseas Investment Loan, Untied Loan, D) ODA Loan, etc.
C) 9
Operational Flowchart Project Entity/Sponsor Submission of PIN
JCF Clarification & Screening of PIN Evaluation & Selection of Project
Execution of Letter of Intent (LOI) which defines basic terms & conditions PDD Preparation
Assistance & Orientation to develop Project
Validation & Registration Execution of ERPA Exclusivity Period for ERPA Execution
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Key Criteria at Screening of PINs ¾ ¾
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Project Description and Project Participants Fulfillment of Kyoto Rules: Methodology (Baseline Study & Monitoring Plan) Validation (Methodology Applicability, Data, Quality Control, etc.) Possibility of Authorization & Approval by Host Country Stakeholders’ Comments Additionality (Investment Analysis/Barrier Analysis and Common Practice Analysis, etc.) Environmental & Social Safeguard Requirements: Compliance with Laws & Regulations, etc. 11
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Project Feasibility: Construction Plan, Business Plan and Fund-raising Plan Project-related Contracts Concession/License & Permits Creditworthiness and Competence of Project Sponsors Experiences of Management and/or Project Operator Commercially Viable Proven Technology Financial Viability (Cash Flow Projection, Sensitivity Analysis, etc.) Contribution to Sustainable Development of Host Country (Environmental, Social & Economic Impacts, Technology Transfer Effects, etc.) Portfolio Guideline and Purchase Conditions 12
Contact TERI Dr. Vivek Kumar (E-mail:
[email protected]) Japan Carbon Finance, Ltd. Mr.Shin OYA/Deal Manager Mr.Shozo WATANABE/Deal Manager (E-mail:
[email protected]) (E-mail:
[email protected])
to o Ky
都 京
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