ADB, Japan Launch Low-Carbon Technology Fund
25 June 2014: The Asian Development Bank (ADB) and the Government of Japan have announced the creation of the Japan Fund for the Joint Crediting Mechanism (JFJCM), which will promote the adoption of advanced low-carbon technologies in the Asian region.
The trust fund was established with a grant of ¥1.8 billion (about US$17.65 million) from Japan and will be implemented as outlined in a Letter of Intent for Cooperation on Environmental Issues signed by Japanese Environment Minister Nobuteru Ishihara and ADB President Takehiko Nakao.
In an effort to overcome the high upfront costs of some advanced low-carbon technologies and to curb the region's growing greenhouse gas (GHG) emissions, JFJCM will provide grant funding to a range of projects, such as waste-to-energy systems, smart grids, as well as energy efficiency in water supply and wastewater treatment plants, transport and buildings.
In addition to helping address investment costs and long cost-recovery times, JFJCM will lower the perceived risk of advanced low-carbon technology projects, both through its grant financing and provision of technical assistance to the projects.
Developing member countries (DMCs) of ADB that have signed memoranda of understanding for the JCM with Japan are eligible to receive funding through JFJCM. Currently, these countries are Bangladesh, Cambodia, Indonesia, Lao People's Democratic Republic, Maldives, Mongolia, Palau and Viet Nam.
Apart from cooperation on JFJCM, the Letter of Intent communicates plans for collaboration between the Japanese Ministry of Environment and ADB on air quality, climate change and enforcement of environmental laws. [ADB Press Release]