Here it is the first JCM project approved in Indonesia

JAKARTA. Indonesia and Japan finally approved the first Joint Crediting Mechanism (JCM) project in the world. At the JCM Joint Committee meeting held on 31 October 2014 in Bogor.

The two parties finally agreed on a proposed proposal, the "Energy saving for air conditioning and process in the textile factory" project developed by Ebara and PT Primatexco, as a JCM project.

The JCM mechanism is a bilateral collaboration that puts forward environmentally sound investments to support low carbon development. To achieve the emission reduction target in the country, Japan is investing in emission reduction activities in developing countries, through a new mechanism called JCM.

This mechanism was agreed upon by the Governments of Indonesia and Japan through the signing of an agreement document on August 26, 2013. In its development from 2010 until now, Japan has conducted 75 feasibility studies on renewable energy projects (originating from geothermal, hydro and biomass sources) ), energy efficiency, low carbon transportation, Carbon Captured and Storage (CCS), low carbon agriculture, and forestry based activities.

"Through JCM, it is hoped that Japanese investment activities in Indonesia will increase both in terms of volume and quality, including the use of environmentally friendly and energy saving technologies. JCM is a concrete manifestation of the commitment of the two countries in dealing with climate change issues, especially through low carbon emissions projects, "said Rizal Affandi Lukman, Deputy for International Economic Cooperation, Coordinating Ministry for Economic Affairs through a press release on Tuesday (4/11).

PT Primatexco Indonesia, located in Batang City, Central Java, in collaboration with Ebara Refrigeration Equipment & Systems, Nippon Koei submitted a proposal for the activity "Energy saving for air conditioners and processes in textile factories" to assess its eligibility as a JCM project. After going through a series of assessments of the proposed project design documents, the project was finally approved as the first JCM project in Indonesia, even the first in the world. Furthermore, this project is ready to enter the implementation phase.

By using a cooling system that has high efficiency, it is estimated that this project can provide energy savings of 965 MWh and reduce emissions by 730 tons of carbon dioxide during the project implementation period of 2014 - 2020.

 "Through the JCM mechanism, clean technology investment in Indonesia will get a new impetus for its development. This is in line with DNPI's task of encouraging international funding and technology transfer to address climate change and we are proud to have been involved in the formulation of this mechanism, "said Rachmat Witoelar, Daily Chair of the Climate Change National Council (DNPI).

In addition to the feasibility studies that have been carried out, there are currently seven pilot projects that are ready to become JCM projects and are heading towards implementation. JCM is an alternative scheme to support investment in low carbon development and can be a catalyst in the development of new types of carbon trading schemes under the UNFCCC to support the control of greenhouse gas emissions and sustainable development.