Procedures and other requirements are set forth below regarding the approval of Joint
Implementation (JI) and Clean Development Mechanism (CDM) projects carried out on behalf of Japan, as a Party to the Kyoto Protocol. These procedures are based on the "Institutional Arrangements in Japan for Utilization of the Kyoto Mechanisms," a Decision of the Steering Committee of the Global Warming Prevention Headquarters (Japan) made on 22 July 2002.
Applications relating to JI and CDM projects
Applicants seeking Japanese governmental approval for implementation of JI and CDM projects (hereinafter "Projects") implemented outside of Japan with the purpose of obtaining emissions reductions, etc., and transfer to Japan's National Registry accounts, are required to complete the necessary sections of Attachment 1 as explained in the Guide to Applications in Attachment 2, attach the necessary documentation, and submit the application to the contact point for applications in one of the ministries comprising the Liaison Committee for Utilization of the Kyoto Mechanisms (hereinafter "the Liaison Committee"), listed in Attachment 3.
On receipt of an application, the ministry that has received it is to promptly provide copies of the application to the other ministries comprising the Liaison Committee.
The Liaison Committee will determine which ministry is (or ministries are) to be in charge of providing project support. The outcome of this decision will be announced to the applicant along with the Letter of Japanese Government Approval (Item (8) below).
If the applicant names a ministry(or ministries) it desires to be in charge of providing project support, that request will be considered in the decision. However, because in some cases a given project may involve more than one ministry, if another of the members of the Liaison Committee also expresses an interest in being involved, the Liaison Committee will make an effort to accommodate these requests in an appropriate way.
The ministry in charge of providing project support will examine the application in accordance with the criteria for approval (Item 2), and report the results of examination to the Liaison Committee.
In cases in which official funds are part of the funding sources of a CDM-related project and the applicant must obtain affirmation from the Japanese government that the said official funds will not result in a diversion of Japanese official development assistance (ODA) and are separate from and not counted towards the financial obligations of Japan, the ministry in charge of providing project support is (are)to obtain an confirmation from the official body that provided the said funds as to whether or not the funds are counted as ODA. In the event that the funds are counted as ODA, the said ministry is to obtain a confirmation from Japan's Ministry of Foreign Affairs as to whether or not the said official funds constitute a diversion of ODA, and then report the findings to the Liaison Committee.
The Liaison Committee is to determine whether to approve or not approve a project based on the results of examination (in the case of Item (6) above, the information from the Ministry of Foreign Affairs is to be included in consideration) by the ministry in charge of providing project support.
If the project is approved, the ministry in charge of providing project support is (are) to promptly transmit a Letter of Japanese Government Approval (see Attachment 4) to the applicant.
If the project is not approved, the ministry in charge of providing project support is (are) to promptly notify the applicant of that fact in writing, along with the reason for the project's failure to obtain approval. If a project has not been approved, however, the applicant may re-apply after making revisions to the application documents in order to address the reasons the previous submission failed to obtain approval.
The approval process is to be conducted as expeditiously as possible. In the future, a standard processing time will be determined after considering the amount of time that has been needed to process actual applications.
Criteria for approval
Examination of applications for approval will be conducted in accordance with the following criteria.
(Note: This process is not the same as the examination to be done by bodies such as a Designated Operational Entity or the CDM Executive Board)
The project does not contravene the details of international agreements such as the Kyoto Protocol and Marrakech Accords.
The project participant(s) are not experiencing management difficulties or other circumstances, such as insolvency, that would clearly obstruct proper implementation of the project.
Reporting on JI and CDM projects
The project participant(s) is (are) to report to the ministry in charge of providing project support in accordance with the required items described in the Guide to Project Reporting (see Attachment 5).
If more than one ministry is in charge of providing project support, the project participant(s) may report to any one of the ministries, and the ministry that receives the report is to promptly provide copies of the said report to the other ministry (or ministries) in charge of providing project support.
Method of application, etc.
The transmission of applications, reports, and Letters of Japanese Government Approval, as described in these Guidelines, may be done by either electronic or printed documentation, depending on the wishes of the applicant. In the event that any ministry in charge of providing project support is unable to process electronic documentation, it shall take the necessary measures as soon as possible to enable it to do so.
Communications and negotiations with host country Parties and international bodies concerned
The ministry in charge of providing project support is (are) to ascertain the state of progress from the time of project approval until issuance of emission reductions, etc., under the Kyoto Protocol, and to provide supplementary assistance for approval, etc., as well as issuance of emissions reduction units, etc., by host country Parties and international bodies concerned.
The Ministry of Foreign Affairs, in consultation with the ministries providing project support, shall carry out affairs such as communications with Japanese Overseas Establishments and diplomatic procedures with host countries and international bodies concerned, from the start of the project until the issuance of emissions reduction units, etc., under the Kyoto Protocol, as well as necessary administrative tasks such as negotiations with the relevant agencies of the country concerned.
In order to fulfill the tasks set forth in Item (1), the ministry in charge of providing project support may provide guidance and advice to the project participants and may require them to provide reports relating to the projects.
A project cannot be recognized internationally as a JI or CDM project only by obtaining approval from the Government of Japan based on these Guidelines. In the case of JI projects, the separate approval of the host country Party is required (in some cases, this includes examination by third-party entities [independent entities]). In the case of CDM projects, the separate approval of the host country Party and examination by a third party (Designated Operational Entity) is required.
These Guidelines will be revised as required, based on circumstances, which may include the status of international rules that may affect them. In particular, relating to approval of projects that include afforestation or reforestation, guidelines will be established after international rules for defining them and their methodologies have been determined (decisions on these are expected at COP-9 in 2003).
In the interest of timeliness, the Liaison Committee shall not be required in every case to hold actual meetings in person for reporting, discussion and decision-making. Communications by fax or electronic mail for these purposes shall also be permitted.