What is J-Credit Scheme?
What is J-Credit?
J-Credit is greenhouse gas emission reductions/removals that have been certified under the Scheme. Below is definitions of the green house gas emission reductions/removals.
| Emission reductions / Technology-based net removals | The amount of greenhouse gases that is: baseline emissions minus intra-project emissions; or intra-project technology-based removals minus baseline technology- based removals and intra-project emissions. |
| Baseline emissions/removals | The assumed amount of greenhouse gases that would have been emitted or removed in the absence of the project. |
| Intra-project emissions/removals | The amount of greenhouse gases that would be emitted or removed as a result of a project if that project is implemented. |
| Nature-based removals | The amount of greenhouse gases that is intra-project nature-based removals minus intra-project emissions and baseline nature-based removals. |
What is requirement for registration?
- Implemented within Japan
- Implemented within two years before or implemented after the application for the project registration
- Satisfying the rules on the certification period
- Being not identical with any projects of emission reduction or removal activities registered on (a) similar scheme(s)
- Demonstrating additionally (in principle, payout time for facilities of projects is more than three years)
- Implemented based on methodologies that have been approved under the Scheme
- Making environmental and social considerations and ensuring sustainability
- Validated by validation authorities
- Take action to keep permanence and suitable certification period (only for forest management projects)
- Satisfying other requirements under the Scheme
How to register?
Step1: Consideration
A body that intends to execute validation or verification under the Scheme shall fill out an application for registration of examining authorities, attach documentation certifying that it meets the requirements prescribed in section 2.5.1.1 of J-Credit Scheme.
Step2:Development of Project Design Document
- Implementation Outline
- Implementation Rule
- Monitoring and Calculation Rule
- Rules for Developing Methodologies
- Methodologies
- Adhesive terms and conditions
Step3:Validation
The Management of the committee validate the Project Design Documents. Validation process is carried out by verification authorities.
| Principle | Details |
|---|---|
| Relevance | The documents are consistent with the basic aims of the Scheme. |
| Completeness | The documents specify the relevant emission reduction/removal activities so that all greenhouse gas emission reductions/removals by a project can be quantified comprehensively. |
| Consistency | The documents specify consistent procedures in order to allow meaningful comparison of emission reductions/removals. |
| Accuracy | The documents specify quantification procedures that minimize bias and uncertainty in the data used for estimation. |
| Transparency | The documents specify appropriate recording and disclosure of information related to projects. |
| Conservativeness | The documents specify procedures to ensure that emission reductions/removals are not overestimated. |
Step4:Deliberation and Registration
Apply to the Management of the committee(Relevant Ministry) for project registration and validation report.
How to get certified?
Step1:Monitering
The project participant implements monitoring in accordance with the Implementation Rule and the Project Design Documents.
Step2:Monitering report
Calculating emission reduction and preparing for the Monitoring report.
Step3:Verification
The project participant submit the Monitoring report.
The verification authority executes verification in accordance with the Implementation Rule and submits a verification report to the project participant.
Step4:Deliberation and certification
After obtaining verification, the project participant applies for certification in accordance with the Implementation Rule. Emission reductions/removals certified under the Scheme must satisfy all the following requirements;
- The emission reductions/removals results from project implementation.
- The emission reductions/removals are calculated in accordance with the Project Design Documents.
- The emission reductions/removals are verified by a verification authority.
- The time period of calculation of emission reductions/removals under 2. ends by the ending date of the certification period.
- No certification has been obtained under similar schemes for project registration, emission reduction or removal volume.
- Other requirements under the Scheme are also satisfied.
If the emission reductions/removals are recognized as appropriate based on deliberations by the Certification Committee concerning certification of the emission reductions/removals, the Management certifies the emission reductions/removals.
The Management also notifies the account holder specified by the project participant of the serial numbers of the issued J-Credits, and makes the content of the monitoring report and the verification report public without delay.
What is the type of J-Credit?
Project type
- Ordinary Project
- Programmatic Project
Methodology
- Energy Saving
- Renewable Energy
- Industrial Process
- Agriculture
- Wast
- Forest Sink
What are the benefit of being J-Credit creators?
- CO2 emission reductions and energy savings are achieved
- Saving running costs/Profit from selling of the credits
- Covers projects other than energy related projects such as forest sinks
- PR Effects
What are the benefit of being J-Credit buyers?
- Utilization for achievement of Voluntary Action Plan targets
- Utilization for voluntary carbon offsetting and CSR activities
- Report adjusted emissions taking into account the obtained credits
- Report the registered projects as “joint energy efficiency projects” under the Energy Efficiency Act
- Reporting to CDP questionnaire
Things to be aware of
- the Registry system itself and the related documents (webpages, forms, manuals, terms of use, etc.) are written only in Japanese;
- J-Credits are generated from GHG emission reduction/removal activities implemented only in Japan; and
- retired J-Credits can also offset GHG emissions occurred outside Japan, such as in international aviation and shipping and overseas manufacturing, only when the offsetting is voluntary.
Please reach out to us if you need any assistance to proceed with the procedure.