Hatoyama Initiative

and JICA’s perspectives on Addressing

Climate Change

April 21, 2010

Office for Climate Change

Japan International Cooperation Agency (JICA)
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Japan’s Initiative on Climate
Change
Japan’s Initiative on Climate Change
UN Summit on Climate Change & COP15 (2009)

Hatoyama Initiative
TICAD IV（2008） 5th Japan/PIF Summit (2008)
Yokohama Action Plan Islander’s Hokkaido Declaration

World Economic Forum 2008 (2008)

Cool Earth Promotion Program （Cool Earth Partnership）

3rd East Asia Summit (2007)

Towards a “Sustainable East Asia”
International Conference on “the Future Asia” (2007)
Invitation to “Cool Earth 50”
4th Japan/PIF Summit (2008)
Okinawa Partnership for a more robust and prosperous Pacific Region
The World Conference on Disaster Gleneagles G8 Summit (2005)
Reduction (2005)
Japan’s Initiative on Climate Change
Hyogo Framework for Action

WSSD (2002)
Environmental Conservation Initiative for Sustainable Development （EcoISD)

COP3 (1997)
Kyoto Initiative
Initiative for Sustainable Development Toward The 21st Century（ISD)
 Hatoyama Initiative
Prime Minister Yukio Hatoyama made a speech at UN Summit on Climate
Change on 22 September, 2009, and announced Japan’s mid term target and
new initiative named “Hatoyama Initiative” at UN Summit on Climate.

Mid term • The developed countries need to take the lead

target in emissions reduction efforts.
• For its mid-term goal, Japan will aim to reduce
its emissions by 25% by 2020, if compared to
the 1990 level.
• It is imperative to establish a fair and effective
international framework in which all major
economies participate. The commitment of Japan
to the world is premised on agreement on
ambitious targets by all the major economies.
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 Hatoyama Initiative
Outline of 1. Contribution by the developed countries through
Haytoyama substantial, new and additional public and private
Initiative financing.
2. Development of rules that will facilitate international
recognition of developing countries' emissions
reductions, in particular those achieved through
financial assistance, in MRV.
3. Establishment of system which facilitates one-stop
provision of information on and matching of available
bilateral and multilateral financing, while securing
transparency and effective utilization of assistance.
4. Establishment of a framework to promote the transfer
of low-carbon technologies which ensures the
protection of intellectual property rights.
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 Hatoyama Initiative (up to 2012)
• As for assistance up to 2012, Japan will provide financial assistance
to developing countries of approximately 1 trillion 750 billion Yen
(about $15 billion) including public and private finance, of which
public finance comprises approximately 1 trillion 300 billion Yen
(about $11 billion),

• The assistance under Hatoyama Initiative will be provided on the

condition that successful political accord is achieved, that is a fair
and effective framework with participation of all major emitting
countries and agreement of their ambitious targets.

• Upon the establishment of a new framework Japan will, with this

assistance, support a broad range of developing countries which are
taking measures of mitigation, as well as those which are vulnerable
to the negative impacts of climate change.

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 Hatoyama Initiative (up to 2012)

Private Sector Finance

450 billion JPY (15billion USD)
support a broad range of
developing countries which
are taking measures of
mitigation, as well as those
which are vulnerable to the
Public Finance negative impacts of climate
1.3 trillion JPY(11billion USD) change.

2012
The assistance under Hatoyama Initiative will be provided on the condition that
successful political accord is achieved, that is a fair and effective framework with
participation of all major emitting countries and agreement of their ambitious targets.

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 Major Difference between Cool Earth
Partnership & Hatoyama Initiative
Cool Earth partnership Hatoyama Initiative

1.25 trillion JPY 1.75 trillion JP

Financial Amount
(100 billion USD) (150 billion USD)

Cool Earth Partner Countries

Broad range of developing
countries which are taking
Target Countries (through Policy dialogue measures addresing
with GOJ) climate change.

Grant & TC:

Adaptation & Clean Energy
Grant ,TC & ODA Loan:
Target scope Development
Both Mitigation & Adaptation
ODA Loan:
Mitigation
(Note) Further details for operation of Hatoyama Initiative will be decided soon.
JICA’s Cooperation Addressing
Climate Change
 Facts and Figures of JICA
• Profile:
– Japan’s Official Development
Assistance Agency
– Providing Grant Aids, Concessional
Loans and Technical Cooperation
– Assistance implemented by its
own staff as well as thousands of
Japanese experts and young and
senior volunteers.
• Operational Volume:
– World’s largest bilateral development assistance
agency with a size of USD10 billion (FY2008)
– USD6 billion or more for Climate change related
projects and programs
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Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end)
*estimated based on FY2008 budget (full year)
 JICA’s Vision, Mission & Strategy

[Vision]
Inclusive and Dynamic Development
[Mission] [Strategy]
1. Addressing the global agenda 1. Integrated assistance
2. Reducing poverty through equitable 2. Seamless assistance
growth 3. Promoting development partnerships
3 Improving governance 4. Enhancing research and knowledge-
4 Achieving human security sharing

[Activity guiding principles]

1. Achieving synergies of the merger
2. Tackling complex, difficult issues flexibly with the field-based approach
3. Fostering expertise for providing professional solutions
4. Efficient and transparent operation
 Climate change benefit as co-benefits of development
Cooperation for Sustainable Development from various levels

Generating GHG Reduction as

Developmental Development co-benefit
benefit Plan

Donor’s Sector
Policies Integrate
Assistance
Climate
Change
Financial Programs Concerns
Assistance
into
Development
Technical
Projects Actions
Assistance

Long-term vision
 Direction of New JICA’s Operation
Addressing Climate Change
NEW-JICA’s policies and concrete measures（Image）
＜Mitigation Measures＞

Co-benefit * Promotion of CDM

Assisting in implementation

Technical assistance
Financial assistance

of Policies
Assisting in enhancing and promoting
private sector initiatives - Improvement of legal systems
- Capacity development
- Monitoring , etc…
＜Adaptation Measures＞
Introducing and
Supporting the formulation mainstreaming
and implementation of Strengthening the capacity
the concept of
adaptation measures for adaptation
“Climate Risk”

Utilize Japan’s private cutting-edge technologies effectively

Promote globally conducive research

* “Co-benefit” approach ・・・Project or program which realize both developmental benefits for developing country and GHG
emission reductions.
 How can we address
Copenhagen Accord? (1)
• Para 5 (NAMAs)
– Non-Annex I Parties to the Convention will implement mitigation
actions, including those to be submitted to the secretariat by non-Annex
I Parties… Mitigation actions taken by Non-Annex I Parties will be
subject to their domestic measurement, reporting and verification the
result of which will be reported through their national communications
every two years.
– Non-Annex I Parties will communicate information on the
implementation of their actions through National Communications, with
provisions for international consultations and analysis under clearly
defined guidelines that will ensure that national sovereignty is
respected.
– Nationally appropriate mitigation actions seeking international support
will be recorded in a registry along with relevant technology, finance
and capacity building support. Those actions supported will be added to
the list in appendix II.
– These supported nationally appropriate mitigation actions will be
subject to international measurement, reporting and verification in
accordance with guidelines adopted by the Conference of the Parties.
 MRV in Copenhagen Accord and ODA
MRV in Copenhagen
Accord
MRV in ODA operation

Measure GHG mitigation Effectiveness of development

assistance (e.g. expected
actions and its effects M (Measurable) increased harvest by irrigation
(carbon footprint) project)

Report to UNFCCC Project Completion Report

through National R (Reportable) submitted by recipient country,
Communications Statistic Report to OECD

Verify by national Post-evaluation (e.g. actual

verification system or increase of harvest as
international verification V (Verifiable) Operational & Effectiveness
system Indicators)

 Development Agencies need to develop common 15

Carbon Foot Tool for measuring GHG reduction
 How can we address Copenhagen
Accord? (2)
• Para 8 (Finance)
– Scaled up, new and additional, predictable and adequate funding as well as
improved access shall be provided to developing countries, in accordance with
the relevant provisions of the Convention, to enable and support enhanced
action on mitigation, including substantial finance to reduce emissions from
deforestation and forest degradation (REDD-plus), adaptation, technology
development and transfer and capacity-building, for enhanced implementation of
the Convention.
– The collective commitment by developed countries is to provide new and
additional resources, including forestry and investments through international
institutions, approaching USD 30 billion for the period 2010-2012 with balanced
allocation between adaptation and mitigation.
– In the context of meaningful mitigation actions and transparency on
implementation, developed countries commit to a goal of mobilizing jointly USD
100 billion dollars a year by 2020 to address the needs of developing countries.
– This funding will come from a wide variety of sources, public and private,
bilateral and multilateral, including alternative sources of finance. New
multilateral funding for adaptation will be delivered through effective and
efficient fund arrangements, with a governance structure providing for equal
representation of developed and developing countries. A significant portion of
such funding should flow through the Copenhagen Green Climate Fund.
 Trend of Japan’s ODA Finance in Climate Change
Japan's ODA Finance in Climate Change (FY2002-2009)

700,000

600,000
500,000
Million JPY

400,000
300,000

200,000
100,000

0
2002 2003 2004 2005 2006 2007 2008 2009
FY

Mitogation Adaptation Both

(Note) ODA Loan Only. Figures of FY2009 is tentative. Some of projects which
contribute to both Mitigation and Adaptation count as “Mitigation”.
 Expected Climate Change Finance
Market
Export
CDM Credit
Developed Countries Private
Finance and
BFIs Investment
UNFCCC Funds
GEF
CIF Green
Climate
Fund
MFIs

Co-Finance
Technical Assistance

National
Intermediaries
Public Entities

Developing Countries Private Entities

Concessional Commercial
Grant and/or Loan Grant Loans Loans Investment
 Private Investment Flow by
Recipient Country (2004)
Private Investment Flow Total (million USD, 2004)

Indonesia, Vietnam,
3,152, 1,610, Mongolia,
3% Papua
2% 93, 0%
Pakistan, New Guinea,
India,
Malaysia, Cambodia, 25, 0%
14,170, 1,168, 1% Sri Lanka,
14% 9,024, 131,
9% Thailand, 133,
0%
1,117, 1% 0%
Philippines, Myanmar, Lao PDR,
214, 17, 0%
887,
0%
China, 1%
65,860, Bangladesh,
67% 453, Maldives,
0% 15, 0%

Source: GDF (2006)

 Climate Change and ODA
ODA
Feasibility Study for programme loan Private

Climate Change ODA loan

agreement on policy matrix for climate change

Implementation of climate change
policies based on agreed matrix
Technical assistance
Identification of (advisor/expert)
necessary investments
to monitor implementation
and develop next steps

Mitigation and ODA grants/loans

adaptation projects

Enabling Environment to induce investments

Private capital
Private sector investments
for sustainable growth
 Policy Based Assistance for Climate Change Policy
Climate Change Program Loan
Example of the Policy Matrix formulated based on the policy dialogue
Pillar 1: Mitigation Pillar 2: Adaptation

1.1: LULUCF
1.2: Energy
(Land Use, Land Use
Change and Forestry) 2.1: Water 2.2: Water 2.3: Agriculture
-Power plant
Resource Supply and
-Industry, domestic and
-Reforestation Management Sanitation
commercial
-REDD
-Others
-Forest management

Pillar 3: Cross-cutting Issues

3.2: Mainstreaming
3.1:Understandin
Climate Change in the 3.5: Fiscal 3.6: Early
g the Impact of 3.3: CDM 3.4: Co-Benefit
National Development Incentive Warning System
Climate Change
Program

Monitor, Review and advice

Coordination among Steering Committee Financial Assistance,

line ministries Technical Cooperation
Partner country’s Donors
Government
 Relations between NAMA and Policy Matrix
National Development Plan
Policy Matrix

NAMA

Adaptation
Mitigation

• NAMA focuses on “Mitigation” actions among development policies

• “policy matrix includes several policies and actions not only mitigation but also
adaptation and cross-cutting issues
• Both need to align “Development policies & Strategies” 22
 Financial Assistance in NAMA

Multi Donors
Bi Donors Other Donors
Bi Donors Multi Donors Others

General Budget Support

Climate Fund Co-finance among donors

NAMA Policy Matrix

Agree with donors  Monitoring policy
Register at UNFCCC
implementation

Bi Donors Multi Donors Other Donors Bi Donor Multi Donor Other Donors

OECD/DAC is preparing system to capture ODA flows in Technical & Financial assistance to individual projects
Climate Change (RIO Marker system)

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JICA’s Next Steps for Achieving Low Carbon &
Climate Proofing Society

To integrate climate change measures into

development cooperation
To promote “Low-carbon Growth”
To realize tangible development programmes
/projects from the perspective of climate
change
To leverage private sector finance by creating
enabling environment