JICA’s Cooperation for Climate Change

- Recent Developments -

November 4, 2010

Office for Climate Change, Global Environment Department

Japan International Cooperation Agency (JICA)
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 Japan’s Leading Role in
Cooperation for
Climate Change and Development
 Fast-Start Finance
Japan has been scaling up its assistance to developing
countries to tackle sustainable development and climate
change since the announcement of the Kyoto Initiative,
leading to the recent “Fast-Start Finance (FSF).”
Kyoto Initiative
(COP3 in 1997)

Japan’s Fast-Start Finance

Environmental Conservation Initiative for
Sustainable Development (EcoISD) (FSF) $15 billion up to 2012
(WSSD in 2002)
ODA $7.2billion
Invitation to Cool Earth 50
OOF
(“The Future of Asia” in 2007)
- Grant Aid, (including
Private Finance)
Technical Cooperation $7.8billion

Cool Earth Partnership - ODA loan

(Davos Conference in 2008) - Multilateral Funds

Hatoyama Initiative
(UN Summit on Climate Change in 2009) 3
 Progress of Fast-Start Finance
Japan announced its Fast-Start Finance of 15 billion
dollars up to 2012. Japan immediately began delivering
resources through ODA and OOF to support both
adaptation and mitigation actions in developing countries.

Japan’s Fast-Start Finance (FSF)

$5.32billion (as of April 30, 2010)

ODA $2.91billion

Mitigation REDD+ OOF

$3.74 billion $165million Mitigation
$2.41billion

Adaptation
$225million

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 Towards
a Low Carbon and
Climate Resilient Society

JICA’s Approach
and Recent Developments
 Addressing Climate Change
in JICA’s Development Cooperation
＜Mitigation Measures＞
Potential Sectors Approaches
Energy, Co-benefit*, MRV,
LULUCF (land use, land use Promotion of CDM

Technical assistance
change and forestry), etc. Private initiatives, etc.
Financial assistance

Policy and Institutional Issues

Improvement of legal systems,
Capacity development, etc.

Approaches Potential Sectors

Mainstreaming “climate risk,” Water resource and supply,
Early warning system, Sanitation, Agriculture,
Vulnerability assessment, etc. Disaster prevention, etc.

＜Adaptation Measures＞

Cross sector approach based on policy dialogue

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.
 JICA ’s Strategy for
Cooperation on Climate Change
(1) Provide integrated cooperation from cross-sector
perspectives based on policy dialogue between Japan and
developing countries

(2) Assist development countries simultaneously achieve

economic development, improvement of livelihoods and
reduction of GHG emissions

(3) Utilize Japan’s cutting-edge technologies, including those of

the private sector

(4) Promote globally conducive research (e.g., basic research on

the low-carbon society and the “Study on the impact of
climate change on major Asian cities”)
Mitigation
 Summary of Climate Change Japanese ODA Loan

Interest Repayment Grace

Highly concessional compared to Rate Period Period
Category
past preferential terms (% p.a.) (year) (year)
Candidate projects can be processed
on a “Fast Track” basis (e.g. a loan LDCs 0.2 40 10
request can be made at any time and
is considered separately from ordinary Low-income
countries 0.25 40 10
projects).
Lower- middle-
Provided to developing countries
which make efforts to reduce GHG
income 0.3 40 10
Countries
emissions and to achieve economic
growth in a compatible manner, on the Middle-income
0.3 40 10
basis of policy consultations between countries
Japan and those countries
Upper-middle
Covers projects and programs that income 0.6 40 10
contribute to mitigation (increased countries
access to clean energy and adaptation * Option terms (interest rate and repayment/grace period) are
may also be included) available for each category (e.g. LDC may opt for 0.15%
interest rate, 30(10) year repayment (grace) period.)
 Case 1: Climate Change Japanese ODA Loan
Indonesia: Climate Change Program Loan
Loan Amount Replaceme
Interest
Project Loan Agreement nt/Grace
(Million Yen) rate
period

Provision of loans after evaluating Sep. 2008 30,768

15/5
the progress of "policy actions" Dec. 2009 28,083 0.15%
related to climate change Year
Jun. 2010 27,195

Policy Actions (1. Mitigation, 2.Adaptation, 3. Cross-cutting issues)

Pillar1: Climate Change Mitigation Pillar2: Climate Change Adaptation

1.1: LULUCF 1.2: Energy 2.1: Water
・Reforestation ・Expanding renewable energy resource
2.2: 2.3: Disaster 2.4: Maritime
・Implementation of incentive ・Emission reduction in transport management,
Agriculture management and Fishery
mechanisms and household/commercial water supply,
・Support policy sectors sanitation

Pillar3: Cross-cutting issues

3.2:
3.1：
Mainstreaming
Understanding the 3.5: Fiscal 3.6: Early
climate change in 3.3: CDM 3.4: Co-benefits
impact of climate incentive Warning System
the national
change
development plan
 Case 2: Climate Change Japanese ODA Loan
Kenya: Olkaria I Unit 4 and 5
Geothermal Power Project
Loan Amount Replaceme
Loan Interes
Project nt/Grace
Agreement (Million Yen) t rate
period

Expanding the existing Olkaria I

geothermal power station by installation 30/10
March 0.20
of power generator units 4 and 5, 140 29,156
MW in total in Rift Valley province of 2010 % Year
Kenya (about 75 km northwest of Nairobi)

‐ First Climate Change Japanese ODA Loan in

Sub-Saharan Africa
- Geothermal is highly regarded as a low
carbon, environment-friendly form of power
generation. It drives turbines by using steam
extracted from fluids (mixture of hot water
and steam) that originate from geothermal
heat stored in deep layers of the earth. Photo: Olkaria Geothermal Power Station
 Case 3: Climate Change Japanese ODA Loan
Vietnam: Energy Efficiency and
Renewable Energy Promoting Project
Loan Amount Replaceme
Loan Interes
Project nt/Grace
Agreement (Million Yen) t rate
period

Providing medium- and long-term

loans through the Vietnam
Development Bank (VDB) (called two-
step loan) required to promote the use November 0.01 40/10
4,682
of energy-saving devices and 2009 % Year
renewable energy by companies in
energy-intensive industries (iron &
steel, cement, food processing, etc.)

‐ Assistance to VDB will be provided for

1) capacity building of evaluating energy-related
finance based on Japan’s experiences
2) creating and managing energy-saving and
renewable energy device lists
Photo: from recent training course for Vietnam power engineers
Adaptation
 Case 1: Indonesia
Bali Beach Conservation Project

The project started in 1996 aiming to

conserve four beaches in the island of Bali,
the Republic of Indonesia, where coastal
erosion is a growing concern due to the
increasing impact of ocean waves caused by
coral reef degradation.

The project is expected to counteract the

current and future problems, thus inducing
sound socio-economic development in the
area.

It is also considered an effective adaptation

measure to sea level rise due to climate
change. The project was completed in 2009.
 Case 2: Bangladesh
Project for Construction of Multipurpose Cyclone Shelters,
Emergency Disaster Damage Rehabilitation Project
Bangladesh is a low-lying country with 80% of the national land
lying less than 9 meters above sea level, and suffers extensive
damage from floods and cyclones during the rainy season. In
particular, the Bengal gulf area has been greatly affected by high
tides as a result of cyclones over the years.

After the damage caused by the cyclone in 1991, many bilateral

and international donors jointly initiated the establishment of
cyclone shelters, and JICA has cooperated in establishing 91
shelters through grant aid. In addition, after Cyclone Sidr in
November 2007, JICA promptly provided emergency aid supplies
and loans for the recovery of infrastructures including roads,
bridges, and sewerage systems in urban and rural areas, in
cooperation with other donor organizations.

The measures against current disasters are considered to be

effective for alleviating damage even though risks will increase in
the future due to climate change.