Japan has signed a joint offset agreement with Tanzania to help push low-carbon growth in the African country through investment and the use of advanced technologies and infrastructure.
Under the deal, which was signed on 28 May, the countries will create a joint crediting mechanism (JCM) to promote investment and use of decarbonisation technologies, products, systems, services and infrastructure in Tanzania. The countries will also put in place mitigation actions to reduce or remove greenhouse gas (GHG) emissions, along with sustainable development.
Verified carbon reductions or removals under the JCM can be quantified on an international basis. Some of the JCM credits issued from such mitigation efforts will be used to achieve Japan's nationally determined contributions (NDCs), while ensuring that double counting is avoided on the basis of corresponding adjustments between countries and consistency with the guidance on co-operative approaches in Article 6.2 of the 2015 Paris climate agreement.
This is the 30th bilateral carbon offset agreement signed by Japan since the JCM scheme was launched in 2013. This means Tokyo has now achieved its goal to increase the number of its JCM partner counties to 30 by 2025.
Japan aims to reduce GHG emissions by 73pc by the April 2040-March 2041 fiscal year compared to 2013-14 levels. Tokyo has already submitted this 2040-41 emission target, as well as a 60pc emissions reduction goal for 2035-36, as its NDC to UN climate body the UNFCCC.
JCM credits could be traded under Japan's green transformation emission trading system (GX-ETS), where the government allocates free allowances for each eligible entity every year under the cap-and-trade programme. The National Diet approved the bill to launch the GX ETS on 28 May. The law is scheduled to take effect on 1 April 2026.
Tokyo currently aims to start trading of emissions allowance and specific carbon credits, such as JCM credits and the government-guaranteed J-Credits, in the autumn of 2027.
