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Financial
Mechanism for “Cool Earth Partnership”
“The other pillar of
International Environment Cooperation is assistance to developing
countries that are aiming to achieve both emissions reductions and
economic growth and working to contribute to climate stability.
As one measure,
Japan will establish a new financial mechanism, Cool Earth
Partnership, on the scale of US$10 billion. Through this, Japan will
cooperate actively with developing countries’ efforts to reduce
emissions, such as efforts to enhance energy efficiency. At the same
time, we will extend the hand of assistance to developing countries
suffering severe adverse impacts as a result of climate change. In
addition, Japan aims to create a new multilateral fund together with
the United States and the United Kingdom, and we call for
participation from other donors as well. We will use such
instruments to strengthen our solidarity with developing countries
and work towards the reduction of greenhouse gases globally.”
- Statement by Prime
Minister Fukuda in Davos (Jan 26, 2008)
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Financial Mechanism to assist developing countries to
address climate change
Starting
this year, Japan will provide funds amounting approximately
to US$ 10 billion (JP¥ 1,250 billion) in aggregate
over the next five years. Assistance will be provided to
developing countries, that are making efforts to reduce GHGs
emissions and achieve economic growth in a compatible way,
on the basis of policy consultations between Japan and those
countries.
1.
Assistance for adaptation to climate change and improved
access to clean energy: up to US$ 2 billion (JP¥ 250
billion)
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Grant
aid, technical assistance and aid through international
organizations will be provided to
address the needs in developing countries. A new scheme
of grant aid, “Environment Program
Grant Aid”, will be created as a component of this
package.
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In the
context of improved access to clean energy, feasibility
study on rural electrification
projects with geothermal energy and “co-benefit”
projects that address climate change will be
conducted.
2.
Assistance for mitigation of climate change: up to US$ 8
billion (JP¥ 1 trillion)
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“Climate
Change Japanese ODA Loan” with preferential interest
will be created to provide
loans amounting to JP¥ 500 billion for the purpose of
implementing programs to address
global warming in developing countries.
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Through
capital contribution and guarantee by JBIC (JBIC Asia
and Environment Facility),
trade and investment insurance by NEXI, and government
support (projects to be implemented
through NEDO), together with private funds, up to JP¥
500 billion will be provided for
projects to reduce GHGs emission in developing
countries. In this context Asian Clean Energy
Fund (at ADB) will also be utilized to promote energy
conservation in the Asian-Pacific
region.
Japan aims
to create a new multilateral fund together with the United
States and the United Kingdom, calling for participation
from other donors as well. |
(*Amounts are all approximate estimates.)
Scope of Assistance
(examples)
1. Adaptation to
climate change
Measures to assist
developing countries, which are vulnerable to the adverse effects of
climate change (e.g. African and Pacific island counties), to take
adaptive measures (e.g. measures against disasters related to
climate change (including disaster prevention) such as droughts and
floods, planning of adaptation measures)
2. Improved access
to clean energy
Measures to promote
economic development through utilizing clean energy in developing
countries which has insufficient access to modern energy supply
(e.g. electrification of rural communities by introduction of solar
power generation and small-scale hydro energy)
3. Mitigation of
climate change
Measures to mitigate
effects of global warming by reducing GHGs emission (e.g.
improvement of energy efficiency of electric power plants)
abbreviation:
JBIC
Japan Bank for International Cooperation
NEDO New Energy and
Industrial Technology Development Organization
NEXI Nippon
Export and Investment Insurance
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