The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MOU) to promote the Clean Development Mechanism (CDM) with the Electricity Generating Authority of Thailand (Egat) and Japan Carbon Finance (JCF).
The MOU aims to promote greenhouse gas (GHG) reduction projects in Thailand, helping JCF and other Japanese firms to acquire GHG emission reduction credits generated from such projects. Specifically, the MOU establishes that all three companies will share information on Kyoto mechanisms and candidate CDM projects in Thailand and provide advice concerning CDM projects.
Thailand’s first CDM project obtained cabinet approval earlier this year and other CDM- related activities have been gaining momentum. There are a large number of CDM projects showing potential in biomass and energy conservation in this country. The Cebu Declaration on East Asian Energy Security adopted at the Second East Asia Summit held in the Philippines in January, cited the GHG emissions as one of its goals.
There is a prevalent belief amongst Asian countries that a strong effort to tackle CDM projects will help improve the environment and upgrade energy efficiency.
This MOU follows JBIC’s consistent effort to advance the Kyoto Mechanisms, by using its ties with developing country governments and international offices. Given the country’s high energy use and restricted ability to further reduce emissions, it is crucial for Japan to make full use of the Kyoto Mechanisms, including the CDM, to achieve its GHG emission target. The agreement represents JBIC’s commitment to helping Japan reach this target.