March 3, 2011
1. February 14th 2011, the Japan International Cooperation Agency (JICA) signed an agreement with the City of Yokohama to enable the carbon offset proposed by the City of Yokohama. The Certified Emission Reductions (CERs) used for the offset were acquired from the World Bank's Prototype Carbon Fund (PCF) where JICA provides equity investment through Private Sector Investment Finance (PSIF) scheme. 762 CERs (tCO2e) originally issued from one of the PCF projects in the Philippines were used to compensate 762 tons of emissions of carbon dioxide, a part of greenhouse gases generated during APEC, the Asia-Pacific Economic Cooperation forum held in Yokohama in November 2010.
2. The PCF was structured as a public-private partnership carbon fund started with 23 governmental agencies and private companies from 10 countries around the world, including JICA, participating through PSIF. The PCF is an initiative to establish Clean Development Mechanism (CDM) and Joint Implementation (JI) frameworks, as well as to promote projects from the early stage, where private entities cannot cover whole potential risks.
3. In May 2000, JICA decided to participate in PCF by equity investment, looking at the pioneering nature of the fund and the importance of sustainable development in developing countries through carbon emissions reduction projects such as renewable energy projects. Emission reductions generated from PCF projects are distributed to PCF participants, including JICA, on a pro-rata basis.
4. 762 CERs (tCO2e) used in this carbon offset were generated from NorthWind Bangui bay Project in the Philippines, which represents the very first commercial wind power project in the country and in the ASEAN Region with the carbon finance provided by PCF. Supply of clean energy instead of fossil fuel-based energy has a great importance in a country such as the Philippines, facing serious energy shortage problem.
5. The resource of the offset came from the sales of 762,000 bottled water officially sold by Yokohama Waterworks Bureau during July-November 2010. It means that the carbon offset is achieved by the cooperation of the citizens to tackle the global climate change issues. It is notable that with this offset scheme, it also contributes toward Japan's target for the reduction of greenhouse gas emissions (6 percent below the level in 1990) within the first commitment period of the Kyoto Protocol.