As part of its plan to provide climate aid the developing world, Japan has expanded the support it provides to the Caribbean countries.
Under the Project for Japan-Caribbean Climate Change Partnership, the former will provide eight Caribbean countries $15 million for preparing and designing their Nationally Appropriate Mitigation Actions (NAMAs) and National Adaptation Plans (NAPs). As per the agreements signed over the last few UN-led Conference of Parties countries are required to submit these action plans to the United Nations Framework Convention on Climate Change (UNFCCC) so as to facilitate financial and technical support from the developed countries. The action plans are developing countries’ equivalent of Kyoto Protocol.
Following the preparation of these action plans, Japan has also promised assistance for their implementation. Japan may provide finance and equipment for implementation of mitigation measures (renewable energy and energy efficiency projects), as well as adaptation measures (land, water management).
In May, the Inter-American Development Bank and the Japan International Cooperation Agency (JICA) signed an agreement to boost the amount of concessional loans offered to Caribbean and Central American countries from $300 million to $1 billion. The first loans issued by JICA are already being used for implementation of renewable energy and energy projects in Nicaragua and geothermal power projects in Costa Rica.
Ever since Japan’s exit from Kyoto Protocol, it has aggressively expanded its Joint Credit Mechanism. Through this mechanism, Japan signs agreements with developing countries and provides technical and financial aid to implementation of pilot mitigation projects. In the long-term, Japan is expected to purchase the emissions offset through these projects to fulfil its own emission reduction targets. Such a mechanism ensures supply of cheap mitigation instruments and a market for Japanese clean energy equipment companies.
Recently, Japan signed a Joint Credit Mechanism agreement with Mexico pushing the number of countries covered through this mechanism to 12.