The Asian Development Bank approved financing on June 26, 2026 for a rooftop solar aggregation and virtual net metering project in Sri Lanka, drawing on the Japan Fund for the Joint Crediting Mechanism (JCM) that ADB administers, according to the Ministry of the Environment. Japan’s environment ministry has funded the ADB-housed JCM facility since fiscal 2014 to help offset the added cost of deploying advanced decarbonization technologies across partner countries in Asia.
Under the approved project, JCM Japan Fund money will go toward installing roughly 140 kilometers of high-efficiency, low-loss distribution wiring and deploying high charge/discharge-rate batteries across a regional grid owned by Sri Lanka’s Lanka Electricity Company (LECO). The upgrade is intended to renew distribution infrastructure, stabilize the power system, and deliver sustained cuts in energy-related CO2 emissions, with the ministry putting expected annual reductions at approximately 6,267 tonnes of CO2. The ministry and ADB said they will now work with Sri Lankan authorities on the procedures needed to issue JCM credits for the project.
Carbon Market Context
- The JCM is Japan’s bilateral offset mechanism, under which emissions reductions achieved through Japanese-backed technology deployed in partner countries are counted toward Japan’s own national climate targets — the framework driving this Sri Lanka grid and solar-integration project.
Source
- アジア開発銀行による二国間クレジット制度日本基金を活用した屋根置き太陽光発電集約化・バーチャルネットメータリングプロジェクトへの支援（スリランカ民主社会主義共和国）の承認について環境省 — 報道発表, published 2026-07-06