Japan’s Ministry of the Environment (MOE) has selected one new project under its Joint Crediting Mechanism (JCM) Equipment Subsidy Programme for fiscal years 2025–2027, designating it as the ninth round of awards under that cycle. The Global Environment Centre Foundation, which administers the subsidy on MOE’s behalf, accepted applications from Japanese private-sector entities between 7 April and 30 September 2025 before conducting document and interview reviews.
The sole selected project is based in Sri Lanka’s Northern Province and will be led by Settsu Soko Co., Ltd.. The project centres on building an integrated cold chain by introducing energy-efficient refrigerated and frozen transport vehicles, a solar power system paired with battery storage for self-consumption within the chain, and heat-reflective coatingsapplied to refrigerated storage facilities. Solar electricity generated during daytime will be stored and discharged in the evening to displace grid power derived from fossil fuels. Combined with broader energy-efficiency improvements across cold chain operations, the project targets an annual GHG reduction of approximately 3,772 tCO2.
The MOE framed the announcement against Japan’s revised Global Warming Countermeasures Plan (Cabinet decision, February 2025), which sets a public-private target of roughly 100 million tCO2 in cumulative international reductions by FY2030 and 200 million tCO2 by FY2040 through JCM. Japan now holds bilateral JCM agreements with 32 countries and has more than 290 projects underway. Credits generated are allocated in line with Article 6 of the Paris Agreement, counted toward Japan’s NDC, with corresponding adjustments applied so partner-country totals are not reduced by the same volume.
Carbon Market Context
- Japan’s domestic GX policy environment has been active in parallel: the in-house policy tracker records that the GX Future Consortium and GX Future League opened membership recruitment in March 2026, signalling continued government effort to build demand-side decarbonisation infrastructure alongside JCM’s supply-side credit generation.
Source
- 令和７年度から令和９年度「二国間クレジット制度資金支援事業のうち設備補助事業」の第九回採択案件の決定について環境省 (Ministry of the Environment, Japan), 29 May 2026