[Title] Memorandum of Cooperation on the Joint Crediting Mechanism between the Government of Japan and the Government of the United Arab Emirates

1. The Government of Japan and the Government of the United Arab Emirates (hereinafter referred to individually as a "government" and collectively as "both governments"), in pursuit of the objectives of the Paris Agreement including holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °C above pre-industrial levels as stipulated in its Article 2, paragraph 1, sub-paragraph (a), and in order to enhance bilateral cooperation in addressing climate change, establish a Joint Crediting Mechanism (hereinafter referred to as "the JCM").

2.The JCM aims to facilitate diffusion of, among others, leading decarbonizing technologies, products, systems, services and infrastructure as well as the implementation of mitigation activities, thereby contributing to greenhouse gas emissions reductions or removals and sustainable development in the United Arab Emirates, and the achievement of nationally determined contributions of Japan and the United Arab Emirates.

3. Both governments implement the JCM in accordance with the relevant domestic laws and regulations in force in their respective countries.

4. Both governments will establish a Joint Committee consisting of representatives from each government to implement the JCM.

5. The Joint Committee develops rules and guidelines necessary for the implementation of the JCM, relating to project cycle procedures, methodologies, project design documents, monitoring, designation of third-party entities, validation and verification and other related matters of the JCM.

6. Both governments mutually recognize that part of the JCM credits issued from emission reductions and removals may be used towards the achievement of Japan's nationally determined contribution and the rest of the said JCM credits may contribute to the achievement of the United Arab Emirates' nationally determined contribution, while ensuring that double counting is avoided on the basis of corresponding adjustments, consistent with the guidance on cooperative approaches, referred to in Article 6, paragraph 2 of the Paris Agreement (hereinafter referred to as "the guidance").

7. Each government authorizes the JCM credits issued in the JCM registry of Japan for use towards the achievement of Japan's nationally determined contribution as internationally transferred mitigation outcomes, consistent with the guidance.

8. Each government may authorize part of JCM credits for use for other international mitigation purposes, as appropriate, consistent with the guidance.

9. Both governments ensure the transparency and environmental integrity of the JCM, and maintain it simple and practical, to promote concrete actions for global greenhouse gas emission reductions and removals.

10. Both governments will work in close cooperation for the implementation of the JCM. The Government of Japan will facilitate technological and capacity building support necessary for the administration of the JCM by the Government of the United Arab Emirates.

11. Either government may terminate this Memorandum of Cooperation by giving at least six (6) months' prior notice to the other government through diplomatic channel. Such termination will not affect existing projects or activities under this Memorandum of Cooperation.

12. Any content of this Memorandum of Cooperation may be modified and supplemented by mutual written consent between both governments.

13. Any differences in the interpretation, application and implementation of this Memorandum of Cooperation are resolved amicably through consultations between both governments.

Signed in Sapporo on 16 April 2023, in two originals in the English language.

For the Government of Japan
NISHIMURA Yasutoshi
Minister of Economy, Trade and Industry

For the Government
of the United Arab Emirates
Dr. Sultan Al Jaber
Minister of Industry and Advanced Technology
UAE Special Envoy for Climate Change