Evaluating Barriers to Implementing Joint Crediting Mechanism in Indonesia

Criticisms raised against the Clean Development Mechanism (CDM) have placed the
development of alternative market mechanisms on the official agenda of international climate
change negotiations for the past few years. The Joint Crediting Mechanism (JCM), initiated by
the Japanese government, intends to offer a simpler and more flexible crediting scheme. However,
various context-specific barriers have to be identified and removed for the mechanism to function
effectively. For this purpose, this study evaluates factors that are perceived as large barriers by
stakeholders in implementing JCM projects. By applying the analytic hierarchy process (AHP) to
stakeholders in Indonesia, we found that finance comprises the largest barrier, followed by
domestic policies not specifically related to the JCM and insufficient knowledge and capacity.
Results indicate that further measures are needed to address these barriers, such as introducing
new loan schemes, organizing seminars targeted at local financial institutions, and streamlining
domestic policies.