Joint Crediting Mechanism (JCM)

India and Japan have signed a Memorandum of Cooperation (MoC) to implement the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement. This pact aims to promote low-carbon technology, encourage investment, and strengthen climate action while supporting India’s sustainable development goals.

What is JCM?

The JCM is a Japanese initiative that supports projects using low-carbon technologies in developing countries. The emission reductions achieved are partly credited to Japan’s account, helping it meet its emission reduction commitments, while also benefiting the partner country with green growth opportunities.

Objectives

The key goals of JCM are:

1. Technology Transfer – bringing advanced Japanese low-carbon technologies to India.

2. Investment Mobilisation – encouraging financial flows for clean energy and infrastructure projects.

3. Capacity Building – training Indian professionals in advanced climate technologies.

4. Carbon Credit Trading – enabling India to trade credits with Japan under Paris Agreement rules.

5. Sustainable Development – aiding India’s shift to renewable energy and climate resilience.

Features of the Indo-Japan Pact

* First-of-its-kind MoC on low-carbon cooperation. * Covers equipment, machinery, systems, and infrastructure localisation. * Overseen by India’s National Designated Authority for Carbon Markets. * Aligns with India’s NDC goals: reducing emission intensity by 45% by 2030, achieving 50% non-fossil power capacity, and creating large carbon sinks.

Importance

The JCM strengthens Indo-Japan diplomacy, attracts green investments, creates jobs, and positions India as a leader in carbon markets while boosting climate action.

Conclusion

The JCM is a milestone in Indo-Japan cooperation, combining technology, finance, and climate responsibility. It not only helps Japan meet its targets but also supports India’s clean energy transition, ensuring progress toward a greener and sustainable future.