India, Japan adopt Rules of Implementation for Joint Crediting Mechanism

Why in News?

India and Japan have adopted the Rules of Implementation for the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement. The rules, adopted on 8 June 2026, operationalise the Memorandum of Cooperation signed between the two countries in 2025 to strengthen cooperation on climate action, greenhouse gas (GHG) emission reduction and sustainable development.

What is the Joint Crediting Mechanism (JCM)?

• The Joint Crediting Mechanism (JCM) is a bilateral carbon crediting initiative launched by the Government of Japan to promote greenhouse gas emission reduction and removal projects in partner countries.
• It facilitates the deployment of advanced low-carbon technologies, infrastructure and investment while generating carbon credits, which are shared between Japan and the partner country in accordance with mutually agreed rules.
• The mechanism is aligned with Article 6.2 of the Paris Agreement, which enables countries to cooperate voluntarily through the transfer of internationally transferred mitigation outcomes (ITMOs) to achieve their Nationally Determined Contributions (NDCs).

Key Features of the Rules of Implementation

The Rules of Implementation establish the institutional and operational framework for implementing JCM projects in India. They provide for:

• A Joint Committee comprising representatives of both governments to oversee the mechanism.
• Transparent procedures for project approval and registration.
• Independent third-party validation and verification of emission reductions.
• Sustainable development safeguards to ensure environmental and social integrity.
• National registries for tracking the issuance, transfer and accounting of carbon credits, thereby preventing double counting.

Significance

• The JCM will facilitate investment in low-carbon and climate-friendly technologies in India while supporting sustainable development. It will help reduce greenhouse gas emissions, enhance technology transfer, mobilise climate finance and strengthen bilateral cooperation between India and Japan.

• The mechanism will also contribute to the achievement of the Nationally Determined Contributions (NDCs) of both countries under the Paris Agreement by enabling transparent and accountable international carbon market cooperation.

About Article 6.2 of the Paris Agreement

• Article 6.2 provides a framework for voluntary cooperation among countries to achieve their climate targets through the transfer of Internationally Transferred Mitigation Outcomes (ITMOs). It establishes accounting rules to ensure environmental integrity and prevent double counting of emission reductions while encouraging cost-effective global climate action.

Sources: AIR & Japan Government