India and Japan have taken a significant step in strengthening international climate cooperation by formally adopting the Rules of Implementation for the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement. The move establishes the operational framework required to launch bilateral carbon market projects and support climate mitigation initiatives between the two countries.
- What is the Joint Crediting Mechanism?
- Framework Establishes Governance and Operational Guidelines
- Supporting Article 6.2 of the Paris Agreement
- Boosting Investment in Low-Carbon Technologies
- Advancing India’s Climate and Sustainable Development Goals
- Strengthening International Climate Cooperation
- Outlook
The rules were adopted on 8 June 2026, nearly a year after India and Japan signed a Memorandum of Cooperation (MoC) to establish the mechanism and explore collaborative opportunities in carbon markets and sustainable development.
What is the Joint Crediting Mechanism?
The Joint Crediting Mechanism (JCM) is a bilateral carbon market framework designed to promote greenhouse gas emission reduction and carbon removal projects while supporting sustainable development goals.
Under the mechanism, emission reductions achieved through approved projects can be converted into internationally recognised carbon credits. These credits can then contribute toward the climate commitments of participating countries under their Nationally Determined Contributions (NDCs) submitted to the United Nations Framework Convention on Climate Change (UNFCCC).
The initiative aligns with the objectives of the Paris Agreement, which encourages international cooperation to accelerate climate action and support global emissions reduction efforts.
Framework Establishes Governance and Operational Guidelines
According to India’s Ministry of Environment, Forest and Climate Change, the newly adopted implementation rules provide a comprehensive governance structure for managing the Joint Crediting Mechanism.
The framework outlines:
- Project approval procedures
- Monitoring and reporting requirements
- Carbon credit issuance processes
- Credit transfer mechanisms
- Validation and verification standards
- Sustainable development safeguards
- Registry management systems
A key component of the framework is the creation of a Joint Committee, comprising representatives from both India and Japan, which will oversee the implementation and governance of the mechanism.
The framework also introduces independent third-party validation and verification processes to ensure transparency, accountability, and environmental integrity.
Supporting Article 6.2 of the Paris Agreement
The adoption of these rules marks a major milestone in operationalising international carbon market cooperation under Article 6.2 of the Paris Agreement.
Article 6.2 enables countries to collaborate on climate action through the transfer of Internationally Transferred Mitigation Outcomes (ITMOs), commonly referred to as carbon credits.
A key feature of the mechanism is the requirement to prevent double counting of emissions reductions. The newly adopted rules establish safeguards to ensure that carbon credits are accurately accounted for and transparently transferred between participating countries.
By creating a robust framework for carbon trading and emissions reductions, the JCM provides a practical pathway for countries to achieve climate targets more efficiently.
Boosting Investment in Low-Carbon Technologies
The Joint Crediting Mechanism is expected to unlock new opportunities for investment in climate-friendly technologies and sustainable infrastructure projects across India.
The framework is designed to encourage:
- Renewable energy projects
- Energy efficiency initiatives
- Low-carbon industrial technologies
- Sustainable transportation solutions
- Carbon removal and sequestration projects
- Green infrastructure development
The mechanism is also expected to facilitate technology transfer from Japan to India, helping accelerate the deployment of advanced climate solutions while building domestic technical capabilities.
Such collaboration could play an important role in supporting India’s long-term decarbonisation strategy and clean energy transition.
Advancing India’s Climate and Sustainable Development Goals
The JCM is expected to support India’s broader efforts to reduce carbon intensity, expand renewable energy capacity, and promote sustainable economic growth.
Projects developed under the mechanism may contribute to multiple national priorities, including:
- Climate change mitigation
- Clean energy deployment
- Industrial decarbonisation
- Sustainable infrastructure development
- Green job creation
- Capacity building and innovation
The initiative also aligns with India’s commitment to achieving its climate objectives while maintaining economic growth and development.
Strengthening International Climate Cooperation
The adoption of the implementation rules reflects the growing importance of international collaboration in addressing climate change and advancing carbon markets.
As governments around the world seek practical and scalable solutions to achieve net-zero targets, mechanisms such as the JCM are emerging as important tools for mobilising climate finance, supporting technology deployment, and encouraging cross-border cooperation.
The India-Japan partnership demonstrates how bilateral agreements can help accelerate emissions reductions while creating economic opportunities and supporting sustainable development.
Outlook
With the implementation framework now in place, India and Japan are positioned to begin developing and approving carbon market projects under the Joint Crediting Mechanism.
The initiative is expected to attract investment, facilitate technology transfer, and support the deployment of low-carbon solutions across key sectors of the economy.
As global carbon markets continue to evolve, the India-Japan JCM could become an important model for future international climate partnerships, helping both nations advance their Paris Agreement commitments while contributing to broader global climate goals.
