Joint Crediting Mechanism (JCM)

What is it?

A Japanese program that funds low-carbon technologies in emerging countries.

The emission reductions attained are attributed in part to Japan’s account, aiding it in fulfilling its emission-reduction obligations.

Goals

Encourage Technology Transfer – Support the exchange of Japanese low-carbon technologies to India.

Mobilize Investment – Stimulate financial resources for sustainable projects and infrastructure.

Capacity Development – Enhance local expertise in managing cutting-edge climate technologies.

Carbon Credit Trading – Allow India to exchange credits with Japan as per Article 6.2 of the Paris Agreement.

Sustainable Development – Assist India in transitioning to renewable energy and enhancing climate resilience.

Characteristics of the Indo-Japan Agreement

Groundbreaking MoC on low-emission collaboration.

Addresses the localization of equipment, machinery, systems, and infrastructure.

Supervised by the National Designated Authority for Carbon Markets in India.

Coherence with India's NDC objectives:

Reduce emission intensity by 45% by 2030 compared to 2005 levels.

Reach 50% of installed power capacity from renewable sources by 2030.

Establish a carbon sink of 2.5–3 billion tonnes CO₂ via afforestation.

Significance

Diplomatic Importance – Strengthens the climate and technology alliance between India and Japan.

Financial Advantage – Draws in capital, generates employment in sustainable sectors.

Environmental Effect – Bolsters India’s drive for renewable energy and climate promises.

Global Leadership – Establishes India as a significant participant in carbon markets.