SYLLABUS
GS-3: Conservation, environmental pollution and degradation, environmental impact assessment.
GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context: India and Japan adopted the Rules of Implementation of the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement, establishing an operational framework for bilateral cooperation on greenhouse gas emission reduction, carbon credit generation, and sustainable development.
About the Rule of Implementation of the Joint Crediting Mechanism (JCM)
- The JCM is a project-based bilateral carbon crediting mechanism initiated by Japan in 2013.
- It aims to facilitate the deployment of low-carbon technologies, products, systems, infrastructure, and mitigation actions that reduce or remove greenhouse gas (GHG) emissions.
- India and Japan signed a Memorandum of Cooperation (MoC) on 7 August 2025 to establish the JCM.
- Objectives:
- Promote diffusion of advanced low-carbon technologies in India.
- Achieve measurable GHG emission reductions or removals.
- Support sustainable development in India.
- Contribute to the achievement of the Nationally Determined Contributions (NDCs) of both India and Japan.
About Article 6.2 of the Paris Agreement
- The Paris Agreement was adopted in 2015 at COP-21.
- It aims to:
- Limit global temperature rise to well below 2°C above pre-industrial levels.
- Pursue efforts to limit warming to 1.5°C.
- Countries submit and implement their Nationally Determined Contributions (NDCs) to achieve these goals.
- Article 6 provides a framework for international cooperation in climate action, including carbon markets and non-market approaches.
- It contains:
- Article 6.2 – Cooperative Approaches.
- Article 6.4 – Mechanism for Mitigation and Sustainable Development.
- Article 6.8 – Non-market Approaches.
- Article 6.2: Cooperative Approaches
- Enables countries to voluntarily cooperate in achieving their climate targets.
- Allows transfer of Internationally Transferred Mitigation Outcomes (ITMOs), commonly referred to as internationally recognized carbon credits.
- Functions through bilateral or multilateral arrangements designed by participating countries.
- Considered a decentralized framework, with governance largely undertaken by participating countries rather than the UNFCCC.
- Requires robust accounting systems, transparency, environmental integrity, and corresponding adjustments to prevent double counting of emission reductions.
Significance
- Climate Action and NDC Achievement: Strengthens India–Japan cooperation in achieving their respective NDC commitments under the Paris Agreement and provides a structured mechanism for delivering verifiable emission reductions.
- Investment in Low-Carbon Technologies: Encourages investments in renewable energy, energy efficiency, industrial decarbonisation, clean infrastructure and advanced climate technologies.
- Technology Transfer and Capacity Building: Facilitates transfer of Japanese low-carbon technologies and expertise while enhancing technical capabilities and institutional capacity in India.
- Carbon Market Development: Integrates India into emerging international carbon market mechanisms under Article 6 and creates opportunities for generating and transferring high-integrity carbon credits.
- Sustainable Development Benefits: Supports economic growth while reducing emissions and promotes sustainable development outcomes alongside climate mitigation.
- Environmental Integrity: Establishes robust MRV systems, third-party verification and corresponding adjustments to ensure credibility and transparency of carbon credits.
- Importance as an Article 6.2 Model: The JCM is widely regarded as one of the most advanced examples of a bilateral cooperative approach under Article 6.2, serving as a practical model for future international carbon market cooperation.
Sources
PIB
DD India
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