Key Facts
India and Japan have formally adopted the rules of implementation for their Joint Crediting Mechanism (JCM), marking a significant step in bilateral climate cooperation. The announcement was made by the Ministry of Environment, Forest and Climate Change on June 17, 2026.
Details of the Mechanism
Under the JCM, a Japanese company can fund a project in India that reduces or removes greenhouse gas emissions. These reductions are independently verified and converted into carbon credits, which can be transferred between the two countries and counted toward their respective climate pledges under the Paris Agreement.
The rules were adopted on June 8 under Article 6.2 of the Paris Agreement, which allows countries to trade emission reductions bilaterally to meet their Nationally Determined Contributions (NDCs). India and Japan had signed a memorandum of cooperation for the JCM in August last year.
Governance and Implementation
According to an official release, the rules define governance arrangements including a joint committee with representatives from both governments, transparent project approval procedures, third-party validation and verification, sustainable development safeguards, and national registries to track credit issuance and transfer.
The mechanism is expected to attract investment, bring low-carbon technologies to India, build technical capacity, and support emissions-cutting projects. The ministry stated, "The joint crediting mechanism demonstrates India’s firm commitment to climate action. It will catalyse investment, technology transfer and capacity-building for projects involving low-carbon technologies in India."
The Delhi Metro, a product of India-Japan partnership, will be eligible for carbon credit transfer under the JCM.
Broader Context and Concerns
A separate analysis by Zero Carbon Analytics (ZCA) raised concerns about Asia's growing reliance on liquefied natural gas (LNG), warning it could deepen fossil fuel dependence. The analysis found that US LNG resold by Japan to nine Asian countries between 2020 and 2025 generated emissions equivalent to about 17 coal-fired power plants operating for a year.
What Readers Should Know
- The JCM operationalizes bilateral carbon credit trading under the Paris Agreement.
- It promotes investment in low-carbon projects in India.
- Independent verification ensures environmental integrity.
- The mechanism supports India's sustainable development goals.
FAQ
What is the Joint Crediting Mechanism (JCM) between India and Japan?
The JCM is a bilateral framework under Article 6.2 of the Paris Agreement that allows Japan to fund emission reduction projects in India. The resulting carbon credits can be transferred between the two countries to meet their climate targets.
When were the rules for JCM adopted?
The rules of implementation were adopted on June 8, 2026, and formally announced by the Ministry of Environment, Forest and Climate Change on June 17, 2026.
How will the JCM benefit India?
The mechanism will attract investment, facilitate transfer of low-carbon technologies, build technical capacity, and support projects that reduce greenhouse gas emissions, contributing to India's sustainable development.
Which projects are eligible under JCM?
Projects that cut or remove greenhouse gas emissions, such as the Delhi Metro (a product of India-Japan partnership), are eligible. They must be independently verified and approved by a joint committee.