The minute
- The Joint Crediting Mechanism (JCM) is a bilateral framework letting Japan and partner countries share carbon credits generated by joint emissions-reduction projects; the Japan-India cooperation agreement was signed on August 7, 2025, with implementation rules adopted on June 8, 2026
- Under Article 6.2 of the Paris Agreement, international transfer of emissions reductions requires a “corresponding adjustment”: both countries adjust their emissions accounting to prevent double-counting the same credit
- Eligible project categories include compressed biogas, renewable hydrogen and ammonia, high-emission industrial processes, carbon capture and storage (CCS), and energy efficiency; an India forum is scheduled for September 28, 2026 to promote new projects
Why it matters
Japan aims to secure about 100 million tonnes of international greenhouse gas reductions by fiscal 2030 through its 32 JCM partner countries — India joining under this formal Article 6.2 structure (rather than just an informal bilateral deal) is the kind of legal certainty that attracts real long-term investment in decarbonization projects.
For India, the mechanism is expected to work as a two-way street: India gets Japanese low-carbon capital and technology, while Japan gains access to projects in the country’s fast-growing clean energy sector — a model likely to repeat across the other 30+ JCM partner countries as each bilateral deal matures into formal implementation rules. via Carbon Credits
There is no newsletter yet. Leave your email and you will hear first on the day there is one.