India, Japan adopt implementation rules for Joint Crediting Mechanism under Paris Agreement
India and Japan have adopted the Rules of Implementation for the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement, marking a key step in bilateral cooperation on climate action and carbon market mechanisms.
The rules were adopted on June 8 and provide the operational framework for implementing the mechanism, which aims to support projects that reduce or remove greenhouse gas emissions while contributing to the climate goals of both countries.
The development follows the signing of a Memorandum of Cooperation between India and Japan last year, which established a framework for collaboration on mitigation activities. The mechanism is designed to facilitate emission reduction projects in India while supporting sustainable development and helping both countries meet their Nationally Determined Contributions (NDCs) under the Paris Agreement.
The Rules of Implementation lay down governance arrangements for the mechanism, including the establishment of a Joint Committee comprising representatives from both governments. The framework also provides for project approval procedures, third-party validation and verification processes, sustainable development safeguards and national registries for tracking the issuance and transfer of carbon credits.
The Joint Crediting Mechanism is expected to encourage investments in low-carbon and decarbonisation technologies by creating a framework for generating and transferring emission reduction credits. It is also aimed at promoting technology transfer, capacity building and the deployment of climate-friendly solutions in sectors contributing to greenhouse gas emissions.
Article 6.2 of the Paris Agreement allows countries to cooperate voluntarily in achieving their climate targets through the transfer of internationally recognised carbon credits, subject to agreed accounting and transparency rules.
The adoption of the implementation rules is expected to pave the way for the identification and approval of projects under the India-Japan Joint Crediting Mechanism, opening new opportunities for climate-focused investments and collaboration between the two countries.
