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, adopted on June 8, 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 and advancing sustainable development outcomes.
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 both countries in achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement.
The Rules of Implementation lay down governance arrangements, including the establishment of a Joint Committee comprising representatives from both governments. They also provide for project approval procedures, third-party validation and verification systems, sustainable development safeguards, and national registries to track the issuance and transfer of carbon credits.
The Joint Crediting Mechanism is expected to encourage investment in low-carbon and decarbonisation technologies by creating a structured framework for generating and transferring emission reduction credits. It will also promote technology transfer, capacity building and the deployment of climate-friendly solutions in emission-intensive sectors.
Article 6.2 of the Paris Agreement enables 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 framework reflects India’s commitment to advancing climate action through international cooperation and is expected to strengthen investment flows, technology transfer and capacity-building for low-carbon projects across the country.
