India-Japan Memorandum of Cooperation on Joint Crediting Mechanism (JCM)
Prime Minister of India, during the 15th India-Japan Annual Summit in Tokyo, announced a significant agreement between India and Japan. The countries signed a Memorandum of Cooperation earlier in August 2025, focusing on the Joint Crediting Mechanism (JCM).
Overview of JCM
- Japanese Initiative: JCM is a scheme where Japan invests in low-carbon technologies in developing countries, gaining carbon credits for emission reductions.
- Global Reach: Japan has JCM agreements with 30 other countries.
Benefits for India
- Investment and Technology Flow: Encourages investment and technology transfer, including capacity building for low-carbon projects.
- Domestic Ecosystem Development: Aims to localize technology and deploy high-tech interventions in equipment, systems, and infrastructure.
Alignment with India's Commitments
- Greenhouse Gas Reduction: Facilitates GHG reduction projects contributing to sustainable development.
- International Trading: Allows trading of carbon credits under Article 6.2 of the Paris Agreement, aligning with India's NDCs.
India's Nationally Determined Contributions (NDCs)
- Reduce GDP's emission intensity by 45% by 2030 (from 2005 levels).
- Achieve 50% electric power capacity from non-fossil sources by 2030.
- Create an additional carbon sink of 2.5-3 billion tonnes CO2 equivalent by 2030 through afforestation.
National Designated Authority (NDA)
- Role: Serves as the nodal agency to approve projects, evaluate emission reductions, and oversee the Indian carbon market.
Future Actions
- Rules of Implementation: Union Cabinet authorized to finalize rules and agreements with other countries under Article 6.2.
- Consultation Process: Involves concerned Indian Ministries and the Ministry of External Affairs.
