Context: India Japan Joint Crediting Mechanism
India and Japan adopted the Rules of Implementation for the Joint Crediting Mechanism under Article 6.2 of the Paris Agreement, operationalising bilateral carbon-market cooperation.
Carbon Credit
A carbon credit is a tradable unit representing 1 tonne of Carbon Dioxide or equivalent greenhouse gas reduced, avoided or removed.
Joint Crediting Mechanism
The Joint Crediting Mechanism is a bilateral mechanism under which Japan finances or provides low-carbon technology in India.
The resulting emission reductions generate carbon credits that are shared by both countries.
Internationally Transferred Mitigation Outcomes
Internationally Transferred Mitigation Outcomes are carbon credits transferred between countries under Article 6.2 towards their Nationally Determined Contributions.
Flow
Japan’s finance / technology
→ Emission reduction project in India
→ Carbon credits generated
→ Credits transferred / shared as ITMOs
Article 6 of the Paris Agreement
Article 6.2
- Country-to-country carbon market.
- Includes mechanisms like JCM and ITMOs.
Article 6.4
- United Nations-supervised global carbon market.
Article 6.8
- Non-market cooperation.
- Includes finance, technology transfer and capacity building.
Significance
- Promotes low-carbon technology transfer.
- Helps India achieve climate mitigation targets.
- Supports Japan’s climate commitments.
- Encourages private investment in clean technologies.
- Strengthens bilateral climate cooperation.
