With Prime Minister Narendra Modi on a go to to Japan, India’s Environment Ministry stated on Friday (August 29, 2025) it had signed a Memorandum of Cooperation with Tokyo earlier this month on a primary of its type Joint Crediting Mechanism (JCM).
The JCM is a Japanese initiative, whereby the nation implements and invests in low-carbon technologies in creating nations and the ensuing financial savings in emissions are credited to Japan’s account as carbon credit, that it could use to fulfill its nationwide emissions-reduction targets.
Not counting India, Japan has signed JCM agreements with 30 different nations that are in numerous levels of implementation.
“The JCM will encourage the flow of investment, technology assistance, including technology transfer and capacity building support for the implementation of projects involving these low carbon technologies. It will also develop domestic ecosystem and partnerships to localise low carbon technologies and associated high technology interventions related to equipment, machinery, products, systems and infrastructure, paving the way for their large-scale deployment,” the Environment Ministry stated in a press release.
The Memorandum of Cooperation would additional facilitate the implementation of initiatives contributing to greenhouse gasoline (GHG) discount or elimination and sustainable improvement in India. It may even allow the worldwide buying and selling of carbon credit generated from such initiatives beneath Article 6.2 of the Paris Agreement with Japan and different nations on comparable traces, “without adversely impacting” India’s NDC (Nationally Determined Contribution) commitments, it added.
India’s NDC commits to decreasing its GDP’s emission depth by 45% by 2030 from 2005 ranges, attaining 50% cumulative electrical energy capability from non-fossil gasoline sources by 2030, and creating a further carbon sink of two.5-3 billion tonnes of CO2 equal by 2030 by afforestation.
Earlier this week, the Environment Ministry constituted the ‘National Designated Authority (NDA),’ which is the nodal company to approve such initiatives, consider emission reductions and oversee the functioning of the Indian carbon market.
The Environment Ministry stated it had additionally obtained authorisation from the Union Cabinet to finalise the Rules of Implementation (RoI) and for signing agreements with different nations on comparable traces beneath Article 6.2 of Paris Agreement, in session with the involved Ministries of Government of India and the Ministry of External Affairs, the assertion added.
