India–Japan Pact on Low-Carbon Technology Projects
Why in News?
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During PM Modi’s visit to Japan, India’s Environment Ministry announced it had signed a Memorandum of Cooperation (MoC) with Tokyo on a Joint Crediting Mechanism (JCM).
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This is the first such agreement for India, aimed at promoting low-carbon technology deployment and enabling international carbon credit trading.
What is the Joint Crediting Mechanism (JCM)?
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A Japanese initiative to promote low-carbon technologies in developing countries.
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Japan invests in/employs such technologies abroad; the resulting emission reductions are credited partly to Japan’s carbon accounts, helping it meet national emission-reduction targets.
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Functions under Article 6.2 of the Paris Agreement → enables bilateral/multilateral carbon trading.
Key Features of the India–Japan MoC
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Technology Flow & Investment: Promotes investment, technology transfer, capacity building, and localisation of low-carbon & high-tech solutions (equipment, systems, infrastructure).
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Carbon Credits: Allows international trading of carbon credits generated from JCM projects.
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Safeguard: Will not adversely affect India’s own Nationally Determined Contribution (NDC) targets.
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Implementation: Facilitates projects contributing to greenhouse gas (GHG) reduction, removal, and sustainable development in India.
Institutional Mechanism in India
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National Designated Authority (NDA) constituted as the nodal agency for:
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Approving JCM projects.
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Evaluating emission reductions.
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Overseeing Indian carbon market functioning.
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Cabinet has authorised the Ministry to finalise rules and sign similar MoUs with other countries.
India’s NDC Commitments (Paris Agreement)
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Reduce emission intensity of GDP by 45% by 2030 from 2005 levels.
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Achieve 50% cumulative power capacity from non-fossil fuel sources by 2030.
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Create an additional carbon sink of 2.5–3 billion tonnes of CO₂ equivalent through afforestation by 2030.
Significance of the Pact
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Boosts India–Japan climate cooperation and strengthens strategic green partnership.
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Helps India access advanced technologies & investments at scale.
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Supports India’s goals of energy transition, carbon market development, and green growth.
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Positions India as an active participant in international carbon trading under Article 6.2.
Conclusion
The India–Japan Joint Crediting Mechanism (JCM) marks a significant step in aligning climate diplomacy with sustainable development goals. By facilitating technology transfer, investment, and carbon credit trading under Article 6.2 of the Paris Agreement, it not only strengthens bilateral green cooperation but also helps India accelerate its low-carbon transition without compromising its NDC commitments. The initiative can serve as a model for India’s future collaborations with other countries, boosting its role as a key player in the evolving global carbon market.
