The India-Japan Joint Crediting Mechanism

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Key takeaways

India and Japan launched the Operational Manual for the India-Japan Joint Crediting Mechanism (JCM) in New Delhi to move from bilateral design to actual project execution.
The initiative operates under Article 6.2 of the Paris Agreement using a Memorandum of Cooperation (MoC) signed on August 7, 2025.
It aims to mobilize private climate finance and advanced clean technologies for high-integrity emission reductions in India.
The Rules of Implementation (RoI) were formally adopted on June 8, 2026, to guide project verification and credit sharing.

India and Japan jointly launched the Operational Manual for the India-Japan Joint Crediting Mechanism (JCM) in New Delhi.
This launch marks a major shift from basic bilateral talks into actual project execution.

The Joint Crediting Mechanism (JCM) is a bilateral project-based cooperative setup started by Japan and partner developing countries.
It spreads advanced low-carbon technologies, infrastructure, products, and services to create verified greenhouse gas emission reduction and removal credits.

The mechanism works under Article 6.2 of the Paris Agreement, which sets up a formal accounting system for voluntary bilateral cooperation and the transfer of Internationally Transferred Mitigation Outcomes (ITMOs).
It rests on the bilateral Memorandum of Cooperation (MoC) signed on August 7, 2025, and the Rules of Implementation (RoI) adopted on June 8, 2026.

The initiative aims to bring in private climate finance and advanced technologies to achieve high-integrity emission reductions in India.
It also recognizes Japan's contribution toward its own Nationally Determined Contribution targets without causing double counting.

Technology Diffusion and Project Development: Japanese and Indian participants work together to bring advanced clean technologies into Indian industries.
Project Submission and Approval: Entities submit a Project Idea Note (PIN) and Project Design Document according to the new Operational Manual.
Third-Party Verification: An independent designated third-party entity checks the project methods and verifies baseline emission cuts.
Bilateral Joint Committee Oversight: A joint committee representing both governments checks the verification reports and approves the final amount of pollution reduced.
Credit Issuance and NDC Allocation: JCM credits are issued and shared between India and Japan, where Japan uses its share for its targets while India keeps its share and gains cleaner infrastructure.

Comprehensive Full-Cycle Operational Manual: It provides clear and standard rules for every step of project building, method creation, monitoring, reporting, checking, and digital credit transfers.
Article 6.2 High-Integrity Accounting: It uses strict corresponding adjustments to stop the double counting of emission cuts, keeping global carbon markets transparent.
Co-Financing and Risk Mitigation: It combines Japanese public and private financial subsidies to lower investment risks for expensive green projects in India.
Alignment with Domestic Climate Priorities: It directs investments straight into sectors matched with India's Long-Term Low-Emission Development Strategy (LT-LEDS) to support local green jobs and industry cleaning.