India and Japan adopt rules to advance bilateral cooperation on climate action and carbon credits

New Delhi:- India and Japan have adopted the ‘Rule of Implementation’ for the Joint Crediting Mechanism (JCM) under Article 6.2 of the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC), strengthening bilateral cooperation on climate action and sustainable development.

The adoption of the implementation rules follows the signing of a Memorandum of Cooperation (MoC) between India and Japan in 2025, for establishing the Joint Crediting Mechanism.

The MoC created a framework for cooperation on “mitigation activities that lead to greenhouse gas emission reductions” or removals, while contributing to sustainable development in India and supporting the achievement of the Nationally Determined Contributions (NDCs) of both countries under the Paris Agreement.

In a official statement, the govenrment informed that the implementation rules were adopted on June 8, 2026, providing the operational framework for carrying out projects under the mechanism. The rules establish robust governance arrangements, including the constitution of a Joint Committee comprising representatives from both governments to supervise and guide the implementation of the JCM.

The framework lays down transparent procedures for project approval and introduces provisions for third-party validation and verification of emission reduction outcomes. It also incorporates sustainable development safeguards to ensure that projects deliver environmental and socio-economic benefits.

In addition, national registries will be maintained by both countries to track the issuance, acquisition and transfer of carbon credits generated through approved projects, ensuring transparency and preventing double counting.

The Joint Crediting Mechanism is expected to facilitate the deployment of advanced low-carbon technologies in India by encouraging investments from Japanese entities and promoting technology transfer.The mechanism is also likely to support capacity-building initiatives, enhance technical expertise and create opportunities for Indian industries and institutions to adopt innovative climate-friendly solutions.

Projects implemented under the JCM could span a range of sectors, including renewable energy, energy efficiency, waste management, industrial decarbonisation and other initiatives aimed at reducing greenhouse gas emissions. The emission reductions achieved through these projects will be quantified and verified in accordance with internationally accepted standards before credits are issued.

The Paris Agreement, adopted in 2015 under the UNFCCC, seeks to strengthen the global response to climate change by limiting the increase in average global temperatures and enhancing countries’ ability to adapt to climate impacts.
Under the agreement, each country submits Nationally Determined Contributions outlining its plans to reduce greenhouse gas emissions and pursue climate resilience.

Article 6 of the Paris Agreement provides a framework for voluntary international cooperation in implementing climate action. Specifically, Article 6.2 allows countries to engage in bilateral or multilateral arrangements involving the transfer of internationally transferred mitigation outcomes (ITMOs) to help achieve their NDC targets. Such cooperation is required to adhere to principles of environmental integrity, transparency and robust accounting to avoid double counting of emission reductions.

Japan has been promoting the Joint Crediting Mechanism as a bilateral cooperation tool with partner countries to advance the diffusion of leading decarbonisation technologies and facilitate investment in climate mitigation projects. Through the mechanism, Japan supports projects that generate verified emission reductions, with the resulting credits shared between the participating countries in accordance with agreed arrangements.

For India, the JCM offers an additional avenue to mobilise climate finance, attract investments in clean technologies and strengthen domestic capabilities in low-carbon development. The mechanism aligns with India’s broader climate objectives, including expanding renewable energy capacity, improving energy efficiency and achieving its commitments under the Paris Agreement.

The adoption of the Rule of Implementation marks a significant milestone in operationalising the India-Japan Joint Crediting Mechanism and is expected to pave the way for the identification and approval of projects that contribute to both climate mitigation and sustainable development objectives in the years ahead.