Context
Recently, India and Japan agreed on the implementation framework for the Joint Crediting Mechanism (JCM), marking a step forward in bilateral cooperation on climate mitigation and carbon market mechanisms under the Paris Agreement.
About Joint Crediting Mechanism (JCM)
- The Joint Crediting Mechanism (JCM) is a bilateral climate cooperation framework proposed by Japan and launched in 2013.
- It aims to promote the deployment of advanced decarbonisation technologies and infrastructure in partner countries through investments by Japanese entities.
- The mechanism is implemented under Article 6 of the Paris Agreement and operates within the framework of the United Nations Framework Convention on Climate Change (UNFCCC).
- It supports the achievement of participating countries’ Nationally Determined Contributions (NDCs) by quantifying emission reductions and facilitating the sharing of resulting carbon credits.
- It complements existing international mechanisms such as the Clean Development Mechanism (CDM) and Joint Implementation (JI).
- India is among the 31 partner countries participating in the mechanism.
- It promotes sustainable development in partner countries through technology transfer and climate-friendly investments.
- Priority sectors under the mechanism include renewable energy with storage, sustainable aviation fuel, compressed biogas, green hydrogen, green ammonia, and other hard-to-abate sectors.
