Joint Crediting Mechanism (JCM) between India and Japan

Prelims (GS - I) – Environmental Ecology & Climate Change, International Relations.

Mains (GS - II & III) – GS II (Governance, International Relations) | GS III (Environment, Economy, Science & Tech).

Why in News?

India and Japan plan to sign a Memorandum of cooperation for setting up a Joint Crediting Mechanism (JCM) to share emission reduction credits under Article 6.2 of the Paris Agreement.

• Initiated by – Japan.
• Objective – To facilitate the transfer of low-carbon technologies and infrastructure through investment by Japanese corporations to developing nations in exchange for carbon credits.
• Purpose – Helps both India and Japan achieve their climate targets (NDCs) by implementing sustainable technologies and sharing the resulting emission reductions.

• Tracking Mechanism – Carbon credits will be tracked through a registry system, with joint committees managing projects and certifying credits.   
• Key Features of India-Japan JCM - Japan will invest in India’s decarbonization efforts by deploying advanced clean energy technologies.
• India will adopt new emission-reducing technologies in various industries, focusing on high-cost sectors that lack financing.
• Japan can use these credits to meet its NDC commitments, while India benefits from technology transfer and infrastructure development.
• Sectors Covered Under the JCM Agreement - The agreement covers 14 key sectors, including
  • Renewable energy with storage solutions
  • Solar thermal power plants
  • Green hydrogen production
  • Sustainable aviation fuel (SAF)
  • Decarbonization of hard-to-abate sectors

Reference

Business Standard | Joint Crediting Mechanism (JCM)