The Joint Crediting Mechanism (JCM)

Source: News on Air

Context

The Government of India and the Government of Japan officially adopted the ‘Rules of Implementation’ for the Joint Crediting Mechanism (JCM) on 8 June 2026, under Article 6.2 of the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC). This operational milestone activates a bilateral carbon market framework that builds on the Memorandum of Cooperation (MoC) signed in 2025. India became the 31st partner in Japan’s JCM network, which now covers 32 countries. The first Joint Committee meeting was held on 22 September 2025, leading to the final adoption of the rules. The mechanism allows Japanese entities to invest in emission-reduction projects in India using advanced green technologies, with the resulting carbon credits shared between both countries to count toward their Nationally Determined Contributions (NDCs).

What is JCM?

• The Joint Crediting Mechanism (JCM) is a bilateral carbon crediting initiative launched by Japan in 2013.
• Promotes greenhouse gas (GHG) emission reduction projects in partner countries.
• Facilitates the deployment of advanced low-carbon technologies, infrastructure, and investment.
• Carbon credits generated are shared between Japan and the partner country.

Legal Mandate

• Governed by Article 6.2 of the Paris Agreement (2015).
• Article 6.2 allows cooperative approaches between countries through transfer of Internationally Transferred Mitigation Outcomes (ITMOs).
• UNFCCC framework applies.

Aim

• Accelerate adoption of high-performance, low-carbon technologies across partner countries.
• Leverage private and public capital to reduce GHG emissions.
• Drive sustainable development.
• Help cooperating nations achieve their NDCs.

Japan’s JCM Network

• Established: 2013.
• Partner countries: Now 32, including India (31st), Indonesia, Vietnam, Ethiopia, Mongolia, Kenya, Bangladesh, Cambodia, Costa Rica, Laos, Maldives, Mexico, Chile, Saudi Arabia, and others.

Article 6 of the Paris Agreement

• Article 6.2: Cooperative approaches for ITMOs (Internationally Transferred Mitigation Outcomes).
• Article 6.4: Sustainable Development Mechanism (centralized carbon market under UN).
• Article 6.8: Non-market approaches.

Sectors of Cooperation Under JCM

• Renewable energy (solar, wind, biomass).
• Energy efficiency (industrial processes, building HVAC).
• Transport (EVs, fuel cells).
• Waste management (waste-to-energy).
• Forestry and REDD+.
• Carbon Capture, Utilization and Storage (CCUS).

Practice MCQs

Q1. With reference to the Joint Crediting Mechanism (JCM) adopted between India and Japan, consider the following statements:

1. India and Japan adopted the Rules of Implementation for JCM on 8 June 2026.
2. JCM is governed under Article 6.2 of the Paris Agreement of the UNFCCC.
3. India became the 31st partner in Japan’s JCM network.
4. JCM was launched by Japan in 2013.

How many of the above statements are correct?

(a) Only one
(b) Only two
(c) Only three
(d) All four
(e) None

Q2. With reference to Article 6 of the Paris Agreement, consider the following statements:

1. Article 6.2 allows cooperative approaches through transfer of ITMOs.
2. Article 6.4 establishes a Sustainable Development Mechanism under UN supervision.
3. Article 6.8 covers non-market approaches.
4. Article 6.2 applies only to developed countries.

Which of the above are correct?

(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1 and 4 only
(e) All four

(Statement 4 is wrong; Article 6.2 applies to all Paris Agreement parties, including developing countries.)

Q3. With reference to JCM’s operational mechanism, consider the following statements:

1. Japanese entities invest in emission-reduction projects in India using advanced green technologies.
2. The carbon credits generated are allocated between Japan and India to count toward their NDC targets.
3. A Joint Committee with representatives from both governments oversees the system.
4. JCM does not require independent third-party validation and verification.

Which of the above are correct?

(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1 and 4 only
(e) All four

(Statement 4 is wrong; JCM requires independent third-party validation and verification.)

Q4. With reference to JCM’s funding channels, consider the following statements:

1. JCM Model Projects are funded by the Ministry of the Environment of Japan (MOEJ).
2. The Japan Fund for the Joint Crediting Mechanism (JFJCM) is managed by the Asian Development Bank (ADB).
3. Demonstration projects are managed by the New Energy and Industrial Technology Development Organization (NEDO).
4. JCM is funded solely by the Indian government.

How many of the above statements are correct?

(a) Only one
(b) Only two
(c) Only three
(d) All four
(e) None

(Statement 4 is wrong; JCM is funded primarily by Japan through multiple channels, NOT solely by India.)

Q5. With reference to India’s climate commitments under the Paris Agreement, consider the following statements:

1. India aims to reduce emissions intensity of GDP by 45 per cent by 2030 (from 2005 levels).
2. India targets 50 per cent of cumulative installed electric power capacity from non-fossil fuel sources by 2030.
3. India has committed to achieve net-zero emissions by 2070.
4. India has committed to net-zero emissions by 2050.

How many of the above statements are correct?

(a) Only one
(b) Only two
(c) Only three
(d) All four
(e) None

(Statement 4 is wrong; India’s net-zero target is 2070, NOT 2050.)

Answer Key

1. (d), All four statements are correct.
2. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because Article 6.2 applies to all parties.
3. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because third-party validation is required.
4. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because JCM is funded by Japan primarily.
5. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because India’s net-zero target is 2070.