On 8 June 2026 India and Japan adopted the Rule of Implementation for the Joint Crediting Mechanism (JCM), activating a bilateral carbon‑market framework under Article 6.2 of the Paris Agreement.
The Rule and Institutional Setup
- Rule adoption date: 8 June 2026.
- Legal basis: Article 6.2, Paris Agreement; enables internationally transferred mitigation outcomes (ITMOs).
- Governance: A Joint Committee will approve methodologies and oversee operations.
Operational Provisions
- Project scope: GHG emission reduction and removal projects implemented in India with Japanese investment and technology.
- MRV: Measurement, reporting and verification with mandatory independent third‑party validation and verification.
- Registries: National registries to record credit issuance, transfer and ownership.
Credit Accounting and Use
- Credit sharing: Carbon credits generated will be shared between India and Japan.
- NDC integration: Shared credits contribute to each country’s Nationally Determined Contributions.
- Article 6.2 linkage: Transfers treated as ITMOs requiring transparent accounting to avoid double counting.
Scope, Finance and Technology
- Sectors targeted: Heavy industry, energy efficiency and renewable energy.
- Finance support: Provision for viability gap funding for capital‑intensive infrastructure.
- Technology transfer: Deployment of Japanese decarbonisation technologies and capacity‑building.
IASPOINT Booster Facts
- MoC: Memorandum of Cooperation for JCM was signed in 2025 establishing the initial framework.
- Paris rulebook: Article 6.2 requires internationally transferred outcomes to be accounted for in national inventories.
- Registry interoperability: National registries must interoperate to register and transfer ITMOs.