Source: TH
Context: India and Japan are planning to establish a Joint Crediting Mechanism (JCM) for carbon trading and credit adjustment, formalized through a Memorandum of Cooperation.
- Under this mechanism, carbon credits will be allocated through a structured process and tracked via a registry.
- These credits will contribute to each country’s Nationally Determined Contributions under the Paris Agreement.
- The proposal aims to attract investments in low-carbon technologies, fostering job creation and technological diffusion.
- The JCM will be governed by relevant domestic laws and regulations, with a joint committee developing the necessary rules and guidelines.
- The mechanism ensures that credits can be shared between both countries while avoiding double counting.
