Source: PIB
Context: India and Japan have signed a Memorandum of Cooperation (MoC) to implement a Joint Crediting Mechanism (JCM), advancing low-carbon technology projects.
About Joint Crediting Mechanism (JCM)
What it is?
- A Japanese initiative that invests in low-carbon technologies in developing nations.
- Emission reductions achieved are credited partly to Japan’s account, helping it meet its emission-reduction commitments.
- Promote Technology Transfer – Facilitate flow of Japanese low-carbon technologies to India.
- Mobilise Investment – Encourage financial flows for green projects and infrastructure.
- Capacity Building – Strengthen domestic skills in handling advanced climate technologies.
- Carbon Credit Trading – Enable India to trade credits with Japan under Article 6.2 of Paris Agreement.
- Sustainable Development – Support India’s shift towards clean energy and climate resilience.
Features of the Indo-Japan Pact
- First-of-its-kind MoC on low-carbon cooperation.
- Covers equipment, machinery, systems, and infrastructure localisation.
- Overseen by India’s National Designated Authority for Carbon Markets.
- Aligns with India’s NDC goals:
- Cut emission intensity by 45% by 2030 (from 2005 levels).
- Achieve 50% installed power capacity from non-fossil fuels by 2030.
- Create 2.5–3 billion tonnes CO₂ sink through afforestation.
Importance
- Diplomatic Value – Enhances Indo-Japan climate and technology partnership.
- Economic Benefit – Attracts investment, creates jobs in green industries.
- Environmental Impact – Supports India’s renewable push and climate commitments.
- Global Leadership – Positions India as a key player in carbon markets.
